Company Registration No. 10850868 (England and Wales)
FOURWHO LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2020
PAGES FOR FILING WITH REGISTRAR
FOURWHO LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
FOURWHO LTD
BALANCE SHEET
AS AT 31 MARCH 2020
31 March 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
307,367
225,578
Tangible assets
4
9,385
7,578
316,752
233,156
Current assets
Debtors
5
44,907
63,758
Cash at bank and in hand
7,266
6,924
52,173
70,682
Creditors: amounts falling due within one year
6
(240,653)
(159,586)
Net current liabilities
(188,480)
(88,904)
Total assets less current liabilities
128,272
144,252
Capital and reserves
Called up share capital
1,579
1,471
Share premium account
541,050
319,529
Profit and loss reserves
(414,357)
(176,748)
Total equity
128,272
144,252
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial period ended 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 9 September 2020 and are signed on its behalf by:
Mr P V Kelly
Mr D Pearce
Director
Director
Company Registration No. 10850868
FOURWHO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2020
- 2 -
1
Accounting policies
Company information
Fourwho Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Kemp House, 160 City Road, London, EC1V 2NX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is yet to generate significant revenue and has incurred significant development costs. The company meets its day to day working capital requirements through loans from a related party who is heavily involved in the day to day running of the company. Without continuing external support it would be unable to continue to trade at the current time. The company expects a significant cash inflow from the current project shortly, enabling it to meet its day to day working capital requirements for the foreseeable future.
true
The company has capitalised costs of £307,368 for the intangible assets it has developed. Following this treatment there are net assets of £128,272. If this asset were impaired or written down then the company would likely move to a position of net liabilities.
On the basis of the continuing financial support of a related party, the directors consider it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of these loans.
1.3
Reporting period
The comparative accounting period reflects a period of 12 months. During the year, the company shortened its accounting period to
31 March 2020
, for commercial reasons. This has resulted in a reporting period of
8
months. The results will not be directly comparable to future accounting periods.
1.4
Turnover
Turnover
represents amounts receivable for services net of VAT and trade discounts.
1.5
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
Amortisation is recognised so as to write off the
development
cost
over the project commercial life.
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
FOURWHO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Taxation
The tax expense represents the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.11
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
FOURWHO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2020
- 4 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2020
2019
Number
Number
Total
11
9
3
Intangible fixed assets
Other
£
Cost
At 1 August 2019
225,578
Additions
81,789
At 31 March 2020
307,367
Amortisation and impairment
At 1 August 2019 and 31 March 2020
-
Carrying amount
At 31 March 2020
307,367
At 31 July 2019
225,578
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 August 2019
8,892
Additions
3,323
At 31 March 2020
12,215
Depreciation and impairment
At 1 August 2019
1,314
Depreciation charged in the period
1,516
At 31 March 2020
2,830
Carrying amount
At 31 March 2020
9,385
At 31 July 2019
7,578
FOURWHO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2020
- 5 -
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
3,030
6
Other debtors
41,877
63,752
44,907
63,758
6
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
25,063
3,176
Taxation and social security
6,682
5,283
Other creditors
208,908
151,127
240,653
159,586
7
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Three directors
-
360
100
(460)
-
360
100
(460)
-
The aforementioned advances are unsecured and repayable on demand.