Company Registration No. 11439107 (England and Wales)
MICHILD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
LB GROUP
Number One
Vicarage Lane
Stratford
London
England
E15 4HF
MICHILD LIMITED
COMPANY INFORMATION
Director
Mr A Sage
Mr A R Aylwin
(Resigned 2 December 2021)
Mr W J Etchell
(Resigned 2 December 2021)
Mr J R Selvadurai
(Resigned 7 February 2022)
Company number
11439107
Registered office
Number One
Vicarage Lane
Stratford
London
England
E15 4HF
Auditor
LB Group Limited (Stratford)
Number One
Vicarage Lane
Stratford
London
England
E15 4HF
Business address
Rosebuds Nursery
Nook Lane
Ashton-under-Lyne
OL6 9HN
MICHILD LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
MICHILD LIMITED
BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
5
287,044
287,044
Current assets
Debtors
6
200
165,978
Cash at bank and in hand
568
1,540
768
167,518
Creditors: amounts falling due within one year
7
(180,746)
(322,207)
Net current liabilities
(179,978)
(154,689)
Total assets less current liabilities
107,066
132,355
Creditors: amounts falling due after more than one year
8
(198,857)
(212,141)
Net liabilities
(91,791)
(79,786)
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
(91,891)
(79,886)
Total equity
(91,791)
(79,786)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
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 22 December 2022 and are signed on its behalf by:
Mr A Sage
Director
Company Registration No. 11439107
MICHILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
1
Accounting policies
Company information
MiChild Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Number One, Vicarage Lane, Stratford, London, England, E15 4HF.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
At the year end the company had net liabilities of £91,791. The directors have assessed the status of the company and are of the opinion that the company is a going concern. This is due to the support provided by the wider group.
true
The directors also note that the company has traded successfully during the Covid-19 period and has continued to grow its brand. Whilst the economic outlook of the economy is uncertain during this time, the directors are continue to seek to grow the business and the wider MiChild group to utilise opportunities during this time. The directors consider the company to be a going concern due to the continued funding and support of both the parent company and directors. Furthermore, the company continues to have the ongoing support from the primary group lenders in providing ongoing financial support. Thus the directors continue to adopt the going concern basis in preparing these financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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.
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:
Computers
5 years straight line
MICHILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 3 -
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
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
MICHILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
MICHILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
2
Judgements and key sources of estimation uncertainty
(Continued)
- 5 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Impairment of investment
The company tests annually whether investment has suffered any impairment in accordance with the accounting policy stated. The recoverable amounts have been determined based on value-in-use calculations.
Impairment of group loans
The Company makes an estimate of the recoverable value of group loans. When assessing the impairment of group loans management considers whether there is objective evidence of impairment including:
-
economic or legal reasons relating to the debtors financial difficult; and
-
observable data indicating that there has been a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those asset.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
3
4
4
Tangible fixed assets
Computers
£
Cost
At 1 April 2021 and 31 March 2022
900
Depreciation and impairment
At 1 April 2021 and 31 March 2022
900
Carrying amount
At 31 March 2022
At 31 March 2021
5
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
287,044
287,044
MICHILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 6 -
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
165,085
Other debtors
200
893
200
165,978
Amounts due from group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
14,004
13,368
Trade creditors
466
Amounts owed to group undertakings
162,400
301,165
Other creditors
606
5,108
Accruals and deferred income
3,270
2,566
180,746
322,207
The bank loan is secured by a cross guarantee over all the trade and assets of both the company and its subsidiary.
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are
repayable on demand.
8
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
198,857
212,141
The bank loan is secured by a cross guarantee over all the trade and assets of both the company and its subsidiary.
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
10,000
10,000
100
100
MICHILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 7 -
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
Other matters which we are required to address
The comparatives figures for the year ended 31 March 2021 were not audited.
Senior Statutory Auditor:
Richard Lane
Statutory Auditor:
LB Group Limited (Stratford)
MICHILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
11
Related party transactions
The company has taken advantage of exemptions, under the terms of Financial Reporting Standards 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclosure related party transactions with wholly owned subsidiaries within the group.
12
Directors' transactions
Administration costs includes
£
Nil
(20
21
:
£20,000
)
consultancy fees paid to
the
directors during the year.
13
Parent company
The immediate parent undertaking is Michild MidCo Limited, a company incorporated in England and Wales whose registered office is 1 Vicarage Lane, London, E15 4HF.
During the year the ultimate parent undertaking was Michild Holdings Limited, a company incorporated in England and Wales whose registered office is 1 Vicarage Lane, London, E15 4HF. On the 4 February 2022 the ultimate parent undertaking changed to MiParent Holdings Limited, a company incorporated in England and Wales whose registered office is 1 Vicarage Lane, London, E15 4HF.
During the year the ultimate controlling party was Mr J R Selvadurai by way of his shareholding in the ultimate parent undertaking. On the 4 February 2022 the ultimate controlling party changed to Mr A Sage and Mr C Ross-Roberts by way of their shareholding in MiParent Holdings Limited.