Registration number:
Desmo Enterprises Limited
for the Year Ended 30 December 2021
Desmo Enterprises Limited
Contents
Balance Sheet |
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Notes to the Unaudited Financial Statements |
Desmo Enterprises Limited
(Registration number: NI035647)
Balance Sheet as at 30 December 2021
Note |
2021 |
2020 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
( |
( |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
25,000 |
25,000 |
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Profit and loss account |
(483,819) |
(746,292) |
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Shareholders' deficit |
(458,819) |
(721,292) |
For the financial year ending 30 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
Desmo Enterprises Limited
(Registration number: NI035647)
Balance Sheet as at 30 December 2021
......................................... |
Desmo Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 December 2021
General information |
The company is a private company limited by share capital, incorporated in Northern Ireland.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
Accounting policies |
Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost convention and in accordance with the FRS 102 Section 1A Small Entities - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.
The presentation currency is £ Sterling.
Going Concern Disclosure
The company's balance sheet position as at 30 December 2021 shows net liabilities of £458,820 and the company is dependant on support from its directors and shareholders in order to continue to pay its liabilities as they fall due. The directors have undertaken to provide such financial support as may be necessary for a period of at least one year from the date of signing of the financial statements.
The directors have reviewed the applicability of the going concern principle and have determined that it is appropriate to prepare the company's accounts on the basis that it will continue as a going concern for the foreseeable future.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the goods are physically dispatched to customers.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Desmo Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 December 2021
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Leasehold |
2% straight line |
Plant & Machinery |
20% straight line |
Fixtures & Fittings |
25% straight line |
Leasing and Hire Purchase Contracts
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
Financial Instruments
The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and where appropriate, a proportion of fixed and variable overheads.
Cost is calculated using the First in First Out method.
At the reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognises in profit or loss.
Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
Tax
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and 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 end of the reporting period.
Desmo Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 December 2021
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
Government Grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grant will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate.
Desmo Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 December 2021
Leases
Rentals payable under operating leases, including any lease incentives received or receivable are charged to income 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 leases assets are consumed.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Desmo Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 December 2021
Tangible assets |
Long leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Total |
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Cost or valuation |
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At 31 December 2020 |
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Additions |
- |
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At 30 December 2021 |
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Depreciation |
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At 31 December 2020 |
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Charge for the year |
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At 30 December 2021 |
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Carrying amount |
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At 30 December 2021 |
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At 30 December 2020 |
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Stocks |
2021 |
2020 |
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Stock |
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Debtors |
2021 |
2020 |
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Trade debtors |
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Prepayments and accrued income |
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Other debtors |
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Desmo Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 December 2021
Creditors |
Creditors: amounts falling due within one year
2021 |
2020 |
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Due within one year |
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Bank borrowings |
11,650 |
7,948 |
Other borrowings |
160,200 |
253,792 |
Trade creditors |
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Other taxes and social security |
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Net obligations under finance lease and hire purchase contracts |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
2021 |
2020 |
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Due after one year |
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Net obligations under finance lease and hire purchase contracts |
- |
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Bank loans |
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32,138 |
46,124 |
Share capital |
Allotted, called up and fully paid shares
2021 |
2020 |
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No. |
£ |
No. |
£ |
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25,000 |
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25,000 |
Desmo Enterprises Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 December 2021
Related party transactions |
Transactions with directors |
2021 |
At 31 December 2020 |
Advances to directors |
Repayments by director |
At 30 December 2021 |
Mr Bill Waring |
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( |
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- |
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Mr Simon Waring |
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- |
( |
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Mrs Kathleen Gribbon |
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- |
( |
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Mr Fahad Khouj |
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( |
- |
- |
( |
The above loans are unsecured, interest free and repayable on demand.
Amounts owed to related party
During the year the company paid royalties totalling £NIL (2020: £59,012) to a connected company. At the end of the year, the amount due to the connected company was £311,551 (2020: £229,880).
During the year the amount Desmo Enterprises Limited owed to another connected company was £244,574 (2020: £246,614).
The above outstanding balances are unsecured, non-interest bearing and will be settled in cash. No guarantees have been given or received.
Ultimate Controlling Party |
No one individual shareholder has ultimate control or influence over the company.