Statement of compliance
These financial statements have been prepared in compliance with FRS 105 The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.
Basis of preparation
The financial statements have been prepared under the historical cost convention as modified by the revaluation of land and buildings and certain financial instruments measured at fair value in accordance with the accounting policies.
The financial statements are prepared in sterling which is the functional currency of the company.
Financial commitments, guarantees and contingencies
At the reporting date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases of £4,020 (2020 - £4,020).
Directors' benefits: advances, credit and guarantees
During the year £9,500 was repaid by the director and £17,500 was subsequently advanced to the director. The balance owed by the director at the beginning of the year was £9,500 and at the end of the year was £17,500. Interest was charged at the rate of 2%, the loan is unsecured with no repayment terms.
Negative reserves
At the time the dividend was paid the director was not aware that there were insufficient profits available for distribution and the director acknowledges that no further distributions can be made until there are sufficient profits available for that purpose.
Going concern
The director has reviewed the financial statements in light of the company being in a net liabilities position and for the coronavirus pandemic and there is no reason to believe that the company will have to cease trading within 12 months and therefore continues to adopt a going concern basis of accounting.