Company registration number 09134929 (England and Wales)
RADICAL 22 LIMITED (FORMERLY KNOWN AS DUA LIPA LIMITED)
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
RADICAL 22 LIMITED (FORMERLY KNOWN AS DUA LIPA LIMITED)
CONTENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
RADICAL 22 LIMITED (FORMERLY KNOWN AS DUA LIPA LIMITED)
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF RADICAL 22 LIMITED (FORMERLY KNOWN AS DUA LIPA LIMITED) FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Radical 22 Limited (formerly known as Dua Lipa Limited) for the year ended 31 December 2022 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation
This report is made solely to the Board of Directors of Radical 22 Limited (formerly known as Dua Lipa Limited), as a body, in accordance with the terms of our engagement letter dated 14 September 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Radical 22 Limited (formerly known as Dua Lipa Limited) and state those matters that we have agreed to state to the Board of Directors of Radical 22 Limited (formerly known as Dua Lipa Limited), as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Radical 22 Limited (formerly known as Dua Lipa Limited) and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Radical 22 Limited (formerly known as Dua Lipa Limited) has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Radical 22 Limited (formerly known as Dua Lipa Limited). You consider that Radical 22 Limited (formerly known as Dua Lipa Limited) is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Radical 22 Limited (formerly known as Dua Lipa Limited). For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
............................................
27 September 2023
Dales Evans & Co Limited
Date
Chartered Accountants
88/90 Baker Street
London
W1U 6TQ
RADICAL 22 LIMITED (FORMERLY KNOWN AS DUA LIPA LIMITED)
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 2 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
5,289
5,427
Investment properties
4
1,585,336
Investments
5
13,769,203
10,877,396
15,359,828
10,882,823
Current assets
Debtors
9,502,869
5,072,101
Investments
5,720,187
3,824,302
Cash at bank and in hand
9,842,222
16,407,473
25,065,278
25,303,876
Creditors: amounts falling due within one year
(10,666,547)
(14,429,014)
Net current assets
14,398,731
10,874,862
Total assets less current liabilities
29,758,559
21,757,685
Provisions for liabilities
182,768
(98,299)
Net assets
29,941,327
21,659,386
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
29,941,325
21,659,384
Total equity
29,941,327
21,659,386
In accordance with section 444 of the Companies Act 2006, all of the members of the company have consented to the preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (SI 2008/409)(b).
For the financial year ended 31 December 2022 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.
The member has not required the company to obtain an audit of its financial statements for the year 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.
RADICAL 22 LIMITED (FORMERLY KNOWN AS DUA LIPA LIMITED)
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2022
31 December 2022
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 26 September 2023 and are signed on its behalf by:
Mr D Lipa
Director
Company Registration No. 09134929
RADICAL 22 LIMITED (FORMERLY KNOWN AS DUA LIPA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
1
Accounting policies
Company information
Radical 22 Limited (formerly known as Dua Lipa Limited) is a private company limited by shares incorporated in England and Wales. The registered office is 88/90 Baker Street, London, W1U 6TQ.
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 amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention, modified to include the financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Revenue is measured at the fair value of the consideration received or receivable and represents amounts for services provided net of discounts and VAT.
Income from services is recognised when they are performed and entitlement has arisen under the terms of the contract.
Performance fees are recognised on the date of the performance.
Royalties are recognised on receipt or as rights are utilised on an accruals basis where sufficient reliable information is available.
1.3
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 of assets less their estimated residual values over their useful lives on the following bases:
Plant and machinery
20% per annum 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.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Fixed asset investments
Interests in listed shares and investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.
RADICAL 22 LIMITED (FORMERLY KNOWN AS DUA LIPA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.7
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.
1.8
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.
Other financial assets, including a group of managed investments and investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
The fair value of financial assets traded on active liquid markets are determined by reference to quoted market prices.
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.
RADICAL 22 LIMITED (FORMERLY KNOWN AS DUA LIPA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
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 payments 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. Amounts 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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
RADICAL 22 LIMITED (FORMERLY KNOWN AS DUA LIPA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
4
2
3
Tangible fixed assets
Total
£
Cost
At 1 January 2022
62,794
Additions
2,523
At 31 December 2022
65,317
Depreciation and impairment
At 1 January 2022
57,367
Depreciation charged in the year
2,661
At 31 December 2022
60,028
Carrying amount
At 31 December 2022
5,289
At 31 December 2021
5,427
4
Investment property
2022
£
Fair value
At 1 January 2022
Additions
1,585,336
At 31 December 2022
1,585,336
Investment property comprises 7b St Pancras Way, London, NW1 0PB.The purchase of the investment property was completed on 7th December 2022 in an arms length transaction.Consequently, the purchase cost reflects the fair value of the property at 31st December 2022.
5
Fixed asset investments
2022
2021
£
£
Other investments other than loans
13,769,203
10,877,396
RADICAL 22 LIMITED (FORMERLY KNOWN AS DUA LIPA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
5
Fixed asset investments
(Continued)
- 8 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2022
10,877,396
Additions
5,056,199
Fair value losses through profit and loss
(1,387,400)
Exchange gains
358,193
Disposals
(1,135,185)
At 31 December 2022
13,769,203
Carrying amount
At 31 December 2022
13,769,203
At 31 December 2021
10,877,396
6
Financial instruments
2022
2021
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
19,489,390
14,701,698
7
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The following loans were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Other related parties
3,821,643
453,099
8
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Loan
2.00
1,331,991
1,402,936
30,176
(1,476,922)
1,288,181
1,331,991
1,402,936
30,176
(1,476,922)
1,288,181
Included within accrued income is an amount of £17,728 (2021: £21,556) for interest charged on the director's loan.