Company registration number 11755634 (England and Wales)
AUDIO SQUADRON LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
PAGES FOR FILING WITH REGISTRAR
AUDIO SQUADRON LTD
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 7
AUDIO SQUADRON LTD
STATEMENT OF FINANCIAL POSITION
AS AT
30 APRIL 2023
30 April 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
1,494,832
1,164,601
Tangible assets
4
25,042
17,392
1,519,874
1,181,993
Current assets
Stocks
524,908
306,132
Debtors
5
424,191
409,265
Cash at bank and in hand
39,489
94,221
988,588
809,618
Creditors: amounts falling due within one year
6
(1,130,905)
(768,100)
Net current (liabilities)/assets
(142,317)
41,518
Total assets less current liabilities
1,377,557
1,223,511
Creditors: amounts falling due after more than one year
7
(1,550,247)
(1,132,314)
Provisions for liabilities
(6,261)
(3,304)
Net (liabilities)/assets
(178,951)
87,893
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(179,051)
87,793
Total equity
(178,951)
87,893
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 April 2023 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 members have 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.
AUDIO SQUADRON LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
30 APRIL 2023
30 April 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 6 October 2023 and are signed on its behalf by:
J A Woodburn
Director
Company registration number 11755634 (England and Wales)
AUDIO SQUADRON LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
1
Accounting policies
Company information
Audio Squadron Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 5 Technology Park, Colindeep Lane, London, United Kingdom, NW9 6BX.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods and is shown net of VAT and other sales related taxes.
Turnover is recognised on dispatch of goods.
1.3
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.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business in 2019, being amortised over its estimated useful life of ten years.
1.5
Intangible fixed assets other than goodwill
Intangible costs are initially measured at cost. After initial recognition, intangible assets are measured at cost less accumulated amortisation and any impairment losses.
Amortisation 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:
Development costs
over useful life of ten years
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.
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:
Fixtures and fittings
15% on cost
Computers
20% on cost
AUDIO SQUADRON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 4 -
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each 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 recognised in profit or loss.
1.8
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.
1.9
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 statement of financial position 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.
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.
AUDIO SQUADRON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 5 -
1.10
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 income statement 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 income statement, 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.
1.11
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.
1.12
Government grants
The company recognises government grants received relating to the Coronavirus Business Interruption Loan Scheme. The grant is recognised in the Income Statement over the period in which the company recognises the related cost for which the grant is intended to compensate.
Government assistance has also been extended by way of the provision of guarantee.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
10
11
AUDIO SQUADRON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 6 -
3
Intangible fixed assets
Goodwill
Development costs
Total
£
£
£
Cost
At 1 May 2022
456,033
972,366
1,428,399
Additions
495,132
495,132
At 30 April 2023
456,033
1,467,498
1,923,531
Amortisation and impairment
At 1 May 2022
132,947
130,851
263,798
Amortisation charged for the year
45,603
119,298
164,901
At 30 April 2023
178,550
250,149
428,699
Carrying amount
At 30 April 2023
277,483
1,217,349
1,494,832
At 30 April 2022
323,086
841,515
1,164,601
4
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 May 2022
4,011
20,349
24,360
Additions
2,106
11,566
13,672
At 30 April 2023
6,117
31,915
38,032
Depreciation and impairment
At 1 May 2022
831
6,137
6,968
Depreciation charged in the year
645
5,377
6,022
At 30 April 2023
1,476
11,514
12,990
Carrying amount
At 30 April 2023
4,641
20,401
25,042
At 30 April 2022
3,180
14,212
17,392
AUDIO SQUADRON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 7 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
107,820
53,098
Corporation tax recoverable
106,609
161,625
Other debtors
28,315
37,276
Prepayments and accrued income
181,447
157,266
424,191
409,265
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
100,815
60,000
Other borrowings
126,011
Trade creditors
556,996
350,786
Taxation and social security
7,514
9,852
Other creditors
70,388
2,094
Accruals and deferred income
395,192
219,357
1,130,905
768,100
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
272,802
195,000
Other creditors
1,277,445
937,314
1,550,247
1,132,314
Secured Debts
There is a fixed and floating charge over the assets of the company.