Registered number: 05330801
DRAGONMOBILITY LTD
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
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COMPANY INFORMATION
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101 Cambridge Science Park
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CONTENTS
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Statement of Changes in Equity
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Notes to the Financial Statements
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Report to the directors on the preparation of the unaudited statutory financial statements of Dragonmobility Ltd for the year ended 31 January 2023
We have compiled the accompanying financial statements of Dragonmobility Ltd (the ‘company’) based on the information you have provided. These financial statements comprise the Balance Sheet of Dragonmobility Ltd as at 31 January 2023, the Statement of Changes in Equity, and a summary of significant accounting policies and other explanatory information.
We performed this compilation engagement in accordance with International Standard on Related Services 4410 (Revised), 'Compilation Engagements'.
We have applied our expertise in accounting and financial reporting to assist you in the preparation and presentation of these financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). As a member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at www.icaew.com.
These financial statements and the accuracy and completeness of the information used to compile them are your responsibility.
Since a compilation engagement is not an assurance engagement, we are not required to verify the accuracy or completeness of the information you provided to us to compile these financial statements. Accordingly, we do not express an audit opinion or a review conclusion on whether these financial statements are prepared in accordance with United Kingdom Generally Accepted Accounting Practice.
This report is made solely to the Company's directors, as a body, in accordance with the terms of our engagement letter dated 13 September 2023. Our work has been undertaken solely to prepare for your approval the financial statements of the company and state those matters that we have agreed to state to the Company's directors, as a body, in this report in accordance with our engagement letter dated 13 September 2023. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its directors, as a body, for our work or for this report.
Grant Thornton UK LLP
Chartered Accountants
Cambridge
24 October 2023
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DRAGONMOBILITY LTD
REGISTERED NUMBER: 05330801
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BALANCE SHEET
AS AT 31 JANUARY 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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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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DRAGONMOBILITY LTD
REGISTERED NUMBER: 05330801
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BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2023
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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 financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 October 2023.
The notes on pages 5 to 12 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023
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Comprehensive income for the year
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Capital contribution movement
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Comprehensive income for the year
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Capital contribution movement
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The notes on pages 5 to 12 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
The company is a private company limited by shares and is registered in England and Wales.
Registered Number: 05330801
Registered Office:
97 Brewery Road
Pampisford
Cambridge
Cambridgeshire
CB22 3EW
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
.At 31 January 2023 the company’s liabilities exceeded its assets. In order to meet its liabilities
as they fall due, the company relies on receiving payments from charities on behalf of
customers, and upon the ongoing support of the directors and other funders.
The directors recognise the need for additional financing and continue to seek external support
from a number of sources. The directors have committed significant personal resources to date
to ensure immediate cash needs are met and actively manage the business to enable the
company to continue in operational existence for the foreseeable future.
The directors have assessed the company’s ability to operate as a going concern for a period in
excess of 12 months from the date of signing the financial statements. The uncertainty as to the
future impact on the company of the recent macro-economic events have been considered
as part of the company’s adoption of the going concern basis.
Based on the current forecasts which have been prepared with the detail of funding due for
current orders and funding that is being discussed with various parties, in particular Lives Set In
Motion CIC, the directors are confident that the company will secure adequate resources to
continue trading for the foreseeable future, being a period of no less than 12 months from the
date of approval of these accounts, and therefore it remains appropriate to continue to prepare
the financial statements on a going concern basis.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
2.Accounting policies (continued)
Revenue from the sale and servicing of electric wheelchairs is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from the sale and servicing of electric wheelchairs is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale and servicing of electric wheelchairs from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from the sale and servicing of electric wheelchairs from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in profit or loss in the same period as the related expenditure.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
The Company incurs expenditure in relation to research and development which is recognised as an expense in profit or loss in the year they are incurred.
Tax credits are provided to the Company for this expenditure in line with relevant tax legislation. These tax credits are recognised in the year cash is received.
No amounts incurred by the Company are considered to meet the criteria for capitalisation, therefore no amounts are included as capitalised development costs.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
2.Accounting policies (continued)
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 ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
Short-term creditors are measured at the transaction price.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:
Warranty provision
Dragonmobility Limited provides a 5 year warranty for certain wheelchair repair costs. The directors have determined that no provision for costs are required in these financial statements. This is on the basis that all significant future costs are covered by future income received under customer support contracts.
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The average monthly number of employees, including directors, during the year was 3 (2022 - 3).
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Finished goods and goods for resale
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
Other reserves
Other reserves includes the capital contribution element of interest free funding provided by related parties. The capital contribution is released over the repayment period of the loan and an element equal to the notional interest charged is credited to the P&L reserve annually.
Profit & loss account
The profit and loss account includes all current and prior period retained profits and losses.
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Commitments under operating leases
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At 31 January 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
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Related party transactions
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Mr D and Mrs L Everard are the Company's controlling related parties by virtue of their office and
shareholding in the company.
During the year, the company has received financial assistance from the directors.
At the year-end there was a Directors' loan account balance of £87,117 (2022: £17,330) from Mr and Mrs
Everard which has no set repayment date and is included as due after one year. This loan does not bear interest.
A short-term loan of £68,900 was repaid to Mr & Mrs Everard and the balance at the year end was £nil (2022: £68,900). This loan did not bear interest.
Mr & Mrs Everard made payments on behalf of Dragonmobility Limited during the year amounting to
£1,696 (2022: £820). A balance of £Nil (2022: £987) was due in respect of these payments at the year end. This balance is included within creditors due after one year.
A gross salary accrual of £9,805 (2022: £9,805) in respect in Mr Everard is included within
creditors due after more than one year.
During the year, the company purchased services from Axiom-e Limited, a company of which Mr K
Dickson, a shareholder and director of Dragonmobility Limited, is a shareholder, amounting to £360
(2022: £360). At the year end, there was a creditor balance outstanding of £693,011 (2022: £693,011) of
which £690,000 (2022: £690,000) is included within other creditors due after more than one year, and
the remaining £3,011 (2022: £3,011) is included within other creditors due within one year. A further loan
of £33,000 (2022: £33,000) is owed to Axiom-e Limited and is also included within creditors due after
more than one year. No interest is charged on these balances. These balances have been accounted for
at the net present value of future payments discounted at an interest rate of 6%. The balances are
included in creditors due in more than one year as £653,092 (2022: £635,653) and £31,235 (2022:
£30,401) respectively.
In addition, Axiom-e Limited made payments on behalf of Dragonmobility Limited during the year
amounting to £5,500 (2022: £nil). A balance of £49,104 (2022: £49,104) was due in respect of payments
made by Axiom-e Limited on behalf of Dragonmobility Limited at the year end. This balance is included
within creditors due after one year (2022: creditors due within one year).
At the year-end there was a Director's loan account balance of £30,000 (2022: £30,000) from Mr K
Dickson which has a simple interest rate of 10% but no interest was charged in FY23 (FY22: £Nil).
The balance is included within creditors due after one year. An interest-free loan of £15,600 (2022:
£15,600) is included within loans due after more than one year.
A further amount of £3,546 (2022: £3,546) in respect of monies paid by Mr K Dickson on behalf of the
company is included in creditors due within one year. (2022: Creditors due within one year).
Interest accrued from previous years of £25,800 was written off during the year.
A gross salary accrual in respect of Mr K Dickson of £35,881 (2022: £35,881) is included within creditors due after more than one year.
At the year end, the company owed £56,339 (2022: £47,641) to Miss R Everard, a director of the
company. This is included within creditors in more than one year (2022: creditors due after one year).
In addition, Miss Everard made payments on behalf of Dragonmobility during the year amounting to
£3,253 (2022: £410). A balance of £Nil (2022: £8,762) was due to Miss Everard in respect of payments
made on behalf of the company in prior years and is included in creditors due within one year.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
11.Related party transactions (continued)
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