Soothe Massage Ltd
Financial Statements
For the year ended 31 December 2022
Pages for Filing with Registrar
Company Registration No. 09793122 (England and Wales)
Soothe Massage Ltd
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 5
Soothe Massage Ltd
Balance Sheet
As at 31 December 2022
Page 1
2022
2021
Notes
£
£
£
£
Current assets
Debtors
4
210,025
183,040
Cash at bank and in hand
30,820
42,758
240,845
225,798
Creditors: amounts falling due within one year
5
(831,726)
(763,229)
Net current liabilities
(590,881)
(537,431)
Capital and reserves
Called up share capital
6
1
1
Profit and loss reserves
(590,882)
(537,432)
Total equity
(590,881)
(537,431)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 2 November 2023
J Ellis
Director
Company Registration No. 09793122
SOOTHE MASSAGE LTD
Soothe Massage Ltd
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2022
Page 2
1
Accounting policies
Company information
Soothe Massage Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, 1 Ashley Road, Altrincham, Cheshire, WA14 2DT.
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 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, which are those of Soothe Massage Ltd as an individual entity, have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company incurred a loss for the year and was in a net current liability position as at 31 December 2022 and 31 December 2021. The company has the continued financial support of its parent company, Soothe, Inc who has confirmed it will provide continuing support for at least 12 months from the date of approval of these financial statements. Based on this support, the company will have sufficient resources to meet its financial liabilities as they fall due and the directors have therefore prepared the financial statements on the going concern basis. The directors have reviewed the financial standing of the parent entity and are confident it is able to continue supporting the business.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for massage services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Cash and cash equivalents
Cash at bank and in hand 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.
1.5
Debtors and creditors
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans and other debtors receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Creditors
Short term trade creditors and other current creditors payable on demand are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
SOOTHE MASSAGE LTD
Soothe Massage Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 3
1.6
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.
1.7
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 are included in the profit and loss account for the period.
SOOTHE MASSAGE LTD
Soothe Massage Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2022
Page 4
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The nature of the company’s business model is to provide services to customers that are arranged through the company’s internet site with the service being provided by a pool of approved independent contractors. The directors have taken legal opinion on the status of the contractors whom they consider to be self-employed and not therefore employees of the company. The directors consider this reflects both the legal position and the commercial reality of the arrangements. The directors are aware that arrangements with some similar aspects have been challenged by HM Revenue & Customs but are confident that the arrangements used by the company are sufficiently different in materially important aspects to not warrant challenge.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 1 (2021 - 1).
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
210,025
183,040
5
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
3,311
Amounts owed to group undertakings
813,990
743,562
Taxation and social security
2,736
3,307
Accruals and deferred income
15,000
13,049
831,726
763,229
SOOTHE MASSAGE LTD
Soothe Massage Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2022
Page 5
6
Called up share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
100 of 1p each
1
1
1
1
7
Related party transactions
The company has taken advantage of the exemption from disclosing transactions with members within a wholly owned group.
No directors remuneration was payable by the company to the directors during the year, or the prior period, for their services to the company. The directors, who are also directors of other group companies, are remunerated elsewhere in the group.
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Andrew Grieve
Statutory Auditor:
Moore Kingston Smith LLP