Company Registration No. 06510481 (England and Wales)
CUTE MEDIA CORPORATION LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
PAGES FOR FILING WITH REGISTRAR
CUTE MEDIA CORPORATION LIMITED
COMPANY INFORMATION
Directors
Mr A Fisher
Mr P A Doyle
Mr R Eustance
Mr N Hay
Mr T Visram
Company number
06510481
Registered office
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
Accountants
Arnold Hill & Co LLP
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
CUTE MEDIA CORPORATION LIMITED
BALANCE SHEET
AS AT 28 FEBRUARY 2023
28 February 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
1,876
Current assets
Debtors
6
22,448
62,819
Cash at bank and in hand
46,219
94,664
68,667
157,483
Creditors: amounts falling due within one year
7
(27,965)
(78,278)
Net current assets
40,702
79,205
Total assets less current liabilities
40,702
81,081
Creditors: amounts falling due after more than one year
8
(22,881)
(33,051)
Net assets
17,821
48,030
Capital and reserves
Called up share capital
96
96
Profit and loss reserves
17,725
47,934
Total equity
17,821
48,030
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 28 February 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.
The financial statements were approved by the board of directors and authorised for issue on 21 November 2023 and are signed on its behalf by:
Mr A Fisher
Director
Company Registration No. 06510481
CUTE MEDIA CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
1
Accounting policies
Company information
Cute Media Corporation Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sixth Floor, Capital Tower, 91 Waterloo Road, London, SE1 8RT.
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
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
The turnover shown in the profit and loss account represents the total amount earned by the company during the year from its principal activities (including reimbursing costs), exclusive of Value Added Tax.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. However where this value is not deemed to be material the intangible asset is held at cost.
1.5
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:
Equipment
33% 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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
CUTE MEDIA CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 3 -
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.
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.
1.9
Taxation
The tax expense represents the tax currently payable.
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; including balances being written off between companies that at the time are under the same control. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
CUTE MEDIA CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 4 -
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
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.12
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.
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
7
CUTE MEDIA CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 5 -
4
Intangible fixed assets
Other intangible assets
£
Cost
At 1 March 2022 and 28 February 2023
1,876
Amortisation and impairment
At 1 March 2022
Amortisation charged for the year
1,876
At 28 February 2023
1,876
Carrying amount
At 28 February 2023
At 28 February 2022
1,876
5
Tangible fixed assets
Equipment
£
Cost
At 1 March 2022 and 28 February 2023
4,661
Depreciation and impairment
At 1 March 2022 and 28 February 2023
4,661
Carrying amount
At 28 February 2023
At 28 February 2022
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
582
43,952
Corporation tax recoverable
19,353
18,821
Other debtors
2,513
46
22,448
62,819
CUTE MEDIA CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 6 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,169
9,850
Trade creditors
4,194
46,634
Amounts owed to group undertakings
6,991
8,436
Taxation and social security
366
4,240
Other creditors
6,245
9,118
27,965
78,278
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
22,881
33,051
9
Loans and overdrafts
2023
2022
£
£
Bank loans
33,050
42,901
Payable within one year
10,169
9,850
Payable after one year
22,881
33,051
10
Related party transactions
In the current year £413 (2022: £413) were recognised as an expense in respect of bad and doubtful debts due from related parties relating to expenses paid on behalf of The Consumer Care Service Limited, a dormant company with directors and shareholders in common.
Included within administrative expenses from other related parties are transactions amounting to £13,491 (2022: £83,790) from Cute Holdings LLP for management fees, a partnership with directors and shareholders in common. As at 28 February 2023, Cute Media Corporation Limited owed Cute Holdings LLP £5,055 (2022: £6,812).
As at 28 February 2023, Cute Media Corporation Limited owed Cute Media Group Limited £1,936 (2022: £1,624).
As at 28 February 2023, £83 (2022: £46) was owed to the company by directors in respect of expenses paid on their behalf.
11
Parent company
The immediate parent is Cute Media Group Limited and the ultimate controlling party is Cute Holdings LLP.