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Registration number: 12117825

Watson Exchange Ltd

Unaudited Financial Statements

for the Year Ended 31 July 2023

 

Watson Exchange Ltd

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 7

 

Watson Exchange Ltd

(Registration number: 12117825)
Balance Sheet as at 31 July 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

42,750

44,625

Tangible assets

5

105,780

14,141

 

148,530

58,766

Current assets

 

Stocks

6

62,666

40,709

Debtors

7

37,155

6,250

Cash at bank and in hand

 

81,425

60,533

 

181,246

107,492

Creditors: Amounts falling due within one year

8

(181,683)

(81,795)

Net current (liabilities)/assets

 

(437)

25,697

Total assets less current liabilities

 

148,093

84,463

Creditors: Amounts falling due after more than one year

8

(125,389)

(37,139)

Provisions for liabilities

(20,098)

(2,686)

Net assets

 

2,606

44,638

Capital and reserves

 

Called up share capital

100

100

Retained earnings

2,506

44,538

Shareholders' funds

 

2,606

44,638

 

Watson Exchange Ltd

(Registration number: 12117825)
Balance Sheet as at 31 July 2023

For the financial year ending 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account or Director report.

Approved and authorised by the director on 5 March 2024
 

.........................................
Mr Kyle Watson
Director

 

Watson Exchange Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 25 Westmorland Shopping Centre
Kendal
Cumbria
LA9 4LR

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Judgements

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 revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Watson Exchange Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

Government grants

Government grants are recognised using the accrual model. Grants which relate to revenue shall be recognised in other operating income on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.

Any amounts outstanding at the year end will be included within other debtors.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company.
Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

All qualifying capital investments, where applicable, have taken advantage of the super deduction scheme and have received the relief rate of 130% of the qualifying cost.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

25% on Straight Line

Fixtures and fittings

15% reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Straight line over 10 years

Franchise fee

Straight line over 10 years

 

Watson Exchange Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 6 (2022 - 6).

 

Watson Exchange Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

4

Intangible assets

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 August 2022

63,750

-

63,750

Additions acquired separately

-

5,000

5,000

At 31 July 2023

63,750

5,000

68,750

Amortisation

At 1 August 2022

19,125

-

19,125

Amortisation charge

6,375

500

6,875

At 31 July 2023

25,500

500

26,000

Carrying amount

At 31 July 2023

38,250

4,500

42,750

At 31 July 2022

44,625

-

44,625

5

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 August 2022

23,728

23,728

Additions

96,149

96,149

At 31 July 2023

119,877

119,877

Depreciation

At 1 August 2022

9,587

9,587

Charge for the year

4,510

4,510

At 31 July 2023

14,097

14,097

Carrying amount

At 31 July 2023

105,780

105,780

At 31 July 2022

14,141

14,141

 

Watson Exchange Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

6

Stocks

2023
£

2022
£

Other inventories

62,666

40,709

7

Debtors

Current

2023
£

2022
£

Prepayments

6,250

6,250

Other debtors

30,905

-

37,155

6,250

8

Creditors

Creditors: amounts falling due within one year

2023
£

2022
£

Due within one year

Loans and borrowings

36,750

15,917

Trade creditors

64,870

36,185

Taxation and social security

1,596

13,812

Accruals and deferred income

39,450

1,208

Other creditors

39,017

14,673

181,683

81,795

Creditors: amounts falling due after more than one year

2023
£

2022
£

Due after one year

Loans and borrowings

125,389

37,139

The amount included within loans are borrowings is secured by way of a fixed and floating charge over the company and its assets.