Company registration number 10137858 (England and Wales)
WATCH THIS SPACE (RED PANDA) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
WATCH THIS SPACE (RED PANDA) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
WATCH THIS SPACE (RED PANDA) LIMITED
BALANCE SHEET
- 1 -
30 June 2023
31 March 2022
Notes
£
£
£
£
Fixed assets
Investment property
3
1,400,000
1,400,000
Investments
4
104
104
1,400,104
1,400,104
Current assets
Debtors
5
601,167
631,875
Cash at bank and in hand
75,740
153,952
676,907
785,827
Creditors: amounts falling due within one year
6
(1,511,400)
(968,137)
Net current liabilities
(834,493)
(182,310)
Total assets less current liabilities
565,611
1,217,794
Creditors: amounts falling due after more than one year
7
(673,170)
Provisions for liabilities
(123,505)
(121,359)
Net assets
442,106
423,265
Capital and reserves
Called up share capital
100
100
Revaluation reserve
8
414,386
414,386
Profit and loss reserves
27,620
8,779
Total equity
442,106
423,265
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial period ended 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her 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 period 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.
WATCH THIS SPACE (RED PANDA) LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 18 January 2024
Mrs M Rothwell
Director
Company Registration No. 10137858
WATCH THIS SPACE (RED PANDA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
- 3 -
1
Accounting policies
Company information
Watch This Space (Red Panda) Limited is a private company limited by shares incorporated in England and Wales. The registered office is This Is The Space, 68 Quay Street, Manchester, M3 3EJ.
1.1
Reporting period
The reporting period of the entity has been extended to 30 June 2023 to align with its connected companies. As a result, the current reporting period represents a 15-month period and the comparative financial information is not entirely comparable.
1.2
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.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.3
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of amounts receivable, exclusive of VAT for rental income and other services. Rental income is recognised on a straight-line basis over the term of the lease.
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is initially recognised in profit or loss and then transferred to a revaluation reserve as the company has chosen to maintain a separate revaluation reserve in respect of investment property.
1.6
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
WATCH THIS SPACE (RED PANDA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 4 -
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
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
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
WATCH THIS SPACE (RED PANDA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 5 -
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.
1.11
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.
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Total
1
2
3
Investment property
2023
£
Fair value
At 1 April 2022 and 30 June 2023
1,400,000
WATCH THIS SPACE (RED PANDA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
3
Investment property
(Continued)
- 6 -
The last third-party valuation was in September 2019 by Avison Young, who are not connected with the company. The fair value of the investment property has been considered by the directors at the year end with reference to the last valuation and potential changes to the market that would affect the fair value.
4
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
104
104
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,604
12,567
Amounts owed by group undertakings
594,400
608,188
Other debtors
5,163
11,120
601,167
631,875
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
32,386
36,858
Trade creditors
680
4,413
Taxation and social security
8,171
12,230
Other creditors
1,470,163
914,636
1,511,400
968,137
Included in bank borrowings of £nil (2022: £27,212) are secured by a fixed and floating charge over the assets of the company.
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
673,170
Included in bank borrowings of £nil (2022: £638,336) are secured by a fixed and floating charge over the assets of the company.
WATCH THIS SPACE (RED PANDA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 7 -
8
Revaluation reserve
2023
2022
£
£
At the beginning of the period
414,386
433,322
Deferred tax on revaluation of tangible assets
-
(18,936)
At the end of the period
414,386
414,386
9
Related party transactions
The company has taken advantage of the exemption permitted under Section 1AC.35 from disclosing transactions with the parent company.