Company registration number 03531519 (England and Wales)
REACHDRUM LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
REACHDRUM LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
REACHDRUM LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
12,113
16,082
Investments
5
22,750
7,750
34,863
23,832
Current assets
Stocks
439,426
435,426
Debtors
6
659,254
722,965
Cash at bank and in hand
132,093
228,102
1,230,773
1,386,493
Creditors: amounts falling due within one year
7
(58,681)
(79,566)
Net current assets
1,172,092
1,306,927
Net assets
1,206,955
1,330,759
Capital and reserves
Called up share capital
550,000
550,000
Profit and loss reserves
656,955
780,759
Total equity
1,206,955
1,330,759
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 31 March 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 11 March 2024 and are signed on its behalf by:
M Slane
Director
Company registration number 03531519 (England and Wales)
REACHDRUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Reachdrum Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4th Floor, 167 Fleet Street, London, EC4A 2EA.
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
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:
Fixtures and fittings
15% on reducing balance
Computers
Straight line over 3 years
Motor vehicles
25% on reducing balance
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.
1.3
Fixed asset investments
Fixed asset investments are stated at cost less provision for any permanent diminution in value.
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.5
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.
1.6
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.
REACHDRUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
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.
1.7
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.
REACHDRUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
2
4
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022 and 31 March 2023
2,787
3,650
60,299
66,736
Depreciation and impairment
At 1 April 2022
2,273
3,650
44,731
50,654
Depreciation charged in the year
77
3,892
3,969
At 31 March 2023
2,350
3,650
48,623
54,623
Carrying amount
At 31 March 2023
437
11,676
12,113
At 31 March 2022
514
15,568
16,082
5
Fixed asset investments
2023
2022
£
£
Other investments other than loans
22,750
7,750
REACHDRUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
5
Fixed asset investments
(Continued)
- 5 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 April 2022
13,750
Additions
15,000
At 31 March 2023
28,750
Impairment
At 1 April 2022 & 31 March 2023
6,000
Carrying amount
At 31 March 2023
22,750
At 31 March 2022
7,750
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
50,012
12,316
Amounts invested in joint ventures
491,090
704,898
Other debtors
117,045
Prepayments and accrued income
1,107
361
659,254
717,575
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
5,390
Total debtors
659,254
722,965
7
Creditors: amounts falling due within one year
2023
2022
£
£
Corporation tax
37,696
Other creditors
9,327
69,213
Accruals and deferred income
11,658
10,353
58,681
79,566
REACHDRUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
8
Related party transactions
The total dividend for the year of £30,000 (2022: £30,000) was paid entirely to the director and shareholder, K Slane, as M Slane had waived his rights to dividends for the year.
Other creditors includes £9,327 (2022: £9,327) owed to Cavendish & Gloucester Properties Limited. The director, M Slane, is also a director and minority shareholder in Cavendish & Gloucester Properties Limited.
The company is a participant in various property development joint ventures managed by Cavendish & Gloucester Properties Limited. At the year end, the amounts invested in these joint ventures was £345,368 (2022: £570,770). The company's share of losses from these joint ventures for the year was £54,404 (2022: £27,711).
The company is also a participant in a property development joint venture managed by MFC Estates plc, a company in which M Slane is also a director. At the year end, the amount invested in the joint venture was £146,516 (2022: £134,921). The company's share of profit for the year from the joint venture was £11,595 (2022: share of loss of £54).
Other debtors / other creditors include amounts owed by or to the directors as follows:
£71,316 owed by M Slane (2022: £28,432 owed to M Slane)
£40,376 owed by K Slane (2022: £31,453 owed to K Slane)
Interest receivable for the year of £1,107 relates to accrued interest chargeable to the directors for the year.