Company Registration No. 11889521 (England and Wales)
Formily Limited
Unaudited accounts
for the year ended 31 March 2023
Formily Limited
Unaudited accounts
Contents
Formily Limited
Company Information
for the year ended 31 March 2023
Directors
Samuel Littlejohns
Alexander Woolley
Company Number
11889521 (England and Wales)
Registered Office
39 Mabledon Road
Tonbridge
Kent
TN9 2TG
Accountants
Tonbridge Accountants Limited
27 Old Gloucester Street
London
WC1N 3AX
Formily Limited
Statement of financial position
as at 31 March 2023
Intangible assets
-
32,042
Cash at bank and in hand
1,753
3,462
Creditors: amounts falling due within one year
(4,684)
(4,888)
Net current liabilities
(2,931)
(1,394)
Total assets less current liabilities
(2,931)
30,648
Provisions for liabilities
Net (liabilities)/assets
(2,931)
24,560
Called up share capital
2
2
Profit and loss account
(2,933)
24,558
Shareholders' funds
(2,931)
24,560
For the year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities. The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board of Directors and authorised for issue on 19 November 2023 and were signed on its behalf by
Samuel Littlejohns
Director
Company Registration No. 11889521
Formily Limited
Notes to the Accounts
for the year ended 31 March 2023
Formily Limited is a private company, limited by shares, registered in England and Wales, registration number 11889521. The registered office is 39 Mabledon Road, Tonbridge, Kent, TN9 2TG.
2
Compliance with accounting standards
The financial statements of Formily Limited have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 Section 1A Small Entities and the Companies Act 2006. There were no material departures from that standard.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
The accounts have been prepared under the historical cost convention.
Owing to sales volumes being significantly lower than planned, the Directors took the decision to cease trading on 30 September 2023. Accordingly, the financial statements have been not been prepared on a going concern basis.
The financial statements have been prepared on a break-up basis. Pre-payments have not been recognised and an impairment loss on intangible assets has been recognised, as detailed in Note 4 below. There have been no material adjustments to the valuation or presentation of the company's liabilities.
The accounts are presented in £ sterling.
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Formily Limited provides customers with a unique log-in that allows them to access and use the company's software to produce legal documents, specifically Form E. This is considered an assignment of rights under a non-cancellable contract.
Once access to the software has been provided the user can exercise their right to complete Form E at any time and the company has no further obligation. This is considered a sale and revenue is recognised when the customer pays for access to the software.
Formily Limited
Notes to the Accounts
for the year ended 31 March 2023
Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively. Current or deferred taxation assets and liabilities are not discounted.
i. Current tax
Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end. Management periodically
evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
ii. Deferred tax
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.
Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of
deferred tax liabilities or other future taxable profits.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.
Internally developed software is stated at cost less accumulated amortisation and accumulated impairment losses. Software is amortised over its estimated useful life of ten years on a straight line basis.
Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances.
The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired.
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The company has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments. Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.
Basic financial liabilities, including trade and other payables, and bank loans, 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 receipts discounted at a market rate of interest.
Formily Limited recognises government grants based on the accrual model.
Formily Limited
Notes to the Accounts
for the year ended 31 March 2023
4
Intangible fixed assets
Other
Other increase/(decrease)
28,153
The other increase in amortisation of £28,153 relates to an impairment loss recognised on the software behind the company's only product. The company ceased trading on 30 September 2023. With no future revenue and no binding sales agreements for the asset forthcoming, the Directors have determined that at the balance sheet date the recoverable amount was £nil. The impairment loss has been recorded in the Income Statement as a loss from change in provisions.
Amounts falling due within one year
Accrued income and prepayments
-
32
6
Creditors: amounts falling due within one year
2023
2022
Bank loans and overdrafts
-
169
Taxes and social security
(1,695)
(1,695)
Loans from directors
6,154
6,154
7
Average number of employees
During the year the average number of employees was 0 (2022: 0).