Company registration number 06765526 (England and Wales)
ADVANCE WEALTH LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
ADVANCE WEALTH LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
Detailed profit and loss account
14
Schedule of administrative expenses
15
ADVANCE WEALTH LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
517,743
180,254
Tangible assets
5
25,045
31,698
542,788
211,952
Current assets
Debtors
6
269,133
144,963
Investments
7
372,683
349,800
Cash at bank and in hand
199,983
349,364
841,799
844,127
Creditors: amounts falling due within one year
8
(319,600)
(274,797)
Net current assets
522,199
569,330
Total assets less current liabilities
1,064,987
781,282
Creditors: amounts falling due after more than one year
9
(175,559)
(262,421)
Provisions for liabilities
(6,261)
(7,924)
Net assets
883,167
510,937
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
883,067
510,837
Total equity
883,167
510,937
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 December 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 7 February 2024 and are signed on its behalf by:
Mr CJ Clark
Director
Company Registration No. 06765526
ADVANCE WEALTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Advance Wealth Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Mise Centre, Broomfield Place, 189 Main Road, Chelmsford, Essex, CM1 7EQ.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Cryptocurrency, which is a part of intangible assets is initially recognised at cost. As it is traded on a readily accessible market, it is valued at the year end based on market price and any appreciation in value, over and above the reversing of previous impairments, is reflected as an adjustment to fair value.
Amortisation 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:
Patents
10% straight line
Crypto currency
reviewed for impairment at year end only
1.4
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, fittings & equipment
25% 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.
ADVANCE WEALTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.5
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
1.7
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.
ADVANCE WEALTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.
1.8
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.
1.9
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.10
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.
ADVANCE WEALTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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
22
22
ADVANCE WEALTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
4
Intangible fixed assets
Patent
Cypto currency
Total
£
£
£
Cost
At 1 January 2023
603
400,975
401,578
Additions
-
41,874
41,874
Revaluation
88,292
88,292
At 31 December 2023
603
531,141
531,744
Amortisation and impairment
At 1 January 2023
603
220,720
221,323
Impairment losses
722
722
Reversal of past impairment loss
(208,044)
(208,044)
At 31 December 2023
603
13,398
14,001
Carrying amount
At 31 December 2023
517,743
517,743
At 31 December 2022
180,254
180,254
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
81,974
Additions
1,852
At 31 December 2023
83,826
Depreciation and impairment
At 1 January 2023
50,276
Depreciation charged in the year
8,505
At 31 December 2023
58,781
Carrying amount
At 31 December 2023
25,045
At 31 December 2022
31,698
ADVANCE WEALTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
607
Corporation tax recoverable
6,294
6,294
Other debtors
182,795
60,342
189,089
67,243
Amounts falling due after more than one year:
Other debtors
80,044
77,720
Total debtors
269,133
144,963
in a previous year the company made a loan to Advance Property Rental Limited totalling £90,885 this company has a mutual Director and mutual Shareholders with Advance Wealth Limited. This is an interest free loan over 25 years, with the balance payable at the end of the term. The Net Present Value of this loan is £50,418 (2022 £48,955) based on an annual interest rate of 2.99%.
In a previous year the company made a loan to Advance Property Rental Limited totalling £55,000 this company has a mutual Director and mutual Shareholders with Advance Wealth Limited. This is an interest free loan over 25 years, with the balance payable at the end of the term. The Net Present Value of this loan is £29,626 (2022 £28,765) based on an annual interest rate of 2.99%.
7
Current asset investments
2023
2022
£
£
Other investments
372,683
349,800
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
86,862
86,862
Trade creditors
63,972
35,885
Corporation tax
96,380
68,769
Other taxation and social security
6,923
11,325
Other creditors
65,463
71,956
319,600
274,797
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
175,559
262,421
ADVANCE WEALTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
10
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
At the year end an amount of £109,911 (2022 £24,639 owed to Director) was owed to the company by a Director of the company.
At the year end an amount of £13,829 (2022 £15,829) was owed to the company by a Director.
In a previous year the company made a loan to Advance Property Rental Limited totalling £90,885 this company has a mutual Director and mutual Shareholders with Advance Wealth Limited. This is an interest free loan over 25 years, with the balance payable at the end of the term. The Net Present Value of this loan is £50,418 (2022 £48,955) based on an annual interest rate of 2.99%.
In a previous year the company made a loan to Advance Property Rental Limited totalling £55,000 this company has a mutual Director and mutual Shareholders with Advance Wealth Limited. This is an interest free loan over 25 years, with the balance payable at the end of the term. The Net Present Value of this loan is £29,626 (2022 £28,765) based on an annual interest rate of 2.99%.
At the year end an amount of £22,455 (2022 £6,784) was owed by Advanced property rental Limited.