15 false false false false false false false false false true false false false false false false No description of principal activity 2021-10-01 Sage Accounts Production Advanced 2021 - FRS102_2021 2,644,215 711,300 3,355,515 781,027 528,843 1,309,870 2,045,645 1,863,188 245,470 245,470 245,470 xbrli:pure xbrli:shares iso4217:GBP 09651525 2021-10-01 2022-09-30 09651525 2022-09-30 09651525 2021-09-30 09651525 2020-10-01 2021-09-30 09651525 2021-09-30 09651525 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2021-10-01 2022-09-30 09651525 core:FurnitureFittings 2021-10-01 2022-09-30 09651525 core:MotorVehicles 2021-10-01 2022-09-30 09651525 bus:Director2 2021-10-01 2022-09-30 09651525 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2021-09-30 09651525 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-09-30 09651525 core:FurnitureFittings 2021-09-30 09651525 core:MotorVehicles 2021-09-30 09651525 core:FurnitureFittings 2022-09-30 09651525 core:MotorVehicles 2022-09-30 09651525 core:WithinOneYear 2022-09-30 09651525 core:WithinOneYear 2021-09-30 09651525 core:AfterOneYear 2022-09-30 09651525 core:AfterOneYear 2021-09-30 09651525 core:ShareCapital 2022-09-30 09651525 core:ShareCapital 2021-09-30 09651525 core:SharePremium 2022-09-30 09651525 core:SharePremium 2021-09-30 09651525 core:RetainedEarningsAccumulatedLosses 2022-09-30 09651525 core:RetainedEarningsAccumulatedLosses 2021-09-30 09651525 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2021-09-30 09651525 core:AdditionsToInvestments core:Non-currentFinancialInstruments 2022-09-30 09651525 core:CostValuation core:Non-currentFinancialInstruments 2022-09-30 09651525 core:Non-currentFinancialInstruments 2022-09-30 09651525 core:FurnitureFittings 2021-09-30 09651525 bus:SmallEntities 2021-10-01 2022-09-30 09651525 bus:AuditExemptWithAccountantsReport 2021-10-01 2022-09-30 09651525 bus:FullAccounts 2021-10-01 2022-09-30 09651525 bus:SmallCompaniesRegimeForAccounts 2021-10-01 2022-09-30 09651525 bus:PrivateLimitedCompanyLtd 2021-10-01 2022-09-30 09651525 core:ComputerEquipment 2021-10-01 2022-09-30 09651525 core:ComputerEquipment 2021-09-30 09651525 core:ComputerEquipment 2022-09-30
COMPANY REGISTRATION NUMBER: 09651525
RED STORM FASHION AGENCY LIMITED
FILLETED UNAUDITED FINANCIAL STATEMENTS
30 September 2022
RED STORM FASHION AGENCY LIMITED
FINANCIAL STATEMENTS
Year ended 30 September 2022
CONTENTS
PAGE
Balance sheet
1
Notes to the financial statements
3
RED STORM FASHION AGENCY LIMITED
BALANCE SHEET
30 September 2022
2022
2021
Note
£
£
FIXED ASSETS
Intangible assets
5
2,045,645
1,863,188
Tangible assets
6
209,284
152,240
Investments
7
245,470
------------
------------
2,500,399
2,015,428
CURRENT ASSETS
Debtors
8
755,041
323,230
Cash at bank and in hand
324,599
1,830,625
------------
------------
1,079,640
2,153,855
CREDITORS: amounts falling due within one year
9
( 340,504)
( 733,418)
------------
------------
NET CURRENT ASSETS
739,136
1,420,437
------------
------------
TOTAL ASSETS LESS CURRENT LIABILITIES
3,239,535
3,435,865
CREDITORS: amounts falling due after more than one year
10
( 247,205)
( 40,000)
PROVISIONS
( 128,731)
------------
------------
NET ASSETS
2,992,330
3,267,134
------------
------------
CAPITAL AND RESERVES
Called up share capital
9,034
8,890
Share premium account
4,733,305
4,254,233
Profit and loss account
( 1,750,009)
( 995,989)
------------
------------
SHAREHOLDERS FUNDS
2,992,330
3,267,134
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the profit and loss account has not been delivered.
For the year ending 30 September 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- 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 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
RED STORM FASHION AGENCY LIMITED
BALANCE SHEET (continued)
30 September 2022
These financial statements were approved by the board of directors and authorised for issue on 11 April 2024 , and are signed on behalf of the board by:
Mr D K O'Connell
Director
Company registration number: 09651525
RED STORM FASHION AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Year ended 30 September 2022
1. GENERAL INFORMATION
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is The Q Newport, Bridge Street, Newport, NP20 4AN.
2. STATEMENT OF COMPLIANCE
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The company has net assets on the balance sheet but has made losses to the year end, and has continued to make losses since then with the company's ongoing investment in its technology. The company has been able to finance its operations largely because of support from shareholders and creditors and the directors are confident that the company will be able to meet its obligations for at least the next twelve months with this continuing support. They therefore consider it appropriate to prepare the accounts on the going concern basis.
Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for the sale of textiles, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Development costs
-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Research and development
Research expenditure is written off as it is incurred. Development expenditure is also written off, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is capitalised as an intangible asset and amortised over the period during which the company is expected to benefit. This period is not more than five years. Provision is made for any impairment.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures & fittings
-
20% straight line
Motor vehicles
-
10% straight line
Equipment
-
20% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
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 entity after deducting all of its financial liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. EMPLOYEE NUMBERS
The average number of persons employed by the company during the year amounted to 15 (2021: 15 ).
5. INTANGIBLE ASSETS
Development costs
£
Cost
At 1 October 2021
2,644,215
Additions
711,300
------------
At 30 September 2022
3,355,515
------------
Amortisation
At 1 October 2021
781,027
Charge for the year
528,843
------------
At 30 September 2022
1,309,870
------------
Carrying amount
At 30 September 2022
2,045,645
------------
At 30 September 2021
1,863,188
------------
6. TANGIBLE ASSETS
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
Cost
At 1 October 2021
76,921
31,792
231,415
340,128
Additions
310
91,865
35,214
127,389
--------
---------
---------
---------
At 30 September 2022
77,231
123,657
266,629
467,517
--------
---------
---------
---------
Depreciation
At 1 October 2021
44,726
31,792
111,370
187,888
Charge for the year
13,386
8,721
48,238
70,345
--------
---------
---------
---------
At 30 September 2022
58,112
40,513
159,608
258,233
--------
---------
---------
---------
Carrying amount
At 30 September 2022
19,119
83,144
107,021
209,284
--------
---------
---------
---------
At 30 September 2021
32,195
120,045
152,240
--------
---------
---------
---------
7. INVESTMENTS
Other investments other than loans
£
Cost
At 1 October 2021
Additions
245,470
---------
At 30 September 2022
245,470
---------
Impairment
At 1 October 2021 and 30 September 2022
---------
Carrying amount
At 30 September 2022
245,470
---------
At 30 September 2021
---------
8. DEBTORS
2022
2021
£
£
Trade debtors
148,285
127,818
Other debtors
606,756
195,412
---------
---------
755,041
323,230
---------
---------
9. CREDITORS: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
10,000
10,000
Trade creditors
9,626
37,420
Amounts owed to group undertakings and undertakings in which the company has a participating interest
184,929
Social security and other taxes
56,017
193,843
Other creditors
79,932
492,155
---------
---------
340,504
733,418
---------
---------
The above includes secured creditors of £33,201 (2021 - £–). These balances are secured over the assets to which they relate.
10. CREDITORS: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
35,832
40,000
Other creditors
211,373
---------
--------
247,205
40,000
---------
--------
The above includes secured creditors of £211,373 (2021 - £-). These balances are secured over the assets to which they relate.
11. CONTINGENCIES
As of the reporting date, the Company maintains a contingent asset concerning an estimated £237,219 from a pending research and development (R&D) grant claim. This estimate remains subject to finalization and verification. The potential recognition of the R&D grant as an asset hinges on submission of the grant claim, approval by HM Revenue & Customs and subsequent fund disbursement. While the Company believes it meets the eligibility criteria, the final determination and timing of approval are uncertain and at the discretion of HM Revenue & Customs.
12. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES
Included within other creditors is a balance of £334 (2021 - £453,617) due to the directors. This loan is interest free and repayable on demand.