Cowes International Cup Limited is a private company limited by shares incorporated in England and Wales. The registered office is 21 Spindlewood Way, Oak Park, Marchwood, Southampton, Hampshire, United Kingdom, SO40 4JZ.
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 company has not traded during the year or the preceding financial period. During this time, the company received no income and incurred no expenditure and therefore no Profit and loss account is presented in these financial statements.
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 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, 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.
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.
In the application of the company’s accounting policies, the director is 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.
The average monthly number of persons (including directors) employed by the company during the year was:
Mr Geoff Hill, a Director, is owed £206,281 at 30 November 2023 for repayment of loans to the company and a further £20,513.63 by means of expenses due from the company, including the cost of computer hardware and office furniture (which remains unpaid), and additional expenses (currently unqualified) incurred during financial years 2013/14 to 2016/17 (inclusive) but not claimed to date.
The current Director reported ex-director Mr Robert Catcher to the police during financial year 2005/06 for alleged theft from the company. He made suspicious payments from the company's bank accounts during financial years 2003/04 to 2005/06. The evidence is that these payments were for the benefit of him and those connected with him.
Such unexplained payments are shown as a debt and amount to an estimated minimum of £11,571 by the end of 2006/07.
For accounting purposes, the aforementioned benefits and payments by Mr Catcher are detailed as 'directors loans', without prejudice to the signatory’s view that they were unlawful inter alia under sections 334 & 458 of the Companies Act 1985 (as amended) and section 1(1) of the Theft Act 1968.
During 2006-07, there were receipts of £1,017.40 from recipients of unlawful payments, which were incorporated into the Director's loan account during 2006-07.
However, return of unlawful property by a third party does not mean that the original alleged offences did not occur. The true amount of alleged unauthorised payments made by Mr Catcher for the benefit of him and those connected with him remains an estimated minimum of £12,588.01, excluding the continuing effect these payments have had on bank charges and interest payable, which have not been calculated.
Substantial legal fees have been incurred inter alia as a result Mr Catcher's unauthorised use of company money. The company (with Mr Hill as guarantor) is meeting legal costs initially on behalf of Mr Catcher's alleged known victims. Full allowance for these fees is included in these financial statements and they will be apportioned between the parties and reclaimed if possible in due course.
Invoiced sums due from Sports Promotion Consultancy Limited, in which there is a commonality of interests, were written off in a previous financial but a share of legal fees referred to in the preceding paragraph still applies.
The following loan to directors subsisted during the year ended 30 November 2023:
R P Catcher
Balance outstanding at start of year £11,571.00
Balance outstanding at end of year £11,571.00
Maximum balance outstanding during year £11,571.00
The above loan was unauthorised and unlawful. Mr Catcher was removed as a Director during the financial year 2005/06 but remains indebted to the company in this amount, which excludes accrued interest and costs arising from his conduct.
In addition to the above Mr R P Catcher owes the company £510 in respect of share capital forfeited on 22 December 2006.
G R M Hill
Balance outstanding at start of year £206,281.00 Due from Company
Balance outstanding at end of year £206,281.00 Due from Company
Maximum balance outstanding during year £206,281.00 Due from Company
Mr Hill has current expenses totalling £20,513.63 awaiting reimbursement from the company too. This amount is included within Trade Creditors.