Company registration number 05186639 (England and Wales)
IAN MORRISON LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
IAN MORRISON LIMITED
CONTENTS
Page
Company information
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 10
IAN MORRISON LIMITED
BALANCE SHEET
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
501
13,063
Current assets
Debtors
5
173,727
45,265
Cash at bank and in hand
74,860
173,727
120,125
Creditors: amounts falling due within one year
6
(204,711)
(147,555)
Net current liabilities
(30,984)
(27,430)
Total assets less current liabilities
(30,483)
(14,367)
Creditors: amounts falling due after more than one year
7
(26,612)
Provisions for liabilities
(1,621)
Net liabilities
(30,483)
(42,600)
IAN MORRISON LIMITED
BALANCE SHEET (CONTINUED)
2023
2022
Notes
£
£
£
£
- 3 -
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
(30,583)
(42,700)
Total equity
(30,483)
(42,600)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial period ended 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his 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 period 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 and signed by the director and authorised for issue on 27 August 2024
Mr. I Morrison
Director
Company Registration No. 05186639
The notes on pages 4 to 10 form part of these financial statements
IAN MORRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023
- 4 -
1
Accounting policies
Company information
Ian Morrison Limited is a private company limited by shares incorporated in England and Wales. The registered office is 17 Eastley Crescent, Warwick, CV34 5RX.
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
Accounts prepared on a basis other than going concern
Subsequent to the balance sheet date, the company has experienced a significant drop in its trading activities, to the extent that the director regretfully considers that they may have no other option than to cease trading.
Accordingly the director considers that it is no longer appropriate to presume the company will continue in business for the foreseeable future. These financial statements have therefore been prepared on a basis other than the going concern basis. These financial statements present all assets at the lower of their cost or realisable value, and present all liabilities as falling due within one year at the value of the future cash outflows expected.
1.3
Reporting period
The company shortened its accounting reference date to 31st July 2023. The current period of the financial statements therefore show the performance of the company for the 9 months from 1st November 2022 to 31st July 2023. The comparatives show the performance of the company for the 15 months from 1st August 2021 to 31st October 2022.
1.4
Turnover
The company's turnover represents the value, excluding value added tax, of services provided to customers during the year.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
IAN MORRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 5 -
Franchise costs
Amortised over 10 years
1.6
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:
Office equipment
15% straight line
IT equipment
25% straight line
Motor vehicles
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.
1.7
Cash at bank and in hand
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.
1.8
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.
IAN MORRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities
Basic financial liabilities, including creditors 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.
1.9
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.
1.10
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.
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.
IAN MORRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 7 -
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Total
1
1
3
Intangible fixed assets
Franchise costs
£
Cost
At 1 November 2022 and 31 July 2023
38,900
Amortisation and impairment
At 1 November 2022 and 31 July 2023
38,900
Carrying amount
At 31 July 2023
At 31 October 2022
IAN MORRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
- 8 -
4
Tangible fixed assets
Office equipment
IT equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2022
25,591
46,428
3,000
75,019
Additions
500
500
At 31 July 2023
25,591
46,928
3,000
75,519
Depreciation and impairment
At 1 November 2022
12,605
46,351
3,000
61,956
Depreciation charged in the period
2,891
76
2,967
Impairment losses
10,095
10,095
At 31 July 2023
25,591
46,427
3,000
75,018
Carrying amount
At 31 July 2023
501
501
At 31 October 2022
12,986
77
13,063
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
97,605
44,897
Other debtors
19,208
-
Directors loan account
56,914
-
Prepayments and accrued income
368
173,727
45,265
IAN MORRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
- 9 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank overdraft
20,380
Trade creditors
16,238
8,497
Corporation tax
104,740
79,725
VAT payable
20,908
18,956
Other creditors
39,092
35,786
Accruals
3,353
4,591
204,711
147,555
The bank overdraft is secured via personal guarantee from the Director.
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
26,612
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
90
90
90
90
Ordinary B shares of £1 each
10
10
10
10
100
100
100
100
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
68,125
87,589
IAN MORRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023
- 10 -
10
Related party transactions
The director maintains a loan account with the company. At the start of the period the director was owed £7,147 by the company. During the period amounts were advanced to the director totalling £79,571 and repayments totalling £15,530 were received. At the balance sheet date the director owed £56,914 to the company.
The director has applied the exemption available in FRS 102 Section 1A.35 not to disclose transactions with related parties which are undertaken under normal market conditions.