Mirrorsphere Ltd. |
Notes to the Accounts |
for the year ended 31 December 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Going concern |
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The director believes that the company is experiencing good levels of sales growth and profitability, and that it is well placed to manage its business risks successfully. Accordingly he has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the going concern basis continues to be adopted in preparing the financial statements. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Government grants |
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Income from local authority grants and deemed income for interest payable in the business interruption period on Covid 19 bank loans is accounted for on an accruals basis. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Fixtures, fittings, tools and equipment |
over 4 years |
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Motor vehicles |
over 5 years |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only 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 and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
5 |
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5 |
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3 |
Tangible fixed assets |
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Plant and machinery etc |
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Motor vehicles |
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Total |
£ |
£ |
£ |
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Cost |
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At 1 January 2023 |
48,273 |
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35,448 |
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83,721 |
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Additions |
10,288 |
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68,195 |
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78,483 |
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Disposals |
(1,773) |
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(35,448) |
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(37,221) |
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At 31 December 2023 |
56,788 |
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68,195 |
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124,983 |
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Depreciation |
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At 1 January 2023 |
36,170 |
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28,719 |
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64,889 |
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Charge for the year |
4,851 |
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10,582 |
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15,433 |
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On disposals |
(589) |
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(29,419) |
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(30,008) |
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At 31 December 2023 |
40,432 |
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9,882 |
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50,314 |
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Net book value |
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At 31 December 2023 |
16,356 |
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58,313 |
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74,669 |
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At 31 December 2022 |
12,103 |
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6,729 |
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18,832 |
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4 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
55,026 |
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57,914 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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244,081 |
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215,081 |
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Other debtors |
92,375 |
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87,054 |
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391,482 |
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360,049 |
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Amounts due after more than one year included above |
14,643 |
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16,247 |
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Included in other debtors above is accrued income of £8,076 (2022: £11,157) and prepayments of £22,998 (2022: £2,672). |
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5 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Bank loans and overdrafts |
10,000 |
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10,000 |
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Trade creditors |
35,814 |
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26,421 |
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Taxation and social security costs |
37,372 |
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77,881 |
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Other creditors |
48,755 |
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21,330 |
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131,941 |
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135,632 |
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Included in other creditors above is deferred income of £30,311 (2022: £7,297) and accruals of £7,095 (2022: £3,479). |
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6 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
£ |
£ |
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Bank loans |
15,000 |
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25,000 |
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7 |
Share capital |
2023 |
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2022 |
£ |
£ |
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Allotted, called up share capital which has been paid up |
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50 ordinary shares of £1 each |
50 |
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50 |
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100 B ordinary shares of £1 each |
100 |
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100 |
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150 |
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150 |
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8 |
Capital commitments |
2023 |
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2022 |
£ |
£ |
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Amounts contracted for but not provided in the accounts |
- |
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78,514 |
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9 |
Loans to directors |
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Description and conditions |
B/fwd |
Paid |
Repaid |
C/fwd |
£ |
£ |
£ |
£ |
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Loan 1 |
49,991 |
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- |
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(4,937) |
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45,054 |
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Loan 2 |
6,987 |
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- |
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(6,987) |
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- |
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56,978 |
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- |
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(11,924) |
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45,054 |
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During the year, the company advanced funds to a director of the company. The maximum loan balance outstanding during the year was £58,114. Interest has been charged at the HM Revenue and Customs authorised rate for beneficial loans. There are no fixed terms of repayment. |
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10 |
Controlling party |
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The ultimate controlling party is S J Dauphin, who owns 100% of the ordinary shares of the total issued share capital of Mirrorsphere Group Ltd, which in turn owns 100% of the shares in the company. |
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11 |
Other information |
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Mirrorsphere Ltd. is a private company limited by shares and incorporated in England. Its registered office is: |
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Bloxham Mill |
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Barford Road |
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Bloxham |
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Oxfordshire |
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OX15 4FF |
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Mirrorsphere Ltd is a wholly owned subsidiary of Mirrorsphere Group Ltd, a private company limited by shares and incorporated in England, which shares the same registered office. |