Company registration number 13492290 (England and Wales)
YCG PATHWAYS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
YCG PATHWAYS LIMITED
COMPANY INFORMATION
Directors
Mr M R S Hodge
Mr Raffaele Esposito
Company number
13492290
Registered office
Kingsnorth House
Blenheim Way
Kingstanding
Birmingham
West Midlands
United Kingdom
B44 8LS
Accountants
Malcolm Piper & Company Limited
Kingsnorth House
Blenheim Way
Birmingham
West Midlands
United Kingdom
B44 8LS
YCG PATHWAYS LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2
Notes to the financial statements
3 - 7
YCG PATHWAYS LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF YCG PATHWAYS LIMITED FOR THE PERIOD ENDED 31 MAY 2023
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of YCG Pathways Limited for the period ended 31 May 2023 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the Board of Directors of YCG Pathways Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of YCG Pathways Limited and state those matters that we have agreed to state to the Board of Directors of YCG Pathways Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than YCG Pathways Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that YCG Pathways Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of YCG Pathways Limited. You consider that YCG Pathways Limited is exempt from the statutory audit requirement for the period.
We have not been instructed to carry out an audit or a review of the financial statements of YCG Pathways Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Malcolm Piper & Company Limited
26 September 2024
Chartered Accountants
Kingsnorth House
Blenheim Way
Birmingham
West Midlands
United Kingdom
B44 8LS
YCG PATHWAYS LIMITED
BALANCE SHEET
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31 May 2023
31 July 2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
149,650
60,055
Tangible assets
5
662
853
150,312
60,908
Current assets
Debtors
6
260
Cash at bank and in hand
1,348
7,499
1,348
7,759
Creditors: amounts falling due within one year
7
(186,020)
(91,364)
Net current liabilities
(184,672)
(83,605)
Net liabilities
(34,360)
(22,697)
Capital and reserves
Called up share capital
8
500
500
Profit and loss reserves
(34,860)
(23,197)
Total equity
(34,360)
(22,697)
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 period ended 31 May 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 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 by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
Mr M R S Hodge
Director
Company registration number 13492290 (England and Wales)
YCG PATHWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MAY 2023
- 3 -
1
Accounting policies
Company information
YCG Pathways Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kingsnorth House, Blenheim Way, Kingstanding, Birmingham, West Midlands, United Kingdom, B44 8LS.
1.1
Reporting period
These financial statements have been drawn up for a period of ten months in order to align the year end with associated companies. As a result, the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
1.2
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.
1.3
Going concern
The directors have considered the current trading activities of the company and its cash flow for the next 12 months from the date of this report and are satisfied that the company's products and services under development are proving to be and will ultimately prove to be successful and cash generative.
The company relies upon the support of its directors for operating and working cash flow. The company has received assurances from the Director that he will continue to support the company as necessary and will not seek repayment of such loans and advances in full until such time as the company can afford to do so without detriment to its operating and working cash flow and to other external creditors.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
YCG PATHWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Research and development expenditure
Expenditure on research and development activities not related to the internal generation of intangible assets is recognised as an expense in the period in which it is incurred.
An internally generated intangible asset arising from the company's software and infrastructure development (or from the development phase of an internal project) is recognised if, and only if, all of the following conditions have been demonstrated:
1. the technical feasibility of completing the intangible asset so that it will be available for use or sale;
2. the intention to complete the intangible asset and use or sell it;
3. the ability to use or sell the intangible assets;
4. how the intangible assets will generate probable future economic benefits;
5. the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
6. the ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognised criteria listed above. Where no internally-generated intangible assets can be recognised, development expenditure is recognised in the profit and loss account in the period in which it is incurred. Subsequent to initial recognition, internally generated intangible assets are accounted at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are separately acquired.
Residual value is calculated on prices prevailing at the date of acquisition or revaluation. Useful lives and residual values are reviewed at the end of every reporting period.
Assets under development relate to the capitalised development costs of the education platform being developed. These development costs are not amortised until the development is launched.
1.6
Intangible fixed assets other than goodwill
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:
Development costs
Over 10 years
1.7
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:
Computers
20% straight line
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.
1.8
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.
YCG PATHWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 5 -
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
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 period was:
2023
2022
Number
Number
Total
4
3
4
Intangible fixed assets
Development costs
£
Cost
At 1 August 2022
60,055
Additions
89,595
At 31 May 2023
149,650
Amortisation and impairment
At 1 August 2022 and 31 May 2023
Carrying amount
At 31 May 2023
149,650
At 31 July 2022
60,055
YCG PATHWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
- 6 -
5
Tangible fixed assets
Computers
£
Cost
At 1 August 2022 and 31 May 2023
954
Depreciation and impairment
At 1 August 2022
101
Depreciation charged in the period
191
At 31 May 2023
292
Carrying amount
At 31 May 2023
662
At 31 July 2022
853
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
260
7
Creditors: amounts falling due within one year
2023
2022
£
£
Taxation and social security
305
446
Other creditors
185,715
90,918
186,020
91,364
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
300
300
300
300
Ordinary B shares of £1 each
200
200
200
200
500
500
500
500
YCG PATHWAYS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
- 7 -
9
Related party transactions
YCG Academy Limited
A company of which Mr M R S Hodge and Mr R Esposito are directors and shareholders.
At the 31 May 2023 the amount due from YCG Pathways Limited amounted to £Nil (2022 - £243).
Your Consultation Group Community Interest Company Limited
A company of which Mr M R S Hodge and Mr R Esposito are directors.
During the year Your Community Group Community Interest Company incurred expenses on behalf of YCG Pathways Limited of £53,089 (2022 - £Nil). At the 31 May 2023 the amount due from YCG Pathways Limited amounted to £53,089 (2022 - £Nil). It is unsecured and has no specific terms regarding payment of interest. The amount due is repayable on demand.
10
Directors' transactions
During the year, the director, Mr M R S Hodge, advanced loans to the company of £40,235 (2022 - £90,400) to assist with the operating and working cash flow. At the year end the company owed Mr M R S Hodge £130,635 (2022 - £90,400). These loans and advances from the Director are repayable on demand and have no specific terms regarding the payment of interest. The company has received assurances from the Director that he will continue to support the company as necessary and will not seek repayment of such loans and advances in full until such time as the company can afford to do so without detriment to its operating and working cash flow and to other external creditors.
11
Post balance sheet events
In May 2024 Mr M R S Hodge assigned the benefit and title to loans made by him to the company to his wife, Mrs S K Taviner-Hodge. At the same date, the company assigned its current and future intellectual property relating to its proprietary software, goodwill and all other intellectual property rights to YCG Transactions Limited, a company in which Mrs S K Taviner-Hodge is sole shareholder and director, in consideration for her continuing to provide financial support by way of increased working capital facilities. The company continues to enjoy a revocable licence of said intellectual property on the condition that as soon as funds are available it will seek to repay these working capital loans and advances. The directors have received assurances from Mrs S K Taviner-Hodge that she will continue to provide financial support to the company as necessary and will not seek repayment of such loans and advances in full until such time as the company can afford to do so without detriment to its operating and working cash flow and to other external creditors and in any case not within 12 months of the date of the approval of these financial statements.