Registered number: 08572386
FOSTERMCO LTD
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2023
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FOSTERMCO LTD
REGISTERED NUMBER: 08572386
BALANCE SHEET
AS AT 31 DECEMBER 2023
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Creditors: amounts falling due within one year
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Net current assets/(liabilities)
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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FOSTERMCO LTD
REGISTERED NUMBER: 08572386
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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 financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 11 form part of these financial statements.
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FOSTERMCO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Fostermco Ltd ('the Company') is a private company limited by share capital, incorporated under the UK Companies Act 2006 and domiciled in England. The address of the Company's registered office is Regina House, 124 Finchley Road, London, NW3 5JS.
2.Accounting policies
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Summary of significant accounting policies
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The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all reporting periods presented, unless otherwise stated.
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Basis of preparation of financial statements
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The financial statements of the Company have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in conformity with Financial Reporting Standard 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies.
Details of those estimates and/or judgments made in applying the Company's accounting policies towards the preparation of these financial statements that may be considered as yielding a significant risk of a material adjustment being made to the carrying amounts of assets and/or liabilities reported in the balance sheet during the next financial reporting period are disclosed in note 3 to the financial statements.
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Functional and presentational currency
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Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (the "functional currency").
The functional currency of the Company, and the currency in which the financial statements are presented (the "presentational currency"), is 'Pounds Sterling' (£) rounded to the nearest single unit of currency.
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FOSTERMCO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
In assessing whether the going concern basis remains appropriate for the preparation of the Company's financial statements, the director has reviewed the principal and emerging risks of the Company, access to funding and liquidity position and financial performance up to the date these financial statements were approved and expected financial performance over the 18 months following the balance sheet date.
Based on his assessment, the director is of the conclusion that despite reporting net liabilities at the balance sheet date the Company will have available at its disposal adequate resources to continue in operational existence for the foreseeable future and, where necessary, funds will be made available by the Company's shareholders to enable the Company to meet its liabilities as they fall due.
The director accepts that although there does exist an inherent uncertainty that may cast doubt about the ability of the Company to continue as a going concern, as is the case with all companies; the director considers the uncertainty to be sufficiently insignificant such that the application of going concern basis in preparing the Company's financial statements remains appropriate and in turn has prepared the Company's financial statements under said basis.
Revenue recognised by the Company and reported in turnover comprises of:
∙Commissions received, as and when, from clientele for whom the Company acts, or has acted for, as agent during the reporting period, exclusive of Value Added Tax;
∙Fees receivable in respect of consultancy services provided, exclusive of Value Added Tax, recognised upon invoice of the customer with amounts accrued or deferred in accordance with the underlying engagement agreement; and
∙Proceeds on the sale of fine art stocks with amounts recognised in full upon issue of an invoice at the time of agreement of sale and measured at the fair value of consideration receivable, excluding discounts, rebates, value added tax and other sales taxes.
The Company makes contributions towards defined contribution pension plans on behalf of certain employees.
A defined contribution pension plan is one under which the Company pays fixed contributions to a separate entity. Once the contributions have been paid the Company has no further payment obligations. The assets of the pension plan are held separately from the Company in independently administered funds.
Contributions are recognised as an expense in profit or loss when they fall due. Amounts falling due but not paid are shown as part of other creditors in the balance sheet.
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FOSTERMCO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Operating leases, net of benefits receivable as an incentive, are charged to profit and loss on a straight line basis over the lease term.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Taxation for the financial reporting period comprises of current (i.e. corporation) and deferred taxation; both of which are recognised in profit or loss.
Current taxation is calculated using tax rates and on the basis of tax laws enacted or substantively enacted at the balance sheet date in the UK where the Company solely operates and generates taxable income.
Deferred taxation is recognised on temporary differences arising between the tax bases of assets and liabilities and their respective carrying amounts in the financial statements. Deferred taxation is calculated using tax rates and on the basis of tax laws enacted or substantively enacted at the balance sheet date and are expected to apply when the related deferred tax asset/liability is realised/settled.
Tangible fixed assets are recognised under the cost model and stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended upon acquisition.
Depreciation is provided on the following basis:
Depreciation commences once the asset is available for use with the asset's residual value, useful life and depreciation basis reviewed, and adjusted prospectively where appropriate, if there is an indication of a significant change since the last balance sheet date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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FOSTERMCO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less any additional costs expected to be incurred in order to complete the sale with the overall difference (i.e. the impairment loss) recognised immediately in profit or loss.
Stocks that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior financial reporting periods may no longer exist or may have decreased. The value of impairment reversed will be such that the resulting carrying amount is less than or equal to the value had no impairment been recognised in prior financial reporting periods.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities; with said financial assets and liabilities classified in accordance with the substance of the underlying contractual obligations rather than its legal form.
Financial assets and liabilities are recognised in the Company's balance sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or the financial asset is transferred along with substantially all the risks and rewards of ownership of the asset to another party. Financial liabilities are derecognised only when the Company’s obligations are discharged, cancelled or expired.
The measurement of specific financial assets, financial liabilities and equity held by the Company is outlined as follows:
Debtors and creditors
Debtors excluding deferred taxation (see note 2.9), and creditors deemed to be short term in nature are initially measured at transaction price (i.e fair value) and subsequently held, at transaction price less provision for impairment of assets.
Creditors deemed not to be short term comprise of:
∙0% APR hire purchase agreements which are initially and subsequently measured at transaction price and are secured over the underlying assets provided under the respective agreements; and
∙Commercial bank loans initially measured at fair value and subsequently measured at amortised cost using the effective interest method with the interest expense recognised on an effective yield basis.
Cash and cash equivalents
Cash balances are reported by the Company as being financial instruments classified as short term receivables and are represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours, subject to an insignificant risk of changes in value and held at floating interest rates linked to UK bank rates.
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FOSTERMCO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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The Company holds cash on behalf of its clients. In the financial statements, clients' monies have been shown as part of cash at bank and in hand (note 8) in concomitance with a corresponding creditor balance as part of trade creditors (note 9).
Equity
Ordinary share capital, shown in equity, is initially measured at transaction price. Equity dividends are recognised in the reporting period in which they become legally payable upon approval by the Company's director(s).
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In the application of the Company's accounting policies, the director is required to apply judgment and make estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other available sources based on historical experience and other factors that are considered to be relevant. Consequently, actual results may differ from that originally estimated.
Judgments in applying the principal accounting policies, outlined in note 2 of these financial statements, towards the preparation of these financial statements that may be considered as having a significant risk of causing a material adjustment to the carrying amount of assets and/or liabilities carried forward as at the balance sheet date where by which the actual future outcome observed may differ from that originally determined and reported were as follows:
Impairment of stocks
When assessing stock impairments the director, with the guidance of third party professional where considered necessary, will consider the nature and condition of stocks held; and taking into account current and expected market activity, the likelihood of future sale and whether the current carrying value exceeds the expected net sales value.
Recoverable value of debtors
When determining the recoverable value of debtors, the director must apply judgment when considering readily available external and internal sources of information including, in the case of amounts owed by related parties, the forecasted financial performance and expected cash flows, ageing profile and historical experience with the debtor.
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The average monthly number of employees, including directors, during the year was 1 (2022 - 1).
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FOSTERMCO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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The net book value of assets held under finance leases or hire purchase contracts, included above, was £11,661 (2022: £21,840).
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Works of fine art for resale
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The carrying value of stocks are stated net of impairment losses totalling £nil (2022 - £nil). Impairment losses totalling £nil (2022 - £nil) were recognised in profit and loss.
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FOSTERMCO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Falling due within one year
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Prepayments and accrued income
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Trade and other debtors falling due within one year are non-interest bearing and, in the opinion of the director, of a fair value not materially different from their carrying value.
At the balance sheet date, the provision for impairment against debtors falling due within one year was £nil (2022: £nil).
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Cash and cash equivalents
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At the balance sheet date, cash balances held on behalf of clients and their corresponding creditor balance amounted to £30,075 (2022: £678).
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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FOSTERMCO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Obligations under finance leases and hire purchase contracts are secured against the specific assets the underlying contract is in respect of.
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FOSTERMCO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Charged to profit or loss
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The deferred taxation liability carried forward is made up as follows:
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Accelerated capital allowances
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In the opinion of the director, deferred taxation liabilities of £1,000 are expected to reverse in the following financial reporting period.
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Employee and employer contributions totalling £nil (2022: £nil) were payable at the balance sheet date and included in creditors falling due within one year.
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Related party transactions
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At the balance sheet date, £240 (2022: £1,240) was owed to Chat Play Read C.I.C., a company under common control in respect of an unsecured interest-free loan account. Amounts owed towards the loan account are repayable on demand with no fixed date of repayment.
At the balance sheet date, the sole director owed/(was owed) £94,646 (2022: £8,329) to/(by) the Company in respect of an unsecured and interest-free (except in the case where amounts are owed by the director to the Company) loan account. The loan account is repayable on demand with no fixed date of repayment.
There were no further related party transactions and/or period end balances to report in accordance with the Companies Act 2006 and Section 1A of Financial Reporting Standard 102 as part of these financial statements.
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