Company registration number 09824732 (England and Wales)
VIRTUALITY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
VIRTUALITY LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
Notes to the financial statements
2 - 5
VIRTUALITY LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Current assets
Debtors
4
38,640
38,020
Creditors: amounts falling due within one year
5
(465,302)
(463,387)
Net current liabilities
(426,662)
(425,367)
Capital and reserves
Called up share capital
6
20
20
Profit and loss reserves
(426,682)
(425,387)
Total equity
(426,662)
(425,367)

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 year ended 31 October 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 year 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 23 October 2024 and are signed on its behalf by:
Mr B C Kavanagh
Director
Company registration number 09824732 (England and Wales)
VIRTUALITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
1
Accounting policies
Company information

Virtuality Limited is a private company limited by shares incorporated in England and Wales. The registered office is 82 St John Street, London, England, EC1M 4JN.

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
Going concern

The company's financial statements are prepared on the going concern basis. The company is dependent on the future support of its creditors and shareholders. This support is dependent on the company operating profitably in the future and generating funds in order to maintain its relationship with creditors. The directors have considered a period of twelve months from this date and, despite the company having negative profit and loss reserves of £426,682 (2022: £425,387) at the reporting date, are satisfied that the company will operate successfully and generate sufficient funds in order to trade out of its current trading position. The directors and shareholders have also confirmed their own support to the company for the foreseeable future.

1.3
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.

VIRTUALITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 3 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, 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.

1.4
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.

1.5
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
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 employed by the company during the year was:

2023
2022
Number
Number
Total
-
0
-
0
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
38,640
38,020
VIRTUALITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Other creditors
465,302
463,387
6
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
2,000
2,000
20
20
7
Related party transactions

At the balance sheet date, the company was owed £38,000 (2022: £38,000) by Edufit Training Limited, a company deemed to be a related party by virtue of common control.

 

At the balance sheet date, the company owed £337,307 (2022: £336,803) to Crosswood Development Limited, £2,400 (2022: £2,400) to Graphene Creative Limited, £5,826 (2022: £5,813) to Hiup Limited and £38 (2022: £nil) to Upskill Online Limited (t/a Olive Media). All companies are deemed related parties by virtue of common control.

 

At the balance sheet date, the company owed £109,104 (2022: £109,104) to J Robinson, a member of the key management personnel. No interest is applied on this loan balance.

8
Directors' transactions

Included within other debtors is a balance of £18 (2022: £18) owed by Mr B C Kavanagh, a director of the company.

9
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Oct 2022
£
£
£
Creditors due within one year
Other creditors
(526,978)
63,591
(463,387)
Capital and reserves
Profit and loss reserves
(488,978)
63,591
(425,387)
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 October 2022
£
£
£
Loss for the financial period
(4,461)
-
(4,461)
VIRTUALITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
9
Prior period adjustment
(Continued)
- 5 -
Reconciliation of changes in equity
1 November
31 October
2021
2022
£
£
Adjustments to prior year
Wages and salaries
-
63,591
Equity as previously reported
(484,499)
(488,958)
Equity as adjusted
(484,499)
(425,367)
Analysis of the effect upon equity
Profit and loss reserves
-
63,591
Reconciliation of changes in loss for the previous financial period
2022
£
Total adjustments
-
Loss as previously reported
(4,461)
Loss as adjusted
(4,461)
Notes to reconciliation

This prior period adjustment has been put through the accounts to correct the posting of a duplicate invoice.

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