Registered number: 05330801
DRAGONMOBILITY LTD
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
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COMPANY INFORMATION
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101 Cambridge Science Park
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CONTENTS
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Statement of Changes in Equity
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Notes to the Financial Statements
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Report to the directors on the preparation of the unaudited statutory financial statements of Dragonmobility Ltd for the year ended 31 January 2024
We have compiled the accompanying financial statements of Dragonmobility Ltd (the ‘company’) based on the information you have provided. These financial statements comprise the Balance Sheet of Dragonmobility Ltd as at 31 January 2024, the Statment of Income and Retained Earnings and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
We performed this compilation engagement in accordance with International Standard on Related Services 4410 (Revised), 'Compilation Engagements'.
We have applied our expertise in accounting and financial reporting to assist you in the preparation and presentation of these financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). As a member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at www.icaew.com.
These financial statements and the accuracy and completeness of the information used to compile them are your responsibility.
Since a compilation engagement is not an assurance engagement, we are not required to verify the accuracy or completeness of the information you provided to us to compile these financial statements. Accordingly, we do not express an audit opinion or a review conclusion on whether these financial statements are prepared in accordance with United Kingdom Generally Accepted Accounting Practice.
This report is made solely to the Company's directors, as a body, in accordance with the terms of our engagement letter dated 25 September 2024. Our work has been undertaken solely to prepare for your approval the financial statements of the company and state those matters that we have agreed to state to the Company's directors, as a body, in this report in accordance with our engagement letter dated 25 September 2024. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its directors, as a body, for our work or for this report.
Grant Thornton UK LLP
Chartered Accountants
Cambridge
24 October 2024
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DRAGONMOBILITY LTD
REGISTERED NUMBER: 05330801
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BALANCE SHEET
AS AT 31 JANUARY 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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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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DRAGONMOBILITY LTD
REGISTERED NUMBER: 05330801
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BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2024
The directors consider 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 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 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 comprehensive income 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 on 24 October 2024.
The notes on pages 5 to 12 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
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Comprehensive income for the year
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Capital contribution movement
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Comprehensive income for the year
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Capital contribution movement
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The notes on pages 5 to 12 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
The company is a private company limited by shares and is registered in England and Wales.
Registered Number: 05330801
Registered Office:
97 Brewery Road
Pampisford
Cambridge
Cambridgeshire
CB22 3EW
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements 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 following principal accounting policies have been applied:
At 31 January 2024 the company’s liabilities exceeded its assets. In order to meet its liabilities as they fall due, the company relies on receiving payments from charities on behalf of customers, and upon the ongoing support of the directors and other funders.
The directors recognise the need for additional financing and continue to seek external support from a number of sources. The directors have committed significant personal resources to date to ensure immediate cash needs are met and actively manage the business to enable the company to continue in operational existence for the foreseeable future.
The directors have assessed the company’s ability to operate as a going concern for a period in excess of 12 months from the date of signing the financial statements. The uncertainty as to the future impact on the company of the recent macro-economic events have been considered as part of the company’s adoption of the going concern basis.
Based on the current forecasts which have been prepared with the detail of funding due for current orders and funding that is being discussed with various parties, in particular Lives Set In Motion CIC, the directors are confident that the company will secure adequate resources to continue trading for the foreseeable future, being a period of no less than 12 months from the date of approval of these accounts, and therefore it remains appropriate to continue to prepare the financial statements on a going concern basis.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
2.Accounting policies (continued)
Revenue from the sale and servicing of electric wheelchairs is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from the sale and servicing of electric wheelchairs is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale and servicing of electric wheelchairs from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from the sale and servicing of electric wheelchairs from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
2.Accounting policies (continued)
The Company incurs expenditure in relation to research and development which is recognised as an expense in profit or loss in the year they are incurred.
Tax credits are provided to the Company for this expenditure in line with relevant tax legislation. These tax credits are recognised in the year cash is received.
No amounts incurred by the Company are considered to meet the criteria for capitalisation, therefore no amounts are included as capitalised development costs.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is £ Sterling.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:
Warranty provision
Dragonmobility Limited provides a 5 year warranty for certain wheelchair repair costs. The directors have determined that no provision for costs are required in these financial statements. This is on the basis that all significant future costs are covered by future income received under customer support contracts.
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The average monthly number of employees, including directors, during the year was 3 (2023 - 3).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
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Finished goods and goods for resale
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
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Other reserves
Other reserves includes the capital contribution element of interest free funding provided by related parties. The capital contribution is released over the repayment period of the loan and an element equal to the notional interest charged is credited to the P&L reserve annually.
Profit & loss account
The profit and loss account includes all current and prior period retained profits and losses.
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Commitments under operating leases
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At 31 January 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
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Related party transactions
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Mr D and Mrs L Everard are the Company's controlling related parties by virtue of their office and shareholding in the company.
During the year, the company has received financial assistance from the directors.
At the year-end there was a Directors' loan account balance of £97,117 (2023: £87,117) from Mr and MrsEverard which has no set repayment date and is included as due after one year. This loan does not bear interest.
Mr & Mrs Everard made payments on behalf of Dragonmobility Limited during the year amounting to £35 (2023: £1,696). A balance of £9 (2023: £Nil) was due in respect of these payments at the year end. This balance is included within creditors due within one year.
A gross salary accrual of £9,805 (2023: £9,805) in respect in Mr Everard is included within other creditors due after more than one year.
During the year, the company purchased services from Axiom-e Limited, a company of which Mr K Dickson, a shareholder and director of Dragonmobility Limited, is a shareholder, amounting to £180 (2023: £360). At the year end, there was a creditor balance outstanding of £693,011 (2023: £693,011) of which £690,000 (2023: £690,000) is included within other creditors due after more than one year, and the remaining £3,011 (2023: £3,011) is included within other creditors due within one year. A further loan of £33,000 (2023: £33,000) is owed to Axiom-e Limited and is also included within creditors due after more than one year. No interest is charged on these balances. These balances have been accounted for at the net present value of future payments discounted at an interest rate of 6%. The balances are included in creditors due in more than one year as £667,438 (2023: £653,092) and £31,921 (2023: £31,235) respectively.
In addition, Axiom-e Limited made payments on behalf of Dragonmobility Limited during the year amounting to £Nil (2023: £5,500). A balance of £49,104 (2023: £49,104) was due in respect of payments made by Axiom-e Limited on behalf of Dragonmobility Limited at the year end. This balance is included within creditors due after one year.
At the year-end there was a Director's loan account balance of £30,000 (2023: £30,000) from Mr K Dickson which has a simple interest rate of 10% but no interest was charged in FY24 (FY23: £Nil). The balance is included within creditors due after one year. An interest-free loan of £15,600 (2023: £15,600) is included within other creditors due after more than one year (2023: loans due after more than one year).
A further amount of £3,546 (2023: £3,546) in respect of monies paid by Mr K Dickson on behalf of the company is included in creditors due within one year. Interest accrued from previous years of £Nil (2023: £25,800) was written off during the year.
A gross salary accrual in respect of Mr K Dickson of £35,881 (2023: £35,881) is included within creditors due after more than one year.
At the year end, the company owed £56,339 (2023: £56,339) to Mrs R Meredith, a director of the company. This is included within creditors due after one year. In addition, Mrs Meredith made payments on behalf of Dragonmobility during the year amounting to £1,140 (2023: £3,253).
A gross salary accrual of £22,341 (2023: £22,341) in respect of Mrs Meredith is included within creditors due after more than one year.
Mrs Meredith has provided a personal guarantee to a creditor in respect of a short-term lease.
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