Contents of the Financial Statements
for the Period Ended 29 February 2024
Balance sheet
As at
29 February 2024
|
Notes
|
2024
|
2023
|
|
|
£
|
£
|
Current assets |
Stocks: |
|
500,000
|
480,000
|
Cash at bank and in hand: |
|
1,527
|
1,245
|
Total current assets: |
|
501,527
|
481,245
|
Creditors: amounts falling due within one year: |
3 |
(497,807)
|
(481,134)
|
Net current assets (liabilities): |
|
3,720
|
111
|
Total assets less current liabilities: |
|
3,720
|
111
|
Total net assets (liabilities): |
|
3,720
|
111
|
Capital and reserves |
Called up share capital: |
|
2
|
2
|
Profit and loss account: |
|
3,718
|
109
|
Shareholders funds: |
|
3,720
|
111
|
The notes form part of these financial statements
Balance sheet statements
For the year ending 29 February 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
The members have agreed to the preparation of abridged accounts for this accounting period in accordance with Section 444(2A).
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The directors have chosen to not file a copy of the company’s profit & loss account.
This report was approved by the board of directors on
11 September 2024
and signed on behalf of the board by:
Name:
Ian McIvor
Status: Director
The notes form part of these financial statements
Notes to the Financial Statements
for the Period Ended 29 February 2024
1. Accounting policies
These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102Turnover policy
Turnover is measured at the fair value of the consideration receivable net of VAT and discounts. The policies adopted for the recognition of turnover and other income are as follows: -
Development contracts
When the outcome of a contract can be estimated reliably, development costs and turnover are recognised by reference to the stage of completion at the reporting date. Stage of completion is measured by reference to cost of development work completed.
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.
When it is probable that contract costs will exceed the contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.Other accounting policies
Foreign currencies
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.
Impairment
Assets not measured at fair value are reviewed for an indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating units, is estimated and compared to the carrying amount. Where the carrying amount exceeds the recoverable amount, an impairment loss is recognised in the profit and loss account unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
Stock
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is the expenditure incurred in the normal course of business in bringing the product to its present location and condition. Cost is calculated using the first in, first out basis.
Taxation
The charge of taxation is based on the results for the year and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Provision is made at the rates expected to apply when the timing differences reverse. Timing differences are differences between the company’s taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in taxable profits in periods different from those in which they are recognised in the financial statements.
Provisions
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event and it is probable that an outflow of economic benefits will be required in settlement of that obligation and the amount can be reliably estimated.
Debtors and creditors’ receivable/payable within one year
Debtors and creditors with no stated interest rate and which are receivable or payable within one year are recorded at the transaction price. Any losses arising from impairment are recognised in the Statement of Income in other administrative expenses.
Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transactions costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction, it is measured at present value.
Classification of shares as debt or equity
An equity instrument is a contract that evidences a residual interest in the assets of an entity after deducting all its liabilities. Accordingly, a financial instrument is treated as equity if: -
-There is no contractual obligation to deliver cash or other financial assets or to exchange financial assets or liabilities on terms that may be unfavourable; and
-The instrument is a non-derivative that contains no contractual obligations to deliver a variable number of shares or is a derivative that will be settled only by the company exchanging a fixed amount of cash or other assets for a fixed number of its own equity instruments.
When shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet; measured initially at fair value net of transaction costs and thereafter at amortised cost until extinguished on conversion or redemption. The corresponding dividends relating to the liability component are charged as interest expense in the income statement. The initial fair value of the liability component is determined using a market rate for an equivalent liability without a conversion feature.
The remainder of the proceeds on issue is allocated to the equity component and included in shareholders’ equity, net of transaction costs. The carrying amount of the equity component is not re-measured in subsequent years.
Transaction costs are apportioned between the liability and equity components of the shares based on the allocation of proceeds to the liability and equity components when the instruments are first recognised.
The company’s redeemable preference shares have been accounted for as such a hybrid instrument.
Notes to the Financial Statements
for the Period Ended 29 February 2024
2. Employees
|
2024 |
2023 |
Average number of employees during the period |
2
|
2
|
Notes to the Financial Statements
for the Period Ended 29 February 2024
3. Creditors: amounts falling due within one year note
Bank loans £41,132 (2023: £52,676)
Directors’ current accounts £237,403 (2023: £208,931)
Accruals and deferred income £9,272 (2023:) 9,527
Redeemable Preference Shares £210,000 (2023: £210,000)
Creditors above include secured liabilities of £41,132 (2023: £52,676).