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ABSOLUTE COLOUR LIMITED
REGISTERED NUMBER:08075499
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BALANCE SHEET
AS AT 29 FEBRUARY 2024
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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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 2 to 4 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Absolute Colour Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office and principal place of business is the same and is disclosed on the company information page.
The financial statements are presented in sterling which is the functional currency of the company and rounded to
the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These
policies have been consistently applied to all years presented unless otherwise stated.
The prior year's reporting period is shorter than a year being a 9 month period from 1 June 2022 to 28 February 2023. The change in the reporting period was made to bring the company's period in line with the group. The current amounts presented in the financial statements are not directly comparable as they are for a 12 month period ended 29 February 2024.
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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:
Revenue is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
2.Accounting policies (continued)
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting
period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or
directly in equity, respectively.
Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that
have been enacted or substantively enacted at the reporting date.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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The company did not have any employees during the year (2023: 1).
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Amounts owed by group undertakings
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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The prior year debtors and creditors falling due within one year have been restated from £238,510 to £495,745 and £63,491 to £320,726 respectively after recognising the calculated net VAT liability of £257,235 not charged on management charges between group entities. Please see note 7 for more information.
As previously disclosed, Envy Post Production acquired Absolute Investments Limited and its subsidiaries (‘the Absolute Group’), including Absolute Colour Limited in November 2022.
It has been identified that, prior to acquisition by the group, VAT was incorrectly not charged on management charges raised between certain of the Absolute Group entities, with Absolute Colour not having been registered for VAT or included in a group VAT registration. The net VAT payable by Absolute Colour Limited is calculated at £257,235.
The group is currently corresponding with HMRC to correct this matter, with the expectation that a VAT neutral position across the entities will be achieved. Penalties and interest may arise, however, the group is currently unable to assess whether this will be the case or potential quantum thereof.
Should there be a net cost arising to the group in VAT, interest and penalties, the amount payable would be deducted from the deferred consideration liability payable to the Absolute Group vendor as shown in note 23 of the Envy Post Production Limited accounts.
The parent company of the smallest group for which consolidated financial statements are drawn up is Envy Post Production Limited, a company registered in the UK. The address of the registered office is 50a Rathbone Place, London, W1T 1JW.
The auditor's report on the financial statements for the year ended 29 February 2024 was unqualified.
The audit report was signed on 26 February 2025 by Andrew Cook FCA (Senior statutory auditor) on behalf of Menzies LLP.
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