Company registration number 10000823 (England and Wales)
DOWNING IP LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
PAGES FOR FILING WITH REGISTRAR
DOWNING IP LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
DOWNING IP LIMITED
BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
1
1
Tangible assets
4
6,568
11,332
Investments
5
-
0
100
6,569
11,433
Current assets
Debtors
6
680,855
772,111
Cash at bank and in hand
17,759
25,858
698,614
797,969
Creditors: amounts falling due within one year
7
(271,086)
(368,522)
Net current assets
427,528
429,447
Net assets
434,097
440,880
Capital and reserves
Called up share capital
9
5,200
5,200
Profit and loss reserves
428,897
435,680
Total equity
434,097
440,880

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 July 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

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 member has 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 and signed by the director and authorised for issue on 4 April 2025
M P Downing
Director
Company registration number 10000823 (England and Wales)
DOWNING IP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
1
Accounting policies
Company information

Downing IP Limited is a private company limited by shares incorporated in England and Wales. The registered office is 166 College Road, Harrow, Middlesex, HA1 1RA.

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.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Turnover

Turnover represents revenue earned from providing professional services and advice to third parties.

 

Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under those contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including recoverable expenses and disbursements, but excluding VAT.

 

For incomplete assignments, an assessment is made of the extent to which revenue has been earned. This assessment takes into account the nature of the assignment, its stage of completion, and the relevant contract terms.

 

Revenue recognised but not invoiced at the year end is included in debtors.

If, at the balance sheet date, completion of contractual obligations is dependent on external factors (and the outside the control of Downing IP Limited), then revenue is recognised only when the event occurs. In such cases, costs incurred up to the balance sheet date are carried forward as work in progress.

1.3
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years. Refer to note 3 to the financial statements.

DOWNING IP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 3 -
1.4
Tangible fixed assets

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Over the term of the lease
Office furniture and equipment
25% on reducing balance
Computer equipment
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

 

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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 measured at transaction price including transaction costs, Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, are 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.

 

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.

1.7
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.

DOWNING IP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 4 -
1.8
Taxation

The tax expense represents the sum of the tax currently payable.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.9
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10
Leases

Rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease.

1.11
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.

1.12

Preference shares

The redeemable preference shares are classified as equity as they are redeemable at the option of the issuer and do not carry a right to a return.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
8
9
3
Intangible fixed assets
Goodwill
£
Cost
At 1 August 2023 and 31 July 2024
137,500
Amortisation and impairment
At 1 August 2023 and 31 July 2024
137,499
Carrying amount
At 31 July 2024
1
At 31 July 2023
1
DOWNING IP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 5 -
4
Tangible fixed assets
Leasehold land and buildings
Office furniture and equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 August 2023
16,010
11,106
30,929
58,045
Additions
-
0
-
0
916
916
At 31 July 2024
16,010
11,106
31,845
58,961
Depreciation and impairment
At 1 August 2023
9,791
8,395
28,527
46,713
Depreciation charged in the year
3,554
677
1,449
5,680
At 31 July 2024
13,345
9,072
29,976
52,393
Carrying amount
At 31 July 2024
2,665
2,034
1,869
6,568
At 31 July 2023
6,219
2,711
2,402
11,332
5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
-
0
100
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 August 2023
100
Disposals
(100)
At 31 July 2024
-
Carrying amount
At 31 July 2024
-
At 31 July 2023
100
DOWNING IP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 6 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
259,855
341,332
Other debtors
421,000
430,779
680,855
772,111
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
22,834
56,391
Trade creditors
102,499
120,867
Corporation tax
30,466
99,923
Other taxation and social security
85,073
73,790
Other creditors
30,214
17,551
271,086
368,522

Included in bank loans and overdrafts is an amount of £22,834 (2023: £56,391) which is personally guaranteed by the director of the company.

8
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,859
65,599

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
200
200
200
200
DOWNING IP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
9
Called up share capital
(Continued)
- 7 -
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Redeemable Preference Shares of £1 each
5,000
5,000
5,000
5,000
Preference shares classified as equity
5,000
5,000
Total equity share capital
5,200
5,200
10
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
90,644
175,644
11
Related party transactions

Included within other debtors is £263,343 (2023: £269,405) owed to the company by the director as at the balance sheet date. Interest amounting to £5,611 (2023: £4,709) was charged on the loan during the year at HMRC's rate for beneficial loans. The maximum balance on the loan to the director during the year was £309,926 (2023: £287,351).

 

During the year, the company purchased services from Michael Downing IE, a separate business of which Michael Downing is the principal, amounting to £20,805 (2023: £27,682). As at the balance sheet date, there was an amount included in trade creditors of £2,311 (2023: £1,954) due to Michael Downing IE and an amount included in other debtors of £3,870 (2023: £1,046) due from Michael Downing IE.

 

During the year, the company purchased services from DIP Management LLP, a limited liability partnership in which Michael Downing is a member, amounting to £76,418 (2023: £19,685). As at the balance sheet date, there was an amount included in trade creditors of £nil (2023: £7,953) due to DIP Management LLP.

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