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Registration number: 11485349

Eadon & Co Ltd

Unaudited Filleted Financial Statements

for the Year Ended 31 July 2024

 

Eadon & Co Ltd

Contents

Balance Sheet

1

Notes to the Unaudited Financial Statements

2 to 8

 

Eadon & Co Ltd

(Registration number: 11485349)
Balance Sheet as at 31 July 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

6,744

1,103

Current assets

 

Debtors

5

255,239

193,675

Cash at bank and in hand

 

193,255

192,322

 

448,494

385,997

Creditors: Amounts falling due within one year

6

(174,229)

(132,686)

Net current assets

 

274,265

253,311

Total assets less current liabilities

 

281,009

254,414

Creditors: Amounts falling due after more than one year

6

(253,318)

(367,539)

Net assets/(liabilities)

 

27,691

(113,125)

Capital and reserves

 

Called up share capital

7

25,000

25,000

Retained earnings

2,691

(138,125)

Shareholders' funds/(deficit)

 

27,691

(113,125)

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

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 16 April 2025
 


Mr T E Eadon
Director

 

Eadon & Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2024

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
83 Ducie Street
Manchester
Merseyside
M1 2LQ

These financial statements were authorised for issue by the director on 16 April 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared under the historical cost convention and in accordance with FRS 105 'The Financial Reporting Standard applicable to the Micro-entities Regime'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Eadon & Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2024

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Eadon & Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2024

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 7 (2023 - 3).

 

Eadon & Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2024

4

Tangible assets

Office equipment
£

Total
£

Cost or valuation

At 1 August 2023

25,735

25,735

Additions

7,269

7,269

At 31 July 2024

33,004

33,004

Depreciation

At 1 August 2023

24,632

24,632

Charge for the year

1,628

1,628

At 31 July 2024

26,260

26,260

Carrying amount

At 31 July 2024

6,744

6,744

At 31 July 2023

1,103

1,103

5

Debtors

Current

2024
£

2023
£

Trade debtors

-

-

Prepayments

13,493

-

Other debtors

241,746

193,675

 

255,239

193,675

 

Eadon & Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2024

6

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

8

10,000

10,000

Trade creditors

 

643

1,200

Taxation and social security

 

71,911

32,360

Accruals and deferred income

 

190

-

Other creditors

 

91,485

89,126

 

174,229

132,686

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

8

10,000

20,000

Other non-current financial liabilities

 

243,318

347,539

 

253,318

367,539

7

Share capital

8

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

10,000

20,000

Current loans and borrowings

2024
£

2023
£

Bank borrowings

10,000

10,000

 

Eadon & Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2024

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £8,796 (2023 - £19,350). The company has entered into a lease agreement for an electric car which will terminate on 30 April 2025.

10

Related party transactions

Transactions with the director

2024

At 1 August 2023
£

Advances to director
£

At 31 July 2024
£

Mr T E Eadon

Director loan account

89,209

51,303

140,512

2023

At 1 August 2022
£

Advances to director
£

At 31 July 2023
£

Mr T E Eadon

Director loan account

9,890

79,319

89,209

Other transactions with the director

The Director has operated a director loan account throughout the period, on which interest has been charged at the HMRC Official Rate of Interest, which applied during this financial reporting period.

 

Eadon & Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2024

11

Off-balance sheet arrangements

Going concern
During the prior reporting period the company has been exposed to a financial fraud which resulted in heavy financial exposure over the course of that reporting period. The Director took appropriate steps to deal with all aspects that have arisen, as a result of the fraud, and in collaboration with the FCA and all other relevant regulatory bodies, its' clients and suppliers.

There are liabilities recognised in the financial statements as a direct result of the fraud of £334,364 (2023:£436,665) of which £91,047 is due within 12 months of the year ended 31 July 2024 and £243,318 falling due within a further 36 months.

The Company has incurred exceptional costs in this period of a credit of £285 (2023: £181,729), as a direct result of the fraud and which is recognised in the profit and loss account. The costs in the prior reporting period relate to payments made to subscontractors engaged with the company to provide services which were intended to produce commission income for the company.

The Director fully informed both the FCA, the company insurers and its' clients, and the Director has received assurance that all appropriate steps have been taken by the Company in addressing this matter.

The exceptional nature of events that the Company experienced over the prior reporting period resulted in a loss before taxation for the company of £176,160. The Director stabalised the financial exposure of the fraud through arrangements to pay the liabilities over structured periods with each client involved. The Director returned the company to profit in this reporting period, and the company has returned to a low level of credit reserves at the Balance Sheet date. The Director considers that the company can continue to meet its liabilities as they fall due, and is confident that the company will continue in its' return to profitability in later reporting periods, and as such considers that the company continues to be able to operate as a going concern. The Director will naturally keep this under review.