Registration number:
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London Irish Consortium (2013) Ltd
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Brebners
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London Irish Consortium (2013) Ltd
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Statement of Income and Retained Earnings |
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Statement of Financial Position |
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Statement of Cash Flows |
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Notes to the Financial Statements |
London Irish Consortium (2013) Ltd
Company Information
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Directors |
M R Crossan W G Kearney E Crossan |
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Registered office |
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Auditor |
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London Irish Consortium (2013) Ltd
Strategic Report for the Year Ended 30 June 2024
The directors present their strategic report for the year ended 30 June 2024.
Principal activity
The principal activity of the company was that of an investment holding company for a professional rugby club.
Fair review of the business
As previously reported, both London Irish Scottish Richmond Limited and London Irish Holdings Limited were placed into administration on 7th June 2023.
Performance:
The company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2024 |
2023 |
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(Deficit)/Profit before tax |
£ |
(17,500) |
(6,293,280) |
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Total Equity |
£ |
(13,066,888) |
(13,049,388) |
As a result of the administration the company is no longer a going concern and the remaining risk / uncertainty to the company is in respect of the value of any remaining distribution from the administration.
Approved by the
.........................................
Director
London Irish Consortium (2013) Ltd
Directors' Report for the Year Ended 30 June 2024
The directors present their report and the financial statements for the year ended 30 June 2024.
Directors of the company
The directors who held office during the year were as follows:
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Disclosure of information in the Strategic Report
The company has chosen in accordance with S.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.
Approved by the director on
.........................................
M R Crossan
Director
London Irish Consortium (2013) Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
London Irish Consortium (2013) Ltd
Independent Auditor's Report to the Members of
London Irish Consortium (2013) Ltd
for the Year Ended 30 June 2024
Opinion
We have audited the financial statements of London Irish Consortium (2013) Ltd (the 'company') for the year ended 30 June 2024, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is 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).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of matter
We draw attention to note 2 of the financial statements (Basis of preparation / going concern) which explains the effect of the company's former subsidiary entering administration on the preparation of the financial statements. Our opinion is not modified in respect of this matter.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
London Irish Consortium (2013) Ltd
Independent Auditor's Report to the Members of
London Irish Consortium (2013) Ltd
for the Year Ended 30 June 2024
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities (set out on page 4), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
London Irish Consortium (2013) Ltd
Independent Auditor's Report to the Members of
London Irish Consortium (2013) Ltd
for the Year Ended 30 June 2024
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the company and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006) and UK corporate taxation laws. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit. The audit partner ensured that the audit team had appropriate skills and experience to identify non-compliance with laws and regulations.
We reviewed and understood the regulatory framework and how the company is complying with it by making enquiries of the Board and management and conducting a review of the board minutes. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; identifying and assessing the effectiveness of controls in place to prevent and detect fraud, reviewing estimates and judgements from management bias and agreeing the financial statements to documentations.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
The primary responsibility for the detection and prevention of fraud rests with those responsibly for governance and management, and the further removed non-compliance with laws and regulations is from the events reflected within the financial statements, the less likely the auditors will become aware of it.
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from errors, as fraud may involve deliberate concealment, collusion, omission, misrepresentation and forgery.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
London Irish Consortium (2013) Ltd
Independent Auditor's Report to the Members of
London Irish Consortium (2013) Ltd
for the Year Ended 30 June 2024
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
130 Shaftesbury Avenue
W1D 5AR
London Irish Consortium (2013) Ltd
Statement of Income and Retained Earnings for the Year Ended 30 June 2024
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Note |
2024 |
2023 |
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Turnover |
- |
- |
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Administrative expenses |
( |
( |
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Operating loss |
( |
( |
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Other interest receivable and similar income |
- |
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Interest payable and similar charges |
- |
( |
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- |
596,817 |
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Loss before tax |
( |
( |
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Loss for the financial year |
( |
( |
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Retained earnings brought forward |
(17,686,918) |
(11,393,638) |
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Retained earnings carried forward |
(17,704,418) |
(17,686,918) |
London Irish Consortium (2013) Ltd
Statement of Financial Position as at 30 June 2024
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Note |
2024 |
2023 |
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Current assets |
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Debtors |
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Creditors: Amounts falling due within one year |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
4,637,530 |
4,637,530 |
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Retained earnings |
(17,704,418) |
(17,686,918) |
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Shareholders' deficit |
(13,066,888) |
(13,049,388) |
Approved and authorised by the
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M R Crossan
Director
Company registration number: 08800984
London Irish Consortium (2013) Ltd
Statement of Cash Flows for the Year Ended 30 June 2024
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Note |
2024 |
2023 |
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Cash flows from operating activities |
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Loss for the year |
( |
( |
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Adjustments to cash flows from non-cash items |
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Impairment on amounts due from former group undertakings |
- |
6,884,519 |
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Finance income |
- |
( |
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Finance costs |
- |
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( |
( |
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Working capital adjustments |
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Decrease in debtors |
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( |
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Increase in creditors |
( |
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Net cash flow from operating activities |
- |
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Cash flows from financing activities |
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Interest paid |
- |
( |
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Net decrease in cash and cash equivalents |
- |
( |
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Cash and cash equivalents at 1 July |
- |
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Cash and cash equivalents at 30 June |
- |
- |
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London Irish Consortium (2013) Ltd
Notes to the Financial Statements for the Year Ended 30 June 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The address of the company's principal place of business is:
Hazelwood
Hazelwood Drive
Sunbury-On-Thames
Middlesex
TW16 6QU
The principal activity of the company was that of an investment holding company for a professional rugby club.
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Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation / going concern
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
London Irish Scottish Richmond Limited and London Irish Holdings Limited (previous group undertakings) were placed into administration on 7th June 2023. As a result the company has reviewed the carrying value of the amounts due from these companies for impairment with provisions being made in the company's prior year financial statements accordingly based on directors' best estimates of recovery. Whether these provisions are materially accurate will not be known until the administration is concluded. The Director's best estimates include an assessment of the latest reports prepared by the Administrators, together with estimated outcome scenarios.
As a result the company has net liabilities of £13,066,888 and as a result of this and the ongoing effects of the above administrations, is no longer considered to be a going concern. As such a going concern basis of preparation has not been adopted.
The only asset held by the company at the year-end relates to amounts due from previous group undertakings which were reviewed for impairment in prior years. No further impairment is considered appropriate in the current year. The year-end balance, as disclosed within these financial statements, is considered to be fully recoverable from the administrators.
Liabilities have been included in the financial statements at their year end values.
No account has been taken of additional potential losses incurred post year end.
London Irish Consortium (2013) Ltd
Notes to the Financial Statements for the Year Ended 30 June 2024
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.
Tax
Tax is recognised in profit or loss, except that a charge 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.
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
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 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 and other creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Interest bearing borrowings
Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.
London Irish Consortium (2013) Ltd
Notes to the Financial Statements for the Year Ended 30 June 2024
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.
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Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
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2024 |
2023 |
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Impairment of investments and intercompany loans |
- |
( |
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Other interest receivable and similar income |
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2024 |
2023 |
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Other finance income |
- |
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Interest payable and similar expenses |
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2024 |
2023 |
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Interest expense on other finance liabilities |
- |
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Staff costs |
No staff costs were incurred during the year (2023: £Nil).
The average number of persons employed by the company (including directors) during the year was 0 (2023: 0).
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Auditor's remuneration |
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2024 |
2023 |
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Audit of the financial statements |
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London Irish Consortium (2013) Ltd
Notes to the Financial Statements for the Year Ended 30 June 2024
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Taxation |
Tax charged/(credited) in the income statement
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2024 |
2023 |
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Current taxation |
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UK corporation tax |
- |
- |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
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2024 |
2023 |
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Loss before tax |
( |
( |
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Corporation tax at standard rate |
( |
( |
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Effect of tax losses |
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Total tax charge/(credit) |
- |
- |
The UK corporation tax charge in the current year is £Nil (2023: £Nil).
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Debtors |
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2024 |
2023 |
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Amounts owed by former group undertakings |
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Other debtors |
- |
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Creditors |
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Note |
2024 |
2023 |
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Due within one year |
|||
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Amounts due to former group entities |
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Other payables |
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Accrued expenses |
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London Irish Consortium (2013) Ltd
Notes to the Financial Statements for the Year Ended 30 June 2024
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Share capital |
Allotted, called up and fully paid shares
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2024 |
2023 |
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No. |
£ |
No. |
£ |
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4,637,530 |
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4,637,530 |
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Related party transactions |
Included within debtors due within one year are impaired amounts due of £1,961,621 (2023: £1,961,621) advanced by the company to London Irish Scottish Richmond Limited (a former subsidiary). No interest was charged on these amounts during the year (2023: £1,221,140) and no set repayment terms are in place.
Included within creditors due within one year are amounts of £11,940,634 (2023: £11,978,432) advanced to the company by Powerday Plc (the former ultimate parent undertaking). No interest was charged on these amounts during the year (2023: £497,195) and no set repayment terms are in place.
Included within other creditors due within one year is a balance of £2,269,321 (2023: £2,269,321) advanced to the company by P.F Cusack (Tool Supplies) Limited, who have a participating interest in the company. No interest was charged on these amounts during the year (2023: £95,184) and no set repayment terms are in place.