| PAUL EDMONDS LONDON LTD |
| Notes to the Accounts |
| for the year ended 30 September 2024 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Going concern |
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These financial statements have been prepared on a going concern basis. At 30 September 2024 the company reported net liabilities of £27,928 and a loss for the year of £16,694. The directors have prepared cash flow forecasts for at least twelve months from the date of approval. The two directors have confirmed they will continue to support the company for that period, including providing additional funding as required and, where applicable, deferring settlement of any amounts owed to them. Having considered these forecasts and the directors’ committed support, the directors consider it appropriate to prepare the financial statements on a going concern basis and do not regard there to be a material uncertainty in relation to going concern. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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| 2 |
Employees |
2024 |
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2023 |
| Number |
Number |
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Average number of persons employed by the company |
2 |
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2 |
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| 3 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 October 2023 |
340,000 |
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At 30 September 2024 |
340,000 |
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Amortisation |
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At 1 October 2023 |
85,000 |
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Provided during the year |
85,000 |
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At 30 September 2024 |
170,000 |
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Net book value |
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At 30 September 2024 |
170,000 |
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At 30 September 2023 |
255,000 |
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Goodwill is being written off in equal annual instalments over its estimated economic life of 4 years. |
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| 4 |
Debtors |
2024 |
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2023 |
| £ |
£ |
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Director's loan account |
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100 |
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100 |
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Other debtors |
97,172 |
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28,866 |
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97,272 |
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28,966 |
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| 5 |
Creditors: amounts falling due within one year |
2024 |
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2023 |
| £ |
£ |
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Other creditors |
295,200 |
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295,200 |
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| 6 |
Prior year adjustments |
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During a review of intercompany arrangements and related accounting policies, management identified errors in the comparative year relating to (i) charges to associated companies and (ii) the amortisation charge applied to purchased goodwill. The comparative figures for the year ended 30 September 2023 have therefore been restated.
Turnover increased by £5,666 (from £68,000 to £73,666) to reflect the corrected recharge to associated companies.
Administrative expenses increased by £17,000, reflecting additional amortisation of goodwill.
The net effect is to increase the reported loss for 2023 by £11,334 and reduce opening reserves at 1 October 2023 by £11,334. The comparative profit and loss account and opening reserves have been restated accordingly. |
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| 7 |
Change in accounting estimate |
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During the current year the directors reassessed the useful economic life of purchased goodwill in light of updated expectations for the underlying cash-generating activities. The amortisation period was revised from 5 years to 4 years with effect from 1 October 2023.
In accordance with FRS 102, the change has been applied prospectively. The amortisation charge for the current year is £85,000. Had the previous amortisation period continued to be applied, the current-year charge would have been approximately £68,000, a difference of £17,000. The effect on future periods will be a corresponding change in annual amortisation over the remaining life. |
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| 8 |
Related party transactions |
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The company earns brand-licence income from associated companies E&R Battersea Ltd and Paul Edmonds Products Ltd. Income recognised in the year totalled £68,306 (2023: £73,666 restated). Amounts due at year end are included within debtors of £97,172. Transactions were on agreed commercial terms. |
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| 9 |
Other information |
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PAUL EDMONDS LONDON LTD is a private company limited by shares and incorporated in England. Its registered office is: |
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Dawes Court House |
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Dawes Court, High Street |
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Esher |
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Surrey |
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KT10 9QD |