At the balance sheet date, the issued share capital comprised 100,000 ordinary shares of £1 each, giving a total nominal value of £100,000, which remains unpaid. The balance sheet asset therefore represents the amount due from the shareholder in respect of this unpaid capital. Post year-end, the director intends to reduce the issued share capital to £100, represented by 100 ordinary shares of £1 each, so that the company’s capital more accurately reflects its current financial position. Following this reduction, the company will hold net assets of approximately £166, comprising £100 issued share capital and £66 retained earnings, being the cash balance at the year end. It is also the director’s intention that the company will become dormant during the next financial period, and that the accounting reference date will be extended to 31 March 2026 to allow these administrative changes to be completed.