Statement of compliance
These financial statements have been prepared in compliance with FRS 102 Section 1A Small Entities, of the Financial Reporting Standard applicable in the UK and Republic of Ireland, and with the Companies Act 2006 as applicable to companies subject to the small companies regime.
Basis of preparation
The financial statements have been prepared under the historical cost convention, in accordance with the accounting policies set out below. These policies have been applied consistently to all the years presented, unless otherwise stated.
The financial statements are prepared in sterling, which is the functional currency of the company, and are rounded to the nearest pound.

The company made a loss for the year and has net liabilities at the reporting date. The director has confirmed that she will continue to provide financial support to the company, including not seeking repayment of the amounts owed to her until the company is able to repay them, for at least twelve months from the date of approval of these financial statements.
On this basis the director considers that the company will be able to meet its liabilities as they fall due and the financial statements have therefore been prepared on the going concern basis.

Turnover represents the amounts receivable for mobile phone repairs, accessories and related services supplied during the year, net of discounts. The company is not registered for VAT and turnover therefore includes no value added tax.
Turnover is recognised when the service has been completed or the goods have been delivered to the customer.
Other operating income comprises amounts receivable from ERE Ltd that do not arise from the company's ordinary activities. It is recognised in the period to which it relates.

Cost of sales comprises the cost of parts and stock purchased for repairs and resale and subcontract costs. Purchases are recognised when the goods or services are received.

The tax expense for the year comprises current and deferred tax. Current tax is the amount of corporation tax payable in respect of the taxable profit for the year and any adjustment in respect of previous years, calculated using the tax rates and laws enacted or substantively enacted by the reporting date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date. A deferred tax asset in respect of tax losses is recognised only to the extent that it is probable that it will be recovered against future taxable profits.

Dividends are recognised in the financial statements when they are paid or, in the case of final dividends, when they are approved by the shareholders.

Tangible fixed assets are stated at cost less accumulated depreciation and any accumulated impairment losses. Cost includes the purchase price and any costs directly attributable to bringing the asset to its working condition for its intended use.
Depreciation is provided at rates calculated to write off the cost of each asset, less its estimated residual value, over its expected useful life on the following basis:

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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
Debtors and creditors
Debtors, including the rent deposit, and creditors are basic financial instruments measured at the transaction price and subsequently at amortised cost. Amounts owed to the director are unsecured, interest free and repayable on demand.
Bank loans and overdrafts
The Bounce Back Loan and any bank overdraft are measured at amortised cost. Interest is charged to the income statement as it accrues.
Cash
Cash comprises cash in hand and balances held with banks that are repayable on demand.