Protection Racket Limited - Period Ending 2019-09-30

Protection Racket Limited

Annual Report and Unaudited Financial Statements
Year Ended 30 September 2019

Registration number: 04197826

Protection Racket Limited

Contents

Balance Sheet	1 to 2
Notes to the Financial Statements	3 to 7

Protection Racket Limited

Balance Sheet

30 September 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	4	12,854	15,460
Current assets
Stocks		-	70,500
Debtors	5	237,566	155,456
Cash at bank and in hand		32,823	15,931
		270,389	241,887
Creditors: Amounts falling due within one year	6	(277,053)	(239,241)
Net current (liabilities)/assets		(6,664)	2,646
Total assets less current liabilities		6,190	18,106
Provisions for liabilities		(1,292)	(1,668)
Net assets		4,898	16,438
Capital and reserves
Called up share capital	8	999	999
Profit and loss account		3,899	15,439
Total equity		4,898	16,438

The notes on pages 3 to 7 form an integral part of these financial statements.

Page 1

Protection Racket Limited

Balance Sheet

30 September 2019

For the financial year ending 30 September 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' 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 directors acknowledge their 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 special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 10 January 2020 and signed on its behalf by:
 

......................................... Mr D Bowdery Director

......................................... Mr N Nethercot Director

Company Registration Number: 04197826

The notes on pages 3 to 7 form an integral part of these financial statements.

Page 2

Protection Racket Limited

Notes to the Financial Statements

Year Ended 30 September 2019

1	General information

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

The address of its registered office is:
Unit 1 The Glebe
Blisland
Bodmin
Cornwall
PL30 4JE

These financial statements were authorised for issue by the Board on 10 January 2020.

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

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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 value added tax, returns, rebates and discounts and after eliminating sales within the company.

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.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Page 3

Protection Racket Limited

Notes to the Financial Statements

Year Ended 30 September 2019

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 corporation 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.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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:

Asset class	Depreciation method and rate
Motor vehicles	20% reducing balance
Other property, plant and equipment	15% reducing balance

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Page 4

Protection Racket Limited

Notes to the Financial Statements

Year Ended 30 September 2019

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 4 (2018 - 4).

4	Tangible assets

	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 October 2018	22,694	26,185	48,879
At 30 September 2019	22,694	26,185	48,879
Depreciation
At 1 October 2018	16,950	16,469	33,419
Charge for the year	1,149	1,457	2,606
At 30 September 2019	18,099	17,926	36,025
Carrying amount
At 30 September 2019	4,595	8,259	12,854
At 30 September 2018	5,744	9,716	15,460

Page 5

Protection Racket Limited

Notes to the Financial Statements

Year Ended 30 September 2019

5

Debtors

	2019 £	2018 £
Trade debtors	167,633	91,271
Amounts due from group undertakings	59,052	59,118
Other debtors	9,867	4,051
Prepayments	1,014	1,016
	237,566	155,456

6

Creditors

Creditors: amounts falling due within one year

	Note	2019 £	2018  £
Due within one year
Loans and borrowings	7	111,252	84,889
Trade creditors		112,504	99,967
Corporation tax		18,998	8,189
Social security and other taxes		2,286	1,555
Other creditors		29,013	41,641
Accrued expenses		3,000	3,000
		277,053	239,241

7	Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Bank overdrafts	52,688	55,090
Other borrowings	58,564	29,799
	111,252	84,889

The bank overdrafts are secured by the directors personally. Other borrowings are secured by way of fixed and floating charges over the assets of the company.

Page 6

Protection Racket Limited

Notes to the Financial Statements

Year Ended 30 September 2019

8	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary shares of £1 each	999	999	999	999

9	Related party transactions

Advances to directors

2019	At 1 October 2018 £	Advances to director £	Repayments by director £	At 30 September 2019 £
Director
Overdrawn loan account	4,051	10,775	(6,060)	8,766

2018	At 1 October 2017 £	Advances to director £	Repayments by director £	At 30 September 2018 £
Director
Overdrawn loan account	7,902	5,209	(9,060)	4,051

10	Parent and ultimate parent undertaking

The ultimate controlling party is the directors by virtue of their shareholding in N.B.D. Limited.

Page 7