Ethex Investment Club Limited - Period Ending 2019-12-31

Registration number: 07432030

Ethex Investment Club Limited

(A company limited by guarantee)

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2019

Critchleys LLP
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP

 

Ethex Investment Club Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Unaudited Financial Statements	4 to 9

Ethex Investment Club Limited

Company Information

Directors

Lisa Karen Ashford Caroline Bault Hugh Davies Stephen James Lovell Debbie Pippard Edward Michael Milford

Registered office

The Old Music Hall 106-108 Cowley Road Oxford Oxfordshire OX4 1JE

Accountants

Critchleys LLP Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP

Page 1

Ethex Investment Club Limited

(Registration number: 07432030)
Balance Sheet as at 31 December 2019

	Note	2019 £	2018 £
Fixed assets
Intangible assets	4	13,890	20,837
Investments	6	1	1
		13,891	20,838
Current assets
Debtors	7	120,510	122,104
Cash at bank and in hand		210,278	85,883
		330,788	207,987
Creditors: Amounts falling due within one year	8	(112,873)	(54,843)
Net current assets		217,915	153,144
Total assets less current liabilities		231,806	173,982
Creditors: Amounts falling due after more than one year	8	(595,548)	(434,037)
Net liabilities		(363,742)	(260,055)
Capital and reserves
Profit and loss account		(363,742)	(260,055)
Total equity		(363,742)	(260,055)

The notes on pages 4 to 9 form an integral part of these financial statements.

Page 2

Ethex Investment Club Limited

(Registration number: 07432030)
Balance Sheet as at 31 December 2019

For the financial year ending 31 December 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 in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 23 July 2020 and signed on its behalf by:
 

.........................................

Lisa Karen Ashford
Director

The notes on pages 4 to 9 form an integral part of these financial statements.

Page 3

Ethex Investment Club Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

1	General information

The company is a company limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.

The address of its registered office is:
The Old Music Hall
106-108 Cowley Road
Oxford
Oxfordshire
OX4 1JE

These financial statements were authorised for issue by the Board on 23 July 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.

Group accounts not prepared

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts.

Going concern

The financial statements have been prepared on a going concern basis irrespective of the deficit on reserves as the directors are confident that the company's creditors will continue to support the company to enable it to meets its debts.

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 sales/value added tax, returns, rebates and discounts.

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.

Page 4

Ethex Investment Club Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

Other grants

Grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments.

Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

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 rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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.

Tangible assets

Tangible assets are stated in the statement of financial position 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
Furniture, fittings and equipment	100% straight line basis

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Internal generally software development	Straight line basis over 5 years

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.

Page 5

Ethex Investment Club Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

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 debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

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 creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 11 (2018 - 10).

Page 6

Ethex Investment Club Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

4	Intangible assets

	Internally generated software development costs  £	Total £
Cost or valuation
At 1 January 2019	263,498	263,498
Additions acquired separately	4,660	4,660
At 31 December 2019	268,158	268,158
Amortisation
At 1 January 2019	242,661	242,661
Amortisation charge	11,607	11,607
At 31 December 2019	254,268	254,268
Carrying amount
At 31 December 2019	13,890	13,890
At 31 December 2018	20,837	20,837

5	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 January 2019	14,518	14,518
At 31 December 2019	14,518	14,518
Depreciation
At 1 January 2019	14,518	14,518
At 31 December 2019	14,518	14,518
Carrying amount
At 31 December 2019	-	-

6	Investments

	2019 £	2018 £
Investments in subsidiaries	1	1

Page 7

Ethex Investment Club Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

Subsidiaries	£
Cost or valuation
At 1 January 2019	1
Provision
Carrying amount
At 31 December 2019	1
At 31 December 2018	1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2019	2018
Subsidiary undertakings
Lendahand Ethex Limited	The Old Music Hall, 106-108 Cowley Rd Oxford, OX4 1JE England	Ordinary shares	50%	50%

Subsidiary undertakings

Lendahand Ethex Limited The principal activity of Lendahand Ethex Limited is website development to promote investment in pioneering businesses.

7

Debtors

	Note	2019 £	2018 £
Trade debtors		73,827	33,898
Amounts owed by group undertakings and undertakings in which the company has a participating interest		-	316
Prepayments		44,945	86,152
Other debtors		1,738	1,738
		120,510	122,104

Page 8

Ethex Investment Club Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

8

Creditors

Creditors: amounts falling due within one year

	Note	2019 £	2018 £
Due within one year
Loans and borrowings	9	-	11,511
Trade creditors		30,447	14,924
Amounts owed to group undertakings and undertakings in which the company has a participating interest		51	-
Taxation and social security		14,687	9,583
Accruals and deferred income		66,219	18,824
Other creditors		1,469	1
		112,873	54,843

Creditors: amounts falling due after more than one year

	Note	2019 £	2018 £
Due after one year
Loans and borrowings	9	595,548	434,037

9	Loans and borrowings

	2019 £	2018 £
Non-current loans and borrowings
Unsecured debentures	595,548	434,037

	2019 £	2018 £
Current loans and borrowings
Unsecured debentures	-	11,511

10	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £41,603 (2018 - £60,094).

Page 9