The Studio By Innovations Limited - Period Ending 2020-05-31
The Studio By Innovations Limited - Period Ending 2020-05-31
Registration number:
The Studio By Innovations Limited
for the Period from 1 September 2019 to 31 May 2020
The Studio By Innovations Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
The Studio By Innovations Limited
Company Information
Director |
Mr John Garry Cosgrove |
Registered office |
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Accountants |
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The Studio By Innovations Limited
(Registration number: 04775285)
Balance Sheet as at 31 May 2020
Note |
2020 |
2019 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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|
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Current assets |
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Stocks |
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Debtors |
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|
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Cash at bank and in hand |
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- |
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|
|
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Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
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Total assets less current liabilities |
|
( |
|
Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net liabilities |
( |
( |
|
Capital and reserves |
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Called up share capital |
2 |
2 |
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Revaluation reserve |
- |
(86,618) |
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Profit and loss account |
(39,583) |
(31,309) |
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Shareholders' deficit |
(39,581) |
(117,925) |
For the financial period ending 31 May 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
• |
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• |
The director acknowledges his 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
The Studio By Innovations Limited
(Registration number: 04775285)
Balance Sheet as at 31 May 2020
.........................................
Director
The Studio By Innovations Limited
Notes to the Unaudited Financial Statements for the Period from 1 September 2019 to 31 May 2020
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
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.
Going concern
The financial statements have been prepared on a going concern basis. The Director considers the company as a going concern due to the major re-structure that took place in January 2020. This released the company from the bank debts and introduced interest free finance to carry the company forward. Post the pandemic lock down the company has returned to profitability. The Director has agreed to postpone part of his directors loan to support the company as a going concern.
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.
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.
The Studio By Innovations Limited
Notes to the Unaudited Financial Statements for the Period from 1 September 2019 to 31 May 2020
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 |
Land & Buildings |
2% on Cost |
Plant & Machinery |
33% Reducing Balance |
Fixtures & Fittings |
15% Reducing Balance |
Motor Vehicles |
25% Reducing Balance |
Computer Equipment |
33% Reducing Balance |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
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 |
Goodwill |
to be fully written off by 2025. |
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.
The Studio By Innovations Limited
Notes to the Unaudited Financial Statements for the Period from 1 September 2019 to 31 May 2020
Intangible assets |
Goodwill |
Total |
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Cost or valuation |
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At 1 September 2019 |
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At 31 May 2020 |
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Amortisation |
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At 1 September 2019 |
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Amortisation charge |
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At 31 May 2020 |
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Carrying amount |
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At 31 May 2020 |
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At 31 August 2019 |
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Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
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Cost or valuation |
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At 1 September 2019 |
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Additions |
- |
- |
- |
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Disposals |
( |
- |
- |
- |
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At 31 May 2020 |
- |
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Depreciation |
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At 1 September 2019 |
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Charge for the period |
- |
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Eliminated on disposal |
( |
- |
- |
- |
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Impairment |
( |
- |
- |
- |
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At 31 May 2020 |
- |
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Carrying amount |
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At 31 May 2020 |
- |
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At 31 August 2019 |
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The Studio By Innovations Limited
Notes to the Unaudited Financial Statements for the Period from 1 September 2019 to 31 May 2020
Total |
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Cost or valuation |
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At 1 September 2019 |
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Additions |
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Disposals |
( |
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At 31 May 2020 |
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Depreciation |
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At 1 September 2019 |
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Charge for the period |
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Eliminated on disposal |
( |
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Impairment |
( |
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At 31 May 2020 |
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Carrying amount |
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At 31 May 2020 |
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At 31 August 2019 |
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Included within the net book value of land and buildings above is £Nil (2019 - £160,000) in respect of freehold land and buildings.
Stocks |
2020 |
2019 |
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Production supplies |
- |
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Work in progress |
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Other inventories |
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Debtors |
2020 |
2019 |
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Trade debtors |
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Prepayments |
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The Studio By Innovations Limited
Notes to the Unaudited Financial Statements for the Period from 1 September 2019 to 31 May 2020
Creditors |
Creditors: amounts falling due within one year
Note |
2020 |
2019 |
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Due within one year |
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Bank loans and overdrafts |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Directors current account |
8,087 |
576 |
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Creditors: amounts falling due after more than one year
Note |
2020 |
2019 |
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Due after one year |
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Loans and borrowings |
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Share capital |
Allotted, called up and fully paid shares
2020 |
2019 |
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No. |
£ |
No. |
£ |
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|
1 |
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1 |
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1 |
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1 |
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Reserves |
The changes to each component of equity resulting from items of other comprehensive income for the current period were as follows:
Revaluation reserve |
Retained earnings |
Total |
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Surplus/(deficit) on property, plant and equipment revaluation |
- |
( |
( |
Surplus/(deficit) on revaluation of other assets |
|
- |
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( |
- |
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The Studio By Innovations Limited
Notes to the Unaudited Financial Statements for the Period from 1 September 2019 to 31 May 2020
The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:
Revaluation reserve |
Total |
|
Surplus/(deficit) on property, plant and equipment revaluation |
( |
( |
Loans and borrowings |
2020 |
2019 |
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Non-current loans and borrowings |
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Bank borrowings |
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Hire purchase contracts |
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Other borrowings |
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- |
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2020 |
2019 |
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Current loans and borrowings |
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Bank borrowings |
- |
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Bank overdrafts |
- |
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Hire purchase contracts |
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Bank borrowings
This loan was repaid in January 2020 and the security held over the land and buildings shown in the balance sheet namely 506, Werrington Road, Stoke on Trent Staffordshire ST2 9DN was released. |
A Debenture Deed is held over the assets of the company. The overdraft was fully repaid in January 2020. |