Image Factory Communications Ltd - Period Ending 2019-12-31

Image Factory Communications Ltd

Contents

Balance Sheet	1 to 2
Notes to the Unaudited Financial Statements	3 to 11

Image Factory Communications Ltd

(Registration number: 08596652)
Balance Sheet as at 31 December 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	4	2,120,000	2,120,000
Investments	5	175,875	175,875
		2,295,875	2,295,875
Current assets
Debtors	6	6,500	36,489
Cash at bank and in hand		4,158	1,532
		10,658	38,021
Creditors: Amounts falling due within one year	7	(194,995)	(371,700)
Net current liabilities		(184,337)	(333,679)
Total assets less current liabilities		2,111,538	1,962,196
Creditors: Amounts falling due after more than one year	7	(1,189,796)	(1,100,672)
Provisions for liabilities		(170,023)	(160,217)
Net assets		751,719	701,307
Capital and reserves
Called up share capital	8	1,000	1,000
Non - distributable reserve		550,387	550,387
Profit and loss account		200,332	149,920
Shareholders' funds		751,719	701,307

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.

Director's 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 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.

Image Factory Communications Ltd

(Registration number: 08596652)
Balance Sheet as at 31 December 2019

Approved and authorised by the director on 23 December 2020
 

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

Mr T R Smith
Director

Image Factory Communications Ltd

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

1	General information

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

The address of its registered office is:
Image Centre
Bumpers Way
Chippenham
Wiltshire
SN14 6LH

These financial statements were authorised for issue by the director on 23 December 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 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.

Tax

The tax expense for the period comprises current and deferred 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 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.

Image Factory Communications Ltd

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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
Long leasehold buildings	not depreciated

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Amortisation

Asset class	Amortisation method and rate
Investments	not amortised

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.

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.

Image Factory Communications Ltd

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

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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Image Factory Communications Ltd

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

Financial instruments

Classification
Financial instruments are classified according to the provisions of sections 11 & 12 of FRS 102
 Recognition and measurement
A financial asset, liability or equity instrument is only recognised at the point when the company becomes as party to the contractual provisions of the instrument. Initially all instruments are measured at the transactions price (including transactions costs except in the initial measurement of financial assets and liabilities that are measured at fair value through profit and loss) unless the arrangement constitutes, in effect, a financial transaction, in which case it shall be measured at the present value of future payments discounted at a market rate of interest for a similar instrument. Subsequent treatment of financial instruments follow the guidance in section 11 & 12 of FRS102.
 Impairment
at the end of each financial period the company assesses whether there is objective evidence of impairment of any financial instruments that are measured at cost or amortised cost, recognising any such impairment loss in the profit and loss immediately.
 

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 1 (2018 - 1).

4	Tangible assets

	Land and buildings £	Total £
Cost or valuation
At 1 January 2019	2,120,000	2,120,000
At 31 December 2019	2,120,000	2,120,000
Depreciation
Carrying amount
At 31 December 2019	2,120,000	2,120,000
At 31 December 2018	2,120,000	2,120,000

Included within the net book value of land and buildings above is £2,120,000 (2018 - £2,120,000) in respect of long leasehold land and buildings.
 

Revaluation

The fair value of the company's Long leasehold land and building was revalued on 22 May 2017 by an independent valuer. . The name and qualification of the independent valuer are .
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £Nil (2018 - £1,440,511).

Image Factory Communications Ltd

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

5	Investments

	2019 £	2018 £
Investments in subsidiaries	175,875	175,875

Subsidiaries	£
Cost or valuation
At 1 January 2019	175,875
Provision
Carrying amount
At 31 December 2019	175,875
At 31 December 2018	175,875

6

Debtors

	Note	2019 £	2018 £
Amounts owed by group undertakings and undertakings in which the company has a participating interest	11	6,500	-
Other debtors		-	36,489
		6,500	36,489

Image Factory Communications Ltd

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

7

Creditors

Creditors: amounts falling due within one year

	Note	2019 £	2018 £
Due within one year
Bank loans and overdrafts	10	67,243	68,150
Amounts owed to group undertakings and undertakings in which the company has a participating interest	11	-	302,500
Accruals and deferred income		10,950	1,050
Other creditors		116,802	-
		194,995	371,700

Creditors: amounts falling due after more than one year

	Note	2019 £	2018 £
Due after one year
Loans and borrowings	10	1,189,796	1,100,672

Image Factory Communications Ltd

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

Secured Creditors

Charge code 0859 6652 0001
Contains fixed charge & contains floating charge.

Charge code 0859 6652 0002
Contains fixed charge & contains floating charge in relation to leasehold Property

Charge code 0859 6652 0003
Contains fixed charge, contains floating charge & contains negative pledge.

Charge code 0859 6652 0004
The company with full title guarantee as a continuing security for the payment and discharge of the secured liabilities hereby charges to close brothers limited by way of legal mortgage the property (and the proceeds of sale of the property) and all buildings and fixtures (including trade fixtures) from time to time in and on the property and the benefit of all rights, easements and privileges appurtenant to or benefiting the property.. The property is all that leasehold at bumpers farm industrial estate, bumpers way, chippenham, wiltshire as the same is contained in title number WT221853 and registered at hm land registry.
Contains negative pledge.

Charge code 0859 6652 0005
Contains fixed charge, contains floating charge & contains negative pledge in relation to leasehold Property

Charge code 0859 6652 0006
Contains fixed charge & floating charge in relation to leasehold Property

 

8	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary shares of £1 each	1,000	1,000	1,000	1,000

Image Factory Communications Ltd

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

9

Reserves

The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:

	Revaluation reserve £	Total £
Surplus/(deficit) on property, plant and equipment revaluation	(129,102)	(129,102)

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	(129,102)	(129,102)

10	Loans and borrowings

	2019 £	2018 £
Non-current loans and borrowings
Bank borrowings	1,189,796	1,100,672

	2019 £	2018 £
Current loans and borrowings
Bank borrowings	67,243	68,150

11	Related party transactions

2019	At 31 December 2019 £

Loans to related parties

2019	Subsidiary £	Total £
At start of period	302,500	302,500
Repaid	(309,000)	(309,000)
At end of period	(6,500)	(6,500)

Terms of loans to related parties

The balance outstanding at any time is interest free and repayable on demand
 

Image Factory Communications Ltd

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

Loans from related parties

2019	Subsidiary £	Total £
At start of period	302,500	302,500
Repaid	(309,000)	(309,000)
At end of period	(6,500)	(6,500)

2018	Subsidiary £	Total £
At start of period	500,000	500,000
Repaid	(197,500)	(197,500)
At end of period	302,500	302,500