Koan (UK) Ltd - Period Ending 2020-02-29

Koan (UK) Ltd

Contents

Company Information	1
Profit and Loss Account	2
Balance Sheet	3 to 4
Notes to the Unaudited Financial Statements	5 to 11

Koan (UK) Ltd

Company Information

Directors

D D Telford M N De Nervaux

Registered office

Unit X Stove Trading Estate Wellington Drive Yate Bristol BS37 5NZ

Registered number

05201693

Accountants

Corrigan Accountants Limited The Tramshed 25 Lower Park Row Bristol BS1 5BN

Koan (UK) Ltd

Profit and Loss Account for the Period from 1 September 2018 to 29 February 2020

	Note	1 September 2018 to 29 February 2020  £	Year ended 31 August 2018  £
Turnover		3,585,775	3,488,654
Cost of sales		(3,026,398)	(2,841,463)
Gross profit		559,377	647,191
Administrative expenses		(783,317)	(641,912)
Exceptional write off		(166,000)	-
Other operating income		8,892	1,765
Operating (loss)/profit		(381,048)	7,044
Interest payable and similar charges		1,388	(2,302)
		1,388	(2,302)
(Loss)/profit before tax		(379,660)	4,742
Taxation		28,061	24,847
(Loss)/profit for the financial period		(351,599)	29,589

Koan (UK) Ltd

(Registration number: 05201693)
Balance Sheet as at 29 February 2020

	Note	2020 £	2018 £
Fixed assets
Intangible assets	4	133,333	4,833
Tangible assets	5	8,351	46,846
		141,684	51,679
Current assets
Stocks		150,300	273,323
Debtors	6	6,067	254,438
Cash at bank and in hand		28,482	70,276
		184,849	598,037
Creditors: Amounts falling due within one year	7	(443,636)	(414,072)
Net current (liabilities)/assets		(258,787)	183,965
Total assets less current liabilities		(117,103)	235,644
Creditors: Amounts falling due after more than one year	7	-	(1,148)
Net (liabilities)/assets		(117,103)	234,496
Capital and reserves
Called up share capital		100	100
Profit and loss account		(117,203)	234,396
Total equity		(117,103)	234,496

Koan (UK) Ltd

(Registration number: 05201693)
Balance Sheet as at 29 February 2020

For the financial period ending 29 February 2020 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 period 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.

Approved and authorised for issue by the Board on 26 February 2021 and signed on its behalf by:
 

D D Telford

Director

Koan (UK) Ltd

Notes to the Unaudited Financial Statements for the Period from 1 September 2018 to 29 February 2020

1	Statutory information

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

The address of its registered office is:
Unit X Stove Trading Estate
Wellington Drive
Yate
Bristol
BS37 5NZ
England

2	Accounting policies

Summary of significant accounting policies

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.

Statement of compliance

These financial statements have been prepared in compliance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "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.

The financial statements are prepared in pounds sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The company’s financial statements have been prepared on a going concern basis. Although there was a deficit of liabilities over assets as at 29 February 2020, the company has traded profitably in the current year and now has sufficient funds to meet liabilities as they fall due. The directors have considered a period of twelve months from the date of approval of the financial statements and are satisfied that the company is able to meet liabilities as they fall due.

Koan (UK) Ltd

Notes to the Unaudited Financial Statements for the Period from 1 September 2018 to 29 February 2020

Disclosure of long or short period

These financial statements cover the 18 month period to 28 February 2020. The comparatives represent the year to 31 August 2018. The comparative amounts presented in these financial statements (including the related notes) are therefore not directly comparable to the amounts presented for the current period.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.

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.

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

Tax

The tax expense for the period comprises current 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.

Tangible fixed assets

Tangible fixed assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Koan (UK) Ltd

Notes to the Unaudited Financial Statements for the Period from 1 September 2018 to 29 February 2020

Depreciation is charged so as to write off the cost of assets as follows:

Fixtures and fittings	20% on cost
Computer equipment	50% on cost
Warehouse equipment	20% on cost
Leasehold property improvements	10% on cost

Goodwill

Goodwill arising on the acquisition of a business in 2012 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 amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

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

Goodwill	5 years straight line
Trademarks	10 years straight line

Research and development costs

The company has developed its own website which is amortised evenly over its useful life of 5 years. Amortisation is included in administration expenses in the profit and loss account.

Research costs are written off to profit or loss in the year incurred.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are recognised initially at the transaction price. They are subsequently measured at cost less provision for impairment.

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.

Trade creditors

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

Koan (UK) Ltd

Notes to the Unaudited Financial Statements for the Period from 1 September 2018 to 29 February 2020

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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.

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employees' services are received.

3	Staff numbers

The average number of persons employed by the company (including directors) during the period, was 14 (2018 - 21).

Koan (UK) Ltd

Notes to the Unaudited Financial Statements for the Period from 1 September 2018 to 29 February 2020

4	Intangible fixed assets

	Goodwill  £	Trademarks, patents and licenses  £	Internally generated software development costs  £	Total £
Cost
At 1 September 2018	101,100	474	-	101,574
Additions internally developed	-	-	130,000	130,000
At 29 February 2020	101,100	474	130,000	231,574
Amortisation
At 1 September 2018	96,267	474	-	96,741
Amortisation charge	1,500	-	-	1,500
At 29 February 2020	97,767	474	-	98,241
Carrying amount
At 29 February 2020	3,333	-	130,000	133,333
At 31 August 2018	4,833	-	-	4,833

Koan (UK) Ltd

Notes to the Unaudited Financial Statements for the Period from 1 September 2018 to 29 February 2020

5	Tangible fixed assets

	Leasehold property improvements £	Fixtures and fittings £	Warehouse equipment £	Total £
Cost
At 1 September 2018	30,024	25,001	19,746	74,771
Additions	-	1,266	-	1,266
Disposals	(30,024)	-	-	(30,024)
At 29 February 2020	-	26,267	19,746	46,013
Depreciation
At 1 September 2018	5,174	17,941	4,810	27,925
Charge for the year	2,502	6,944	7,967	17,413
Eliminated on disposal	(7,676)	-	-	(7,676)
At 29 February 2020	-	24,885	12,777	37,662
Carrying amount
At 29 February 2020	-	1,382	6,969	8,351
At 31 August 2018	24,850	7,060	14,936	46,846

6	Debtors: amounts falling due within one year

	2020 £	2018 £
Trade debtors	-	2,100
Other debtors	-	202,708
Prepayments	6,067	32,814
VAT	-	16,816
	6,067	254,438

Koan (UK) Ltd

Notes to the Unaudited Financial Statements for the Period from 1 September 2018 to 29 February 2020

7

Creditors

	Note	2020 £	2018 £
Bank loans and overdrafts		10,679	15,042
Trade creditors		257,146	339,516
Social security and other taxes		6,726	9,604
VAT		14,959	-
Other creditors		73,179	49,910
Directors' loan accounts		80,947	-
		443,636	414,072
Due after one year
Loans and borrowings		-	1,148

8	Share capital

Allotted, called up and fully paid shares

	29 February 2020		31 August 2018
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

9	Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

	2020 £	2018 £
Total lease commitments	18,779	318,989

The amount of non-cancellable operating lease payments recognised as an expense during the period was £75,245 (2018 - £41,725).