Mr Egg Franchise UK Ltd - Period Ending 2020-06-30

Mr Egg Franchise UK Ltd - Period Ending 2020-06-30


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Registration number: 10748449

Mr Egg Franchise UK Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 30 June 2020

RSW Chartered Accountants
Unit 6,
17 Thorp Street
Birmingham
West Midlands
B5 4AT

 

Mr Egg Franchise UK Ltd

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 10

 

Mr Egg Franchise UK Ltd

Company Information

Director

Mr Jun Xu

Registered office

Flat 7 Bristol Court
248-250 Bristol Road
Birmingham
West Midlands
B5 7SL

Accountants

RSW Chartered Accountants
Unit 6,
17 Thorp Street
Birmingham
West Midlands
B5 4AT

 

Mr Egg Franchise UK Ltd

(Registration number: 10748449)
Balance Sheet as at 30 June 2020

Note

2020
£

2019
£

Fixed assets

 

Tangible assets

5

27,295

29,701

Current assets

 

Stocks

6

1,750

2,150

Debtors

7

53,028

73,007

Cash at bank and in hand

 

240,981

166,553

 

295,759

241,710

Creditors: Amounts falling due within one year

8

(101,073)

(152,305)

Net current assets

 

194,686

89,405

Total assets less current liabilities

 

221,981

119,106

Creditors: Amounts falling due after more than one year

8

(49,216)

-

Provisions for liabilities

(4,160)

(4,393)

Net assets

 

168,605

114,713

Capital and reserves

 

Called up share capital

9

100

100

Profit and loss account

168,505

114,613

Total equity

 

168,605

114,713

For the financial year ending 30 June 2020 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.

 

Mr Egg Franchise UK Ltd

(Registration number: 10748449)
Balance Sheet as at 30 June 2020

Approved and authorised by the director on 18 June 2021
 

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

Mr Jun Xu
Director

 

Mr Egg Franchise UK Ltd

Notes to the Financial Statements for the Year Ended 30 June 2020

1

General information

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

The address of its registered office is:
Flat 7 Bristol Court
248-250 Bristol Road
Birmingham
West Midlands
B5 7SL
England

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 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.

Revenue is recognised at the point of delivery of goods to the customer.

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.

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.

 

Mr Egg Franchise UK Ltd

Notes to the Financial Statements for the Year Ended 30 June 2020

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

Leasehold Premises

20% Straight Line

Property Improvements

20% Reducing Balance

Fixture and Fittings

20% 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

Over expected lifetime of goodwill with a maximum of 5 years

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.

 

Mr Egg Franchise UK Ltd

Notes to the Financial Statements for the Year Ended 30 June 2020

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 inventories 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.

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.

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.

 

Mr Egg Franchise UK Ltd

Notes to the Financial Statements for the Year Ended 30 June 2020

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 9 (2019 - 15).

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 July 2019

4,000

4,000

At 30 June 2020

4,000

4,000

Amortisation

At 1 July 2019

4,000

4,000

At 30 June 2020

4,000

4,000

Carrying amount

At 30 June 2020

-

-

The aggregate amount of research and development expenditure recognised as an expense during the period is £Nil (2019 - £Nil).
 

 

Mr Egg Franchise UK Ltd

Notes to the Financial Statements for the Year Ended 30 June 2020

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 July 2019

3,392

65,849

69,241

Additions

-

4,763

4,763

At 30 June 2020

3,392

70,612

74,004

Depreciation

At 1 July 2019

1,357

38,183

39,540

Charge for the year

678

6,491

7,169

At 30 June 2020

2,035

44,674

46,709

Carrying amount

At 30 June 2020

1,357

25,938

27,295

At 30 June 2019

2,035

27,666

29,701

Included within the net book value of land and buildings above is £1,357 (2019 - £2,035) in respect of short leasehold land and buildings.
 

6

Stocks

2020
£

2019
£

Other inventories

1,750

2,150

7

Debtors

2020
£

2019
£

Prepayments

8,348

7,210

Other debtors

44,680

65,797

53,028

73,007

 

Mr Egg Franchise UK Ltd

Notes to the Financial Statements for the Year Ended 30 June 2020

8

Creditors

Creditors: amounts falling due within one year

Note

2020
£

2019
£

Due within one year

 

Bank loans and overdrafts

10

784

-

Trade creditors

 

6,745

4,505

Taxation and social security

 

38,756

37,520

Accruals and deferred income

 

74

1,323

Other creditors

 

54,714

108,957

 

101,073

152,305

Creditors: amounts falling due after more than one year

Note

2020
£

2019
£

Due after one year

 

Loans and borrowings

10

49,216

-

9

Share capital

Allotted, called up and fully paid shares

 

2020

2019

 

No.

£

No.

£

Ordinary Shares of £1 each

100

100

100

100

         

10

Loans and borrowings

2020
£

2019
£

Non-current loans and borrowings

Bank borrowings

49,216

-

 

Mr Egg Franchise UK Ltd

Notes to the Financial Statements for the Year Ended 30 June 2020

2020
£

2019
£

Current loans and borrowings

Bank borrowings

784

-

11

Dividends

   

2020

 

2019

   

£

 

£

Interim dividend of £Nil (2019 - £2,000.00) per ordinary share

 

-

 

2,000

         

12

Related party transactions

Directors' remuneration

The director's remuneration for the year was as follows:

2020
£

2019
£

Remuneration

-

600

Summary of transactions with other related parties

The company has been loaned funds by the connected company Happy Lemon Franchise (UK) Ltd.
 An interest free loan is owed to this company.
  The loan is interest free and repayable on demand.
 

Loans from related parties

2020

Other related parties
£

At start of period

96,832

Advanced

16,631

Repaid

(76,891)

At end of period

36,572

2019

Other related parties
£

At start of period

138,998

Advanced

7,834

Repaid

(50,000)

At end of period

96,832