Lucky Cat Publishing Ltd
Lucky Cat Publishing Ltd
Registered number: 12066175
Financial Statements
For the Period
24 June 2019
to
30 December 2020
Lucky Cat Publishing Ltd
Financial Statements
For the Period
24 June 2019
to
30 December 2020
Financial Statements
Contents | |
Page | |
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Balance Sheet | 1—2 |
Notes to the Financial Statements | 3—9 |
Lucky Cat Publishing Ltd
Balance Sheet
As at
30 December 2020
Balance Sheet
Registered number:
12066175
30 December 2020 | |||
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Notes | £ | £ | |
FIXED ASSETS | |||
Tangible Assets | 3 |
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CURRENT ASSETS | |||
Stocks | 4 |
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Debtors | 5 |
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Cash at bank and in hand |
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Creditors: Amounts Falling Due Within One Year | 6 |
( |
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NET CURRENT ASSETS (LIABILITIES) |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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Creditors: Amounts Falling Due After More Than One Year | 7 |
( |
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NET ASSETS |
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CAPITAL AND RESERVES | |||
Called up share capital | 8 |
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Share premium account |
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Profit and Loss Account |
( |
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SHAREHOLDERS' FUNDS | 632,582 | ||
Page 1
Lucky Cat Publishing Ltd
Balance Sheet (continued)
As at
30 December 2020
Directors' responsibilities:
-
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime. - The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Profit and Loss Account.
On behalf of the board
Director
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The notes on pages 3 to 9 form part of these financial statements.
Page 2
Lucky Cat Publishing Ltd
Notes to the Financial Statements
For the Period
24 June 2019
to
30 December 2020
Notes to the Financial Statements
1.
Accounting Policies
1.1.
Basis of Preparation of Financial Statements
The financial statements in accordance with the FRS 102 Section 1A Small Entities The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company, monetary amounts in these financial statements are rounded to the nearest £.
The financial statements are prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2.
Going Concern Disclosure
The COVID19 pandemic developed rapidly in 2020. Measures taken by various governments to contain the virus have affected economic activity globally. We have taken a number of measures to monitor and mitigate the effects of COVID19, such as safety and health measures for our staff (social distancing and working from home).
The company performed strongly throughout 2020 and demand for our products is expected to increase through out 2021.
We will continue to follow the various government policies and advice and, in parallel, we will do our utmost to continue our operations in the best and safest way possible without jeopardising the health of our staff.
Despite the uncertain future economic impact of the COVID19 pandemic, the directors are confident of the company's ability to continue trading and have, therefore, prepared the financial reporting on the going concern basis.
1.3.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer or their agents have signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
1.4.
Research and Development
Expenditure on research and development is written off in the year it is incurred.
1.5.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Plant & Machinery |
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Computer Equipment |
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Plant & machinery includes:
Computer equipment 3 years straight line
Fixtures, fittings and equipment 4 years straight line
Page 3
Lucky Cat Publishing Ltd
Notes to the Financial Statements (continued)
For the Period
24 June 2019
to
30 December 2020
1.6.
Stocks and Work in Progress
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first in first out basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any writedown of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the writedown or loss occurs. The amount of any reversal of any writedown of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.
Work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
1.7.
Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
1.8.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
1.9.
Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
1.10.
Government Assistance
The company has received a £50000.00 loan under the Governments Bounce Back Loan Scheme. The Loan is repayable over 5 years from October 2021.
Page 4
Lucky Cat Publishing Ltd
Notes to the Financial Statements (continued)
For the Period
24 June 2019
to
30 December 2020
1.11.
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted tio their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit)is reduced to its recoverable amount. An impairment loss is recognised immediately in profit and loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.12.
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and, deposits held at call with banks, other short term liquid investments with original maturities of three months or less and bank overdrafts.
1.13.
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14.
Registrar Filing Requirements
The company has taken advantage of Companies Act 2006 section 444(1) and opted not to file the profit and loss account, directors report, and notes to the financial statements relating to the profit and loss account. The notes which are not included have been hidden but original note numbering has remained the same for those that are present.
2.
Average Number of Employees
Average number of employees, including directors, during the year was: 11
Page 5
Lucky Cat Publishing Ltd
Notes to the Financial Statements (continued)
For the Period
24 June 2019
to
30 December 2020
3.
Tangible Assets
Computer Equipment | |
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£ | |
Cost | |
As at
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Additions |
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As at
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Depreciation | |
As at
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Provided during the period |
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As at
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Net Book Value | |
As at
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As at
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4.
Stocks
30 December 2020 | |
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£ | |
Stock - finished goods |
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Stock - work in progress |
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Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration shall be measured at the lower of cost adjusted, when applicable, for any loss in service potential and replacement cost.
At each reporting date, an assessment is made for impairment. any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment in profit or loss. reversals of impairment losses are also recognised in profit or loss.
5.
Debtors
30 December 2020 | |
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£ | |
Due within one year | |
Trade debtors |
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Prepayments and accrued income |
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VAT |
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Page 6
Lucky Cat Publishing Ltd
Notes to the Financial Statements (continued)
For the Period
24 June 2019
to
30 December 2020
6.
Creditors: Amounts Falling Due Within One Year
30 December 2020 | |
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£ | |
Trade creditors |
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Bank loans and overdrafts |
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Other taxes and social security |
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Other creditors |
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Accruals and deferred income |
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Amounts owed to related parties |
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7.
Creditors: Amounts Falling Due After More Than One Year
30 December 2020 | |
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£ | |
Bank loans |
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Page 7
Lucky Cat Publishing Ltd
Notes to the Financial Statements (continued)
For the Period
24 June 2019
to
30 December 2020
9.
Financial Instruments
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as noncurrent liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
10.
Related Party Transactions
The company has benefitted from an interest free loan from The Old Dungate Press Ltd, a company controlled by Amanda Wood. The balance outstanding at 30th December 2020 was £87,904.
11.
Audit Information
The auditors report on the account of Lucky Cat Publishing Ltd for the period ended 30 December 2020 was qualified
The basis of qualification in the auditor's report was as follows:
With respect to inventory having a carrying value of £52,856 as at 30 December 2020, the evidence available to us was limited because we were unable to observe the counting of physical inventories held by the company at the period end. We were unable to observe the counting of physical inventories due to government restrictions due to the Coronavirus pandemic. We were unable to satisfy ourselves by alternative means concerning those inventory quantities held at 30 December 2020, which amount to £52,856 by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary and the consequential effect on the cost of sales for the period ended 30 December 2020.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard , and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
The matters required to report by exception are stated below:
Arising solely from the limitation on the scope of our work relating to inventory, referred to above:
• we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
• we were unable to determine whether adequate accounting records had been maintained.
The auditor's report was signed by
Steven Griffen FCA FCCA
(Senior Statutory Auditor)
for and on behalf of
Plummer Parsons
, Statutory Auditor
Page 8
Lucky Cat Publishing Ltd
Notes to the Financial Statements (continued)
For the Period
24 June 2019
to
30 December 2020
12.
General Information
Lucky Cat Publishing Ltd
is a private company, limited by shares, incorporated in England & Wales, registered number
12066175
. The registered office is Old Dungate Farm Plaistow Road, Dunsfold, Godalming, Surrey, GU8 4PJ.
Page 9