Company No: 04197826 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2021		2020
		£		£
Fixed assets
Tangible assets	3	9,582		10,956
		9,582		10,956
Current assets
Debtors	4	256,374		189,372
Cash at bank and in hand		29,916		74,192
		286,290		263,564
Creditors
Amounts falling due within one year	5	( 209,634)		( 205,212)
Net current assets		76,656		58,352
Total assets less current liabilities		86,238		69,308
Creditors
Amounts falling due after more than one year	6	( 36,689)		( 50,000)
Provisions for liabilities	7	( 938)		( 1,143)
Net assets		48,611		18,165
Capital and reserves
Called-up share capital	8	999		999
Profit and loss account		47,612		17,166
Total shareholder's funds		48,611		18,165

For the financial year ending 30 September 2021 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 financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Protection Racket Limited (registered number: 04197826) were approved and authorised for issue by the Board of Directors on 13 May 2022. They were signed on its behalf by:

Mr N Nethercot Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Protection Racket Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is C/O Francis Clark Llp North Quay House, Sutton Harbour, Plymouth, PL4 0RA, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer.
Turnover from the sale of goods is recognised when the goods are physically delivered to the customer.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on tax rates and laws substantively enacted at the balance sheet date. Deferred tax assets and liabilities are not discounted.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a reducing balance basis over its expected useful life, as follows:

Plant and machinery	15 % reducing balance
Vehicles	20 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Employees

	2021		2020
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	4		4

3. Tangible assets

	Plant and machinery		Vehicles		Total
	£		£		£
Cost
At 01 October 2020	26,492		22,694		49,186
Additions	533		0		533
At 30 September 2021	27,025		22,694		49,719
Accumulated depreciation
At 01 October 2020	19,212		19,018		38,230
Charge for the financial year	1,172		735		1,907
At 30 September 2021	20,384		19,753		40,137
Net book value
At 30 September 2021	6,641		2,941		9,582
At 30 September 2020	7,280		3,676		10,956

4. Debtors

	2021		2020
	£		£
Trade debtors	196,831		124,224
Amounts owed by Group undertakings	58,903		58,974
Other debtors	640		6,174
	256,374		189,372

5. Creditors: amounts falling due within one year

	2021		2020
	£		£
Bank loans	10,648		0
Trade creditors	126,602		45,673
Other creditors	70,730		148,382
Corporation tax	1,349		10,817
Other taxation and social security	305		340
	209,634		205,212

6. Creditors: amounts falling due after more than one year

	2021		2020
	£		£
Bank loans	36,689		50,000

The bank overdrafts are secured by the directors personally. Other borrowings are secured by way of fixed and floating charges over the assets of the company.

7. Provision for liabilities

	2021		2020
	£		£
Deferred tax	938		1,143

8. Called-up share capital

	2021		2020
	£		£
Allotted, called-up and fully-paid
999 Ordinary shares of £ 1.00 each	999		999

9. Related party transactions

Other related party transactions

	2021		2020
	£		£
Brought forward overdrawn loan account - Director 1	(471)		8,766
Advances to directors - Director 1	1,824		210
Repayments by directors - Director 1	(1,388)		(9,447)
Closing overdrawn loan account - Director 1	(35)		(471)
Brought forward overdrawn loan account - Director 2	8,766		4,051
Advances to directors - Director 2	4,702		10,775
Repayments by directors - Director 2	(6,302)		(6,060)
Closing loan account - Director 2	7,166		8,766

10. Ultimate controlling party

The ultimate controlling party is the directors by virtue of their shareholding in N.B.D. Limited.