Ockley Books Limited - Period Ending 2020-12-31

Ockley Books Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 7

Ockley Books Limited

Company Information

Directors

D R Hartrick K R Hartrick

Registered office

9 Birchwood Close Lindley Huddersfield West Yorkshire HD3 3GZ

Ockley Books Limited

(Registration number: 07750499)
Balance Sheet as at 31 December 2020

	Note	2020 £	2019 £
Fixed assets
Intangible assets	4	162	326
Current assets
Debtors	6	2,257	5,307
Cash at bank and in hand		904	2,028
		3,161	7,335
Creditors: Amounts falling due within one year	7	(930)	(1,110)
Net current assets		2,231	6,225
Total assets less current liabilities		2,393	6,551
Creditors: Amounts falling due after more than one year	7	(145,449)	(145,949)
Net liabilities		(143,056)	(139,398)
Capital and reserves
Called up and fully paid share capital		1,000	1,000
Profit and loss account		(144,056)	(140,398)
Total equity		(143,056)	(139,398)

For the financial year ending 31 December 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 year 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.

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.

Approved and authorised by the Board on 27 September 2021 and signed on its behalf by:
 

......................................... D R Hartrick Director

Ockley Books Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

1	General information

The Company is a private company limited by share capital incorporated in England and Wales. Details of the registered office are shown on page 1.

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.

Basis of preparation

These financial statements have been prepared on a going concern basis, using the historical cost convention and in accordance with FRS 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

The accounts are prepared in GBP and are rounded to the nearest £1.

Going concern

The directors have received the necessary assurances from major investors that the financial support required for the on-going development of the business is in line with the business plan and will continue to be made available. Accordingly the directors believe it appropriate that the accounts are drawn up on a going concern basis and that the carrying value of the assets reflect the current periods result and expected profitability going forward. Attention is drawn to the fact that it is not yet possible to predict the overall impact of the Covid-19 outbreak on the UK economy but as the company sells books in the retail sector sales have been reduced, but have not fully collasped. These conditions represent a material uncertainty in relation to the going concern status.

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 value added tax, returns, rebates and discounts and is recognised when the amount of revenue can be reliably measured, and it is probable that future economic benefits will flow to the entity.

Tax

Current income tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.

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:

Ockley Books Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

2	Accounting policies (continued)

Asset class	Depreciation method and rate
Equipment, Fixtures and Fittings	33.3% straight line

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

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
Trademark costs	over their useful life of 10 years
Website costs	over their expected useful life of 3 years

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. 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 profit or loss 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.

Dividends

Dividend distribution to the Company’s shareholders is recognised in the financial statements in the reporting period in which the dividends are paid.

Ockley Books Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

2	Accounting policies (continued)

Financial instruments

Financial instruments are classified and accounted for as financial assets, financial liabilities or equity instruments, according to the substance of the contractual arrangement. Equity instruments are those that entitle the holder to a residual interest in the Company's assets after deducting all of its liabilities.

Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary and preference shares, which are measured at fair value provided that this can be measured reliably. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

3	Staff numbers

The average number of persons employed by the company (including directors) in the year, was 2 (2019 - 2).

4	Intangible assets

	Trademark  £	Website  £	Total £
Cost
At 1 January 2020	1,636	875	2,511
At 31 December 2020	1,636	875	2,511
Amortisation
At 1 January 2020	1,310	875	2,185
Amortisation charge	164	-	164
At 31 December 2020	1,474	875	2,349
Carrying amount
At 31 December 2020	162	-	162
At 31 December 2019	326	-	326

Ockley Books Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

5	Tangible assets

	Furniture, fittings and equipment  £	Office equipment  £	Total £
Cost or valuation
At 1 January 2020	1,382	1,068	2,450
At 31 December 2020	1,382	1,068	2,450
Depreciation
At 1 January 2020	1,382	1,068	2,450
At 31 December 2020	1,382	1,068	2,450
Carrying amount
At 31 December 2020	-	-	-

6

Debtors

	2020 £	2019 £
Trade debtors	2,149	5,200
Other debtors	108	75
Prepayments	-	32
Total current trade and other debtors	2,257	5,307

Ockley Books Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

7

Creditors

	Note	2020 £	2019 £
Due within one year
Accrued expenses		930	1,110
Due after one year
Loans and borrowings	8	145,449	145,949

8	Loans and borrowings

	2020 £	2019 £
Non-current loans and borrowings
Other borrowings	145,449	145,949

9	Related party transactions

During the year the company made the following related party transactions:

K R Hartrick
(Director and shareholder)
During the year K R Hartrick made interest free loans to the company.
At the balance sheet date the amount due to K R Hartrick was £145,449 (2019 - £145,949).


Control
The company is controlled by D R Hartrick by virtue of the fact that he owns 60% of the issued share capital of the company.