Making Waves Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC260733 (Scotland)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

MAKING WAVES LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

Thomas Mitchell

Mrs Nicola Mitchell

REGISTERED OFFICE:

Huntly Lodge

Fairfield Place

Bothwell

G71 8RP

REGISTERED NUMBER:

SC260733 (Scotland)

ACCOUNTANT:

Henry T Mitchell

Chartered Accountant

Huntly Lodge

Fairfield Place

Bothwell

G71 8RP

FIXED ASSETS

Tangible assets

4

413,853

473,911

CURRENT ASSETS

Stocks

12,178

16,312

Debtors

5

19,195

28,001

Cash at bank

81,424

9,200

112,797

53,513

CREDITORS

Amounts falling due within one year

6

447,935

451,623

NET CURRENT LIABILITIES

(335,138

)

(398,110

)

TOTAL ASSETS LESS CURRENT LIABILITIES

78,715

75,801

CREDITORS

Amounts falling due after more than one year

7

(193,667

)

(157,265

)

PROVISIONS FOR LIABILITIES

(13,202

)

(13,101

)

NET LIABILITIES

(128,154

)

(94,565

)

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

(128,156

)

(94,567

)

(128,154

)

(94,565

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 16 July 2021 and were signed on its behalf by:

Mrs Nicola Mitchell - Director

1.	STATUTORY INFORMATION

Making Waves Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sale of goods and services

Turnover from the sale of services, namely the provision of swimming lessons, is recognised when the significant risks and rewards of ownership of the services has been transferred to the buyer. This is usually on completion of services.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Tenants improvements

-

10% on cost

Swimming pool

-

10% on cost

Equipment

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Impairment of assets

At each reporting date fixed assets are reviewed to determine whither there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the income statement.

Government grants

Government grants in relation to tangible fixed assets are credited to the Income statement over the useful lives of the related assets, whereas those in relation to expenditure are credited when the expenditure is charged to the income statement

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

Basic financial instruments are recognised as follows:

(i) Debtors

Short term debtors are measured at transaction price, less impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method less any impairment.

(ii)Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand.

Cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in liabilities on the statement of financial position.

(iii) Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Provision for liabilities

The company recognises a provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months. The provision is measured at the salary cost payable for the period of absence.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 41 (2020 - 23 ) .

4.	TANGIBLE FIXED ASSETS

Tenants

Swimming

Computer

improvements

pool

Equipment

equipment

Totals

£

£

£

£

£

COST

At 1 April 2020

431,753

228,344

42,075

15,053

717,225

Additions

9,312

-

-

3,254

12,566

At 31 March 2021

441,065

228,344

42,075

18,307

729,791

DEPRECIATION

At 1 April 2020

143,557

64,829

23,790

11,138

243,314

Charge for year

43,330

22,834

4,668

1,792

72,624

At 31 March 2021

186,887

87,663

28,458

12,930

315,938

NET BOOK VALUE

At 31 March 2021

254,178

140,681

13,617

5,377

413,853

At 31 March 2020

288,196

163,515

18,285

3,915

473,911

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.21

31.3.20

£

£

Other debtors

-

6,200

Prepayments

19,195

21,801

19,195

28,001

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.21

31.3.20

£

£

Bank loans and overdrafts

41,186

29,018

Energy Saving Trust

24,996

24,996

Business Loan Scotland

20,000

20,000

Trade creditors

113,943

50,975

PAYE and N.I.C

715

1,783

VAT

26,901

38,731

Directors' loan accounts

120,824

167,752

Deferred income

48,465

56,694

Accrued expenses

49,268

60,038

Deferred government grants

1,637

1,636

447,935

451,623

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.21

31.3.20

£

£

Bank loan 1-2 years

61,144

51,237

Bounce back loan 1-2 years

16,667

-

Loans - 2-5 years

40,763

57,032

Bounce back loan

25,000

-

Energy Saving Trust- 1-2 years

14,581

16,664

Business Loan Scotland

28,333

23,517

Deferred government grants

7,179

8,815

193,667

157,265

8.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.21

31.3.20

£

£

Bank overdrafts

2,281

4,116

Bank loans

182,479

133,171

Energy Saving Trust

39,577

41,660

Business Loan Scotland

48,333

43,517

272,670

222,464

The bank loans, other loans and overdrafts are secured against assets of the company.

9.	RELATED PARTY DISCLOSURES

During the year the company received an interest free loan from the directors amounting to £120,824 (2020: £167,752).

10.	GOING CONCERN

The directors have made significant progress during the year to reduce costs and increase revenue. It is anticipated that these steps will continue to be productive in the coming year to enable all costs to be met. The directors further demonstrate their commitment to the company with the loans that they have advanced.