Sydney L. Moss Limited - Period Ending 2021-06-30
Sydney L. Moss Limited - Period Ending 2021-06-30
Registration number:
Sydney L. Moss Limited
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Sydney L. Moss Limited
Contents
Company Information |
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Statement of Financial Position |
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Notes to the Financial Statements |
Sydney L. Moss Limited
Company Information
Director |
O.G. Moss |
Registered office |
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Accountants |
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Sydney L. Moss Limited
Statement of Financial Position as at 30 June 2021
Note |
2021 |
2020 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
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Net assets |
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Capital and reserves |
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Called up share capital |
10,000 |
10,000 |
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Share premium reserve |
13,000 |
13,000 |
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Other reserves |
138,853 |
138,853 |
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Profit and loss account |
3,546,000 |
3,663,869 |
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Shareholders' funds |
3,707,853 |
3,825,722 |
For the financial year ending 30 June 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
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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 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Sydney L. Moss Limited
Statement of Financial Position as at 30 June 2021
Approved and authorised by the
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O.G. Moss
Director
Company registration number: 00710004
Sydney L. Moss Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the company is that of trading in Chinese and Japanese works of art.
Accounting policies |
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 any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
Going concern
At 30 June 2021 the company had net assets of £3,707,853, including cash at bank of £1,084,390.
The COVID-19 pandemic has severely affected the company's ability to operate as normal due to the social restrictions and travel bans enforced by governments around the world. The majority of artwork, particularly the type of high value art sold by the company, is sold after physical inspection of the piece by the customer. The restrictions on travel and the enforced lockdowns have resulted in a significant reduction in the volume of sales. As the company's employees could not travel to display artwork to potential customers or inspect pieces to purchase, the buying and selling of art was greatly reduced. The gallery was closed during the lockdowns, which resulted in a further loss of income.
After the relaxing of some travel restrictions, towards June 2021 several clients were able to travel to London and visit the gallery to view the artwork which resulted in an increase in sales. The current restrictions in place do not allow travel to China, Japan and the USA.
The company has however benefited from government CJRS grants. The restrictions in place have also resulted in a significant reduction in international travel, which has further reduced expenses incurred by the company.
The director expects the industry to return to previous levels of activity once the pandemic has ended and international travel is no longer restricted. International art fairs have started again after being initially cancelled during the pandemic, but they have been smaller with less revenue generated than pre-pandemic levels and so the art market in general still has a long way to go to be considered recovered. The majority of sales and purchases are made to individuals in China which has a relatively strong economy compared to other countries around the world.
Sydney L. Moss Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
After making enquiries, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. These enquiries include having suitable plans in place to be able to cope with the significant uncertainties to the business caused by the COVID-19 virus and ensuring recourse to sufficient working capital is available to enable the company to continue to meet its obligations as they fall due.
Accordingly, the director continues to adopt the going concern basis in preparing the financial statements.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
Turnover from the sale of artwork is recognised as transactions occur and when the company has a legal right to consideration.
Government grants
Government grants receivable are accounted for under the accruals model. Revenue grants are recognised in the same period as the related expenditure.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a charge 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 tax profits.
Deferred tax is measured using the tax rates and laws that have been that enacted or substantively enacted by the reporting date and that are expected to the reversal of the timing difference.
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.
Sydney L. Moss Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
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.
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 Improvements |
Over the lease period |
Fixtures & Fittings |
25% Reducing Balance |
Equipment |
25% Reducing Balance |
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.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the specific identification 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.
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.
Sydney L. Moss Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
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.
Staff numbers |
The average number of persons employed by the company during the year, was
Tangible assets |
Leasehold improvements |
Fixtures & Fittings |
Equipment |
Total |
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Cost or valuation |
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At 1 July 2020 |
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Additions |
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At 30 June 2021 |
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Depreciation |
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At 1 July 2020 |
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Charge for the year |
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At 30 June 2021 |
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Carrying amount |
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At 30 June 2021 |
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At 30 June 2020 |
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Stocks |
2021 |
2020 |
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Stock |
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Debtors |
2021 |
2020 |
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Trade debtors |
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Other debtors |
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Sydney L. Moss Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
Creditors |
Creditors: amounts falling due within one year
2021 |
2020 |
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Bank overdraft |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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The bank overdraft is secured by a fixed and floating charge over the assets and undertakings of the company.
Commitments under operating leases |
The total of future minimum lease payments not reflected in the statement of financial position amounts to £