Moodology Limited - Period Ending 2021-06-30

Moodology Limited

Contents

Balance Sheet	1
Notes to the Unaudited Financial Statements	2 to 7

Moodology Limited

Balance Sheet

30 June 2021

	Note	2021 £	2020 £
Fixed assets
Investments	4	2,454,492	2,454,492
Current assets
Debtors	5	-	12,375
Creditors: Amounts falling due within one year	6	(226,013)	(158,492)
Net current liabilities		(226,013)	(146,117)
Total assets less current liabilities		2,228,479	2,308,375
Creditors: Amounts falling due after more than one year	6	(870,751)	(927,109)
Net assets		1,357,728	1,381,266
Capital and reserves
Called up share capital	8	8,500	8,500
Capital redemption reserve		1,500	1,500
Profit and loss account		1,347,728	1,371,266
Shareholders' funds		1,357,728	1,381,266

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.

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 and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 29 March 2022 and signed on its behalf by:
 

.........................................

Mr A C Quinlan
Director

Company Registration Number: 11884542

Moodology Limited

Notes to the Unaudited Financial Statements

Year Ended 30 June 2021

1	General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Mendip Centre
Rhodyate
Blagdon
Bristol
BS40 7YE

These financial statements were authorised for issue by the Board on 29 March 2022.

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.

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.

There are no material departures from FRS102.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

Moodology Limited

Notes to the Unaudited Financial Statements

Year Ended 30 June 2021

Key judgements and sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these
estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The company is reliant upon the financial performance of its subsidiary company Archstone Limited in order to meet its liabilities as they fall due. During the year to 30 June 2021 Archstone Limited generated profits before tax of £156,207 and the directors anticipate ongoing profitability and growth of the subsidiary in future having given due consideration also to the opportunities and challenges arising from the Coronavirus pandemic. The directors are satisfied that the going concern basis of preparation remains appropriate in these financial statements.

The key estimates that have a significant effect on the financial statements are as follows:

Investments in subsidiaries are carried at cost less any impairments, which requires estimation as to the carrying value of the investment. The carrying amount is £2,454,492 and the directors have, in making their assessment, considered the known and likely potential impacts of the Coronavirus pandemic on both the operations of the subsidiary and the consumer demand driven by the wider economic environment.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Moodology Limited

Notes to the Unaudited Financial Statements

Year Ended 30 June 2021

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

 

3	Staff numbers

The average number of persons employed by the company during the year, was 0 (2020 - 0).

4	Investments

	2021 £	2020 £
Investments in subsidiaries	2,454,492	2,454,492

Moodology Limited

Notes to the Unaudited Financial Statements

Year Ended 30 June 2021

Subsidiaries	£
Cost or valuation
At 1 July 2020	2,454,492
At 30 June 2021	2,454,492
Carrying amount
At 30 June 2021	2,454,492
At 30 June 2020	2,454,492

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2021	2020
Subsidiary undertakings
Archstone Limited	Ground Floor Blackbrook Gate 1 Blackbrook Business Park Taunton Somerset TA1 2PX England & Wales	Ordinary	100%	100%

Subsidiary undertakings

Archstone Limited The principal activity of Archstone Limited is food retail in specialised stores.

5

Debtors

	Note	2021 £	2020 £
Amounts owed by group	9	-	12,375
		-	12,375

Moodology Limited

Notes to the Unaudited Financial Statements

Year Ended 30 June 2021

6

Creditors

Creditors: amounts falling due within one year

	Note	2021 £	2020  £
Loans and borrowings	7	162,750	93,750
Amounts due to group undertakings	9	49,157	-
Other creditors		-	56,036
Accrued expenses		14,106	8,706
		226,013	158,492

Creditors: amounts falling due after more than one year

	Note	2021 £	2020 £
Loans and borrowings	7	772,000	871,001
Accruals		98,751	56,108
		870,751	927,109

7	Loans and borrowings

	2021 £	2020 £
Current loans and borrowings
Other borrowings	162,750	93,750

	2021 £	2020 £
Loans and borrowings due after one year
Other borrowings	772,000	871,001

8	Share capital

Allotted, called up and fully paid shares

	2021		2020
	No.	£	No.	£
Ordinary shares of £1 each	8,500	8,500	8,500	8,500

Moodology Limited

Notes to the Unaudited Financial Statements

Year Ended 30 June 2021

9	Related party transactions

Summary of transactions with entities with joint control or significant interest

At the period end the company owed £496,000 to an entity with significant influence and a director in common (2020 - £496,000). The loan accrues interest at 5% per annum and is repayable on maturity in four years.
 

Summary of transactions with all subsidiaries

The company has taken advantage of the exemption provided from disclosing transactions with its wholly owned subsidiaries.
 

Summary of transactions with key management

At the year end the company owed £106,056 to one of its directors (2020 - £100,716). Repayments of £nil were made in the period and interest of £5,340 accrued. The loan accrued interest at 5% up to the date of maturity during the year. Interest is subsequently being accrued at 7% on the balance at the date of maturity and is repayable on demand.

At the period end the company owed £257,168 to the same director (2020 - £267,825). Repayments of £22,500 were made in the period and interest of £11,843 accrued. This loan accrues interest at 5% per annum and is repayable over a five year term from the period end.

At the period end the company owed £130,937 to one of its directors (2020 - £132,436). Repayments of £5,000 were made in the period and interest of £6,016 accrued. The loan accrues interest at 5% per annum and is repayable over a five year term from the period end.