Wallacespace Limited

Contents

Company Information	1
Strategic Report	2
Directors' Report	3 to 4
Statement of Directors' Responsibilities	5
Independent Auditor's Report	6 to 9
Statement of Income and Retained Earnings	10
Statement of Financial Position	11
Statement of Cash Flows	12
Notes to the Financial Statements	13 to 24

Company Information

Directors

R Wallace

R Gilmore-Kerr

Registered office

22 Duke's Road
London
WC1H 9PN

Independent auditor

Harmer Slater Limited
Statutory Auditor
Salatin House
19 Cedar Road
Sutton
Surrey
SM2 5DA

Wallacespace Limited

Strategic Report for the Year Ended 30 June 2022

The directors present their strategic report on the affairs of Wallacespace Limited for the year ended 30 June 2022.

Fair review of the business

The company's principal activity during the year continued to be the provision of off-site meeting space for training, seminars and workshops in London.

Until the COVID-19 pandemic hit, turnover and profits had grown each year as the business continued to expand. The success of Wallacespace is due to the quality of the service and the team delivering it.

COVID-19 had a significant impact on cash flow and liquidity of the business, but with improved trading and projected return to profitability, together with the company's ability to adapt to its existing and new clients changing needs, the directors are of the opinion, that this will provide Wallacespace with new business opportunities. Business expansion and improvement of services provided will continue, with quality being the central platform. The directors will continue to evaluate potential non residential and residential sites for expansion in both London and other business area in the UK, as demand dictates.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs	Unit	2022	2021
Turnover	£	6,553,186	549,160
Operating loss	£	1,546,883	4,678,103
Loss before tax	£	1,561,461	4,716,778
Average number of employees	number	107	79

Principal risks and uncertainties

• Liquidity and cash flow
At the time of approval of these financial statements there are ongoing risks and uncertainty surrounding the legacy of COVID-19 on the liquidity and cash flow of the business. The directors have considered these risks and have taken appropriate steps to minimise the impact.

• Competitive risks
There are a number of other providers of meeting and seminar space in London. In order to compete the company is reliant on the quality of its service and its delivery.

• Pricing levels
Pricing remains competitive and generally more stable with established relationships built up with long standing clients and repeat business.

• Legislative risks
The effect on the business of legislative changes are constantly under review to ensure that the company complies with its obligations.

Approved and authorised by the Board on 28 June 2023 and signed on its behalf by:

.........................................
R Wallace
Director

Wallacespace Limited

Directors' Report for the Year Ended 30 June 2022

The directors present their report and the financial statements for the year ended 30 June 2022.

Principal activity

The principal activity of the company is the provision of training, meeting and seminar space for rent in London

Directors of the company

The directors who held office during the year were as follows:

R Wallace

R Gilmore-Kerr

Employee involvement

The company’s philosophy is to encourage all of its employees to contribute to improving the business’s performance through the utilisation of their knowledge, experience and ideas. Communication with the employees individually is achieved through information bulletins, team briefings and regular management contact.

Going concern

These financial statements have been prepared on a going concern basis, which contemplates the realisation of assets and the payment of liabilities in the ordinary course of business.

COVID-19 had a significant impact on the business. The company was unable to operate during the National lockdowns and consequently received little revenue throughout those lockdown periods with working capital substantially reduced. In order to protect itself financially during that time, the company negotiated extended credit terms with its major suppliers, utilised the Coronavirus Job Retention Scheme and took out a Coronavirus Business Interruption Loan of £1,500,000.

This year revenue increased to almost 60% of pre pandemic levels, and the company has incurred a reduced loss of £1,035,019, compared with the loss of £3,846,144 in the previous year.

The directors have prepared cash flow forecasts, which include estimates showing a continued increase in revenue and a return to profitability during the 2023/24 accounting year.

Although the directors continue to take action to mitigate the impact of reduced working capital, and the cash flow forecasts show a return to profitability in the near future, there are significant uncertainties regarding the speed of recovery of the business to pre-pandemic levels. These events and conditions, including assumptions on the continued return of business, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern.

These financial statements do not reflect the adjustments or reclassification of assets and liabilities, which would be necessary if the Company were unable to continue its operations.

Wallacespace Limited

Directors' Report for the Year Ended 30 June 2022 (continued)

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information (as defined by section 418 of the Companies Act 2006) and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 28 June 2023 and signed on its behalf by:

.........................................
R Wallace
Director

Wallacespace Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law),including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;

•	make judgements and accounting estimates that are reasonable and prudent;

•	state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Wallacespace Limited

Independent Auditor's Report to the Member of
Wallacespace Limited

Opinion

We have audited the financial statements of Wallacespace Limited (the 'company') for the year ended 30 June 2022, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 30 June 2022 and of its loss for the year then ended;
•	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern
We draw attention to Note 2 in the financial statements, that indicates that the Company has prepared cash flow forecasts as part of its going concern assessment, which include assumptions regarding a
continued return of business to pre-pandemic levels. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Wallacespace Limited

Independent Auditor's Report to the Member of
Wallacespace Limited (continued)

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

•	the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•	the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors’ remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.
•	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Wallacespace Limited

Independent Auditor's Report to the Member of
Wallacespace Limited (continued)

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

•	the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
•	we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our cumulative audit and commercial knowledge and experience of the company and the industry;
•	we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Licensing Act 1964, General Data Protection rules (GDPR), taxation legislation, anti-bribery, employment and health and safety legislation;
•	we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
•	identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
	We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
•	making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
•	considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. We are also required to perform specific procedures to respond to the risk of management bias and override of controls. To address this, we performed analytical procedures to identify any unusual or unexpected relationships and tested journal entries to identify unusual transactions.
	In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
•	agreeing financial statements to disclosures underlying supporting documentation;
•	enquiring of management as to actual and potential litigation and claims; and
•	reviewing correspondence with HMRC, analysing legal costs to ascertain if there have been instances of non-compliance with laws and regulations.
	There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
	A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Wallacespace Limited

Independent Auditor's Report to the Member of
Wallacespace Limited (continued)

Use of our report

This report is made solely to the company’s member, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s member those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s member as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Timothy Slater (Senior Statutory Auditor)
For and on behalf of Harmer Slater Limited, Statutory Auditor

Salatin House
19 Cedar Road
Sutton
Surrey
SM2 5DA

28 June 2023

Wallacespace Limited

Statement of Income and Retained Earnings
for the Year Ended 30 June 2022

	Note	2022 £	2021 £
Revenue	3	6,553,186	549,160
Cost of sales		(5,720,524)	(4,388,757)
Gross profit/(loss)		832,662	(3,839,597)
Distribution costs		(1,175,028)	(942,958)
Administrative expenses		(1,298,717)	(1,031,244)
Other operating income	4	94,200	1,135,696
Operating loss	5	(1,546,883)	(4,678,103)
Other interest receivable and similar income	6	6,024	9,450
Interest payable and similar charges	7	(20,602)	(48,125)
Loss before tax		(1,561,461)	(4,716,778)
Taxation	11	526,442	870,634
Loss for the financial year		(1,035,019)	(3,846,144)
Retained earnings brought forward		352,247	4,206,391
Dividends paid		-	(8,000)
Retained earnings carried forward		(682,772)	352,247

Wallacespace Limited

(Registration number: 02792054)
Statement of Financial Position as at 30 June 2022

	Note	2022 £	2021 £
Non current assets
Property, plant and equipment	12	1,232,293	1,502,641
Current assets
Receivables	13	3,881,154	2,382,164
Cash at bank and in hand		3,408,693	4,312,697
		7,289,847	6,694,861
Payables: Amounts falling due within one year	15	(6,683,118)	(4,894,009)
Net current assets		606,729	1,800,852
Total assets less current liabilities		1,839,022	3,303,493
Payables: Amounts falling due after more than one year	15	(1,035,714)	(1,468,750)
Provisions for liabilities	16	(1,476,080)	(1,472,496)
Net (liabilities)/assets		(672,772)	362,247
Equity
Called up share capital		10,000	10,000
Retained earnings		(682,772)	352,247
Shareholders' (deficit)/funds		(672,772)	362,247

The financial statements of Wallacespace Limited were approved and authorised for issue by the Board on 28 June 2023 and signed on its behalf by:

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

R Wallace
Director

Wallacespace Limited

Statement of Cash Flows
for the Year Ended 30 June 2022

	Note	2022 £	2021 £
Cash flows from operating activities
Loss for the year		(1,035,019)	(3,846,144)
Adjustments to cash flows from non-cash items
Depreciation and amortisation	5	294,863	308,224
Finance income	6	(6,024)	(9,450)
Finance costs	7	20,602	48,125
Income tax expense	11	(526,442)	(870,634)
		(1,252,020)	(4,369,879)
Working capital adjustments
(Increase)/decrease in trade receivables	13	(964,370)	1,265,261
Increase in trade payables	15	1,380,849	1,067,925
Increase in provisions	16	3,584	3,480
Cash generated from operations		(831,957)	(2,033,213)
Income taxes received	11	2,760	-
Net cash flow from operating activities		(829,197)	(2,033,213)
Cash flows from investing activities
Interest received	6	6,024	9,450
Acquisitions of property, plant and equipment		(24,515)	(1,009)
Net cash flows from investing activities		(18,491)	8,441
Cash flows from financing activities
Interest paid	7	(20,602)	(48,125)
Proceeds from bank borrowing draw downs		(35,714)	1,500,000
Dividends paid	19	-	(8,000)
Net cash flows from financing activities		(56,316)	1,443,875
Net decrease in cash and cash equivalents		(904,004)	(580,897)
Cash and cash equivalents at 1 July		4,312,697	4,893,594
Cash and cash equivalents at 30 June		3,408,693	4,312,697

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022

1	General information

Wallacespace Limited (the 'company') is a private company limited by share capital, registered in England and Wales under the Companies Act. The address of the registered office is given on page 1. The nature of the company’s operations and its principal activities are set out in the directors' report on page 2.

2	Accounting policies

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.

Going concern

These financial statements have been prepared on a going concern basis, which contemplates the realisation of assets and the payment of liabilities in the ordinary course of business.

COVID-19 had a significant impact on the business. The company was unable to operate during the National lockdowns and consequently received little revenue throughout those lockdown periods with working capital substantially reduced. In order to protect itself financially during that time, the company negotiated extended credit terms with its major suppliers, utilised the Coronavirus Job Retention Scheme and took out a Coronavirus Business Interruption Loan of £1,500,000.

This year revenue increased to almost 60% of pre pandemic levels, and the company has incurred a reduced loss of £1,035,019, compared with the loss of £3,846,144 in the previous year.

The directors have prepared cash flow forecasts, which include estimates showing a continued increase in revenue and a return to profitability during the 2023/24 accounting year.

Although the directors continue to take action to mitigate the impact of reduced working capital, and the cash flow forecasts show a return to profitability in the near future, there are significant uncertainties regarding the speed of recovery of the business to pre-pandemic levels. These events and conditions, including assumptions on the continued return of business, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern.

These financial statements do not reflect the adjustments or reclassification of assets and liabilities, which would be necessary if the Company were unable to continue its operations.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and in accordance with the Companies Act 2006.

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022 (continued)

2	Accounting policies (continued)

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The functional currency of the company is considered to be pound sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).

Critical judgements and key sources of estimation uncertainties

The preparation of the financial statements requires management to make estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following estimates have had the most significant effect on amounts recognised in the financial statements.

The company makes provision for depreciation of property plant and equipment; this provision requires estimates of the useful economic lives and residual values for the underlying assets. These estimates are based on a variety of factors which may be uncertain.

Key sources of estimation uncertainty

(i) Provisions
Provisions have been made for leasehold property dilapidations. These provisions are based on assessments made by a firm of professional building consultants. The provisions are estimates and the actual costs and timing of future cash flows are dependent on future events. Any difference between expectations and the actual future liability will be accounted for in the period when such determination is made. Details of provisions are set out in note 16.

(ii) Property, plant and equipment
The company establishes a reliable estimate of the useful life of property, plant and equipment; this estimate is based on a variety of factors which may be uncertain. The carrying amount is £1,232,293 (2021 - £1,502,641).

Revenue recognition

Revenue 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. Revenue is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government grants of a revenue nature are credited to the income statement so as to match them with the expenditure to which they relate and are included in other operating income.

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022 (continued)

2	Accounting policies (continued)

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change 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 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.

Property, plant and equipment

Property, plant and equipment are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.

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 term
Plant and machinery	20% 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.

Trade receivables

Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade receivables 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.

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022 (continued)

2	Accounting policies (continued)

Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade payables 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 the income statement 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.

Provisions

Provisions are recognised when the company has an obligation at the reporting date 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.

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.

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.

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022 (continued)

2	Accounting policies (continued)

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3

Revenue

In the opinion of the directors, the company's revenue, profit before taxation and net assets are attributable to the company's one principal business in the United Kingdom only and not attributable to classes of business or geographical segments which differ substantially from each other. Consequently, no segmental information has been presented. Turnover derive wholly from the provision of services.

4	Other operating income

The analysis of the company's other operating income for the year is as follows:

	2022 £	2021 £
Government grants	94,200	1,135,696

5	Operating loss

Arrived at after charging

	2022 £	2021 £
Depreciation expense	294,863	308,224

6	Interest receivable and similar income

	2022 £	2021 £
Interest income on bank deposits	6,024	9,450

7	Interest payable and similar expenses

	2022 £	2021 £
Interest on bank overdrafts and borrowings	20,602	48,125

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022 (continued)

8	Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	2022 £	2021 £
Wages and salaries	2,474,400	2,064,528
Social security costs	272,136	184,778
Pension costs, defined contribution scheme	118,901	175,829
Other employee expense	49,145	31,817
	2,914,582	2,456,952

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

	2022 No.	2021 No.
Production	45	41
Administration and support	18	10
Sales	44	28
	107	79

9	Directors' remuneration

The directors' remuneration for the year was as follows:

	2022 £	2021 £
Remuneration	321,231	391,760
Contributions paid to money purchase schemes	40,000	100,000
	361,231	491,760

10	Auditors' remuneration

	2022 £	2021 £
Audit of the financial statements	8,750	8,750

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022 (continued)

11

Taxation

Tax credited in the income statement

	2022 £	2021 £
Current taxation
UK corporation tax adjustment to prior periods	-	(380,000)
Deferred taxation
Arising from origination and reversal of timing differences	(526,442)	(490,634)
Tax receipt in the income statement	(526,442)	(870,634)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of 19% (2021 - 19%).

The differences are reconciled below:

	2022 £	2021 £
Loss before tax	(1,561,461)	(4,716,778)
Corporation tax at standard rate	(296,678)	(896,188)
Effect of expense not deductible in determining tax loss	5,585	2,754
UK deferred tax credit relating to changes in tax rates or laws	(235,349)	-
Deferred tax expense from unrecognised temporary difference from a prior period	-	22,800
Total tax credit	(526,442)	(870,634)

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022 (continued)

11	Taxation (continued)

Deferred tax

Deferred tax assets and liabilities

2022	Asset £	Liability £
Accelerated capital allowances	56,521	-
Accrued liabilities	1,968	-
Tax losses carried forward	922,132	-
	980,621	-

2021	Asset £	Liability £
Accelerated capital allowances	-	256,327
Provision	251,274	-
Accrued liabilities	988	-
Tax losses carried forward	458,244	-
	710,506	256,327

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022 (continued)

12	Property, plant and equipment

	Leasehold buildings £	Furniture, fittings and equipment £	Total £
Cost
At 1 July 2021	3,382,500	941,802	4,324,302
Additions	-	24,515	24,515
At 30 June 2022	3,382,500	966,317	4,348,817
Depreciation
At 1 July 2021	1,985,573	836,088	2,821,661
Charge for the year	251,331	43,532	294,863
At 30 June 2022	2,236,904	879,620	3,116,524
Carrying amount
At 30 June 2022	1,145,596	86,697	1,232,293
At 30 June 2021	1,396,927	105,714	1,502,641

13	Receivables

Current	2022 £	2021 £
Trade receivables	1,000,001	183,567
Other receivables	440,465	768,444
Directors' loan accounts	8,178	-
Prepayments	1,451,889	975,974
Deferred tax asset	980,621	454,179
	3,881,154	2,382,164

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022 (continued)

14	Cash and cash equivalents

	2022 £	2021 £
Cash at bank	3,408,693	4,312,697

15

Payables

	2022 £	2021 £
Due within one year
Bank Loan	428,572	31,250
Trade payables	4,288,661	3,232,602
Corporation tax	2,760	-
Social security and other taxes	379,125	42,439
Directors' loan accounts	-	378
Other payables	24,826	13,752
Accrued expenses	1,559,174	1,573,588
	6,683,118	4,894,009
Due after one year
Bank loan	1,035,714	1,468,750

16	Provisions for liabilities

	Other provisions £
At 1 July 2021	1,472,496
Increase due to passage of time or unwinding of discount	3,584
At 30 June 2022	1,476,080

Dilapidations

Provision has been made for dilapidations, as assessed by a firm of professional building consultants in respect of the company's leasehold properties.

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022 (continued)

17	Share capital and reserves

Allotted, called up and fully paid shares

	2022		2021
	No.	£	No.	£
Ordinary shares of £1 each	10,000	10,000	10,000	10,000

Reserves

The retained earnings reserve represents cumulative profit or losses net of dividends paid and other adjustments.

18	Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

	2022 £	2021 £
Not later than one year	2,382,338	2,503,658
Later than one year and not later than five years	5,504,718	6,591,218
Later than five years	4,207,249	5,503,087
	12,094,305	14,597,963

19

Dividends

	2022	2021
	£	£
Interim dividend of £Nil (2021 - £0.80) per ordinary share	-	8,000

Wallacespace Limited

Notes to the Financial Statements
for the Year Ended 30 June 2022 (continued)

20	Related party transactions

Summary of transactions with other related parties

At 30 June 2022 Renata Wallace and Roy Gilmore Kerr owed the company £4,089 each (2021: Renata Wallace and Roy Gilmore Kerr were owed £189 each by the company). The loans are interest free, and have no fixed repayment date or repayment schedule.

21	Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £118,901 (2021 - £175,829).

22	Loans and borrowings

	2022 £	2021 £
Non-current loans and borrowings
Bank loan	1,035,714	1,468,750

	2022 £	2021 £
Current loans and borrowings
Bank loan	428,572	31,250

The secretary of state for business, energy and industrial strategy, has provided a limited guarantee to the company's bank, in respect of the Coronavirus business interruption loan, to the value of £1,500,000.

Barclays Bank Plc, hold a fixed and floating charge, over all the company's property and undertaking, as security over monies due or becoming due to the bank.

Barclays Bank Plc also hold a fixed charge over the company's credit bank balances as security over any monies due or becoming due to the bank.

Wallacespace Limited - Period Ending 2022-06-30

Wallacespace Limited - Period Ending 2022-06-30