Purely Digital Limited 31/08/2023 iXBRL

Purely Digital Limited 31/08/2023 iXBRL

PURELY DIGITAL LIMITED - Company Information

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Purely Digital Limited
Unaudited filleted financial statements
31 August 2023
Company registration number: 06481363
Purely Digital Limited
Contents
Statement of financial position
Notes to the financial statements
Purely Digital Limited
Statement of financial position
31 August 2023
2023 2022
Note £ £ £ £
Fixed assets
Tangible assets 7 78,287 53,046
_______ _______
78,287 53,046
Current assets
Stock and work in progress 9,007 11,948
Debtors 8 64,098 81,399
Investments 9 167,165 167,181
Cash at bank and in hand 107,356 85,569
_______ _______
347,626 346,097
Creditors: amounts falling due
within one year 10 ( 73,805) ( 78,765)
_______ _______
Net current assets 273,821 267,332
_______ _______
Total assets less current liabilities 352,108 320,378
Creditors: amounts falling due
after more than one year 11 - ( 12,441)
Provisions for liabilities 12 ( 16,668) ( 7,388)
_______ _______
Net assets 335,440 300,549
_______ _______
Capital and reserves
Called up share capital 3 3
Profit and loss account 335,437 300,546
_______ _______
Shareholders funds 335,440 300,549
_______ _______
For the year ending 31 August 2023 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 financial statements for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 31 May 2024 , and are signed on behalf of the board by:
Mr. A. J. Edmondson
Director
Company registration number: 06481363
Purely Digital Limited
Notes to the financial statements
Year ended 31 August 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 7 Jubilee Parkway, Jubilee Business Park, off Stores Road, Derby, DE21 4BJ.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 25% straight line less residual value
Fixtures, fittings and equipment - 15% reducing balance
Motor vehicles - 25% reducing balance
Computer equipment - 33.33 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 5 (2022: 5 ).
5. Profit before taxation
Profit before taxation is stated after charging/(crediting):
2023 2022
£ £
Depreciation of tangible assets 18,237 17,104
_______ _______
6. Tax on profit
Major components of tax expense
2023 2022
£ £
Current tax:
UK current tax expense 11,254 11,448
Deferred tax:
Origination and reversal of timing differences 9,280 ( 228)
_______ _______
Tax on profit 20,534 11,220
_______ _______
7. Tangible assets
Plant and machinery Fixtures, fittings and equipment Motor vehicles Computer equipment Total
£ £ £ £ £
Cost
At 1 September 2022 453,827 13,504 21,475 47,076 535,882
Additions 42,500 129 - 3,178 45,807
Disposals ( 9,064) ( 2,497) - ( 39,465) ( 51,026)
_______ _______ _______ _______ _______
At 31 August 2023 487,263 11,136 21,475 10,789 530,663
_______ _______ _______ _______ _______
Depreciation
At 1 September 2022 418,944 10,666 11,824 41,402 482,836
Charge for the year 14,845 374 2,413 605 18,237
Disposals ( 8,498) ( 2,106) - ( 38,093) ( 48,697)
_______ _______ _______ _______ _______
At 31 August 2023 425,291 8,934 14,237 3,914 452,376
_______ _______ _______ _______ _______
Carrying amount
At 31 August 2023 61,972 2,202 7,238 6,875 78,287
_______ _______ _______ _______ _______
At 31 August 2022 34,883 2,838 9,651 5,674 53,046
_______ _______ _______ _______ _______
8. Debtors
2023 2022
£ £
Trade debtors 55,132 70,602
Other debtors 8,966 10,797
_______ _______
64,098 81,399
_______ _______
9. Investments
2023 2022
£ £
Other investments 167,165 167,181
_______ _______
10. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loan 3,000 9,559
Trade creditors 36,170 24,632
Corporation tax 11,254 11,448
Social security and other taxes 10,593 12,258
Other creditors 12,788 20,868
_______ _______
73,805 78,765
_______ _______
The bank loan due within one year is an unsecured bounceback loan taken out during the COVID-19 pandemic repayable over 6 years.
11. Creditors: amounts falling due after more than one year
2023 2022
£ £
Bank loan - 12,441
_______ _______
The bank loan due after more than one year is an unsecured bounceback loan taken out during the COVID-19 pandemic repayable over 6 years.
12. Provisions
Deferred tax (note 13) Total
£ £
At 1 September 2022 7,388 7,388
Movement in the year 9,280 9,280
_______ _______
At 31 August 2023 16,668 16,668
_______ _______
13. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023 2022
£ £
Included in provisions (note 12) 16,668 7,388
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2023 2022
£ £
Accelerated capital allowances 16,668 7,388
_______ _______
The provision for deferred taxation relates entirely to accelerated capital allowances.
14. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year - land and buildings - 8,500
_______ _______
15. Directors advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward Advances /(credits) to the directors Amounts repaid Balance o/standing
£ £ £ £
Mr. G. W. Gillott ( 2,918) 3,500 ( 3,000) ( 2,418)
Mr. A. J. Edmondson ( 7,711) 33,811 ( 27,000) ( 900)
_______ _______ _______ _______
( 10,629) 37,311 ( 30,000) ( 3,318)
_______ _______ _______ _______
2022
Balance brought forward Advances /(credits) to the directors Amounts repaid Balance o/standing
£ £ £ £
Mr. G. W. Gillott 1,082 2,000 ( 6,000) ( 2,918)
Mr. A. J. Edmondson ( 9,997) 32,286 ( 30,000) ( 7,711)
_______ _______ _______ _______
( 8,915) 34,286 ( 36,000) ( 10,629)
_______ _______ _______ _______
The director's current account in respect of G. W. Gillott had a maximum overdrawn balance of £Nil (2022: £2,082).
16. Controlling party
The company is controlled by the directors.