Adrift Limited - Period Ending 2016-12-31

Registration number: 08655631

Adrift Limited Annual Report and Unaudited Financial Statements for the Year Ended 31 December 2016

Adrift Limited

(Registration number: 08655631)
Balance Sheet as at 31 December 2016

	Note	2016 £	2015 £
Fixed assets
Tangible assets	4	18,501	21,353
Current assets
Stocks	5	51,800	52,800
Debtors	6	461	896
Cash at bank and in hand		27,600	26,412
		79,861	80,108
Creditors: Amounts falling due within one year	7	(57,030)	(69,305)
Net current assets		22,831	10,803
Total assets less current liabilities		41,332	32,156
Provisions for liabilities		(2,093)	(2,462)
Net assets		39,239	29,694
Capital and reserves
Called up share capital		2	2
Profit and loss account		39,237	29,692
Total equity		39,239	29,694

For the financial year ending 31 December 2016 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 in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 3 to 7 form an integral part of these financial statements.

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Adrift Limited

(Registration number: 08655631)
Balance Sheet as at 31 December 2016

Approved and authorised by the Board on 21 June 2017 and signed on its behalf by:
 

Mr P J Small Director

Mrs M L Small Director

The notes on pages 3 to 7 form an integral part of these financial statements.

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Adrift Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

1	General information

The company is a private company limited by share capital incorporated in United Kingdom .

The address of its registered office is:
11 Sandpiper Court
Beach Rd
WOOLACOMBE
Devon
EX34 7AD

The principal place of business is:
3 The Quay
Ilfracombe
Devon
EX34 9EQ

These financial statements were authorised for issue by the Board on 21 June 2017.

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.

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.

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
Fixtures and fittings	15% Reducing balance
Leasehold property	Straight line over 9 years

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Adrift Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

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 debtors

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

Trade debtors 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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) 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.

Trade creditors

Trade creditors 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 creditors 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 Profit and Loss Account 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.

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Adrift Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

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.

Financial instruments

Classification
Basic financial assets include trade and other debtors, cash and bank balances. Basic financial liabilities include trade and other payables, bank loans and preference shares that are classified as debt.
 Recognition and measurement
Basic financial assets are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. Other debtors are classified as current assets if payment is due within one year or less and are initially recorded at transaction price and subsequently measured at the undiscounted amount of the cash expected to be received. Trade debtors are referred to above.

Basic financial liabilities are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Other creditors are classified as current liabilities if payment is due within one year or less and are recognised initially at transaction price and subsequently measured at the undiscounted amount of the cash expected to be paid. If not, they are presented as non-current liabilities and are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Trade creditors and leases are referred to above.
 Impairment
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 6 (2015 - 3).

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Adrift Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

4	Tangible assets

	Short leasehold land and buildings £	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 January 2016	9,041	15,876	24,917
At 31 December 2016	9,041	15,876	24,917
Depreciation
At 1 January 2016	-	3,564	3,564
Charge for the year	1,005	1,847	2,852
At 31 December 2016	1,005	5,411	6,416
Carrying amount
At 31 December 2016	8,036	10,465	18,501
At 31 December 2015	9,041	12,312	21,353

Included within the net book value of land and buildings above is £Nil (2015 - £Nil) in respect of freehold land and buildings, £Nil (2015 - £Nil) in respect of long leasehold land and buildings and £8,037 (2015 - £9,041) in respect of short leasehold land and buildings.
 

5

Stocks

	2016  £	2015  £
Other inventories	51,800	52,800

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Adrift Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

6

Debtors

	2016  £	2015  £
Trade debtors	-	6
Prepayments	461	890
Total current trade and other debtors	461	896

7

Creditors

	Note	2016 £	2015 £
Due within one year
Loans and borrowings		46,209	65,393
Trade creditors		2,197	218
Taxation and social security		3,825	2,229
Other creditors		4,799	1,465
		57,030	69,305

8	Transition to FRS 102

This is the first year that the company has presented its results under FRS 102. The last financial statements prepared under the previous UK GAAP were for the year ended 31 December 2015. The date of transition to FRS 102 was 1 January 2015. There were no changes required to the accounting policies between the UK GAAP as previously reported and FRS 102 and thus no transitional adjustments were required and so a reconciliation report is not presented.

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