Ezenze limited - Period Ending 2016-09-30

Registration number: 05568687

Ezenze limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 September 2016

Ezenze limited

Contents

Company Information	1
Director's Report	2
Statement of Income and Retained Earnings	3
Statement of Financial Position	4
Notes to the Financial Statements	5 to 11

Ezenze limited

Company Information

Director

M Johansson

Company secretary

Goodwille Limited

Registered office

St James House 13 Kensington Square London W8 5HD

Accountants

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

Page 1

Ezenze limited

Director's Report for the Year Ended 30 September 2016

The Director presents his annual report and the audited financial statements for the year ended 30 September 2016.

Principal activity

The principal activity of the company is that of marketing and market research consultancy.

Directors of the Company

The director who served throughout the year and up to date of authorisation of this report was as follows:

M Johansson

Going concern

No material uncertainties that may have cast significant doubt about the ability of the company to continue as a going concern have been identified by the director.

Events after the financial period

There have been no significant events between the year end and the date of approval of these accounts which would require a change to, or disclosure in, the accounts.

Small companies provision statement

The directors have taken advantage of the small companies exemptions provided by sections 414B and 415A of the Companies Act 2006 from the requirement to prepare a strategic report and in preparing the directors’ report on the grounds that the company is entitled to prepare its accounts for the year in accordance with the small companies regime.

Approved by the director on 30 June 2017

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

M Johansson
Director

Page 2

Ezenze limited

Statement of Income and Retained Earnings
for the Year Ended 30 September 2016

	Note	2016  £	2015  £
Revenue	3	104,260	77,278
Cost of sales		(57,748)	(42,525)
Gross profit		46,512	34,753
Administrative expenses		(9,943)	(13,454)
Operating profit	4	36,569	21,299
Other interest receivable and similar income	5	88	469
Amounts written off investments		-	(29,375)
Income from investments		989	-
		1,077	(28,906)
Profit/(loss) before tax		37,646	(7,607)
Taxation	7	(7,352)	(4,923)
Profit/(loss) for the financial year		30,294	(12,530)
Retained earnings brought forward		264,570	277,100
Retained earnings carried forward		294,864	264,570

Continuing operations
The above results derive wholly from continuing operations.
 

The notes on pages 5 to 11 form an integral part of these financial statements.
Page 3

Ezenze limited

(Registration number: 05568687)
Statement of Financial Position as at 30 September 2016

	Note	2016  £	2015  £
Non-current assets
Property, plant and equipment	8	-	102
Other financial assets	9	87,716	87,716
		87,716	87,818
Current assets
Receivables	10	4,546	11,493
Cash at bank and in hand	11	219,276	175,524
		223,822	187,017
Payables: Amounts falling due within one year	12	(16,672)	(10,263)
Net current assets		207,150	176,754
Net assets		294,866	264,572
Equity
Called up share capital	13	2	2
Retained earnings	13	294,864	264,570
Total equity		294,866	264,572

For the financial year ending 30 September 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's 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 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 provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Approved and authorised for issue by the director on 30 June 2017
 

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

M Johansson

Director

The notes on pages 5 to 11 form an integral part of these financial statements.
Page 4

Ezenze limited

Notes to the Financial Statements
for the Year Ended 30 September 2016

1	General information

Ezenze limited ('the company') is a private company limited by share capital incorporated 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.

Going concern

No material uncertainties that may have cast significant doubt about the ability of the company to continue as a going concern have been identified by the director.

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.

The company transitioned from previously extant UK GAAP to FRS 102 on 1 October 2014. An
explanation of how the transition to FRS 102 has affected the reported financial position and financial performance is given in note 16.

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

Exemption from preparing a cash flow statement
The company qualifies as a small entity and in consequence has taken advantage of paragraph 7.1B of FRS 102 not to present a statement of cash flows.

Revenue recognition

Turnover comprises the value of services supplied and rechargeable expenses, net of value added tax.

Foreign currency transactions and balances

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the statement of income and retained earnings.

Page 5

Ezenze limited

Notes to the Financial Statements
for the Year Ended 30 September 2016 (continued)

2	Accounting policies (continued)

Tax

Corporation tax payable is provided on taxable profits at the current rate of tax.

Deferred tax is provided in full on timing differences which represent a liability at the balance sheet date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income or expenditure in tax computations in periods different from those in which they are included in the financial statements. Deferred tax assets and liabilities are not discounted.

Property, plant and equipment

Property, plant and equipment is 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 over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Office equipment	Straight line basis over 3 years

Other financial assets

Non-current financial assets are stated at historical cost less provision for any diminution in value.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and at bank and are subject to an insignificant risk
of change in value.

Receivables

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 receivables 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.

Payables

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.

Payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Page 6

Ezenze limited

Notes to the Financial Statements
for the Year Ended 30 September 2016 (continued)

2	Accounting policies (continued)

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

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

The analysis of the company's revenue for the year from continuing operations is as follows:

	2016  £	2015  £
Rendering of services	104,260	77,278

4	Operating profit

Arrived at after charging

	2016  £	2015  £
Depreciation expense	102	1,059

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Ezenze limited

Notes to the Financial Statements
for the Year Ended 30 September 2016 (continued)

5	Other interest receivable and similar income

	2016  £	2015  £
Interest income on bank deposits	10	300
Other finance income	78	169
	88	469

6	Director's remuneration

No remuneration was paid to the director during the year (2015: nil)

7

Taxation

Tax charged in the income statement

	2016  £	2015  £
Current taxation
UK corporation tax	7,352	4,923

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2015 - higher than the standard rate of corporation tax in the UK) of 20% (2015 - 20%).

The differences are reconciled below:

	2016  £	2015  £
Profit/(loss) before tax	37,646	(7,607)
Corporation tax at standard rate	7,529	(1,521)
Effect of expense not deductible in determining taxable profit (tax loss)	-	358
Tax increase from effect of capital allowances and depreciation	20	212
Tax decrease from effect of dividends from overseas companies	(197)	-
Tax increase from effect of loss on disposal of investment	-	5,874
Total tax charge	7,352	4,923

Page 8

Ezenze limited

Notes to the Financial Statements
for the Year Ended 30 September 2016 (continued)

8	Property, plant and equipment

	Office equipment £
Cost
At 1 October 2015	3,176
At 30 September 2016	3,176
Depreciation
At 1 October 2015	3,074
Charge for the year	102
At 30 September 2016	3,176
Carrying amount
At 30 September 2016	-
At 30 September 2015	102

9	Other financial assets

	2016  £	2015  £
Non-current financial assets
Unlisted investment at cost	87,716	87,716

10	Receivables

	Note	2016  £	2015  £
Trade receivables		79	4,014
Loan to director	14	3,125	5,535
Other receivables		783	1,385
Prepayments		559	559
		4,546	11,493

Debtors includes £715 (2015 - £3,125) receivable after more than one year.

11	Cash and cash equivalents

	2016  £	2015  £
Cash at bank	219,276	175,524

Page 9

Ezenze limited

Notes to the Financial Statements
for the Year Ended 30 September 2016 (continued)

12

Payables

	Note	2016  £	2015  £
Due within one year
Trade payables		32	30
Corporation tax	7	6,744	4,321
Social security and other taxes		4,456	4,207
Other payables		3,674	-
Accrued expenses		1,650	1,650
Deferred income		116	55
		16,672	10,263

13	Share capital and reserves

Allotted, called up and fully paid shares

	2016		2015
	No.	£	No.	£
Ordinary share of £1 each	2	2	2	2

The company has one class of share capital which carries no right to fixed income.

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

Page 10

Ezenze limited

Notes to the Financial Statements
for the Year Ended 30 September 2016 (continued)

14	Related party transactions

The following balance owed by the director was outstanding at the year end:
 

	2016 £		2016 Repaid £		2015 £		2015 Repaid £
M Johansson	3,125		2,410		5,535		2,410

The loan is unsecured, repayable in annual instalments of £2,410 and has a fixed rate of interest of 2.5%.

During the year the director paid for buisness travel expenses of £10,662 on behalf of the company. At the year end an amount of £3,674 (2015: £Nil) was due to the director.

Other related party transactions

Ezenze Limited and Ezenze AB are under common control. During the year Ezenze AB provided consultancy services to the company amounting to £8,344 (2015 - £17,607).

15

Control

The company is controlled by the director who owns 100% of the called up share capital.
 

16	Non adjusting events after the financial period

There have been no significant events between the year end and the date of approval of these accounts which would require a change to, or disclosure in, the accounts.

17	Transition to FRS 102

The company is a first time adopter of FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council. The last financial statements prepared under previously extant UK GAAP was for the year ended 30 September 2015 and the date of transition to FRS 102 was therefore 1 October 2014. As a consequence of the adoption of FRS 102, there has been no effect on accounting policies. In addition, the transition has had no effect on the company's reported financial position and financial performance.

Page 11