First Rung Enterprises Limited - Period Ending 2017-03-31

Registration number: 04298720

First Rung Enterprises Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2017

First Rung Enterprises Limited

Contents

Balance Sheet	1 to 2
Notes to the Financial Statements	3 to 10

First Rung Enterprises Limited

(Registration number: 04298720)
Balance Sheet as at 31 March 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	5	255,348	255,035
Investments		100	-
		255,448	255,035
Current assets
Debtors	7	38,600	2,612
Cash at bank and in hand		58,318	1,930
		96,918	4,542
Creditors: Amounts falling due within one year	8	(51,258)	(7,643)
Net current assets/(liabilities)		45,660	(3,101)
Total assets less current liabilities		301,108	251,934
Creditors: Amounts falling due after more than one year	8	(186,001)	(186,001)
Net assets		115,107	65,933
Capital and reserves
Called up share capital		100	100
Other reserves		20,463	20,463
Profit and loss account		94,544	45,370
Total equity		115,107	65,933

For the financial year ending 31 March 2017 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 10 form an integral part of these financial statements.

Page 1

First Rung Enterprises Limited

(Registration number: 04298720)
Balance Sheet as at 31 March 2017

Approved and authorised by the Board on 1 August 2017 and signed on its behalf by:
 

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

Mr Rob Gordon Fenton

Director

The notes on pages 3 to 10 form an integral part of these financial statements.

Page 2

First Rung Enterprises Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

1	General information

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

The address of its registered office is:
124 Fulwell Road
Teddington
London
TW11 0RQ

The principal place of business is:
P O Box 1052
Simbithi
Ballito 4390
KZN

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
Office Equipment	33% Straight Line
Land and buildings	No depreciation charge

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.

Page 3

First Rung Enterprises Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. 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.

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 services performed in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

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.

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.

3

Taxation

	2017		2016
	£		£
Corporation tax	31,807		327
Deferred tax	-		-
	31,807		327

Page 4

First Rung Enterprises Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

4	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2016 - 2).

5	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 April 2016	255,000	1,842	256,842
Additions	-	449	449
At 31 March 2017	255,000	2,291	257,291
Depreciation
At 1 April 2016	-	1,807	1,807
Charge for the year	-	136	136
At 31 March 2017	-	1,943	1,943
Carrying amount
At 31 March 2017	255,000	348	255,348
At 31 March 2016	255,000	35	255,035

Included within the net book value of land and buildings above is £255,000 (2016 - £255,000) in respect of freehold land and buildings.
 

Page 5

First Rung Enterprises Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

6	Investments

	2017 £	2016 £
Investments in subsidiaries	100	-

Subsidiaries	£
Cost or valuation
At 1 April 2016	100
Provision
Carrying amount
At 31 March 2017	100

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) 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
			2017	2016
Subsidiary undertakings
First Rung Property Investments Ltd	124 Fulwell Road Teddington London TW11 0RQ	Ordinary	100%	0%
	England

The principal activity of First Rung Property Investments Ltd is Property Investments

7

Debtors

	Note	2017 £	2016 £
Trade debtors		27,282	2,612
Amounts owed by group undertakings and undertakings in which the company has a participating interest	11	11,318	-
Total current trade and other debtors		38,600	2,612

Page 6

First Rung Enterprises Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

8

Creditors

	Note	2017 £	2016 £
Due within one year
Trade creditors		422	-
Taxation and social security		45,013	2,185
Other creditors		5,823	5,458
		51,258	7,643
Due after one year
Loans and borrowings	9	186,001	186,001

9	Loans and borrowings

	2017 £	2016 £
Non-current loans and borrowings
Bank borrowings	186,001	186,001

Bank borrowings

The bank loans is secured over the investment properties to which they relate.

10

Dividends

	2017	2016
	£	£
Interim dividend	78,366	4,050

11	Related party transactions

Transactions with directors

Other transactions with directors

R Fenton had a loan with the company. At the balance sheet date the amount due to R Fenton was £5,322 (2016: £4,958)

Page 7

First Rung Enterprises Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

12	Transition to FRS 102

This is the first year that the company has presented it's results under FRS 102. The last financial statements under previous UK GAAP were for the year ended 31 March 2016 and the date of transition to FRS 102 was 1 April 2015. On transition to FRS102 the Freehold Investment Property was reclassified to Property plant & equipment with the revalued amount on transition used as a deemed cost. The revaluation reserve has been transferred to a non distributable reserve.

Balance Sheet at 1 April 2015
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Fixed assets
Tangible assets		52	255,000	-	255,052
Investment property		255,000	(255,000)	-	-
		255,052	-	-	255,052
Current assets
Debtors		2,295	-	-	2,295
Cash at bank and in hand		1,453	-	-	1,453
		3,748	-	-	3,748
Creditors: Amounts falling due within one year		(4,611)	-	-	(4,611)
Net current liabilities		(863)	-	-	(863)
Total assets less current liabilities		254,189	-	-	254,189
Creditors: Amounts falling due after more than one year		(186,001)	-	-	(186,001)
Net assets		68,188	-	-	68,188
Capital and reserves
Called up share capital		(100)	-	-	(100)
Revaluation reserve		(20,463)	20,463	-	-
Other reserves		-	(20,463)	-	(20,463)
Profit and loss account		(47,625)	-	-	(47,625)
Total equity		(68,188)	-	-	(68,188)

Page 8

First Rung Enterprises Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Balance Sheet at 31 March 2016
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Fixed assets
Tangible assets		35	255,000	-	255,035
Investment property		255,000	(255,000)	-	-
		255,035	-	-	255,035
Current assets
Debtors		2,612	-	-	2,612
Cash at bank and in hand		1,930	-	-	1,930
		4,542	-	-	4,542
Creditors: Amounts falling due within one year		(7,643)	-	-	(7,643)
Net current liabilities		(3,101)	-	-	(3,101)
Total assets less current liabilities		251,934	-	-	251,934
Creditors: Amounts falling due after more than one year		(186,001)	-	-	(186,001)
Net assets		65,933	-	-	65,933
Capital and reserves
Called up share capital		(100)	-	-	(100)
Revaluation reserve		(20,463)	20,463	-	-
Other reserves		-	(20,463)	-	(20,463)
Profit and loss account		(45,370)	-	-	(45,370)
Total equity		(65,933)	-	-	(65,933)

Page 9

First Rung Enterprises Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Profit and Loss Account for the year ended 31 March 2016
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Turnover		23,229	-	-	23,229
Administrative expenses		(17,345)	-	-	(17,345)
Operating profit		5,884	-	-	5,884
Other interest receivable and similar income		(3,762)	-	-	(3,762)
		(3,762)	-	-	(3,762)
Profit before tax		2,122	-	-	2,122
Taxation		(327)	-	-	(327)
Profit for the financial year		1,795	-	-	1,795

Page 10