Adinal McGregor Limited - Period Ending 2017-07-30

Registration number: 08041761

Adinal McGregor Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 July 2017

Adinal McGregor Limited

Contents

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

Adinal McGregor Limited

Company Information

Director	Mr Daniel McPherson

Registered office

Liquid Bureau - Cdc Port House 2nd Floor Port Solent Portsmouth Hampshire PO6 4TH

Page 1

Adinal McGregor Limited

(Registration number: 08041761)
Balance Sheet as at 30 July 2017

	Note	2017 £	2016 £
Fixed assets
Other financial assets	3	6,853,698	2,643,228
Current assets
Debtors	4	3,289,015	6,218,116
Cash at bank and in hand		676,852	3,507
		3,965,867	6,221,623
Creditors: Amounts falling due within one year	5	(7,063,334)	(7,810,155)
Net current liabilities		(3,097,467)	(1,588,532)
Total assets less current liabilities		3,756,231	1,054,696
Creditors: Amounts falling due after more than one year	5	(3,007,364)	(1,000,000)
Net assets		748,867	54,696
Capital and reserves
Called up share capital		1	1
Profit and loss account		748,866	54,695
Total equity		748,867	54,696

For the financial year ending 30 July 2017 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 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.

Approved and authorised by the director on 10 May 2018
 

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

Mr Daniel McPherson

Director

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

Page 2

Adinal McGregor Limited

Notes to the Financial Statements for the Year Ended 30 July 2017

1	General information

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

The address of its registered office is:
Liquid Bureau - Cdc
Port House 2nd Floor
Port Solent
Portsmouth
Hampshire
PO6 4TH

These financial statements were authorised for issue by the director on 10 May 2018.

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.

The presentational currency is £ sterling.

Going concern

The financial statements have been prepared on a going concern basis.

Reclassification of comparative amounts

The prior period has been restated to ensure that a purchase of investments from the directors was recorded at open market value at the date of purchase. This has resulted in investments and loans from directors increasing by £413,768.

Page 3

Adinal McGregor Limited

Notes to the Financial Statements for the Year Ended 30 July 2017

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

Impairment of investments - where there are indications of impairment of individual assets, the company performs impairment tests based on fair value less cost to sell, based on any available market information. Due to the nature of many of the investments, this information may not be readily available, in which case the asset will be recorded at cost less any provision for impairment.

There are no other judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies that have any significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. .

The key source of uncertainty is the fair value of the investment portfolio. As many of the investments are on a speculative nature in new markets, market value information may not be readily available. Where fair value information is not available, investments are recorded at cost less any provision for impairment..

Revenue recognition

Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts,
rebates, VAT and other sales taxes or duty.

Finance income and costs policy

Interest income
Revenue is recognised as interest accrues using the effective interest method.

Dividends
Revenue is recognised when the Company’s right to receive payment is established.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current 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.

Depreciation

Page 4

Adinal McGregor Limited

Notes to the Financial Statements for the Year Ended 30 July 2017

Asset class	Depreciation method and rate
Computer Equipment	20% straight line

Investments

Equity investments
Equity investments are recognised initially at fair value which is normally the transaction price (but excludes any transaction costs, where the investment is subsequently measured at fair value through profit and loss). Subsequently, they are measured at fair value through profit or loss except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably which are recognised at cost less impairment until a reliable measure of fair value becomes available.
If a reliable measure of fair value is no longer available, the equity instrument’s fair value on the last date the instrument was reliably measurable is treated as the cost of the instrument.

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.

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.

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.

Page 5

Adinal McGregor Limited

Notes to the Financial Statements for the Year Ended 30 July 2017

Financial instruments

Classification
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.
 
 

Page 6

Adinal McGregor Limited

Notes to the Financial Statements for the Year Ended 30 July 2017

3	Other financial assets (current and non-current)

	Financial assets at cost less impairment £	Total £
Non-current financial assets
Cost or valuation
At 31 July 2016	6,853,698	6,853,698
At 30 July 2017	6,853,698	6,853,698
Impairment
Carrying amount
At 30 July 2017	6,853,698	6,853,698

4

Debtors

	2017 £	2016 £
Other debtors	3,289,015	6,218,116
	3,289,015	6,218,116

5

Creditors

Creditors: amounts falling due within one year

	Note	2017 £	2016 £
Due within one year
Bank loans and overdrafts	7	6,801,996	7,768,041
Trade creditors		3,600	28,440
Accruals and deferred income		123,277	-
Other creditors		134,461	13,674
		7,063,334	7,810,155

Creditors: amounts falling due after more than one year

	Note	2017 £	2016 £
Due after one year
Loans and borrowings	7	3,007,364	1,000,000

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Adinal McGregor Limited

Notes to the Financial Statements for the Year Ended 30 July 2017

6	Share capital

Allotted, called up and fully paid shares

	2017		2016
	No.	£	No.	£
Ordinary shares of £1 each	1	1	1	1

7	Loans and borrowings

	2017 £	2016 £
Non-current loans and borrowings
Other borrowings	3,007,364	1,000,000

	2017 £	2016 £
Current loans and borrowings
Other borrowings	6,801,996	7,768,041

8	Related party transactions

Summary of transactions with other related parties

Current loans includes a loan from the directors of £6,388,277 (2016: £7,768,041).

 Seven Resourcing Limited provided a loan of £2,000,000 to the company. The loan is due for repayment in 2019 and is interest bearing at a rate of 2.75% above base rate. Interest of £7,364 has been added to the loan and interest of £65,000 has been accrued on the loan amount. The company is under the same control of D McPherson.

 Sanctuary Personnel Limited provided a loan of £1,000,000 to the company. The loan is due for repayment in more than one year and interest bearing at a rate of 2.75% above bank base rate. Interest of £50,913 has been accrued on the loan. The company is under the same control of D McPherson.

 

9	Transition to FRS 102

Balance Sheet at 1 May 2015
 

Page 8

Adinal McGregor Limited

Notes to the Financial Statements for the Year Ended 30 July 2017

	As originally reported £	Reclassification £	Remeasurement £	As restated £
Capital and reserves
Total equity	-	-	-	-

Page 9

Adinal McGregor Limited

Notes to the Financial Statements for the Year Ended 30 July 2017

Balance Sheet at 30 July 2016
 

	As originally reported £	Reclassification £	Remeasurement £	As restated £
Capital and reserves
Total equity	-	-	-	-

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