RINSE_GROUP_LTD - Accounts
RINSE_GROUP_LTD - Accounts
Rinse Group Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 93 Kingsland Road, London, United Kingdom, E2 8AG.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The accounts represent 9 months trading to 31st December 2016, therefore an accurate comparison can't be made with the previous period accounts as these figures represented a full 12 months trading.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Royalties are recognised on receipt or as rights are utilised on an accrual basis where there is sufficient information available.
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.
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. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The average monthly number of persons (including directors) employed by the company during the period was 7 (2016: 6).
Rinse FM
S Lockhart and G Warren are shareholders and directors of Rinse FM.
During the year Rinse FM had net advances of £73,939 (2016: £57,100) from Rinse Group Limited.
At the balance sheet date Rinse FM Limited owed £149,368 (2016: £75,429) to Rinse Group Limited.
In addition £50,426 (2016: £50,426) is included in accrued income and £40,000 (2016: £40,000) is included in accruals.
The balances are interest free and repayable on demand.
Ammunition Events Limited
Ms S Lockhart and Mr G Warren are shareholders and directors of Ammunition Events Limited.
During the year Rinse Group Limited had net advances of £12,511 (2016: £26,731) from Ammunition Events Limited.
At the balance sheet date Ammunition Events Limited owed £12,615 (2016: £25,126) to Rinse Group Limited.
There were recharges of administration costs of £13,561 to Ammunition Events Ltd that are included in accrued income at the balance sheet date.
The balances are interest free and repayable on demand.
Bad World Limited
S Lockhart and G Warren are directors and shareholders of Bad World Limited.
During the year Rinse Group Limited had net advances of £81,876 (2016: £95,199) to Bad World Limited.
At the balance sheet date £553,345 (2016: £471,469) was owed to Bad World Ltd.
There were recharges of administration costs of £54,264 to Bad World Ltd that are included in accrued income at the balance sheet date.
A total of £524,674 (2016: £470,410) is included in accrued income at 31 December 2017.
The balances are interest free and repayable on demand.
Daniel Lockhart
A related party with S Lockhart.
As at the balance sheet date £12,284 (2016: nil) was owed to Rinse Group Ltd from D Lockhart.
The balances are interest free and repayable on demand.
Lot 43 Limited
A company in which the company directors are shareholders
During the year Lot 43 Ltd charged rent of £142,701 (2016: £121,611) to Rinse Group Ltd.
At the balance sheet date Lot 43 Ltd owed Rinse Group Ltd £183,046 (2016: £212,947).
Rent of £23,783 (2016: £nil) is included in accruals in respect of rent due to Lot 43 Limited.
G Warren
During the year the G Warren was paid dividends of £31,000.
At the balance sheet date Rinse Group Limited owed G Warren £68,881 (2016: £89,184).
The balance is interest free and repayable on demand.
S Lockhart
During the year S Lockhart was paid dividends of £31,000.
At the balance sheet date Rinse Group Limited owed S Lockhart £47,564 (2016: £12,406).
The balance is interest free and repayable on demand.
Ms S. Lockhart and Mr G. Warren have equal control over the company.