Reason Digital Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06517726 (England and Wales)

REASON DIGITAL LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2018

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

M J Haworth

E D Cox

SECRETARY:

E D Cox

REGISTERED OFFICE:

3rd Floor

26 Lever Street

Manchester

M1 1DW

REGISTERED NUMBER:

06517726 (England and Wales)

ACCOUNTANTS:

Clarke Nicklin LLP

Chartered Accountants

Clarke Nicklin House

Brooks Drive

Cheadle Royal Business Park

Cheadle

Cheshire

SK8 3TD

FIXED ASSETS

Intangible assets

4

11,974

40,107

Tangible assets

5

77,561

12,479

89,535

52,586

CURRENT ASSETS

Debtors

6

576,162

479,359

Cash at bank and in hand

52,720

42,664

628,882

522,023

CREDITORS

Amounts falling due within one year

7

336,654

164,835

NET CURRENT ASSETS

292,228

357,188

TOTAL ASSETS LESS CURRENT LIABILITIES

381,763

409,774

PROVISIONS FOR LIABILITIES

8

-

2,371

NET ASSETS

381,763

407,403

CAPITAL AND RESERVES

Called up share capital

9

2

2

Retained earnings

381,761

407,401

SHAREHOLDERS' FUNDS

381,763

407,403

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors on 25 October 2018 and were signed on its behalf by:

E D Cox - Director

1.	STATUTORY INFORMATION

Reason Digital Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information

page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents income receivable for work done, excluding value added tax. For longer-term

contracts revenue is recognised on the accruals basis as each contract progresses.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured

at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of nil years.

Development costs

Development costs relate to internally generated products and are being amortised over their

estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements

-

20% on cost

Fixtures and fittings

-

25% on cost

Computer equipment

-

33% on cost

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement,

except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that are

expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Other operating income

Other operating income includes grants to develop specific products. Grant income is recognised in

the period to which the expense is incurred.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 39 (2017 - 40 ) .

4.	INTANGIBLE FIXED ASSETS

Development

costs

£

COST

At 1 February 2017

and 31 January 2018

84,408

AMORTISATION

At 1 February 2017

44,301

Amortisation for year

28,133

At 31 January 2018

72,434

NET BOOK VALUE

At 31 January 2018

11,974

At 31 January 2017

40,107

5.	TANGIBLE FIXED ASSETS

Fixtures

Leasehold

and

Computer

improvements

fittings

equipment

Totals

£

£

£

£

COST

At 1 February 2017

-

22,945

61,300

84,245

Additions

54,577

2,649

27,631

84,857

At 31 January 2018

54,577

25,594

88,931

169,102

DEPRECIATION

At 1 February 2017

-

17,748

54,018

71,766

Charge for year

5,870

4,208

9,697

19,775

At 31 January 2018

5,870

21,956

63,715

91,541

NET BOOK VALUE

At 31 January 2018

48,707

3,638

25,216

77,561

At 31 January 2017

-

5,197

7,282

12,479

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

337,559

280,809

Other debtors

74,587

74,338

Corporation tax recoverable

107,668

97,428

Deferred tax asset

15,719

-

Prepayments and accrued income

40,629

26,784

576,162

479,359

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

27,361

5,524

Social security and other taxes

91,301

93,822

Other creditors

7,164

1,751

Directors' current accounts

58,788

58,392

Accruals and deferred income

152,040

5,346

336,654

164,835

Other creditors include unpaid pension contributions of £3,553 (2017: £1,751).

8.	PROVISIONS FOR LIABILITIES

2017

£

Deferred tax

2,371

Deferred

tax

£

Balance at 1 February 2017

2,371

Credit to Income Statement during year

(18,090

)

Balance at 31 January 2018

(15,719

)

The provision relates to taxable losses asset of £30,456 and accelerated capital allowances liability of

£14,737.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

2

Ordinary

£1

2

2

10.	RELATED PARTY DISCLOSURES

Gone for Good Limited

A company in which Mr E D Cox is a shareholder

2018

2017

£

£

Amount due from related party at the balance sheet date

10,618

10,446

Impact Reporting Limited

A company in which Mr E D Cox and Mr M J Haworth are shareholders

2018

2017

£

£

Amount due from related party at the balance sheet date

71,445

71,445

11.	ULTIMATE CONTROLLING PARTY

There is no overall ultimate controlling party.