Elizabeth Bradley Design (2006) Limited - Filleted accounts

ELIZABETH BRADLEY DESIGN (2006) LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2019

Company Registration Number: 05936979

ELIZABETH BRADLEY DESIGN (2006) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
CONTENTS									PAGES
Company information									1
Balance sheet									2 to 3
Notes to the financial statements									4 to 11

ELIZABETH BRADLEY DESIGN (2006) LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2019
DIRECTORS
Nancy Young
Robert Young
SECRETARY
Edwina Evans
REGISTERED OFFICE
Unit E & F2 Llys-y-Dderwen
Ffordd Gelli Morgan
Parc Menai
Bangor
Wales
LL57 4BL
COMPANY REGISTRATION NUMBER
05936979 England and Wales

ELIZABETH BRADLEY DESIGN (2006) LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2019
			Notes		2019				2018
					£				£
FIXED ASSETS
Intangible assets			5				17,195				20,670
Tangible assets			6				115,926				149,626
							133,121				170,296
CURRENT ASSETS
Stock					635,827				524,058
Debtors			7		86,258				39,075
Cash at bank and in hand					32,256				39,102
					754,341				602,235
CREDITORS: Amounts falling due within one year			8		2,303,762				2,432,680
NET CURRENT LIABILITIES							(1,549,421)				(1,830,445)
NET LIABILITIES							(1,416,300)				(1,660,149)
CAPITAL AND RESERVES
Called up share capital							1				1
Share premium account							199,999				199,999
Distributable profit and loss account							(1,616,300)				(1,860,149)
SHAREHOLDER'S DEFICIT							(1,416,300)				(1,660,149)

ELIZABETH BRADLEY DESIGN (2006) LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2019
These accounts have been prepared and delivered in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.
For the financial year ended 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
Members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
As permitted by S444 (5A) of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company’s Profit and Loss Account or Directors Report.
Signed on behalf of the board of directors
Robert Young						Nancy Young
Director						Director
Date approved by the board: 3 September 2020

ELIZABETH BRADLEY DESIGN (2006) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
1	GENERAL INFORMATION
	Elizabeth Bradley Design (2006) Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is:
	Unit E & F2 Llys-y-Dderwen
	Ffordd Gelli Morgan
	Parc Menai
	Bangor
	Wales
	LL57 4BL
	The financial statements are presented in Sterling, which is the functional currency of the company.
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of preparation of financial statements
	These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 Section 1A smaller entities 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the Companies Act 2006.
	Going concern

	The accounts have been drawn up on the going concern basis. The company owes its parent company £1,383,191 and the directors £721,982, both of which could be required for repayment without notice. The company is therefore dependent upon the continued support of the parent company and the directors. The directors do not consider their own support nor the support of the parent company likely to be withdrawn.
	If the going concern basis was not appropriate, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for additional liabilities that might arise and to reclassify fixed assets as current assets.

	Revenue recognition

	Turnover is measured at the fair value of consideration received or receivable and represents the sale of needlework and embroidery kits, stated net of trade discounts and value added tax.
	The company recognises revenue when the amount of revenue can be measured reliably and when it is probable that future economic benefits will flow to the entity.

ELIZABETH BRADLEY DESIGN (2006) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Intangible fixed assets

	Intangible fixed assets, other than goodwill, are stated at cost less accumulated amortisation and any accumulated impairment losses. It is amortised on a straight-line basis over its useful economic life of 10 years.
	Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. At acquisition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses.

	Goodwill amortisation is charged on a straight line basis so as to write off the cost of the asset, less its residual value assumed to be zero, over its useful economic life, which is estimated to be 10 years.
	If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new expectations.

	Tangible fixed assets

	Fixed assets are carried at cost less accumulated depreciation and accumulated impairment losses.

	Depreciation has been provided at the following rate so as to write off the cost or valuation of assets less residual value of the assets over their estimated useful lives.
	Leasehold improvements					Straight line basis at 20% per annum
	Plant and machinery					Reducing balance basis at 25% per annum
	On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in the profit and loss account, and included within administrative expenses.

ELIZABETH BRADLEY DESIGN (2006) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Financial Instruments
	The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
	Financial assets are measured at cost and are assessed at the end of each reporting period for objective evidence of impairment. Where objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

The impairment loss for financial assets measured at cost is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

	Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amount and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
	Impairment of non-financial assets

	At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets (which is the higher of value in use and the fair value less cost to sell) is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit and loss account.
	Stocks are assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less cost to complete and sell. If an item of stock, or group of similar items, is impaired its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in the profit and loss account.
	If an impairment loss is subsequently reversed, the carrying amount of the asset, or group of related assets, is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset, or group of related assets, in prior periods. A reversal of an impairment loss is recognised immediately in the profit and loss account.

ELIZABETH BRADLEY DESIGN (2006) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Stock

	Stock has been valued at the lower of cost and estimated selling price less cost to complete and sell, after making due allowance for obsolete and slow-moving items. Cost comprises the cost of goods purchased valued on a first in first out basis.
	The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

	Debtors

	Short term debtors are measured at transaction price, less any impairment.

	Creditors
	Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and subsequently at amortised cost.
	Leases
	Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of the leased assets to the company. Other leases that do not transfer substantially all the risks and rewards of ownership of the leased assets to the company are classified as operating leases.
	Payments applicable to operating leases are charged against profit on a straight line basis over the lease term.
	Payments received under operating leases are recognised as income over the lease term on a straight-line basis.
	Foreign currencies

	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
	Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rate of exchange prevailing at that date. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit or loss.

ELIZABETH BRADLEY DESIGN (2006) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Pensions
	The company operates a defined contribution pension scheme. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the amount payable in the year. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments in the balance sheet.
	Research and development
	Expenditure on research is written off against profits in the year in which it is incurred. Development expenditure is capitalised and recognised in accordance with the company's policy for intangible fixed assets.
	Development costs have been capitalised because they relate to trade marks and image rights relating to the company.
	Consolidation
	The company is a parent company subject to the small companies regime. The company and its subsidiary comprise a small group. The company has therefore taken advantage of the option provided by section 399 of the Companies Act 2006 not to prepare group accounts.
3	CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

	No significant accounting estimates and judgements have had to be made by the directors in preparing these financial statements.

4	EMPLOYEES
	The average number of persons employed by the company (including directors) during the year was:
									2019		2018
	Average number of employees								12		12

ELIZABETH BRADLEY DESIGN (2006) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
5	INTANGIBLE FIXED ASSETS
							Net goodwill	Development costs			Total
							£		£		£
	Cost
	At 1 January 2019						23,001		11,745		34,746
	At 31 December 2019						23,001		11,745		34,746
	Accumulated amounts written off
	At 1 January 2019						11,500		2,576		14,076
	Charge for year						2,300		1,175		3,475
	At 31 December 2019						13,800		3,751		17,551
	Net book value
	At 1 January 2019						11,501		9,169		20,670
	At 31 December 2019						9,201		7,994		17,195
6	TANGIBLE ASSETS
						Leasehold improvements			Plant and machinery		Total
							£		£		£
	Cost
	At 1 January 2019						4,034		345,242		349,276
	Additions						-		4,197		4,197
	At 31 December 2019						4,034		349,439		353,473
	Accumulated depreciation and impairments
	At 1 January 2019						4,034		195,616		199,650
	Charge for year						-		37,897		37,897
	At 31 December 2019						4,034		233,513		237,547
	Net book value
	At 1 January 2019						-		149,626		149,626
	At 31 December 2019						-		115,926		115,926

ELIZABETH BRADLEY DESIGN (2006) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
7	DEBTORS
									2019		2018
									£		£
	Trade debtors								9,058		2,510
	Prepayments and accrued income								37,014		22,324
	Other debtors								40,186		14,241
									86,258		39,075
	Included within other debtors are amounts considered to be due after more than one year:
									2019		2018
									£		£
	Other debtors								20,000		-
8	CREDITORS: Amounts falling due within one year
									2019		2018
									£		£
	Trade creditors								116,896		20,535
	Taxation and social security								8,314		9,465
	Accruals and deferred income								71,041		33,427
	Other creditors								2,107,511		2,369,253
									2,303,762		2,432,680

ELIZABETH BRADLEY DESIGN (2006) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
9	CONTINGENCIES AND COMMITMENTS
									Not provided
	Deferred Taxation								2019		2018
									£		£
	Accelerated capital allowances								21,017		27,199
	Balance carried forward								21,017		27,199
									Not provided
	Deferred Tax Assets								2019		2018
									£		£
	Losses								289,680		343,005
	Balance carried forward								289,680		343,005
	Other Commitments
	Amounts falling due under operating leases:								2019		2018
									£		£
	In less than one year								77,049		71,500
	In more than one but less than five years								95,234		150,943
									172,283		222,443
10	ULTIMATE PARENT COMPANY
	The largest group in which the results of the company are consolidated is that headed by Elizabeth Bradley Designs Inc, a company incorporated in the United States of America.