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Registered number: 06958643
BRENNAN ATKINSON INTERNATIONAL LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2019
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BRENNAN ATKINSON INTERNATIONAL LIMITED
REGISTERED NUMBER: 06958643
BALANCE SHEET
AS AT 31 DECEMBER 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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BRENNAN ATKINSON INTERNATIONAL LIMITED
REGISTERED NUMBER: 06958643
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2019
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 13 form part of these financial statements.
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BRENNAN ATKINSON INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Brennan Atkinson International Limited is a private company limited by shares and incorporated in England & Wales (registered number: 06958643).
The registered office is 64 New Cavendish Street, London, W1G 8TB, and the principal place of business address is Wardley Industrial Estate, Holloway Drive, Wardley, Worsley, Manchester, M28 2LA.
The financial statements are presented in Sterling, which is the functional currency of the company.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
Despite the fact that the company has negative distributable reserves as at 31 December 2019, the directors are of the opinion that sufficient funding is available to the company to enable it to meet its own liabilities as and when they fall due because of the support primarily from various companies under joint control by the ultimate controlling parties. The company meets its day to day finance requirements through a combination of cash reserves, bank overdraft facilities and invoice discount facilities. The current invoice discount facilities with ABN Amro expired on 5 May 2016 and continue to be successfully renewed on a three month rolling contract under the same terms.
The financial statements have therefore been prepared on a going concern basis.
In assessing the ability of the company to operate as a going concern, management have evaluated current and forecasted operational results, and the solvency of the company. Given that the company is in a net asset position, the directors have assessed that the company will continue to have adequate funds to meets its obligations. As a result, the directors consider it appropriate to prepare the financial statements on a going concern basis.
Potential sources of uncertainty noted by the directors include the COVID-19 pandemic. However, at the date of this report it is not possible to reliably determine the effects that this will have on the company. Accordingly the directors have continued to prepare the financial statements on the going concern basis.
The financial statements do not reflect any adjustments that would result from a withdrawal of financial support by the directors and shareholders.
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BRENNAN ATKINSON INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
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BRENNAN ATKINSON INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Short-term leasehold property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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BRENNAN ATKINSON INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Investments in listed company shares are remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.
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Associates and joint ventures
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Associates and Joint Ventures are held at cost less impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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BRENNAN ATKINSON INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
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The average monthly number of employees, including directors, during the year was 19 (2018 - 20).
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Charge for the year on owned assets
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BRENNAN ATKINSON INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Short-term leasehold property
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Charge for the year on owned assets
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Charge for the year on financed assets
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The net book value of land and buildings may be further analysed as follows:
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BRENNAN ATKINSON INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Investments in associates
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BRENNAN ATKINSON INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Prepayments and accrued income
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Included within other debtors is £26,710 (2018: £41,103) due from a director of the company, and £121,164 (2018: £Nil) due from a company under common control.
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Cash and cash equivalents
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BRENNAN ATKINSON INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Bank loans and overdrafts are secured by debenture including fixed charge over all present freehold and leasehold property, first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future, and a first floating charge over all assets and undertaking both present and future dated 5 July 2012.
Hire purchase liabilities are secured against the assets to which they relate.
Other borrowings include £430,320 (2018: £592,622) in respect of the company's invoice discount agreement with ABN Amro Commercial Financial. The amount is secured by a composite all assets guarantee dated 6 June 2012 comprising a fixed and floating charge over the assets and property of the company.
Other borrowings include £60,000 (2018: £40,500) in respect of amounts owing to related parties. The amount is secured by in the form of a first legal charge over all stock held by the company.
Other borrowings also include £448,453 (2018: £500,953) in respect of amounts owing to related parties. These balances have no fixed repayment terms and are therefore deemed to be repayable on demand.
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Creditors: Amounts falling due after more than one year
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Other borrowings comprises £123,563 (2018: £94,729) in respect of amounts owed to related parties. The amount is secured in the form of a first legal charge over all stock held by the company.
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BRENNAN ATKINSON INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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10 (2018 - 10) A Ordinary shares of £1.00 each
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35 (2018 - 35) B Ordinary shares of £1.00 each
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10 (2018 - 10) C Ordinary shares of £1.00 each
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23 (2018 - 23) D Ordinary shares of £1.00 each
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22 (2018 - 22) E Ordinary shares of £1.00 each
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1,108 (2018 - 1,108) Preference shares of £1,864.37 each
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Voting rights attached to Ordinary A and Ordinary B shares are calculated at 75% of the members holding as a proportion of the total shares in issue at the date of resolution.
Voting rights attached to Ordinary C, Ordinary D and Ordinary E shares are calculated at 15% of the members holding of shares as a proportion of the shares in issue at the date of resolution.
Voting rights attached to preference shares are calculated at 10% of the members of holding of preference shares as a proportion of the total preference shares in issue at the date of resolution.
The preference shares are redeemable at any point in time at the original subscription price.
All shares rank pari pasu in terms of dividends and capital distribution rights.
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BRENNAN ATKINSON INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Post balance sheet events
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Between the accounting period end and the date of this report, Coronavirus and the COVID-19 pandemic emerged globally. The impact of COVID-19 could create a continued material adverse impact on economic and market conditions, which in turn may impact the financial performance of the company.
While the company considers these disruptions to be temporary, if they continue, the COVID-19 pandemic may adversely affect financial performance for the fiscal year 2021.
For more detail regarding the directors' view of this event please refer to the Director's Report.
Brennan Atkinson International Limited is under the immediate control of Carltane (International) Limited, a company registered in Gibraltar (registered number: 98077). The registered office address is Suite 6, Watergardens 4, GX111AA, Gibraltar.
The ultimate controlling party is K Abramson, by virtue of her shareholding in Carltane (International) Limited.
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