Crave Interactive Limited - Limited company accounts 20.1

REGISTERED NUMBER: 07035427 (England and Wales)

FOR

Page

Company Information  

1

Report of the Directors  

2

Report of the Independent Auditors  

4

Statement of Comprehensive Income  

7

Balance Sheet  

8

Statement of Changes in Equity  

9

Notes to the Financial Statements  

10

DIRECTORS:

R C Anderson

M J Gretton

G J Hughes

G Panayides

E Panjavinin

S Thongluang

R Jariyastien

SECRETARY:

G J Hughes

REGISTERED OFFICE:

Derwent House University Way

Cranfield Technology Park

Cranfield

Bedfordshire

MK43 0AZ

REGISTERED NUMBER:

07035427 (England and Wales)

AUDITORS:

Martin and Company Audit Limited

Chartered Accountants

and Statutory Auditors

25 St Thomas Street

Winchester

Hampshire

SO23 9HJ

The directors present their report with the financial statements of the company for the year ended 31 December 2019.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this report.

M J Gretton

G J Hughes

G Panayides

Other changes in directors holding office are as follows:

R C Anderson - appointed 1 April 2019

E Panjavinin - appointed 14 June 2019

S Thongluang - appointed 1 April 2019

A Lekcharoen - appointed 1 April 2019

J F Gebhart - appointed 1 April 2019 - resigned 14 June 2019

H D Lord - resigned 1 April 2019

M D Bruning - resigned 1 April 2019

T D Butterworth - resigned 1 April 2019

R Jariyastien was appointed as a director after 31 December 2019 but prior to the date of this report.

A Lekcharoen ceased to be a director after 31 December 2019 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

AUDITORS

Martin and Company Audit Limited were appointed as auditors during the period and will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

G J Hughes - Director

18 December 2020

Qualified opinion

Basis for qualified opinion

We were not appointed as auditor of the company until after 31 December 2019 and thus did not observe the counting of physical inventories at the end of the year which amounted to £434,418 as at 31 December 2019. Consequently we were unable to determine whether any adjustment to this amount was necessary.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-

the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Key audit matters

Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report , other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £434,418 held at 31 December 2019.  We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-

the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified audit opinion section of our report, in the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

-  we have not obtained all the information and explanations that we consider necessary for the purpose of our             audit; and

-  we were unable to determine whether adequate accounting records have been kept.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-  returns adequate for our audit have not been received from branches not visited by us; or

-  the financial statements are not in agreement with the accounting records and returns; or

-  certain disclosures of directors' remuneration specified by law are not made.

-  the directors were not entitled to prepare the financial statements in accordance with the small companies regime     and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement      to prepare a strategic report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Other matters which we are required to address

The comparative figures are unaudited.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

David Barr (Senior Statutory Auditor)

for and on behalf of Martin and Company Audit Limited

Chartered Accountants

and Statutory Auditors

25 St Thomas Street

Winchester

Hampshire

SO23 9HJ

23 December 2020

TURNOVER

3

1,810,179

1,473,896

Cost of sales

785,067

204,045

GROSS PROFIT

1,025,112

1,269,851

Administrative expenses

3,125,580

1,417,673

(2,100,468

)

(147,822

)

Other operating income

-

23,362

OPERATING LOSS

6

(2,100,468

)

(124,460

)

Interest receivable and similar income

3,940

63

(2,096,528

)

(124,397

)

Interest payable and similar expenses

8

43,534

104,533

LOSS BEFORE TAXATION

(2,140,062

)

(228,930

)

Tax on loss

9

(209,300

)

(60,000

)

LOSS FOR THE FINANCIAL YEAR

(1,930,762

)

(168,930

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME

FOR THE YEAR

(1,930,762

)

(168,930

)

FIXED ASSETS

Intangible assets

10

1,115,480

565,177

Tangible assets

11

98,517

-

Investments

12

40,830

40,830

1,254,827

606,007

CURRENT ASSETS

Stocks

13

434,418

378,307

Debtors

14

1,565,374

839,809

Cash at bank and in hand

3,159,984

82,530

5,159,776

1,300,646

CREDITORS

Amounts falling due within one year

15

1,069,356

682,592

NET CURRENT ASSETS

4,090,420

618,054

TOTAL ASSETS LESS CURRENT

LIABILITIES

5,345,247

1,224,061

CREDITORS

Amounts falling due after more than one

year

16

-

1,642,099

NET ASSETS/(LIABILITIES)

5,345,247

(418,038

)

CAPITAL AND RESERVES

Called up share capital

19

682,461

486,869

Share premium

20

10,810,936

3,312,481

Retained earnings

20

(6,148,150

)

(4,217,388

)

SHAREHOLDERS' FUNDS

5,345,247

(418,038

)

The financial statements were approved by the Board of Directors and authorised for issue on 18 December 2020 and were signed on its behalf by:

G J Hughes - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£   

£   

£   

£   

Balance at 1 January 2018

486,869

(4,048,458

)

3,312,481

(249,108

)

Changes in equity

Total comprehensive income

-

(168,930

)

-

(168,930

)

Balance at 31 December 2018

486,869

(4,217,388

)

3,312,481

(418,038

)

Changes in equity

Issue of share capital

195,592

-

7,498,455

7,694,047

Total comprehensive income

-

(1,930,762

)

-

(1,930,762

)

Balance at 31 December 2019

682,461

(6,148,150

)

10,810,936

5,345,247

1.

STATUTORY INFORMATION

Crave Interactive 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 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.  

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and

11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from the sale of goods is recognised when the amount can be reliably measured, it is probable that future economic benefits will flow to the entity and the risks and rewards of ownership of the goods has transferred to the buyer.  This is usually at the point that the customer has signed for the delivery of the goods.

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.  Turnover is only recognised to the extent of recoverable expenses when the outcome of the contract cannot be estimated reliably.

Intangible assets

Tangible fixed assets

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

Improvements to property

-

Straight line over 3 years

Capitalised rental assets

-

Straight line over 3 years

Fixtures and fittings

-

Straight line over 3 years

Computer equipment

-

Straight line over 3 years

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Financial instruments

Taxation

Deferred tax

Research and development

Foreign currencies

Hire purchase and leasing commitments

Pension costs and other post-retirement benefits

Going concern

The accounts have been prepared on the going concern basis and the directors confirm that they are satisfied that the company has adequate resources to continue as a going concern for the foreseeable future.  This has been determined by review of cash flow forecasts of at least 12 months from the date of approval of the financial statements.

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.19

31.12.18

£   

£   

Sale of goods

595,289

944,717

Sale of services

1,214,890

529,179

1,810,179

1,473,896

4.

EMPLOYEES AND DIRECTORS

31.12.19

31.12.18

£   

£   

Wages and salaries

1,006,199

503,131

Social security costs

118,149

65,286

Other pension costs

35,599

1,642

1,159,947

570,059

The average number of employees during the year was as follows:

31.12.19

31.12.18

Office staff

18

11

5.

DIRECTORS' EMOLUMENTS

31.12.19

31.12.18

£   

£   

Directors' remuneration

214,720

235,000

Directors' pension contributions to money purchase schemes  

9,246

1,642

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

6.

OPERATING LOSS

The operating loss is stated after charging:

31.12.19

31.12.18

£   

£   

Hire of plant and machinery

781

5,958

Other operating leases

56,502

44,004

Depreciation - owned assets

13,319

626

Patents and licences amortisation

2,195

-

Development costs amortisation

248,757

145,457

Auditors' remuneration

4,500

-

Auditors' remuneration for non audit work

2,000

-

Foreign exchange differences

65,878

26,918