ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

W.I.P (WORK IN PROGRESS) LIMITED - Company Information

Caseware UK (AP4) 2020.0.247 2020.0.247 2020-03-312020-03-31true3truetrue2019-04-01No description of principal activityfalse3truefalse 04715981 2019-04-01 2020-03-31 04715981 2018-04-01 2019-03-31 04715981 2020-03-31 04715981 2019-03-31 04715981 2018-04-01 04715981 6 2019-04-01 2020-03-31 04715981 6 2018-04-01 2019-03-31 04715981 d:CompanySecretary1 2019-04-01 2020-03-31 04715981 d:Director1 2019-04-01 2020-03-31 04715981 d:RegisteredOffice 2019-04-01 2020-03-31 04715981 d:Agent1 2019-04-01 2020-03-31 04715981 e:FurnitureFittings 2019-04-01 2020-03-31 04715981 e:FurnitureFittings 2020-03-31 04715981 e:FurnitureFittings 2019-03-31 04715981 e:CurrentFinancialInstruments 2020-03-31 04715981 e:CurrentFinancialInstruments 2019-03-31 04715981 e:CurrentFinancialInstruments e:WithinOneYear 2020-03-31 04715981 e:CurrentFinancialInstruments e:WithinOneYear 2019-03-31 04715981 e:ReportableOperatingSegment1 2019-04-01 2020-03-31 04715981 e:ReportableOperatingSegment1 2018-04-01 2019-03-31 04715981 f:UnitedKingdom 2019-04-01 2020-03-31 04715981 f:UnitedKingdom 2018-04-01 2019-03-31 04715981 f:RestWorldOutsideUK 2019-04-01 2020-03-31 04715981 f:RestWorldOutsideUK 2018-04-01 2019-03-31 04715981 e:UKTax 2019-04-01 2020-03-31 04715981 e:UKTax 2018-04-01 2019-03-31 04715981 e:ShareCapital 2020-03-31 04715981 e:ShareCapital 2019-03-31 04715981 e:RetainedEarningsAccumulatedLosses 2019-04-01 2020-03-31 04715981 e:RetainedEarningsAccumulatedLosses 2020-03-31 04715981 e:RetainedEarningsAccumulatedLosses 2018-04-01 2019-03-31 04715981 e:RetainedEarningsAccumulatedLosses 2019-03-31 04715981 e:RetainedEarningsAccumulatedLosses 2018-04-01 04715981 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2020-03-31 04715981 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2019-03-31 04715981 e:FinancialAssetsAmortisedCost 2020-03-31 04715981 e:FinancialAssetsAmortisedCost 2019-03-31 04715981 e:FinancialLiabilitiesAmortisedCost 2020-03-31 04715981 e:FinancialLiabilitiesAmortisedCost 2019-03-31 04715981 d:OrdinaryShareClass1 2019-04-01 2020-03-31 04715981 d:OrdinaryShareClass1 2020-03-31 04715981 d:FRS102 2019-04-01 2020-03-31 04715981 d:Audited 2019-04-01 2020-03-31 04715981 d:FullAccounts 2019-04-01 2020-03-31 04715981 d:PrivateLimitedCompanyLtd 2019-04-01 2020-03-31 04715981 2 2019-04-01 2020-03-31 04715981 6 2019-04-01 2020-03-31 04715981 e:OtherDeferredTax 2020-03-31 04715981 e:OtherDeferredTax 2019-03-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 04715981

W.I.P. (WORK IN PROGRESS) LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

W.I.P. (WORK IN PROGRESS) LIMITED

COMPANY INFORMATION

Director	C Maughan


Company secretary	C Maughan


Registered number	04715981


Registered office	32 Portland Terrace
	Newcastle upon Tyne
	NE2 1QP


Independent auditors	Ryecroft Glenton
	Chartered Accountants & Statutory Auditor
	32 Portland Terrace
	Newcastle upon Tyne
	NE2 1QP


Bankers	HSBC
	31 Chequer Street
	St Albans
	Hertfordshire
	AL1 3YN

W.I.P. (WORK IN PROGRESS) LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Director's Report	3 - 4
Independent Auditors' Report	5 - 7
Statement of Income and Retained Earnings	8
Balance Sheet	9
Notes to the Financial Statements	10 - 22

W.I.P. (WORK IN PROGRESS) LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2020

Introduction

The principal activity of the Company continued to be the design and sale of footwear and accessories.

Business review

During the year the Company saw turnover and gross profit decrease. These movements were principally the result of the initial impact of the COVID-19 pandemic. The Company was able to increase its gross margin, despite pressure from the strengthening dollar, primarily by developing new markets and products. The Company continues to adopt this approach in an attempt to continue to grow its turnover and maintain its margin going forward.

Principal risks and uncertainties

Competitive risk
The Company's core markets remain highly competitive. It is difficult to see any improvement in the Company's trading conditions in its largest single market, the UK, in the current period. The Company continues to face price pressures from both customers and suppliers. This means that the Company is likely to continue to face competitive pressures for some time to come.
Legislative risk
The Company holds a number of licences. The Company takes care so as to ensure that it is able to meet the requirements of these licences such that it is not in breach of them. Any loss of these licences would have a significant impact upon the Company's ability to generate income.
The Company is governed by a wide range of legislation. The Company takes great care to keep up to date with all new legislation and regulations to ensure that it can maintain its position within the industry.
Financial risk
The Company's main area of financial risk is exchange risk. A weakening in sterling can have a materially negative impact on margins and competitiveness. The Company aims to mitigate the effects of this risk by holding foreign currencies and by growing non-sterling sales.
COVID-19
The COVID-19 pandemic has had a significant impact on the Company. Continued worldwide restrictions are expected to have a materially adverse impact on turnover and margins in the short term. The Company has looked to mitigate this by working closely with customers and suppliers throughout the post-year end lockdown periods to ensure that the Company can continue to meet the demand for its products and minimise the risk of bad debts and potential impairment. The Company has also utilised UK government support schemes where relevant.
Due to a number of factors the Company continues to face a challenging trading environment at the year end, but it believes it has sufficient resources to meet these challenges.

Financial key performance indicators

The Company's key performance indicators for the year were turnover and gross profit. The Company's turnover for the year decreased by 5% to £33,656,065. The Company's gross profit for the year decreased by £232,204 to £11,091,169.

Page 1

W.I.P. (WORK IN PROGRESS) LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

Other key performance indicators

The Company uses a number of non-financial performance indicators in order to measure performance, including the number of new products. During the current period the Company introduced more new products than during the previous period.

This report was approved by the board on 24 March 2021 and signed on its behalf.

................................................

C Maughan

Director

Page 2

W.I.P. (WORK IN PROGRESS) LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 31 MARCH 2020

The director presents his report and the financial statements for the year ended 31 March 2020.

Director

The director who served during the year was:

C Maughan

Results and dividends

The profit for the year, after taxation, amounted to £7,590,351 (2019 - £7,973,259).

The director recommends payment of a dividend of £7,590,351 (2019 - £7,973,259).

Future developments

Since the period end the Company has continued to find the trading environment challenging as a result of the COVID-19 pandemic. Brexit has also increased the uncertainty regarding the economic outlook for the UK and the EU as a whole, although at present it is too early to predict what impact this will have on the Company's business.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the director is required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgements and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

W.I.P. (WORK IN PROGRESS) LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:

∙so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

The COVID-19 pandemic continues to have a significant impact on the Company's operations. The Company continues to review stock lines and debtor balances to monitor the risk of impairment, though there have been no significant impairments recognised post-year end.
The director continues to review the Company's profitability and working capital position and is satisfied that there is sufficient headroom within existing facilities to continue to trade.

Auditors

The auditors, Ryecroft Glenton, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 24 March 2021 and signed on its behalf.

................................................

C Maughan

Director

Page 4

W.I.P. (WORK IN PROGRESS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF W.I.P. (WORK IN PROGRESS) LIMITED

Opinion

We have audited the financial statements of W.I.P. (Work in Progress) Limited (the 'Company') for the year ended 31 March 2020, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 March 2020 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

∙the director has 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.

Page 5

W.I.P. (WORK IN PROGRESS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF W.I.P. (WORK IN PROGRESS) LIMITED (CONTINUED)

Other information

The director is responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' 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.

We have nothing to report in this regard.

Opinion 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 Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report.

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:

∙adequate accounting records have not been kept, or 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 director's remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Page 6

W.I.P. (WORK IN PROGRESS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF W.I.P. (WORK IN PROGRESS) LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Director's Responsibilities Statement on page 3, the director is 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 director determines is 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 director is 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 director either intends 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 an Auditors' Report 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 Auditors' Report.

Use of our report

This report is made solely to the Company's members 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 an Auditors' Report 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 for our audit work, for this report, or for the opinions we have formed.

Deborah Graham (Senior Statutory Auditor)

for and on behalf of

Ryecroft Glenton

Chartered Accountants

Statutory Auditor

32 Portland Terrace

Newcastle upon Tyne

NE2 1QP

24 March 2021

Page 7

W.I.P. (WORK IN PROGRESS) LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 MARCH 2020

	2020	2019
Note	£	£


Turnover	4	33,656,065	35,399,596
Cost of sales		(22,564,896)	(24,076,223)
Gross profit		11,091,169	11,323,373
Distribution costs		(1,438,542)	(1,646,405)
Administrative expenses		(638,753)	(221,603)
Other operating income	5	70,815	17,249
Operating profit	6	9,084,689	9,472,614
Interest receivable and similar income	10	296,581	364,498
Interest payable and expenses	11	(1,701)	-
Profit before tax		9,379,569	9,837,112
Tax on profit	12	(1,789,218)	(1,863,853)
Profit after tax		7,590,351	7,973,259



Retained earnings at the beginning of the year	7,973,259	4,935,294
	7,973,259	4,935,294
Profit for the year	7,590,351	7,973,259
Dividends declared and paid	(7,973,259)	(4,935,294)
Retained earnings at the end of the year	7,590,351	7,973,259

There were no recognised gains and losses for 2020 or 2019 other than those included in the statement of income and retained earnings.

The notes on pages 10 to 22 form part of these financial statements.

Page 8

W.I.P. (WORK IN PROGRESS) LIMITED

REGISTERED NUMBER: 04715981

BALANCE SHEET

AS AT 31 MARCH 2020

	2020	2020	2019	2019
Note	£	£	£	£

Fixed assets
Investments	15		4,000		4,000
			4,000		4,000
Current assets
Stocks	16	1,164,844		1,546,888
Debtors: amounts falling due within one year	17	6,805,129		13,638,507
Cash at bank and in hand	18	4,196,950		2,615,435
		12,166,923		17,800,830
Creditors: amounts falling due within one year	19	(4,535,041)		(9,774,193)
Net current assets			7,631,882		8,026,637
Total assets less current liabilities			7,635,882		8,030,637
Provisions for liabilities
Deferred tax	21	(45,421)		(57,268)
			(45,421)		(57,268)
Net assets			7,590,461		7,973,369

Capital and reserves
Called up share capital	22	110	110
Profit and loss account	23	7,590,351	7,973,259
		7,590,461	7,973,369

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 March 2021.

................................................

C Maughan

Director

The notes on pages 10 to 22 form part of these financial statements.

Page 9

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

1.	General information

W.I.P. (Work In Progress) Limited (Company no: 04715981) is a private company limited by shares, which is incorporated and registered in England and Wales. The Company's principal place of business is 3a Holywell Hill, St Albans, Hertfordshire, AL1 1ER.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial reporting standard 102 - reduced disclosure exemptions

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

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Dragonfly Venture Group Limited as at 31 March 2020 and these financial statements may be obtained from Companies House.

Page 10

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

2.Accounting policies (continued)

2.3

Going concern

The Company meets its working capital requirements through its own cash reserves and those of the wider group. It has no external debt and is therefore in a strong position to manage any negative impact arising from the COVID-19 pandemic.
A review of the Company's business activities is provided within the strategic report. In addition, the strategic report also discloses the Company's principal risks and uncertainties, including exposures to competitive, legislative and financial risk.
The COVID-19 pandemic has had a significant impact on the Company’s operations and, at the present time, it is not clear how long the current circumstances are likely to last and what the long term impact will be.
The economic conditions around the COVID-19 pandemic created uncertainty over the level of demand for the Company’s products due to restrictions over retail outlets and travel. This uncertainty has continued post-year end.
The director has been in contact with the Company’s bank (although the company has not needed any debt finance) and has also taken steps to utilise the various support mechanisms instigated by the UK government.
Having regard to the above, the director believes it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

2.4

Revenue

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.

2.5

Tangible fixed assets

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.

Page 11

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

2.Accounting policies (continued)

2.5

Tangible fixed assets (continued)

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:

Fixtures & fittings

33%

straight line

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.

2.6

Valuation of investments

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 Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

2.7

Stocks

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.

2.8

Debtors

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.

2.9

Cash and cash equivalents

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.

Page 12

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

2.Accounting policies (continued)

2.10

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

2.11

Creditors

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.

2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

2.13

Finance costs

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.

2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2.15

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

2.Accounting policies (continued)

2.16

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.17

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.18

Provisions for liabilities

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.

2.19

Current and deferred taxation

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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 14

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

Stock is valued at the lower of cost or net realisable value, which is determined with reference to expected selling prices for the goods in question.

Sale of goods	33,656,065	35,399,596
	33,656,065	35,399,596

Analysis of turnover by country of destination:

					2020	2019
					£	£

United Kingdom	12,794,313	13,503,200
Rest of the world	20,861,752	21,896,396
	33,656,065	35,399,596

5.	Other operating income
		2020	2019
		£	£

Management charges receivable	70,815	17,249
	70,815	17,249

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements	21,000	20,500
Exchange differences	(12,194)	(393,102)
Defined contribution pension cost	42,614	41,609

Page 15

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

7.	Auditors' remuneration
		2020	2019
		£	£

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements

21,000

20,500

The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent Company.

Wages and salaries	137,000	172,575
Social security costs	16,524	21,490
Cost of defined contribution scheme	42,614	41,609
	196,138	235,674

The average monthly number of employees, including the director, during the year was as follows:

	2020	2019
	No.	No.

Sales and administration	3	3

9.	Director's remuneration
		2020	2019
		£	£

Company contributions to defined contribution pension schemes	40,000	40,000
	40,000	40,000

During the year retirement benefits were accruing to 1 director (2019 - 1) in respect of defined contribution pension schemes.

Page 16

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

10.	Interest receivable
		2020	2019
		£	£

Interest receivable from group companies	280,000	339,837
Other interest receivable	16,581	24,661
	296,581	364,498

11.	Interest payable and similar expenses
		2020	2019
		£	£

	Other interest payable	1,701	-
		1,701	-

Corporation tax
Current tax on profits for the year	1,801,065	1,880,481
Total current tax	1,801,065	1,880,481

Deferred tax
Origination and reversal of timing differences	(16,628)	(16,628)
Changes to tax rates	4,781	-
Total deferred tax	(11,847)	(16,628)


	Taxation on profit on ordinary activities	1,789,218	1,863,853

Page 17

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

12.Taxation (continued)

Profit on ordinary activities before tax

9,379,569

9,837,112

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%)	1,782,118	1,869,051
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	363	-
Deferred tax charge/(credit) for the year	(11,847)	(16,628)
Other differences leading to an increase in the tax charge	18,584	11,430
Total tax charge for the year	1,789,218	1,863,853

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

13.	Dividends
		2020	2019
		£	£

	Dividends paid on equity capital	7,973,259	4,935,294
		7,973,259	4,935,294

Page 18

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

14.	Tangible fixed assets

		Fixtures & fittings
		£
	Cost or valuation
	At 1 April 2019	5,643
	At 31 March 2020	5,643
	Depreciation
	At 1 April 2019	5,643
	At 31 March 2020	5,643
	Net book value
	At 31 March 2020	-
	At 31 March 2019	-

15.	Fixed asset investments

		Unlisted investments
		£
	Cost or valuation
	At 1 April 2019	4,000
	At 31 March 2020	4,000

16.	Stocks
		2020	2019
		£	£

Finished goods and goods for resale	1,164,844	1,546,888
	1,164,844	1,546,888

Page 19

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

17.

Debtors

					2020	2019
					£	£


Trade debtors	2,880,893	3,628,420
Amounts owed by group undertakings	3,904,034	9,991,290
Other debtors	4,412	12,541
Prepayments and accrued income	15,790	6,256
	6,805,129	13,638,507

18.	Cash and cash equivalents
		2020	2019
		£	£

Cash at bank and in hand	4,196,950	2,615,435
Less: bank overdrafts	(24)	-
	4,196,926	2,615,435

19.	Creditors: Amounts falling due within one year
		2020	2019
		£	£

Bank overdrafts	24	-
Trade creditors	2,098,305	3,027,345
Amounts owed to group undertakings	621,780	5,532,842
Corporation tax	1,476,586	958,820
Other taxation and social security	4,138	-
Other creditors	14,058	-
Accruals and deferred income	320,150	255,186
	4,535,041	9,774,193

The Company's bank facilities are secured as follows:
a) A debenture, including fixed and floating charges, over the Company's assets dated 21 April 2005.
b) An unlimited multilateral guarantee given by the Company and Dragonfly Venture LLP dated 22 December 2009.
c) An unlimited multilateral guarantee given by the Company, Dragonfly Venture Group Limited, Dragonfly Venture LLP, Dragonfly Venture (Trading) Limited and Golden Dragon Properties Limited dated 10 August 2012.
d) A letter of set-off dated 21 April 2005.

Page 20

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

20.	Financial instruments
		2020	2019
		£	£

Financial assets
Financial assets measured at fair value through profit or loss	4,200,950	2,619,435
Financial assets that are debt instruments measured at amortised cost	6,789,337	13,626,393
	10,990,287	16,245,828

	Financial liabilities
	Financial liabilities measured at amortised cost	(13,284,948)	(8,815,373)

	Financial assets measured at fair value through profit or loss comprise cash and cash equivalents, including those held in foreign currencies, and fixed asset investments.
	Financial assets measured at amortised cost comprise amounts owed by group undertakings, trade and other debtors due in less than one year.
	Financial liabilities measured at amortised cost comprise trade creditors, accruals and deferred income and amounts owed to group undertakings.

21.	Deferred taxation

	2020	2019
	£	£

At beginning of year	(57,268)	(73,896)
Charged to the profit or loss	11,847	16,628
At end of year	(45,421)	(57,268)

The provision for deferred taxation is made up as follows:
	2020	2019
	£	£

	Other timing differences	(45,421)	(57,268)
		(45,421)	(57,268)

Page 21

W.I.P. (WORK IN PROGRESS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

22.	Share capital
		2020	2019
		£	£

Allotted, called up and fully paid

110 Ordinary shares of £1.00 each	110	110

23.

Reserves

Profit & loss account

This reserve represents retained profits/(losses) of current and prior periods. Movement is detailed in the Statement of Income and Retained Earnings.

24.	Contingent liabilities

The Company has made an unlimited multilateral guarantee along with other companies within the Dragonfly Venture Group. No amounts are owed under this guarantee at present and the Company has not been called on to make any payments as a result of this in the past.

25.

Related party transactions

Included within Other creditors is £14,058 (2019 - Other debtors £2,381) due to Dragonfly Sourcing (HK) Limited. This is a company registered in Hong Kong and owned by C Maughan.
During the year the Company was charged rent and service charges of £25,024 (2019 - £25,024) by Golden Dragon Properties Limited, a company controlled by C Maughan.
Where available the Company has taken advantage of the exemption available under Financial Reporting Standard 102 section 33 not to disclose transactions with group undertakings on the grounds that the group undertakings that are party to the transactions are wholly owned by the ultimate parent company, either directly or indirecty.
Key management personnel:
The Company has elected to take advantage of key management personnel compensation exemption under FRS 102 paragraph 1.12(e) and 33.7.

26.	Controlling party

The ultimate controlling party of the Company is C Maughan through his control of the Company's parent undertaking Dragonfly Venture Group Limited, a company incorporated in England and Wales, which has its registered office at 32 Portland Terrace, Newcastle upon Tyne, NE2 1QP. Dragonfly Venture Group Limited prepares group financial statements and copies can be obtained from Companies House.

Page 22