ACCOUNTS - Final Accounts preparation

ACCOUNTS - Final Accounts preparation


Caseware UK (AP4) 2021.0.152 2021.0.152 2021-06-302021-06-30falsefalse02020-06-03No description of principal activity3trueThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. 12641139 2020-06-02 12641139 2020-06-03 2021-06-30 12641139 2019-06-03 2020-06-02 12641139 2021-06-30 12641139 c:Director1 2020-06-03 2021-06-30 12641139 d:OfficeEquipment 2020-06-03 2021-06-30 12641139 d:OfficeEquipment 2021-06-30 12641139 d:OfficeEquipment d:OwnedOrFreeholdAssets 2020-06-03 2021-06-30 12641139 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2021-06-30 12641139 d:CurrentFinancialInstruments 2021-06-30 12641139 d:Non-currentFinancialInstruments 2021-06-30 12641139 d:CurrentFinancialInstruments d:WithinOneYear 2021-06-30 12641139 d:Non-currentFinancialInstruments d:AfterOneYear 2021-06-30 12641139 d:ShareCapital 2021-06-30 12641139 d:SharePremium 2020-06-03 2021-06-30 12641139 d:SharePremium 2021-06-30 12641139 d:OtherMiscellaneousReserve 2021-06-30 12641139 d:RetainedEarningsAccumulatedLosses 2021-06-30 12641139 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2021-06-30 12641139 c:FRS102 2020-06-03 2021-06-30 12641139 c:AuditExempt-NoAccountantsReport 2020-06-03 2021-06-30 12641139 c:FullAccounts 2020-06-03 2021-06-30 12641139 c:PrivateLimitedCompanyLtd 2020-06-03 2021-06-30 12641139 d:DevelopmentCostsCapitalisedDevelopmentExpenditure d:ExternallyAcquiredIntangibleAssets 2020-06-03 2021-06-30 12641139 d:DevelopmentCostsCapitalisedDevelopmentExpenditure d:OwnedIntangibleAssets 2020-06-03 2021-06-30 iso4217:GBP xbrli:pure
Registered number: 12641139














LOVEJUNK LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE PERIOD ENDED 30 JUNE 2021

 
LOVEJUNK LIMITED
REGISTERED NUMBER: 12641139

BALANCE SHEET
AS AT 30 JUNE 2021

2021
Note

Fixed assets
  

Intangible assets
 4 
179,200

Tangible assets
 5 
307

  
179,507

Current assets
  

Debtors: amounts falling due within one year
 6 
4,637

Cash at bank and in hand
 7 
8,225

  
12,862

Creditors: amounts falling due within one year
 8 
(53,975)

Net current (liabilities)/assets
  
 
 
(41,113)

Total assets less current liabilities
  
138,394

Creditors: amounts falling due after more than one year
 9 
(442,772)

  

Net (liabilities)/assets
  
£(304,378)


Capital and reserves
  

Called up share capital 
  
10

Share premium account
 11 
269,590

Other reserves
 12 
75

Profit and loss account
 11 
(574,053)

  
£(304,378)


Page 1

 
LOVEJUNK LIMITED
REGISTERED NUMBER: 12641139

BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2021

The director considers 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 period in question in accordance with section 476 of the Companies Act 2006.

The director acknowledges his 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 income and retained earnings 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 on 27 January 2022.




J A J Mohr
Director

The notes on pages 3 to 9 form part of these financial statements.

Page 2

 
LOVEJUNK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2021

1.


General information

Lovejunk Limited is a private company limited by shares and incorporated in England and Wales under company number 12641139. The registered office address is 9 Felsham Road, London, England SW15 1AX.

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 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:

 
2.2

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.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 3

 
LOVEJUNK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2021

2.Accounting policies (continued)

 
2.3

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.4

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.

 
2.5

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.

 
2.6

Share based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 4

 
LOVEJUNK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2021

2.Accounting policies (continued)

 
2.7

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.

 
2.8

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.

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:

Office equipment
-
20%

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.

 
2.9

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.

 
2.10

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.

 
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.

Page 5

 
LOVEJUNK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2021

2.Accounting policies (continued)

 
2.12

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.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings.


3.


Employees

The average monthly number of employees, including directors, during the period was 3.


4.


Intangible assets



Development expenditure



Cost


Additions
224,000



At 30 June 2021

224,000



Amortisation


Charge for the period on owned assets
44,800



At 30 June 2021

44,800



Net book value



At 30 June 2021
£179,200



Page 6

 
LOVEJUNK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2021

5.


Tangible fixed assets





Office equipment



Cost or valuation


Additions
384



At 30 June 2021

384



Depreciation


Charge for the period on owned assets
77



At 30 June 2021

77



Net book value



At 30 June 2021
£307

Page 7

 
LOVEJUNK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2021

6.


Debtors

2021


Other debtors
4,637

£4,637



7.


Cash and cash equivalents

2021

Cash at bank and in hand
8,225

£8,225



8.


Creditors: Amounts falling due within one year

2021

Trade creditors
18,155

Other taxation and social security
14,759

Other creditors
17,042

Accruals and deferred income
4,019

£53,975



9.


Creditors: Amounts falling due after more than one year

2021

Amounts owed to other participating interests
442,772

£442,772



10.


Financial instruments

2021

Financial assets


Financial assets measured at fair value through profit or loss
£8,225




Financial assets measured at fair value through profit or loss comprise of bank balances.

Page 8

 
LOVEJUNK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2021

11.


Reserves

Share premium account

The share premium account arose as a result of the share issue in the year being above the nominal value of £0.01 per share.


12.


Share based payments

An EMI option agreement was entered into during the period. 75 share options were granted, the fair value of these was considered to be £1 per share. The granted shares are shown in Other reserves in the Balance Sheet and the loss for the year has increased by £75 as a result of this transaction.

Weighted average exercise price (pence)
2021
Number
2021

Granted during the year

100

75

Outstanding at the end of the year
100

75



2021


Equity-settled schemes
75

£75


13.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £1,671. Contributions totalling £1,081  were payable to the fund at the balance sheet date and are included in creditors.


Page 9