Evolution Aqua Limited - Period Ending 2020-12-31
Evolution Aqua Limited - Period Ending 2020-12-31
Registration number:
Evolution Aqua Limited
for the Year Ended 31 December 2020
Evolution Aqua Limited
Contents
Statement of Financial Position |
|
Notes to the Unaudited Financial Statements |
Evolution Aqua Limited
(Registration number: 04153644)
Statement of Financial Position as at 31 December 2020
Note |
2020 |
(As restated) |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
100 |
|
Capital redemption reserve |
|
99,995 |
|
Profit and loss account |
|
1,757,955 |
|
Shareholders funds |
|
1,858,050 |
For the financial year ending 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Evolution Aqua Limited
(Registration number: 04153644)
Statement of Financial Position as at 31 December 2020
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Income Statement has been taken.
Approved and authorised by the
.........................................
Director
Evolution Aqua Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements for the year ended 31 December 2020 have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The presentation currency is £ sterling.
Going concern
Due to the current unprecedented market and economic conditions in the U.K. and internationally, the expected impact of the COVID-19 pandemic on the Company’s operations cannot be reasonably estimated. Revenue may fall as customers are hit by the pandemic, but expenses will, likely, decrease as a result which will help to mitigate the impact on profits and the company has sufficient reserves in place to cover any deficit for at least 12 months from the date of approval of these financial statements.
Prior period errors
The prior period adjustment arises as a consequence of a change to the method of stock valuation. Stock is now valued at the basic raw material landed cost (raw material plus duty & freight). Previously a provision was created for labour and machine costs to be absorbed into the cost value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Evolution Aqua Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
Foreign currency transactions and balances
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Leasehold Properties |
Over the term of the lease- 4 years |
Plant and Machinery |
15 years straight line |
Fixtures and fittings |
10 years straight line |
Motor Vehicles |
4 years straight line |
Computer Equipment |
10 years straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Evolution Aqua Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
Intangible assets
Separately acquired trademarks and licences are shown at historical cost.
Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Patents |
20 years straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Income Statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Evolution Aqua Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.
Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Evolution Aqua Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
Intangible assets |
Trademarks, patents and licenses |
Total |
|
Cost or valuation |
||
At 1 January 2020 |
|
|
Additions acquired separately |
|
|
At 31 December 2020 |
|
|
Amortisation |
||
At 1 January 2020 |
|
|
Amortisation charge |
|
|
At 31 December 2020 |
|
|
Carrying amount |
||
At 31 December 2020 |
|
|
At 31 December 2019 |
|
|
The aggregate amount of research and development expenditure recognised as an expense during the period is £
Evolution Aqua Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 January 2020 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
- |
- |
( |
( |
At 31 December 2020 |
|
|
|
|
Depreciation |
||||
At 1 January 2020 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
At 31 December 2020 |
|
|
|
|
Carrying amount |
||||
At 31 December 2020 |
|
|
|
|
At 31 December 2019 |
|
|
|
|
Included within the net book value of land and buildings above is £8,901 (2019 - £6,108) in respect of short leasehold land and buildings.
Investments |
2020 |
2019 |
|
Investments in associates |
|
|
Associates |
£ |
Cost |
|
Additions |
|
Provision |
|
Carrying amount |
|
At 31 December 2020 |
|
At 31 December 2019 |
|
Evolution Aqua Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
Stocks |
2020 |
(As restated) |
|
Finished goods and goods for resale |
|
|
Debtors |
2020 |
2019 |
|
Trade debtors |
|
|
Prepayments |
|
- |
Other debtors |
|
|
|
|
Evolution Aqua Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
Creditors |
Creditors: amounts falling due within one year
Note |
2020 |
2019 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Taxation and social security |
|
|
|
Accruals and deferred income |
|
|
|
Other creditors |
|
- |
|
|
|
Creditors: amounts falling due after more than one year
Note |
2020 |
2019 |
|
Due after one year |
|||
Loans and borrowings |
|
|
Loans and borrowings |
2020 |
2019 |
|
Non-current loans and borrowings |
||
Bank borrowings |
|
|
Finance lease liabilities |
|
|
|
|
2020 |
2019 |
|
Current loans and borrowings |
||
Bank borrowings |
|
|
Bank overdrafts |
|
- |
Finance lease liabilities |
|
|
|
|
Evolution Aqua Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020
Related party transactions |
Summary of transactions with other related parties
Aqua Bioscience Limited
(A company in which Mr N J Jackson and Mrs N H Peers are directors and in which Mr N J Jackson is a shareholder).
During the year the company paid expenses on behalf of Aqua Bioscience Limited of £45,717 (2019: £102,052). At the balance sheet date the amount due from Aqua Bioscience Limited was £922,225 (2019: £712,088).
OCM Products Limited
(A company in which Mr N J Jackson and Mrs N H Peers are directors and in which Mr N J Jackson is a shareholder).
Evolution Aqua Limited holds a 5% investment in this company. OCM Products Limited owes an investor loan of £370,000 (2019: £250,000).
Bermuda Watergardens Limited
(A company in which Mr N J Jackson and Mrs N H Peers are directors and in which Mr N J Jackson is a shareholder).
During the year the company paid expenses on behalf of Bermuda Watergardens Limited of £101,708 (2019: £147,582). At the balance sheet date the amount due from Bermuda Watergardens Limited was £5,098 (2019: £4,299).