Essential Adventure Limited - Period Ending 2017-03-31

Registration number: 05341273

Essential Adventure Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2017

Axis Accounts Limited
Chartered Accountants
Office 7, Unit 16
Dinan Way Trading Estate
Concorde Road
Exmouth
Devon
EX8 4RS

Essential Adventure Limited

Contents

Company Information	1
Statement of Comprehensive Income	2
Balance Sheet	3 to 4
Statement of Changes in Equity	5
Notes to the Financial Statements	6 to 10

Essential Adventure Limited

Company Information

Director

Mr Matthew Roger Trenchard

Registered office

35 Glanvilles Mill Ivybridge PL21 9PS

Bankers

Barclays Plc 12 Rolle Street Exmouth Devon EX8 1HD

Accountants

Axis Accounts Limited Chartered Accountants Office 7, Unit 16 Dinan Way Trading Estate Concorde Road Exmouth Devon EX8 4RS

Page 1

Essential Adventure Limited

Statement of Comprehensive Income for the Year Ended 31 March 2017

	Note	2017 £	2016 £
Profit for the year		19,506	17,288
Total comprehensive income for the year		19,506	17,288

The notes on pages 6 to 10 form an integral part of these financial statements.

Page 2

Essential Adventure Limited

(Registration number: 05341273)
Balance Sheet as at 31 March 2017

	Note	2017 £	2016 £
Fixed assets
Intangible assets	4	1	1
Tangible assets	5	14,402	6,562
		14,403	6,563
Current assets
Debtors	6	359,635	167,277
Cash at bank and in hand		90,132	68,363
		449,767	235,640
Creditors: Amounts falling due within one year	7	(428,960)	(224,132)
Net current assets		20,807	11,508
Total assets less current liabilities		35,210	18,071
Provisions for liabilities		(2,193)	-
Net assets		33,017	18,071
Capital and reserves
Called up share capital		12,000	12,000
Profit and loss account		21,017	6,071
Total equity		33,017	18,071

For the financial year ending 31 March 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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 Profit and Loss Account has been taken.

The notes on pages 6 to 10 form an integral part of these financial statements.

Page 3

Essential Adventure Limited

(Registration number: 05341273)
Balance Sheet as at 31 March 2017

Approved and authorised by the director on 25 May 2017
 

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

Mr Matthew Roger Trenchard

Director

The notes on pages 6 to 10 form an integral part of these financial statements.

Page 4

Essential Adventure Limited

Statement of Changes in Equity for the Year Ended 31 March 2017

	Share capital £	Profit and loss account £	Total £
At 1 April 2016	12,000	6,071	18,071
Profit for the year	-	19,506	19,506
Total comprehensive income	-	19,506	19,506
Dividends	-	(4,560)	(4,560)
At 31 March 2017	12,000	21,017	33,017

	Share capital £	Profit and loss account £	Total £
At 1 April 2015	12,000	(11,017)	983
Profit for the year	-	17,288	17,288
Total comprehensive income	-	17,288	17,288
Dividends	-	(200)	(200)
At 31 March 2016	12,000	6,071	18,071

The notes on pages 6 to 10 form an integral part of these financial statements.

Page 5

Essential Adventure Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

1	General information

The company is a private company limited by share capital incorporated in England.

The address of its registered office is:
35 Glanvilles Mill
Ivybridge
PL21 9PS

These financial statements were authorised for issue by the director on 25 May 2017.

2	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 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.

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
Plant and machinery	20% on a straight line basis
Office equipment	33% on a straight line basis

Page 6

Essential Adventure Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

The company originally acquired the goodwill of Essential Adventure in 2005 and this was being written off over 10 years.

At the beginning of 2009, the company acquired, in two equal tranches, the goodwill of Backwater Adventures for £14,000. This was amortised over 5 years.

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
Goodwill	10 and 20%% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Page 7

Essential Adventure Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 5 (2016 - 3).

4	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 April 2016	29,483	29,483
At 31 March 2017	29,483	29,483
Amortisation
At 1 April 2016	29,482	29,482
At 31 March 2017	29,482	29,482
Carrying amount
At 31 March 2017	1	1
At 31 March 2016	1	1

In past years, the development of the database has been capitalised as an intangible asset. The reason for capitalisation is that the database is essential for sales.

This year, given that FRS102 is silent over the correct treatment and previous GAAP suggested that the asset should be shown as plant and equipment, the database has been reclassified as part of other equipment.

There is no effect on the statement of postion or the statement of comprehensive income in either year. Tangible assets have therefore been increased by a cost of £5,850 in both years and depreciation of equipment of £1,170.00 is now shown instead of amortisation of development costs.

The aggregate amount of research and development expenditure recognised as an expense during the period is £Nil (2016 - £Nil).
 

Page 8

Essential Adventure Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

5	Tangible assets

	Furniture, fittings and equipment  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 April 2016	3,869	6,866	10,735
Additions	343	10,957	11,300
At 31 March 2017	4,212	17,823	22,035
Depreciation
At 1 April 2016	1,565	2,608	4,173
Charge for the year	1,404	2,056	3,460
At 31 March 2017	2,969	4,664	7,633
Carrying amount
At 31 March 2017	1,243	13,159	14,402
At 31 March 2016	2,304	4,258	6,562

6

Debtors

	2017 £	2016 £
Trade debtors	211,822	91,042
Prepayments	121,179	69,950
Director 1 current account	24,289	4,555
Other debtors	2,345	1,730
Total current trade and other debtors	359,635	167,277

7

Creditors

	Note	2017 £	2016 £
Due within one year
Trade creditors		11,054	13,801
Taxation and social security		12,592	7,794
Other creditors		664	665
Accruals		401,342	190,689
Corporation tax control		3,308	3,851
Credit card account		-	7,332
		428,960	224,132

Page 9

Essential Adventure Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

8

Dividends

	2017	2016
	£	£
Interim dividend of £0.38 (2016 - £0.0167) per ordinary share	4,560	200

9	Related party transactions

Key management personnel

Transactions with the director.

Summary of transactions with key management

As shown separately, the company has advanced money to the director for personal expenses.
 
The company is not charging any interest on monies owed to it by the director. The loan is repayable on demand.
 

Transactions with directors

2017	At 1 April 2016 £	Advances to directors £	Repayments by director £	At 31 March 2017 £
Mr Matthew Roger Trenchard
Advances for personal expenditure	4,555	24,289	(4,555)	24,289

2016	At 1 April 2015 £	Advances to directors £	Repayments by director £	At 31 March 2016 £
Mr Matthew Roger Trenchard
Advances for personal expenditure	193	4,555	(193)	4,555

Directors' remuneration

The director's remuneration for the year was as follows:

	2017 £	2016 £
Remuneration	16,075	12,165

Page 10