Registered number:
01366728
MOMENTOUS RELOCATION LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 JUNE 2019
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MOMENTOUS RELOCATION LIMITED
REGISTERED NUMBER:
01366728
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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MOMENTOUS RELOCATION LIMITED
REGISTERED NUMBER:
01366728
STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
30 JUNE 2019
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 comprehensive income 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
26 March 2020
.
The notes on pages 4 to 16 form part of these financial statements.
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MOMENTOUS RELOCATION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 JUNE 2019
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Comprehensive income for the year
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Total comprehensive income for the year
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Transfer to profit and loss account
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Transfer from other reserves
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Total transactions with owners
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Comprehensive income for the year
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Total comprehensive income for the year
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Transfer to/from profit and loss account
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Transfer from other reserves
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Total transactions with owners
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The notes on pages 4 to 16 form part of these financial statements.
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
The Company is a private company limited by shares and is incorporated in England and Wales under company number 01366728.
The principal activity of the company continued to be that of international removals, relocation and storage.
The Registered Office address is Gerson Relocation, Cranborne Road, Potters Bar, England EN6 3JN.
2.
Accounting policies
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Basis of preparation of financial statements
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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 financial statements are presented in sterling which is the functional currency of the Company and are rounded to the nearest pound.
The following principal accounting policies have been applied:
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Exemption from preparing consolidated financial statements
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The
Company
is a parent
Company
that is also a subsidiary included in the consolidated financial statements of its immediate parent undertaking established under the law of an EEA state and is therefore exempt from the requirement to prepare consolidated financial statements under
section 400 of the Companies Act 2006
.
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2.
Accounting policies (continued)
The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to trade for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due.
In the period ended 30 June 2019, the company incurred a loss before tax of £448,659 (2018: loss
£330,111) and at the balance sheet date, there were net liabilities of £2,064,597 (2018: £1,641,894).
In common with many other businesses the company is affected by the worldwide coronavirus (CoVid-19) pandemic. At the date of signing these accounts it is too early for the directors to be able state exactly how this pandemic will affect the operations of the company but a substantial reduction in operations is likely due to the restrictions on movement of people imposed by many countries around the world. Following the removal of such restrictions the directors believe that a substantial upturn in trade is likely.
The company will seek to take advantage of all available coronavirus relief schemes offered by the Government of the United Kingdom such as the commitment to fund 80% of salaries up to a maximum limit for employees who are furloughed. As set out below, directors have received assurances that the majority shareholder of the company will continue to fund the company if necessary over the period of reduced operations.
The company will also seek to reduce expenditure which is considered unnecessary at this time or which can be delayed. Due to the use of government schemes, further support from the majority shareholder and reductions in expenditure, the directors believe at the time of signing these financial statements that they should be prepared on a going concern basis.
The ultimate controlling party has confirmed that he will provide sufficient support to ensure that the company will be able to pay their commitments and liabilities as they fall due. This commitment is for a period of at least twelve months from the approval of these financial statements.
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:
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.
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2.
Accounting policies (continued)
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.
Finance costs are charged to the Statement of Comprehensive Income 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.
All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.
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 the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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.
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2.
Accounting policies (continued)
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Tangible fixed assets (continued)
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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 and reducing balance basis..
Depreciation is provided on the following basis:
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Long-term leasehold property
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Over the term of the lease
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25% Reducing balance/15% straight line
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25% Reducing balance/33% straight line
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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 the Statement of Comprehensive Income.
Investments in subsidiaries are measured at cost less accumulated impairment.
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 reporting 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.
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.
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Cash and cash equivalents
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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.
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.
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2.
Accounting policies (continued)
The company only enters into basic financial instruments transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors and loans to related parties.
(i) Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies,
are initially recognised at transaction price, unless the arrangement constitutes a financing
transaction, where the transaction is measured at the present value of the future receipts discounted
at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for
objective evidence of impairment. If an asset is impaired the impairment loss is the difference
between the carrying amount and the present value of the estimated cash flows discounted at the
asset's original effective interest rate. The impairment loss is recognised in the Statement of Income
and Retained Earnings.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at
transaction price, unless the arrangement constitutes a financing transaction, where the debt
instrument is measured at the present value of the future receipts discounted at a market rate of
interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary
course of business from suppliers. Trade creditors are classified as current liabilities if payment is
due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are
recognised initially at transaction price and subsequently measured at amortised cost using the
effective interest method.
Financial liabilities are derecognised when the liability is extinguished that is when the contractual
obligation is discharged, cancelled or expires.
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2.
Accounting policies (continued)
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Foreign currency translation
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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.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income
except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.
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The average monthly number of employees, including directors, during the year was 17
(2018 -
16
)
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Taxation on profit on ordinary activities
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
4.
Taxation (continued)
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Factors affecting tax charge for the year
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There were no factors that affected the tax charge for the year which has been calculated on the profits on ordinary activities before tax at the standard rate of corporation tax in the UK of
19.00
%
(2018 -
19.75
%).
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Factors that may affect future tax charges
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The company has losses of £2,628,560 (2018: £2,419,836) to carry forward and use against future profits.
No deferred tax asset has been recognised on these losses due to the uncertain nature of when the company will be profitable and begin to utilise them.
In the 2016 Budget, it was annouced that the rate of corporation tax will be reduced to 17% from 1 April 2020. This rate received Royal Assent on 15 September 2016. The impact of these rate changes has therefore been recognised in the financial statements reflected in the temporary differences arising at year-end on which deferred tax should be recognised.
Since the 2016 budget there have been no annoucements for further corporation tax changes.
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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Charge for the year on owned assets
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Charge for the year on financed assets
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The net book value of land and building is made up of a long leasehold property of £1,236,229 (2018:
£1,266,229) and a short term leasehold property of £58,064 (2018: £64,308).
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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Investments in subsidiary companies
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The following were subsidiary undertakings of the Company:
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Global Moving Services Limited
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Abels Moving Services Limited
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Gerson Relocation Limited
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Michael Gerson Relocation Limited
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Profit/(losses) for the period and share capital and reserves of the subsidiary companies are not disclosed as this company is consolidated in a larger group accounts.
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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Amounts owed by group undertakings
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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The following liabilities were secured:
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Details of security provided:
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Hire purchase contracts under current and long-term creditors are secured on the assets to which they
relate.
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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The following liabilities were secured:
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Details of security provided:
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Bank loans under current and long-term creditors from National Westminster Bank are secured by a fixed legal charge over the leasehold property at Unit 5, Smeaton Close, Brunel Road, Aylesbury. The
interest rate is 1.6% per annum over the base rate.
Hire purchase contracts under current and long-term creditors are secured on the assets to which they relate.
Other creditors include £1,067,401 due to sellers which is secured on the shares of Abels Moving Services Limited.
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Allotted, called up and fully paid
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100
(2018 -
100
)
Ordinary
shares of £
1.00
each
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MOMENTOUS RELOCATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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. Contributions totalling 2,069 (2018 - £1,050) were payable to the fund at the reporting date and are included in creditors.
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Related party transactions
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Included within long-term creditors are loan balances totalling £7,619,347 (2018: £6,695,748) owed to a director and his associates. These balances are shown after discounting and are unsecured and interest-free.
Where possible the Company has taken advantage of the exemption conferred by FRS 102 section 33.1A from the requirement to disclose transactions with other wholly owned group undertakings on the grounds that consolidated financial statements are prepared by the parent undertaking and are publicly
available.
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The ultimate parent undertaking is AGM Relocation Limited. Copies of the group financial statements are available its trading address, The Heighte East, Cranborne Road, Potters Bar, Hertofrdshire, EN6 3JN.
The ultimate controlling party is P J Evans.
The auditors' report on the financial statements for the year ended 30 June 2019 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
Material uncertainty related to going concern
We draw attention to note 2.3 in the financial statements, which indicates that ongoing worldwide coronavirus (CoVid-19) pandemic may cast significant doubt on the Company's ability to continue as a going concern. As stated in note 2.3, these events or conditions, along with the other matters as set forth
in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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The audit report was signed on
26 March 2020
by
Ian Saunderson FCA
(Senior Statutory Auditor) on behalf of
Berg Kaprow Lewis LLP
.
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