Company Registration No. 06675171 (England and Wales)
FREEDOM ABILITY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
FREEDOM ABILITY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
FREEDOM ABILITY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
5
10,375
20,486
Current assets
Stocks
58,499
67,981
Debtors
6
257,143
258,981
Cash at bank and in hand
20,056
92,554
335,698
419,516
Creditors: amounts falling due within one year
7
(166,834)
(260,130)
Net current assets
168,864
159,386
Total assets less current liabilities
179,239
179,872
Creditors: amounts falling due after more than one year
8
(7,433)
(15,928)
Provisions for liabilities
(1,971)
(3,626)
Net assets
169,835
160,318
Capital and reserves
Called up share capital
9
1
1
Profit and loss reserves
169,834
160,317
Total equity
169,835
160,318
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
FREEDOM ABILITY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2020
31 December 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 30 September 2021 and are signed on its behalf by:
Mr S A Atkinson
Director
Company Registration No. 06675171
FREEDOM ABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 3 -
1
Accounting policies
Company information
Freedom Ability Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 4C Sett End Road North, Shadsworth Business Park, Blackburn, Lancashire, BB1 2PT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is reliant upon the financial support of its connected companies in order to meet its liabilities as they fall due. The directors have indicated that this support will continue for the foreseeable future and, as a result, have continued to adopt the going concern basis in preparing the financial statements.
true
Whilst the directors have adopted the going concern basis set out above, the impact of the worldwide Coronavirus pandemic, COVID-19, on all businesses represents an uncertainty and the true impact will only become apparent over time.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT
.
1.4
Tangible fixed assets
Tangible fixed assets
are measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Stocks
Stock is
stated at the lower of cost
or net realisable value.
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
FREEDOM ABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 4 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method 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.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
FREEDOM ABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 5 -
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease
.
1.11
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 13 (2019 - 11).
2020
2019
Number
Number
Total
13
11
FREEDOM ABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 6 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2020 and 31 December 2020
29,900
Amortisation and impairment
At 1 January 2020 and 31 December 2020
29,900
Carrying amount
At 31 December 2020
At 31 December 2019
5
Tangible fixed assets
Plant and machinery
Motor vehicles
Total
£
£
£
Cost
At 1 January 2020
89,755
49,217
138,972
Additions
3,714
3,714
At 31 December 2020
93,469
49,217
142,686
Depreciation and impairment
At 1 January 2020
69,452
49,034
118,486
Depreciation charged in the year
13,642
183
13,825
At 31 December 2020
83,094
49,217
132,311
Carrying amount
At 31 December 2020
10,375
10,375
At 31 December 2019
20,303
183
20,486
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2020
2019
£
£
Plant and machinery
4,694
15,340
Depreciation charge for the year in respect of leased assets
10,646
10,646
FREEDOM ABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 7 -
6
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
131,203
24,055
Amounts owed by group undertakings
29,302
170,417
Other debtors
96,638
64,509
257,143
258,981
7
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
64,539
80,360
Amounts owed to group undertakings
6,089
95,492
Taxation and social security
80,401
59,150
Other creditors
15,805
25,128
166,834
260,130
Other creditors includes amounts due under hire purchase contracts of £8,495 (201
9
- £
8,495
). These amounts are secured upon the assets to which they relate.
8
Creditors: amounts falling due after more than one year
2020
2019
£
£
Other creditors
7,433
15,928
Other creditors include amounts due under hire purchase contracts of £
7,433
(201
9
- £
15,928
). These amounts are secured upon the assets to which they relate.
9
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
10
Related party transactions
FREEDOM ABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
10
Related party transactions
(Continued)
- 8 -
The company has operated a loan account with New GJMS Limited the ultimate parent company, GJMS Holdings Limited a parent company, Halo Education Limited a fellow subsidiary company, Halo School Furniture Limited a company under the control of both directors, Neo One Limited a company under the control of both directors, Neo One Distribution Limited a company under the control of both directors and SSCA Limited a company under the control of one of the directors, Mr S A Atkinson.
As at 31 December 20
20 th
e company was owed £
nil
(201
9
- £
170,417
) by Halo Education Limited, £
56,530
(201
9
- £
40,236
) by Neo One Limited, £
4,610
(201
9
- £1
41
) by Neo One Distribution Limit
e
d
, £29,302 (2019 £nil) by GJMS Holdings Limited
and £1
4,647
(201
9
- £
14,321
) by SSCA Limited.
Also as at the year end date the company owed £5,828 (2019 - £nil) to New GJMS Limited, £
nil
(201
9
- £
95,492
) to GJMS Holdings Limited
, £262 (2019 £nil) to Halo Education Limited
and £
5,399
(201
9
- £
10,114
) to Halo School Furniture Limited.