Year Ended
Registration number:
Funeral Zone Limited
Contents
Company Information |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Funeral Zone Limited
Company Information
Directors |
Mr K Homeyard Mr E Gallois Dignity (2011) Limited Mr K Baldwyn |
Registered office |
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Accountants |
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Page 1 |
Funeral Zone Limited
Balance Sheet
31 December 2019
Note |
2019 |
2018 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Profit and loss account |
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Total equity |
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Page 2 |
Funeral Zone Limited
Balance Sheet
31 December 2019
For the financial year ending 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their 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 and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
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Company Registration Number: 08135813
Page 3 |
Funeral Zone Limited
Statement of Changes in Equity
Year Ended 31 December 2019
Share capital |
Share premium |
Profit and loss account |
Total |
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At 1 January 2019 |
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( |
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Loss for the year |
- |
- |
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At 31 December 2019 |
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Share capital |
Share premium |
Profit and loss account |
Total |
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At 1 January 2018 |
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( |
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Loss for the year |
- |
- |
( |
( |
New share capital subscribed |
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- |
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At 31 December 2018 |
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( |
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Page 4 |
Funeral Zone Limited
Notes to the Financial Statements
Year Ended 31 December 2019
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
Queens House
Little Queen Street
Exeter
EX4 3LJ
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 have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', including Section 1A, and the Companies Act 2006. There are no material departures from FRS 102.
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 functional currency of the company is considered to be pounds sterling because it is the currency of the primary economic environment in which the company operates.
Page 5 |
Funeral Zone Limited
Notes to the Financial Statements
Year Ended 31 December 2019
Going concern
The company’s mission is to provide information to help the bereaved and to enable funeral directors to meet the challenges of a changing marketplace. During the year to 31 December 2019 the company continued to invest in its Funeral Guide, Arranger and Memoria platforms. The company recorded a loss before tax for the year of £2.8m and as at 31 December 2019 had net current assets of £1.4m, which includes cash of £1.1m.
In April 2019 the company launched the Arranger cloud software solution for funeral homes, which has begun to make progress towards budgeted sales targets. The Directors believe the Arranger and Funeral Guide services to be market leading platforms that will enable funeral homes to comply with changing regulations arising from the current Competition and Markets Authority review. The Directors recognise that these platforms need to become cash generative in order to secure the future of the company. The Directors have recently started the process of seeking further investment funding to accelerate development of the platforms.
The Directors have prepared cash flow forecasts for a period of more than 12 months from the date of approval of these financial statements, which contain assumptions around the level of revenue generated from Arranger and Funeral Guide and additional equity investment. Further funding will be required, which is outside of the Directors’ control. The Directors acknowledge that this represents a material uncertainty over the Company’s ability to continue as a going concern.
The directors of Funeral Zone Limited have considered the impact of COVID-19. In their opinion, use of the Funeral Guide website and Arranger software facilitates social distancing, remote and efficient working and therefore will allow the company to generate revenues for the foreseeable future. Overhead costs have also been restricted by reducing staffing numbers and removing all superfluous licenses and unnecessary establishment costs.
On the assumption that external funding is obtained, the cash flow forecasts provide the Directors with a reasonable expectation that the Company has adequate resources to continue to realise its assets and discharge its liabilities in the normal course of business for at least 12 months from the date of approval of these financial statements, and therefore they continue to adopt the going concern basis of preparation. The financial statements do not include the adjustments that would result if the Company was unable to continue as a going concern.
Revenue recognition
Turnover represents the value, net of value added tax and discounts, of work carried out in respect of services provided to customers. Turnover from subscriptions is recognised on a straight line basis over the subscription period.
Foreign currency transactions and balances
Tax
Tax is recognised in the 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.
Page 6 |
Funeral Zone Limited
Notes to the Financial Statements
Year Ended 31 December 2019
The current corporation 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 on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet 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% straight line |
Intangible assets
Intangible fixed assets are measured at cost less accumulated amortisation and any accumulated impairment losses.
Development costs
Internally generated software costs represents directly attributable purchases and overheads. Amortisation is charged once the asset is ready for its intended use.
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 |
Trade marks, patents and licenses |
20% straight line |
Internally generated software development costs |
33.3% straight line |
Website costs |
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.
Page 7 |
Funeral Zone Limited
Notes to the Financial Statements
Year Ended 31 December 2019
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
• Short term trade and other debtors and creditors;
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Page 8 |
Funeral Zone Limited
Notes to the Financial Statements
Year Ended 31 December 2019
Intangible assets |
Trademarks, patents and licenses |
Internally generated software development costs |
Website costs |
Total |
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Cost or valuation |
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At 1 January 2019 |
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Additions |
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- |
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At 31 December 2019 |
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Amortisation |
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At 1 January 2019 |
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Amortisation charge |
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- |
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At 31 December 2019 |
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Carrying amount |
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At 31 December 2019 |
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- |
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At 31 December 2018 |
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- |
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Tangible assets |
Plant and machinery |
Total |
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Cost or valuation |
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At 1 January 2019 |
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Additions |
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At 31 December 2019 |
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Depreciation |
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At 1 January 2019 |
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Charge for the year |
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At 31 December 2019 |
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Carrying amount |
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At 31 December 2019 |
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At 31 December 2018 |
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Page 9 |
Funeral Zone Limited
Notes to the Financial Statements
Year Ended 31 December 2019
Debtors |
2019 |
2018 |
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Trade debtors |
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Other debtors |
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Prepayments |
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Creditors |
Creditors: amounts falling due within one year
2019 |
2018 |
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Due within one year |
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Trade creditors |
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Social security and other taxes |
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Other creditors |
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Accrued expenses |
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Page 10 |
Funeral Zone Limited
Notes to the Financial Statements
Year Ended 31 December 2019
Share capital |
Allotted, called up and fully paid shares
2019 |
2018 |
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No. |
£ |
No. |
£ |
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1,250.05 |
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1,250.05 |
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575.00 |
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575.00 |
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425.00 |
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425.00 |
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The Ordinary “A” and “B” shares carry voting rights of thirty votes per share, compared with one vote per share for the Ordinary shares. The shares rank pari passu in all other respects.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Related party transactions |
The company has received finance from its directors in the form of interest free loans. During the year the company received £Nil (2018: £Nil) from the directors. The amount due to the directors at the balance sheet date is £22,322 (2018: £22,322). These balances are repayable on demand.
During the year, the company used the services of another company controlled by one of the directors. Purchases made during the year were £45,020 (2018: £65,182). At the balance date, amounts due to this company were £Nil (2018:£Nil).
Off-balance sheet arrangements |
Share option scheme
Page 11 |