Company registration number 08624700 (England and Wales)
DEAD HAPPY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
PAGES FOR FILING WITH REGISTRAR
DEAD HAPPY LIMITED
BALANCE SHEET
AS AT
31 JULY 2022
31 July 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
220,064
70,854
Current assets
Debtors
4
1,964,475
1,777,442
Cash at bank and in hand
2,735,124
389,809
4,699,599
2,167,251
Creditors: amounts falling due within one year
5
(1,330,723)
(533,786)
Net current assets
3,368,876
1,633,465
Total assets less current liabilities
3,588,940
1,704,319
Creditors: amounts falling due after more than one year
6
(37,938)
(4,961,766)
Net assets/(liabilities)
3,551,002
(3,257,447)
Capital and reserves
Called up share capital
7
314
212
Share premium account
16,654,857
5,499,890
Profit and loss reserves
(13,104,169)
(8,757,549)
Total equity
3,551,002
(3,257,447)
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 July 2022 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.
DEAD HAPPY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JULY 2022
31 July 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 9 December 2022 and are signed on its behalf by:
D Holton
Director
Company Registration No. 08624700
DEAD HAPPY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
- 3 -
1
Accounting policies
Company information
Dead Happy Limited is a
private
company
, limited by shares and
incorporated in England and Wales.
The company's registered number is 08624700.
The
address of its
registered office is
Unit 1, Creative Mill, 64 Mansfield Street, Leicester, LE1 3DL.
The principal activity of the company during the year continued to be that of insurance agents and brokers.
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 meets its working capital requirements through the support of investors. The directors believe the Company remains financially stable with this full support.
true
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
and of a provision for the repayment of commission received, which will be repayable if insurance policies sold lapse in the future.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Commissions receivable
Turnover from commissions receivable is recognised at the point of inception of the contract when all of the following conditions are satisfied:
-
the
ompany has transferred the significant risks and rewards of the contract to the insurer;
-
the amount of commission can be measured reliably;
-
it is probable that the
ompany will receive the consideration due under the transaction; and
-
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Other income is only recognised as turnover when the right to consideration is achieved and is capable of reliable measurement.
DEAD HAPPY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
1
Accounting policies
(Continued)
- 4 -
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following
annual
bases:
Leasehold land and buildings
20% straight line
Plant and equipment
20% straight line
Computer equipment
33% straight line
Office equipment
33% 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
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
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.
DEAD HAPPY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
1
Accounting policies
(Continued)
- 5 -
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.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable 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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
DEAD HAPPY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
1
Accounting policies
(Continued)
- 6 -
1.12
Government grants
The UK government has offered a range of financial support packages to help companies, including government backed financing arrangements, furlough schemes, deferment of VAT payments and, for some sectors, business rates holidays, Of the offered schemes, the company used the furlough scheme and a government backed financing arrangement. The income from the furlough scheme has been recognised within 'Other operating income'. They are recognised when the entity has reasonable assurance that they will comply with the conditions attaching the grant, and that the grant will be received.
1.13
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
32
28
3
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Computer equipment
Office equipment
Total
£
£
£
£
£
Cost
At 1 August 2021
14,154
77,869
62,712
154,735
Additions
57,481
4,527
103,655
45,547
211,210
At 31 July 2022
57,481
18,681
181,524
108,259
365,945
Depreciation
At 1 August 2021
3,983
49,513
30,385
83,881
Depreciation charge
4,842
2,982
29,923
24,253
62,000
At 31 July 2022
4,842
6,965
79,436
54,638
145,881
Carrying amount
At 31 July 2022
52,639
11,716
102,088
53,621
220,064
At 31 July 2021
10,171
28,356
32,327
70,854
DEAD HAPPY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 7 -
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
180,382
288,837
Corporation tax recoverable
432,044
Other debtors
1,254,079
1,343,145
Prepayments and accrued income
97,970
145,460
1,964,475
1,777,442
5
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loan
10,000
10,000
Trade creditors
454,659
365,910
Taxation and social security
86,703
Other creditors
60,283
86,474
Accruals and deferred income
719,078
71,402
1,330,723
533,786
6
Creditors: amounts falling due after more than one year
2022
2021
£
£
Loan notes
4,921,766
Bank loans
37,938
40,000
37,938
4,961,766
7
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 0.01p each
1,576,976
1,576,976
158
158
DEAD HAPPY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
7
Called up share capital
(Continued)
- 8 -
2022
2021
2022
2021
Preference share capital
Number
Number
£
£
Issued and fully paid
Series A preference shares of 0.01p each
539,083
539,083
54
54
Series B preference shares of 0.01p each
1,020,408
-
102
-
1,559,491
539,083
156
54
Preference shares classified as equity
156
54
Total equity share capital
314
212
During the year, the company issued 1,020,408 Series B Preference Shares of 0.01p each.
The rights attaching to each share class can be found on the Companies House website.
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
86,917
45,000