Year Ended
Registration number:
Demasere Ltd
Contents
Company Information |
|
Balance Sheet |
|
Notes to the Unaudited Financial Statements |
Demasere Ltd
Company Information
Director |
N Guerra |
Registered office |
|
Accountants |
|
Demasere Ltd
Balance Sheet
31 December 2019
Note |
2019 |
(As restated) |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Deferred income |
(90,484) |
(76,498) |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
|
|
Profit and loss account |
( |
|
|
Total equity |
|
|
Demasere Ltd
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.
Director's responsibilities:
• |
|
• |
The director acknowledges 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
......................................... |
Company Registration Number: 09140510
Demasere Ltd
Notes to the Unaudited Financial Statements
Year Ended 31 December 2019
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
The principal place of business is:
10 Finsbury Square
London
EC2 1AD
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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. There are no material departures from FRS102.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
Going concern
The directors are satisfied with the result for the period.
The directors, having made all relevant enquiries, consider it appropriate to prepare these financial statements on the going concern basis. The reasons for this assessment are as follows:
-The directors have given consideration to the known, and likely foreseeable, impact upon the business of the COVID-19 pandemic and have prepared forecasts under various sales and churn scenarios, and, under the likely scenarios, the company remains a going concern.
-The current cash reserves and forecasts for the period to 31 December 2021 support the directors’ assessment of the company’s ability to continue to trade and meet its liabilities as they fall due.
-The directors have obtained confirmation from the relevant fellow subsidiary company that payment will not be called upon to the extent that it would place significant doubt on the ability of the company to meet its other liabilities as they fall due for at least the 12 months following the date of approval of these financial statements.
Demasere Ltd
Notes to the Unaudited Financial Statements
Year Ended 31 December 2019
-The directors have considered the nature of trade and other creditors presented as due within one year and are satisfied, having also considered the impact on counterparties of COVID-19, that liabilities will be met as they fall due for the foreseeable future.
-The directors are satisfied, having made all necessary enquiries and considered the trading performance and projections of its fellow subsidiaries, that amounts receivable by the company arising from the provision of asset purchase funding and sales, marketing and administrative support, are recoverable.
Key judgements and sources of estimation uncertainty
In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key judgement that has a significant effect on the financial statements is in respect of going concern, as described in the accounting policy above
The key accounting estimate that has a significant effect on the financial statements is the recoverability of intercompany balances. The directors consider these balances to be recoverable. The carrying amount is £1,632,361 (2018 - £2,118,408).
Revenue recognition
The company provides membership to individuals and companies on a month-to-month basis. Membership affords these individuals and companies access to office space as well as shared facilities and services. Membership income consist of fees from members and is recognised monthly as access to office space, services and other benefits of membership are provided. All service allowances included in a monthly membership which remain unused at the end of a given month expire.
The company provides sales, marketing and administrative support to fellow group subsidiaries. Management fee income consists of fees from fellow group subsidiaries and is recognised monthly as services are provided.
Other revenue consists primarily of the provision of event space to members and other customers and is recognised once the event has taken place
Tax
Tax is recognised in 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.
Demasere Ltd
Notes to the Unaudited 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.
The company receives/passes some tax losses from/to fellow group companies via group relief. It makes/receives payment for these losses at the average rate of tax for the financial period in which the losses are relieved.
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 over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Improvements to property |
Over the term of the lease |
Furniture, fixtures and equipment |
Straight line over 3 years |
Provisions
The company provides for dilapidations where required on property leases in existence at the balance sheet date and it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Demasere Ltd
Notes to the Unaudited Financial Statements
Year Ended 31 December 2019
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Inter company debtors and creditors;
• Finance leases; and
• 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.
Except finance leases, such 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.
Finance leases are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Demasere Ltd
Notes to the Unaudited Financial Statements
Year Ended 31 December 2019
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Tangible assets |
Furniture, fittings and equipment |
Leasehold improvements |
Total |
|
Cost or valuation |
|||
At 1 January 2019 |
|
|
|
Additions |
|
|
|
At 31 December 2019 |
|
|
|
Depreciation |
|||
At 1 January 2019 |
|
|
|
Charge for the year |
|
|
|
At 31 December 2019 |
|
|
|
Carrying amount |
|||
At 31 December 2019 |
|
|
|
At 31 December 2018 |
|
|
|
Debtors |
2019 |
(As restated) |
|
Trade debtors |
|
|
Amounts due from group undertakings |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
|
Less amounts due after one year |
( |
( |
|
|
Demasere Ltd
Notes to the Unaudited Financial Statements
Year Ended 31 December 2019
Creditors |
Note |
2019 |
(As restated) |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts due to group undertakings |
|
- |
|
Corporation tax |
- |
2,631 |
|
Social security and other taxes |
|
|
|
Other creditors |
- |
|
|
Accruals |
|
|
|
|
|
Note |
2019 |
2018 |
|
Due after one year |
|||
Loans and borrowings |
|
|
|
Other creditors |
|
|
|
935,370 |
828,327 |
Loans and borrowings |
2019 |
2018 |
|
Loans and borrowings due after one year |
||
Finance lease liabilities |
|
|
2019 |
2018 |
|
Current loans and borrowings |
||
Finance lease liabilities |
|
|
Demasere Ltd
Notes to the Unaudited Financial Statements
Year Ended 31 December 2019
Deferred income |
2019 |
|
At 1 January 2019 |
76,498 |
Net receipts |
13,986 |
At 31 December 2019 |
90,484 |
Provisions for liabilities |
Other provisions |
Total |
|
At 1 January 2019 |
|
|
Increase in provisions |
|
|
At 31 December 2019 |
|
|
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 £
Amounts disclosed in the balance sheet
Included in the balance sheet are financial commitments of £866,318 (2018 - £531,463). The financial commitments are in the form of finance leases (see note 7) which are secured on the leasehold improvements included in the balance sheet of the company and its fellow subsidiaries.
Prior year adjustments |
The comparative information for the year ended 31 December 2018 has been restated to recognise cost of sales, previously classified within administrative expenses. The restatement has no effect on the current or prior year profit or loss.
The comparative information for the year ended 31 December 2018 has been restated to reclassify as deferred income. This adjustment has decreased creditors amounts falling due within one year by £76,498 and increased provisions by £76,498. This adjustment has no effect on the current or prior year profit or loss.
The comparative information for the year ended 31 December 2018 has been restated to correct share capital. This adjustment decreased called-up share capital by £1 and decreased amounts due from group undertakings by £1. This adjustment has no effect on profit and loss.