Registered number:
09946489
THE COLLECTED GROUP U.K. LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2018
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THE COLLECTED GROUP U.K. LIMITED
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CONTENTS
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Statement of Financial Position
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Notes to the Financial Statements
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THE COLLECTED GROUP U.K. LIMITED
REGISTERED NUMBER:
09946489
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STATEMENT OF FINANCIAL POSITION
AS AT
29 DECEMBER 2018
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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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THE COLLECTED GROUP U.K. LIMITED
REGISTERED NUMBER:
09946489
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STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
29 DECEMBER 2018
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies’ regime as set out within Part 15 of the Companies Act 2006.
The Statement of Comprehensive Income has not been delivered to the Registrar of Companies in accordance with the special provisions applicable to companies subject to the small companies’ regime.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and as set out within part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 3 to 9 form part of these financial statements.
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THE COLLECTED GROUP U.K. LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2018
The Collected Group U.K. Limited is a private company, limited by shares, incorporated in England and Wales. The registered office address is Ground Floor, 116 Seymour Place, London, England, W1H 1NW, and its registered company number is 09946489.
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 following principal accounting policies have been applied:
The financial statements have been prepared on the going concern basis which assumes that the Company will continue in operational existence for the foreseeable future. The conditions set out below indicate that a material uncertainty exists that may cast doubt on the Company’s ability to contrive as a going concern. The Company had net current liabilities at the period-end date of £954,271
(2017: £692,432)
and made a loss before tax of £294,069
(2017: £362,098 profit)
for the period-end and has continued to make net losses post period end.
The Company had amounts owed to group undertakings at the period-end date of £2,532,013
(2017: £2,336,745)
. The validity of the assumption, that the Company will be in a position to continue in operational existence for the foreseeable future, depends on the continuing support of the shareholder, The Collected Group LLC and The Collected Group LLC’S funders.
The director has prepared budgets and forecasts that shows that continued support and additional funding is required from The Collected Group LLC and The Collected Group LLC’s funders to enable it to continue in operational existence for the foreseeable future. The director acknowledges that there can be no certainty that this support will continue, although at the date of approval these financial statements, they have no reason to believe it will not do so. The director considers the going concern basis to be appropriate in preparing these financial statements.
The financial statements do not include adjustments that would result if the Company was unable to continue as a going concern.
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THE COLLECTED GROUP U.K. LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2018
2.
Accounting policies (continued)
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:
Sale of goods
Revenue from the sale of goods is recognised on the dispatch of good to customers and when all of the following conditions are satisfied:
∙
the Company has transferred the significant risks and rewards of ownership to the buyer;
∙
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙
the amount of revenue can be measured reliably;
∙
it is probable that the Company 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.
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.
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.
Depreciation is provided on the following basis:
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Lesser of lease term or useful life
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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.
Stock is stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its estimated selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.
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THE COLLECTED GROUP U.K. LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2018
2.
Accounting policies (continued)
Financial assets and financial liabilities are recognised in the Statement of Financial Position when the Company becomes a party to the contractual provisions of the instrument.
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the Company will not be able to collect all amounts due.
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank.
Financial liabilities and equity instruments issued by the Company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
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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.
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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.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
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THE COLLECTED GROUP U.K. LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2018
2.
Accounting policies (continued)
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.
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The average monthly number of employees, including directors, during the period was
8
(2017:
6
)
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THE COLLECTED GROUP U.K. LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2018
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Trade debtors excluding factored debts
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Prepayments and accrued income
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Included within other debtors are £98,832
(2017: £94,499)
of amounts greater than one year relating to deposits.
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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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Accruals and deferred income
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Included within trade creditors in 2017 are amounts of £391,401 due to group undertakings.
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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THE COLLECTED GROUP U.K. LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2018
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £
14,557
(
2017: £
11,463
). Contributions totalling £
6,383
(
2017: £
12,972
) were payable to the fund at the Statement of Financial Position date and are included in creditors.
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Commitments under operating leases
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At 31 December the Company had future minimum lease payments under non-cancellable operating leases as follows:
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Later than 1 year and not later than 5 years
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Related party transactions
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At the Statement of Financial Position date, the Company owed £Nil (
2017: £
103,227
) to a
close family member of a director of the Company
. During the year the Company made purchases of £
4,427
(
2017: £
797,707
).
The Company has taken advantage of the exemption in FRS 102 Section 33 to not disclose transactions with wholly owned group entities.
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The immediate parent undertaking is The Collected Group LLC, a company incorporated in the United States. The registered office is 5301 South Santa Fe Avenue, Vernon, CA 90058. The parent of the largest group in which these financial statements are consolidated is The Collected Group LLC.
KKR Lending Partners Funding LLC hold the majority of the issued share capital of The Collected Group LLC and are the ultimate controlling party and ultimate parent company.
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THE COLLECTED GROUP U.K. LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2018
The auditor's report on the financial statements for the period ended 29 December 2018 was qualified in relation to stock and accruals as described below and drew attention by way of emphasis to a material uncertainty related to going concern.
The qualification in the audit report was as follows:
The Company held stock at 31 December 2017 with a carrying value of £149,435. We were unable to attend a stocktake at 31 December 2017. We were unable to obtain appropriate audit evidence regarding the stock balance as at 1 January 2018. Consequently, we were unable to determine whether any adjustments to the opening stock were required and as a result were unable to determine the consequential effect on cost of sales for the period ended 29 December 2018.
In addition, the Company has recognised an accruals balance of £58,692 as at 29 December 2018. As of the date of our report, management have been unable to provide evidence to support this balance. Consequently, we were unable to confirm or verify by alternative means the completeness, valuation or existence of accruals totalling £58,692 as at 29 December 2018. We were unable to determine whether any adjustments to the accruals balance were required and as a result were unable to determine the consequential effect on cost of sales for the period ended 29 December 2018.
Arising solely from the limitation on the scope of our work relating to stock and accruals, referred to above we have not obtained all the information and explanations that we considered necessary for the purpose of our audit.
The audit report was signed on
28 January 2020
by
Timothy Adams
(Senior Statutory Auditor) on behalf of
Nexia Smith & Williamson
.
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