Company Registration No. 11181468 (England and Wales)
BIG WOW MEDIA LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
PAGES FOR FILING WITH REGISTRAR
BIG WOW MEDIA LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 9
BIG WOW MEDIA LIMITED
BALANCE SHEET
AS AT
31 JULY 2020
31 July 2020
- 1 -
2020
2019
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
9,107
14,677
Tangible assets
4
1,597
10,704
14,677
Current assets
Debtors
5
1,415
837
Cash at bank and in hand
5,591
184
7,006
1,021
Creditors: amounts falling due within one year
6
(70,418)
(48,055)
Net current liabilities
(63,412)
(47,034)
Total assets less current liabilities
(52,708)
(32,357)
Creditors: amounts falling due after more than one year
7
(12,135)
Net liabilities
(64,843)
(32,357)
Capital and reserves
Called up share capital
15,000
15,000
Profit and loss reserves
(79,843)
(47,357)
Total equity
(64,843)
(32,357)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 July 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her 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.
BIG WOW MEDIA LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JULY 2020
31 July 2020
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 27 July 2021
E K Wood
Director
Company Registration No. 11181468
BIG WOW MEDIA LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2020
- 3 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 July 2019:
Balance at 1 February 2018
Period ended 31 July 2019:
Loss and total comprehensive income for the period
-
(47,357)
(47,357)
Other movements
15,000
-
15,000
Balance at 31 July 2019
15,000
(47,357)
(32,357)
Year ended 31 July 2020:
Loss and total comprehensive income for the year
-
(32,486)
(32,486)
Balance at 31 July 2020
15,000
(79,843)
(64,843)
BIG WOW MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
- 4 -
1
Accounting policies
Company information
Big WOW Media Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Globe House, Eclipse Park, Sittingbourne Road, Maidstone, Kent, United Kingdom, ME14 3EN.
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.
These financial statements for the year ended 31 July 2020
are the
first
financial statements of Big WOW Media Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 February 2018. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
Going concern
As at 31 July 2020 the company's balance sheet was in deficit by £
64,843
(2019: £
32,357
- as restated),
and there were net current liabilities of £63,412 (2019: £47,034 - as restated). Included within the
company's current liabilities at that date was a director
'
s current account of £28,888 (2019: £29,159) owed
to the director, and £9,014 (2019: £9,014) owed to Momenta Marketing Limited, a company also under the
common control of the director
, together with unsecured non-bank loan finance amounting to £18,075. Whilst all these sources of finance were repayable on demand, the director does not anticipate any repayments being required within 12 months of the date of approving these accounts. She also believes the company's bank will continue to support the company during that time period.
Given that the company's results reflect its development of The Big WOW (What’s On Where) self-service
e-commerce advertising platform that enables venues and event organisers to promote the events that
they hold, the initial trading period to 31 July 2019 and year to 31 July 2020 represent
ed
phase 1 of
technology investment and marketing ahead of being able to develop sales relationships and build
revenue. The director believes that the financial position at 31 July 2020 is in line with
her
expectations and is unlikely to have significantly changed at the time of approving these accounts.
The next stage of the company's planned development has also been slowed and delayed as a direct
consequence of the Coronavirus Pandemic which continues to impact the business community with
uncertain consequences at the time of approving these accounts. The director believe
s
that she has taken
all reasonable actions in the year under review, and since the balance sheet date, to provide the company
with access to adequate finance to enable it to have a good chance of survival as a going concern,
subject to the fact that at the date of approving these accounts the full impact of Covid -19 on the business
remains unknown.
Against the above background, the director believes that with her continued financial support and that of the company's various lenders, it remains appropriate that these accounts are prepared for the company as a going concern.
BIG WOW MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
1
Accounting policies
(Continued)
- 5 -
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in
the normal course of business
,
and is shown net of VAT and other sales related taxes
.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Website development
3 years straight line
1.5
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 or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
5 years 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
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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).
Recoverable amount is the higher of fair value less costs to sell and value in use
.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount.
1.7
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.
1.8
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.
BIG WOW MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
1
Accounting policies
(Continued)
- 6 -
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 and bank loans, 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.
1.9
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.
1.10
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
BIG WOW MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
2
2
3
Intangible fixed assets
Website development
£
Cost
At 1 August 2019
20,322
Additions
1,806
At 31 July 2020
22,128
Amortisation and impairment
At 1 August 2019
5,645
Amortisation charged for the year
7,376
At 31 July 2020
13,021
Carrying amount
At 31 July 2020
9,107
At 31 July 2019
14,677
BIG WOW MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
- 8 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 August 2019
Additions
1,630
At 31 July 2020
1,630
Depreciation and impairment
At 1 August 2019
Depreciation charged in the year
33
At 31 July 2020
33
Carrying amount
At 31 July 2020
1,597
At 31 July 2019
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
1,403
825
Other debtors
12
12
1,415
837
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
365
Trade creditors
4,656
6,665
Taxation and social security
1,138
1,208
Other creditors
64,259
40,182
70,418
48,055
BIG WOW MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
- 9 -
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans
12,135
8
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Jul 2019
£
£
£
Fixed assets
Other intangibles
-
14,677
14,677
Capital and reserves
Profit and loss
(62,034)
14,677
(47,357)
The following adjustments have been made to the 1 August 2019 opening figures shown in these financial
statements:
Fixed Assets
Intangible assets
An adjustment has been made to intangible fixed assets to capitalise website development expenditure
incurred in the period of £20,322.
Amortisation has then been charged from 1 October 2018 over a useful economic life of 3 years. This is calculated as being £5,645.
This has increased fixed assets by
£14,677
.
Capital and Reserves
Profit and Loss account
As a result of the above adjustment, the profit and loss
reserve deficit has reduced by
£
14,677
.
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 July 2019
£
£
£
Administrative expenses
(72,821)
14,677
(58,144)
Loss for the financial period
(62,034)
14,677
(47,357)