REGISTERED NUMBER: 09073241 (England and Wales)

Company M Limited

Unaudited Financial Statements for the Year Ended 31 December 2017

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

S R Novick

REGISTERED OFFICE:

42 Drury Lane

London

WC2B 5AJ

REGISTERED NUMBER:

09073241 (England and Wales)

FIXED ASSETS

Tangible assets

4

344,936

247,213

CURRENT ASSETS

Stocks

5

11,791

8,140

Debtors

6

112,736

120,572

Cash at bank

254,277

147,832

378,804

276,544

CREDITORS

Amounts falling due within one year

7

(2,449,865

)

(1,424,798

)

NET CURRENT LIABILITIES

(2,071,061

)

(1,148,254

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,726,125

)

(901,041

)

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

(1,726,126

)

(901,042

)

(1,726,125

)

(901,041

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2017 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director on 27 September 2018 and were signed by:

S R Novick - Director

1.	STATUTORY INFORMATION

Company M Limited is a private company, limited by shares and registered in England and Wales. The company's registered number and

registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Republic of Ireland ("FRS 102") and the Companies Act 2006. The presentational and functional currency of these financial statements is

sterling. All amounts in the financial statements have been rounded to the nearest £1.

Going concern

The director believes that notwithstanding current year losses of £825,096, net current liabilities of £2,071,061 and net liabilities of

£1,726,137, the company's financial statements should be prepared on a going concern basis on the grounds that current and future sources

of funding or support from external funding will be adequate to meet the company's needs for a period of at least 12 months from the date of

approval of these financial statements.

Related party exemption

The company has taken advantage of the exemption available under FRS 102 not to disclose related party transactions with its parent

company, by whom it is wholly owned.

Significant judgements and estimates

The preparation of financial statements in compliance with FRS 102 requires the use of certain accounting estimates. It also requires

management to exercise judgement in applying the company's accounting policies. The director is of the opinion that due to the nature of the

business, there are no critical accounting estimates or judgements used in the preparation of these financial statements.

Turnover

Revenue is recognised to the extent that it is probable 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.

Revenue from the sale of goods is recognised at point of sale.

Interest receivable and payable

Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any 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 to profit or loss on the following basis -

- Computer equipment - Over 3 years on a straight line basis.

- Fixtures and fittings - 25% per year on a reducing balance basis.

- Motor vehicles - 25% per year on a reducing balance basis.

- Plant and machinery - 25% per year on a reducing balance basis.

- Leasehold improvements - Over 15 years on a straight line basis.

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.

Repairs and maintenance costs are charged to profit or loss during the period in which they are incurred.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount

of the asset is determined, which is the higher of its fair value less costs to sell and its value in use. Any impairment loss is recognised

immediately as an expense within the profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the first-in first-out principle

and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing

location and condition.

At each balance sheet 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 within profit or loss.

Basic financial instruments

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are

recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised

cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing

transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments

discounted at a market rate of interest for a similar debt instrument.

Impairment of financial assets

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of

impairment. If objective evidence of impairment is found an impairment loss is recognised within profit or loss.

For financial assets that are measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying

amount and the present value of estimated cash flows discounted at the asset's original effective interest rate.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount

and the best estimate of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Current and deferred taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in profit or loss except to the extent that it relates

to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other

comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively

enacted at the balance sheet date.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different

from those in which they are recognised in the financial statements. Deferred tax is not recognised on permanent differences arising because

certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or

smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or

substantively enacted at the balance sheet date.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the

reversal of deferred tax liabilities or other future taxable profits.

Leases

Leases in which the company assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases.

All other leases are classified as operating leases.

Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a

straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general

inflation; in which case the payments related to the structured increases are recognised as incurred.

Pensions

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 profit or loss in the periods during which services are rendered by employees.

3.	STAFF NUMBERS

The average number of employees during the year was 20 (2016 - 12 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Leasehold

Plant and

and

improvements

machinery

fittings

£

£

£

COST

At 1 January 2017

178,533

71,425

31,007

Additions

86,711

13,529

46,522

At 31 December 2017

265,244

84,954

77,529

DEPRECIATION

At 1 January 2017

11,902

17,508

6,435

Charge for year

42,281

17,363

12,960

At 31 December 2017

54,183

34,871

19,395

NET BOOK VALUE

At 31 December 2017

211,061

50,083

58,134

At 31 December 2016

166,631

53,917

24,572

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2017

-

3,139

284,104

Additions

3,900

27,344

178,006

At 31 December 2017

3,900

30,483

462,110

DEPRECIATION

At 1 January 2017

-

1,046

36,891

Charge for year

488

7,191

80,283

At 31 December 2017

488

8,237

117,174

NET BOOK VALUE

At 31 December 2017

3,412

22,246

344,936

At 31 December 2016

-

2,093

247,213

5.

STOCKS

31.12.17

31.12.16

£

£

Finished goods

11,791

8,140

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.17

31.12.16

£

£

Trade debtors

26,954

-

Other debtors

68,708

28,345

Prepayments and accrued income

17,074

92,227

112,736

120,572

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.17

31.12.16

£

£

Trade creditors

59,778

54,103

Amounts owed to group undertakings

1,772,782

758,241

Social security and other taxes

12,500

13,665

Other creditors

542,345

525,713

Accruals and deferred income

62,460

73,076

2,449,865

1,424,798

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.12.17

31.12.16

£

£

Within one year

92,125

92,125

Between one and five years

340,000

425,000

432,125

517,125

9.	RELATED PARTY DISCLOSURES

During the year the company received loans totalling £Nil (2016: £465,690) from S Novick, the sole director. As at 31 December 2017, S

Novick was owed £524,999 (2016: £524,999) by the company. The loan is interest free and repayable on demand.

The company is a wholly owned subsidiary of Farmstand Limited whose registered office is 42 Drury Lane, London, WC2B 5AJ, England.

Farmstand Limited does not prepare consolidated financial statements on the grounds it is a small company.