REGISTERED NUMBER: 09615843 (England and Wales)

Active Wear Limited

Unaudited Financial Statements for the Year Ended 30 June 2018

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

M Rabate

REGISTERED OFFICE:

26 Curtain Road

London

England

EC2A 3NY

REGISTERED NUMBER:

09615843 (England and Wales)

FIXED ASSETS

Intangible assets

4

10,566

10,431

Tangible assets

5

1,438

-

12,004

10,431

CURRENT ASSETS

Stocks

126,000

-

Debtors

6

25,382

1,666

Cash at bank

262,323

451

413,705

2,117

CREDITORS

Amounts falling due within one year

7

(62,501

)

(155,046

)

NET CURRENT ASSETS/(LIABILITIES)

351,204

(152,929

)

TOTAL ASSETS LESS CURRENT LIABILITIES

363,208

(142,498

)

CREDITORS

Amounts falling due after more than one year

8

(114,914

)

(42,422

)

NET ASSETS/(LIABILITIES)

248,294

(184,920

)

CAPITAL AND RESERVES

Called up share capital

131

100

Share premium

701,431

-

Convertible loan reserve

-

12,193

Retained earnings

(453,268

)

(197,213

)

248,294

(184,920

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2018 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges her 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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the director on 31 March 2019 and were signed by:

M Rabate - Director

1.	STATUTORY INFORMATION

Active Wear 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 company's financial statements have been prepared on a going concern basis on the grounds that current and future sources of funding or

support will be more than adequate for the company's needs. In assessing going concern, the director has a reasonable expectation that the

company will continue as a going concern and is able to meet all of its obligations as they fall due for a minimum of 12 months from the date

of approval 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 when the significant risks and rewards of ownership have passed to the buyer.

Intangible assets

Research and development costs

Expenditure on research activities is recognised within profit or loss as an expense is incurred.

Development costs are capitalised only where they can be identified with a specific product or project that will generate probable future

economic benefits, the costs can be reliably measured and all the criteria under FRS 102 are met. They are amortised on a straight line basis

to profit or loss over their estimated useful life. All other development costs are expensed as incurred.

Capitalised development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance is

written off to profit or loss.

Capitalised development costs are not treated as a realised loss for the purpose of determining the company's distributable profits as the costs

meet the conditions permitting them to be treated as an asset under FRS 102.

All intangible assets are considered to have a finite useful life. The estimated useful lives are as follows:

Website - Over 3 years on a straight line basis

At each reporting date the company assesses whether there is any indication of impairment. If such indications 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 profit or loss.

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 over the estimated useful economic lives, as follows -

- Computer equipment - Over 3 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 weighted average

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. In the case of manufactured stocks and work in progress, cost includes an appropriate share of overheads

based on normal operating capacity. 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.

Foreign currencies

Transactions in foreign currencies are translated to the company's functional currency at the foreign exchange rate ruling at the date of the

transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional

currency at the foreign exchange rate ruling at that date.Foreign exchange differences arising on translation are recognised in profit or loss.

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. Lease incentives received are recognised

in profit and loss over the term of the lease as an integral part of the total lease expense.

Liabilities and equity

Convertible debt

On the initial issue of convertible debt, the company allocates the proceeds between the liability component and the equity component.To

make the allocation, the company first determines the amount of the liability component as fair value of a similar liability that does not have

a conversion feature.The residual amount is allocated as the equity component. Any transaction costs are allocated between the debt

component and the equity component on the basis of their relative fair values. The liability component of the instrument is subsequently

measured on an amortised cost basis. Any initial allocations are not revised in subsequent periods.

3.	STAFF NUMBERS

The average number of employees during the year was 5 (2017 - NIL ) .

4.	INTANGIBLE FIXED ASSETS

Website

£

COST

At 1 July 2017

12,124

Additions

4,988

At 30 June 2018

17,112

AMORTISATION

At 1 July 2017

1,693

Amortisation for year

4,853

At 30 June 2018

6,546

NET BOOK VALUE

At 30 June 2018

10,566

At 30 June 2017

10,431

5.	TANGIBLE FIXED ASSETS

Computer

equipment

£

COST

Additions

1,525

At 30 June 2018

1,525

DEPRECIATION

Charge for year

87

At 30 June 2018

87

NET BOOK VALUE

At 30 June 2018

1,438

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.18

30.6.17

£

£

Trade debtors

5,099

-

Other debtors

20,283

1,316

Prepayments and accrued income

-

350

25,382

1,666

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.18

30.6.17

£

£

Trade creditors

560

12,273

Social security and other taxes

1,938

-

Other creditors

60,003

142,773

62,501

155,046

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.6.18

30.6.17

£

£

Convertible loan

-

42,422

Other creditors

114,914

-

114,914

42,422

9.	OPERATING LEASE COMMITMENTS

At 30 June 2018 the company had future minimum lease payments under non-cancellable operating leases as follows:

30.6.18

30.6.17

£

£

Within one year

16,800

-

16,800

-

10.	RELATED PARTY TRANSACTIONS