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Absolute Partnership Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2018

Redshield Business Solutions Limited
Chartered Accountants
Suite 3, 1 - 3 Warren Court
Park Road
Crowborough
East Sussex
TN6 2QX

Absolute Partnership Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 12

Absolute Partnership Limited

Company Information

Directors

T Attwood J M Carruthers

Registered office

Suite 3, 1 - 3 Warren Court Park Road Crowborough East Sussex TN6 2QX

Accountants

Redshield Business Solutions Limited Chartered Accountants Suite 3, 1 - 3 Warren Court Park Road Crowborough East Sussex TN6 2QX

Page 1

Absolute Partnership Limited

(Registration number: 07616521)
Balance Sheet as at 31 March 2018

	Note	2018 £	2017 £
Fixed assets
Intangible assets	4	175,000	225,000
Tangible assets	5	-	38,849
		175,000	263,849
Current assets
Debtors	6	141,071	469,597
Cash at bank and in hand		27,909	85,628
		168,980	555,225
Creditors: Amounts falling due within one year	7	(536,286)	(528,944)
Net current (liabilities)/assets		(367,306)	26,281
Total assets less current liabilities		(192,306)	290,130
Creditors: Amounts falling due after more than one year	7	(1,319,192)	(820,503)
Net liabilities		(1,511,498)	(530,373)
Capital and reserves
Called up share capital	8	5,844	2,317
Share premium reserve		2,435,535	2,435,535
Profit and loss account		(3,952,877)	(2,968,225)
Total equity		(1,511,498)	(530,373)

For the financial year ending 31 March 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge 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 in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 4 to 12 form an integral part of these financial statements.

Page 2

Absolute Partnership Limited

(Registration number: 07616521)
Balance Sheet as at 31 March 2018 (continued)

Approved and authorised by the Board on 30 November 2018 and signed on its behalf by:
 

.........................................

J M Carruthers
Director

The notes on pages 4 to 12 form an integral part of these financial statements.

Page 3

Absolute Partnership Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Suite 3, 1 - 3 Warren Court
Park Road
Crowborough
East Sussex
TN6 2QX
England

These financial statements were authorised for issue by the Board on 30 November 2018.

2	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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The Company's creditors agreed to the Company launching a voluntary arrangement on 6 March 2018. The Company agreed to sell the majority of its business effective from 1 January 2018, with the consideration being due in instalments over the next 3 years. The remainder of the business was sold effective from 1 March 2018 with the consideration due within 30 days of settlement.

The Company is therefore not a going concern and all assets have been written down to their net realisable value.

Page 4

Absolute Partnership Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

2	Accounting policies (continued)

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current 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.

The current income 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.

Tangible assets

Tangible assets are stated in the statement of financial position 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, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold improvements	5 years straight line
Plant and machinery	25% reducing balacne
Motor vehicles	25% reducing balance

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Page 5

Absolute Partnership Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

2	Accounting policies (continued)

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	10 years straight line
Development costs	5 years straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Page 6

Absolute Partnership Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

2	Accounting policies (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Page 7

Absolute Partnership Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

2	Accounting policies (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 25 (2017 - 29).

4	Intangible assets

	Goodwill  £	Internally generated software development costs  £	Total £
Cost or valuation
At 1 April 2017	1,200,000	318,857	1,518,857
Additions internally developed	-	60,414	60,414
At 31 March 2018	1,200,000	379,271	1,579,271
Amortisation
At 1 April 2017	975,000	318,857	1,293,857
Amortisation charge	(20,000)	40,414	20,414
Impairment	90,000	-	90,000
At 31 March 2018	1,045,000	359,271	1,404,271
Carrying amount
At 31 March 2018	155,000	20,000	175,000
At 31 March 2017	225,000	-	225,000

The aggregate amount of research and development expenditure recognised as an expense during the period is £Nil (2017 - £Nil).
 

Page 8

Absolute Partnership Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

4	Intangible assets (continued)

Impairment

Goodwill
The company has sold all of its business during the year, with the consideration due in instalments after the year end. The company is therefore not a going concern and all assets have been written down to their net realisable value. The amount of impairment loss included in profit or loss is £70,000 (2017 - £295,000).

Internally generated software development costs
The company has sold all of its business during the year, with the consideration due in instalments after the year end. The company is therefore not a going concern and all assets have been written down to their net realisable value. The amount of impairment loss included in profit or loss is £Nil (2017 - £189,066).

5	Tangible assets

	Land and buildings £	Motor vehicles  £	Other tangible assets £	Total £
Cost or valuation
At 1 April 2017	42,918	86,955	18,289	148,162
Additions	-	-	1,931	1,931
Disposals	-	(27,316)	-	(27,316)
At 31 March 2018	42,918	59,639	20,220	122,777
Depreciation
At 1 April 2017	42,918	52,237	14,158	109,313
Charge for the year	-	8,548	6,062	14,610
Eliminated on disposal	-	(1,146)	-	(1,146)
At 31 March 2018	42,918	59,639	20,220	122,777
Carrying amount
At 31 March 2018	-	-	-	-
At 31 March 2017	-	34,718	4,131	38,849

Included within the net book value of land and buildings above is £Nil (2017 - £Nil) in respect of short leasehold land and buildings.
 

Page 9

Absolute Partnership Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

6

Debtors

	2018 £	2017 £
Trade debtors	56,217	299,484
Prepayments	15,854	100,796
Other debtors	69,000	69,317
	141,071	469,597

7

Creditors

Creditors: amounts falling due within one year

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	9	104,666	185,040
Trade creditors		318,180	216,519
Taxation and social security		113,440	52,862
Accruals and deferred income		-	44,983
Other creditors		-	29,540
		536,286	528,944