**Company Registration No. 08145785 (England and Wales) Charity Commission Registration No. 1165903**
**THE PEOPLE’S MOSQUITO LIMITED**
**COMPANY LIMITED BY GUARANTEE UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2021**
## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE COMPANY INFORMATION**
**Trustees** Mark Hitchcock John Lilley Steven Manning Alan Pickford George Sharp **Secretary** Steven Manning **Company number** 08145785
**Charity Commission number** 1165903
**Registered office** 4 Chestnut Way East Goscote Leicester UK LE7 3QQ **Independent Examiner** Steven Cory 16 St Peters Way Norwich Norfolk NR10 3NS
## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE**
## **CONTENTS**
||**Page**|
|---|---|
|Chairman’s report|1 - 2|
|Report of the trustees|3 - 4|
|Independent examiner’s report|5|
|Statement of financial activities|6|
|Statement of comprehensive income|7|
|Balance sheet|8- 9|
|Notes to the financial statements|10 - 17|
## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE CHAIRMAN’S REPORT**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
As the World continues to emerge from the global Covid-19 pandemic, this has brought new opportunities and challenges to our Mosquito aircraft restoration to flight project. On a positive note we have seen the restarting of airshows to engage the public, but on a more challenging note the initial boom is now leading to inflation challenges not only for donations, but also in cost to rebuild the aircraft. This has affected the fundraising donation curve, but we have continued to grow and progress.
Following on from the success of our Operation Jericho campaign, we launched Operation Crossbow in 2021. We had decided to name each of our focus fundraising campaigns on WW2 operations that the Mosquito aircraft was involved in. Crossbow, as a reminder, was the allied campaign against the V-weapons, both the V-1 flying ‘doodlebug’ the first cruise missile, and V-2 the first ballistic missile. The Mossie provided a significant role in this operation, flying recon, bombing and strike missions. The aim of this campaign is to raise a total of £600,000 for the two halves of the fuselage shell. On the back of the Jericho campaign success, we divided this campaign into two £300,000 segments. Or one half of the fuselage shell per segment. To date we have raised over 50% of the first segment, a very decent sum.
When you compare this to the Jericho campaign it is clear that the fundraising growth curve has slowed down. This has been one of our challenges this past year. As the World reopens, all of us have enjoyed going out, taking holidays etc. Rather than being confined to home and having that disposable income to donate. In addition we are now starting to see the impact of global inflation affecting people's ability to donate. In addition, the cost of materials and labour have increased in the past year. This will affect the total build cost now to the project, adding an estimated 10-15% overall.
“Progress equals donation, which equals progress” is our simple strategy. Therefore, our fundraising strategy continues to be a combination of revenue and growth streams. That is, we are working on raising the funds via multiple avenues from one off direct donation, regular monthly donations, merchandise and sponsorship from high net worth individuals and aerospace companies being the main drivers.
Running in tandem is also our drive to grow our direct mailing list and also produce regular weekly updates. Our mailing list was over 6,000 people at the end of the fiscal year, and we see as we grow this list regular donations grow. Our aim is to raise regular donations to support two full-time engineers on the project, at the moment we can fund one. So to drive the manufacture of the fuselage shells we are focused as a whole team to grow this list. We target 10,000 on the list by the end of the next fiscal year.
Airshows are back! For the project, compared to similar aircraft restoration ventures, we will continue to attend airshows to engage the public and use PR to attract new supporters. Our aim commercially is make attendance at airshows viable, and overall profitable towards the objective of the restoration project. The margins though are not as good as from online sales and of course direct donations. This past year though has been very positive to re-engage with aviation fans and the supporters, proving face to face contact is vital and why we will continue to attend outside events. This year a growing team of airshow event leaders and volunteers led to many improvements to the air show stand. These improvements really lifted the overall professionalism of our project and revitalized the projection of the public. So my thanks to all of those involved to make this a success!
Retrotec, who have all the CAA approvals and certification for aircraft manufacturing, remains our core supplier, and with their CAA certification and experience the Charity is very confident that monies expensed delivers our objectives to a high standard. Of note this year is the work our supplier is doing to relocate their main base of manufacturing to a new facility. This facility houses our Mosquito project, and this year progress for our build has been affected again as the World reopens post pandemic. Again, availability of building materials and labour has led to some unexpected delays to our project build. However, both TPM and Retrotec have used this time to do many hours of drawing research to plan work packs and drawing trees for the manufacturing of the aircraft. In addition TPM has built up a good reserve of funding to progress manufacturing, due to kick start early autumn of 2022.
- 1 -
## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE CHAIRMAN’S REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
As all of you know the Trustees and Volunteers of TPM do so for the benefit of the project. We take no reward, other than seeing this aircraft being built. We operate a very lean model on costs to maximise every penny we receive. We have not only expanded our base of volunteers to support in many key areas, but also established a trading company for merchandise sales, called Wooden Wonder Trading Ltd (WWTL). This operates as a separate entity to The People’s Mosquito. Donations are also being paid to the charity in a consistent and healthy performance from the sales of WWTL.
Overall, the charity has moved forward in one of the most challenging years for any organisation. Progress on the build of the aircraft has been solid, and we can say we are continuing the remanufacturing of the first Mosquito aircraft in the UK for over 71 years.
.............................. John Lilley **Chairman & Managing Director** The People’s Mosquito Limited
Date: 31 August 2022
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## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 November 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
## **Objectives and aims**
The objective and aim of the charity is to return a De Havilland DH.98 Mosquito FB.VI to the skies above Britain, building this iconic aircraft in the United Kingdom for the first time in more than 71 years. Also to inform and educate the public and future generations on the Mosquito and its place in history, our moto being ‘to fly, to educate and to remember’. We aim to communicate to future generations the importance to the war effort of the Mosquito during World War Two and the unique design and engineering techniques that went into its production. At the same time we will be honouring and remembering those who designed, built, flew and maintained the type in all its roles and locations.
## **Financial review**
During the year ended 30 November 2021, the charity made £129,219 excess income over expenditure compared to £167,744 for the 2020 year end and £47,866 for the year ended 30 November 2019.
A wholly owned subsidiary company has been operated, Wooden Wondering Trading Limited, through which the sale of merchandise was performed during the year. The subsidiary’s surplus income over expenditure will be donated to the charity, allowing for sufficient funds to enable the subsidiary to operate. During the year ended 30 November 2021 the subsidiary donated £9,261 (2020: £7,714 and 2019: £7,808).
The net assets have increased from £44,705 as at 31 July 2017 to £117,893 as at 30 November 2018, £165,759 at 30 November 2019 and £560,925 at 30 November 2021. Included within the net assets is the value of the original De Havilland drawings and plans, the trustees valuing these as at 30 November 2021 at £100,000, however these form an important part of the project and there is no intention for these to be sold.
## **Reserves policy**
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at no less than the operating costs for a period of twelve months. The trustees consider reserves at a level that would cover operating costs for a twelve month period would enable other funding opportunities to be considered in the event of a significant fall in the current income streams and whilst enabling the charity to continue the current activities.
## **Structure, governance and management**
The organisation is a charitable company, limited by guarantee, having been incorporated on 17 July 2012 and registered with The Charity Commission on 7 March 2016. The company was established under a Memorandum of Association which details the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, the members are required to contribute an amount not exceeding £1 towards any liabilities.
## **Risk management**
The trustees have conducted a review of the major risks to which the charity is exposed and are monitored at least annually. Where appropriate, systems and or procedures have been established to mitigate the risks. Significant external risks to funding have resulted in the development of a strategic plan which allows for the diversification of funding. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions. Procedures are in place to ensure compliance with health and safety. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity.
- 3 -
## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE**
## **REPORT OF THE TRUSTEES (CONTINUED)**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
## **Trustees responsibilities in relation to the financial statements**
Company law required the charity trustees, who are also the directors of the company, to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Make judgements and estimates that are reasonable and prudent; and
- Prepare the financial statements on the going concern basis unless it is not appropriate to assume that the company will continue on that basis.
The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website.
## **Trustees**
The trustees who held office during the period and up to the date of signature of the financial statements were as follows:
Mark Hitchcock (Appointed 14 April 2022) John Lilley Steven Manning Alan Pickford George Sharp David Smith (Resigned 9 January 2022)
Approved by order of the Board of Trustees on 31 August 2022 and signed on its behalf by:
.............................. Alan Pickford **Trustee**
- 4 -
## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE**
## **INDEPENDENT EXAMINER’S REPORT TO THE BOARD OF TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF THE PEOPLE’S MOSQUITO LIMITED FOR THE YEAR ENDED 30 NOVEMBER 2021**
I report to the charity trustees (also its directors for the purpose of company law) on my examination of the accounts of the company for the year ended 30 November 2021.
This report is made solely to the Board of Trustees of The People’s Mosquito Limited, as a body. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than The People’s Mosquito Limited and its Board of Trustees as a body, for my work or for this report.
## **Responsibilities and basis of report**
As the charity’s trustees, in accordance with the requirements of the Companies Act 2006, it is your duty to ensure that The People’s Mosquito Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and result of The People’s Mosquito Limited. You consider that The People’s Mosquito Limited is exempt from the statutory audit requirement for the year.
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of your accounts as carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the directions given by the Charity Commission under section 145(5) (b) of the Charities Act 2011.
## **Independent examiner’s statement**
I confirm that I have the required skills and experience to carry out a competent examination of the accounts.
I have completed my examination and together with the information and explanations you have provided me, I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe, in any material respect:
- Accounting records were not kept in respect of the company as required by section 386 of the Companies Act 2006 or section 130 of the Charities Act: or
- The accounts do not accord with those records: or
- The accounts do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the accounts give a true and fair view which is not a matter considered a part of an independent examination: or
- The accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)).
I have no concerns and have no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
.............................. Steven Cory **Accountant**
Date: 31 August 2022 16 St Peters Way Norwich Norfolk NR10 3NS
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## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
|**Notes**
**2021**
**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
**Incoming resources**
**Voluntary income:**
Donations
**111,957**
**-**
**Activities:**
Merchandise and event ticket sales
**2,277**
**-**
Commissions received
**103**
**-**
**Investment income**
3
**1**
**-**
**Charitable activities:**
Club membership fees
**36,608**
**-**
**Total incoming resources**
**150,946**
**-**
**Resources expended**
**Costs of generating funds**
Cost of goods sold and other costs
**3,151**
**-**
**Charitable activities**
**17,349**
**-**
**Governance costs**
**1,227**
**-**
**Total resources expended**
**21,727**
**-**
**Net movement in funds**
4
**129,219**
**-**
**Reconciliation of funds**
Total funds brought forward
13
**333,503**
**-**
**Total funds carried forward**
13
**462,722**
**-**|**Total**
**funds**
**£**
**111,957**
**2,277**
**103**
**1**
**36,608**
**150,946**
**3,151**
**17,349**
**1,227**
**21,727**
**129,219**
**333,503**
**462,722**|**2020**
**Total**
**funds**
**£**
139,531
2,118
160
7
36,750|
|---|---|---|
|||178,566
2,231
7,441
1,150|
|||10,822|
|||167,744|
|||165,759|
|||333,503|
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## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE**
## **STATEMENT OF COMPREHENSIVE INCOME**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
|**Net movement in funds**
**Other comprehensive income**
Revaluation of De Havilland drawings and plans
**Total comprehensive income for the year**|**2021**
**£**
**129,219**
**(1,797)**
**127,422**|**2020**
**£**
167,744
100,000
267,744|
|---|---|---|
- 7 -
## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE BALANCE SHEET**
## **AS AT 30 NOVEMBER 2021**
|**Notes**
**Fixed assets**
Tangible assets
**6**
Investments
**7**
**Current assets**
Stocks
Debtors
**9**
Cash at bank and in hand
**Creditors: amounts falling due within one**
**year**
**10**
**Net current assets**
**Total assets less current liabilities**
**Creditors: amounts falling due after more**
**than one year**
**11**
**Net assets**
**Capital and reserves**
Unrestricted reserves
**13**
Revaluation reserve
**13**|**2021**
**£**
**500**
**39,992**
**36,897**
**77,389**
**5,015**|**£**
**501,661**
**1**
**501,662**
**72,374**
**574,036**
**(13,111)**
**560,925**
**462,722**
**98,203**
**560,925**|**2020**
**£**
1,300
26,182
6,916
34,398
30,458|**£**
429,562
1
429,563
3,940
433,503
-
433,503
333,503
100,000
433,503|
|---|---|---|---|---|
For the financial year ended 30 November 2021 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The trustees acknowledge their responsibilities for:
- (a) Complying with the requirements of Sections 386 and 387 of the Companies Act 2006 with respect to accounting records.
- (b) Preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit 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 charitable company.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 of the Companies Act 2006.
- 8 -
## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE BALANCE SHEET (CONTINUED)**
## **AS AT 30 NOVEMBER 2021**
These financial statements have been prepared and delivered in accordance with the special provisions of part 15 of the Companies Act 2006 relating to charitable small companies.
The financial statements were approved by the Board of Trustees and authorised for issue on 31 August 2022 and are signed on its behalf by:
.............................. Alan Pickford **Trustee**
**Company Registration No. 08145785**
- 9 -
**THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
## **1 Accounting policies**
## **Company information**
The People’s Mosquito Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 4 Chestnut Way, East Goscote, Leicester LE7 3QQ.
## **1.1 Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
## **1.2 Going concern**
These financial statements are prepared on the going concern basis. The trustees have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, after the balance sheet date, the UK continued to face challenges caused by Coronavirus, also the outbreak of war in Ukraine and increasing inflation.
In the wake of the Coronavirus, the war in Ukraine and increasing inflation the trustees have reviewed the financial impact on the UK and worldwide and, despite the ongoing challenges and related financial uncertainties, in the light of the cash reserves of the company, they consider that the company has adequate resources available to continue operations for the foreseeable future. However, in common with many organisations across the world, this situation cannot be guaranteed, any further impact from Covid-19 or the war in Ukraine cannot be predicted with certainty.
- 10 -
**THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
## **1 Accounting policies (Continued)**
## **1.3 Incoming resources**
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Donations and other income are recognised once there is a right to receive this income, it is probable that the economic benefits will be received and the amount can be measured reliably.
## **Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred, it is probable that a transfer of economic benefits will be required and the amount of the obligation can be measured reliably. Costs have been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **1.4 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
In the opinion of the directors, the airframes and jigs fair value is not materially different to the carrying value and therefore these assets have not been depreciated.
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, fittings and equipment
20% reducing balance
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.
## **1.5 De Havilland original drawings and plans**
The De Havilland original drawings and plans are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently these are measured at fair value at the reporting date. Changes in fair value are recognised in the balance sheet, revaluation reserve.
The total cost as at 30 November 2021 was £1,797, the fair value in the opinion of the trustees being £100,000.
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**THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
## **1 Accounting policies (Continued)**
## **1.6 Fixed asset investments**
Interests in subsidiary entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
## **1.7 Impairment of fixed assets**
At each reporting period end date, the company reviews the carrying amounts of its tangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
## **1.8 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
## **1.9 Cash at bank and in hand**
Cash at bank and in hand 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.
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**THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
## **1 Accounting policies (Continued)**
## **1.10 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.
## _**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 are classified according to the substance of the contractual arrangements entered into.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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 payments 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. Amounts 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.
## **1.11 Taxation**
The charity is exempt from corporation tax on its charitable activities. No tax charges were incurred in the year ended 30 November 2021 or previous year ended 30 November 2020.
## **1.12 Fund accounting**
Unrestricted funds can be used in accordance with charitable objectives at the discretion of the trustees.
## **1.13 Foreign exchange**
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the profit or loss.
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**THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
## **2 Employees**
The average monthly number of persons (including trustees) employed by the company during the year was nil (2020 - nil).
## **3 Investment income**
|**Investment income**|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Deposit account interest|**1**|7|
## **4 Net movement in funds**
The net movement in funds is stated after charging:
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Depreciation|**825**|859|
## **5 Trustees remuneration and benefits**
No trustees received any remuneration during the year ended 30 November 2021 or previous year ended 30 November 2020. Travel, subsistence and meeting costs were reimbursed amounting to £nil (2020: £nil).
## **6 Tangible fixed assets**
|**De Havilland**
**drawings and**
**plans**
**Plant and**
**machinery etc**
**£**
**£**
**Cost or valuation**
At 1 December 2020
**100,000**
**333,693**
Additions
**1,797**
**72,924**
Revaluation
**(1,797)**
**-**
At 30 November 2021
**100,000**
**406,617**
**Depreciation and impairment**
At 1 December 2020
**-**
**4,131**
Depreciation charged in the year
**-**
**825**
At 30 November 2021
**-**
**4,956**
**Carrying amount**
At 30 November 2021
**100,000**
**401,661**
At 30 November 2020
100,000
329,562|**Total**
**£**
**433,693**
**74,721**
**(1,797)**|
|---|---|
||**506,617**|
||**4,131**
**825**|
||**4,956**|
||**501,661**|
||429,562|
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## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
|**7**|**Fixed asset investments**|||
|---|---|---|---|
|||**2021**|**2020**|
|||**£**|**£**|
||Shares in group undertakings and participating interests|**1**|1|
## **Fixed asset investments not carried at market value**
Fixed asset investments relate to unlisted securities which have been valued at cost.
## **Movements in fixed asset investments**
|**Movements in fixed asset investments**||
|---|---|
||**Shares in group**|
||**undertakings**|
||**£**|
|**Cost or valuation**||
|At 1 December 2020 & 30 November 2021|**1**|
|**Carrying amount**||
|At 30 November 2021|**1**|
|At 30 November 2020|1|
- **8 Subsidiaries**
These financial statements are separate company financial statements for The People’s Mosquito Limited.
Details of the company's subsidiaries at 30 November 2021 are as follows:
|**Name of undertaking**|**Address**|**Class of**|**% Held**|
|---|---|---|---|
|||**shares held**|**Direct**|
|Wooden Wonder Trading Limited|England|Ordinary|100|
||and|||
||Wales|||
The aggregate capital and reserves and the result for the year of the subsidiaries noted above were as follows:
|**Name of undertaking**|**Capital and**|**Profit/(Loss)**|
|---|---|---|
||**Reserves**||
||**£**|**£**|
|Wooden Wonder Trading Limited|1|-|
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## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
|**9**
**Debtors: amounts falling due within one year**
Amounts owed by group undertakings
Other debtors
**10**
**Creditors: amounts falling due within one year**
Bank loans
Other creditors
**11**
**Creditors: amounts falling due after more than one year**
Bank loans
Creditors which fall due after five years are as follows:
Payable by instalments|**2021**
**£**
**27,364**
**12,628**
**39,992**
**2021**
**£**
**1,889**
**3,126**
**5,015**
**2021**
**£**
**13,111**
**13,111**
**2021**
**£**
**13,111**
**13,111**|**2020**
**£**
20,718
5,464|
|---|---|---|
|||26,182|
|||**2020**
**£**
-
30,458|
|||30,458|
|||**2020**
**£**
-|
|||-|
|||**2020**
**£**
-|
|||-|
## **12 Related party transactions**
## **Transactions with related parties**
During the year the company entered into the following transactions with related parties:
During the year Wooden Wonder Trading Limited, a wholly owned subsidiary, was provided with a loan by the company, the balance of which at the year end was £27,364 (2020: 20,718), which is repayable on demand and interest free.
During the year Wooden Wonder Trading Limited made donations to the company totalling £9,261 (2020: £7,714).
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## **THE PEOPLE’S MOSQUITO LIMITED COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 NOVEMBER 2021**
## **13 Statement of movements on reserves**
|**Statement of movements on reserves**||||
|---|---|---|---|
||**Revaluation**|**Unrestricted**||
||**reserve**|**reserves**||
||**£**|**£**||
|Balance at 1 December 2020|**100,000**|**333,503**||
|Net movement in funds|-|**129,219**||
|Revaluation of De Havilland drawings and plans|**(1,797)**||**-**|
|Balance at 30 November 2021|**98,203**|**462,722**||
## **14 Events after the reporting date**
After the balance sheet date, the UK continued to face challenges caused by Coronavirus, also the outbreak of war in Ukraine and increasing inflation.
In the wake of the Coronavirus, the war in Ukraine and increasing inflation the trustees have reviewed the financial impact on the UK and worldwide and, despite the ongoing challenges and related financial uncertainties, in the light of the cash reserves of the company, they consider that the company has adequate resources available to continue operations for the foreseeable future. However, in common with many organisations across the world, this situation cannot be guaranteed, any further impact from Covid-19 or the war in Ukraine cannot be predicted with certainty.
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