Resolve

Interim Company Report 2012 Saint Olaves Grammar School

Link Teacher: John Greenwood Company Advisor: William Lawes Young Enterprise Area Board: Bromley

Contents
Executive Summary Message to Share Holders & Company Structure Product: Leaflet designing, printing and distribution Product: Rebind Ring Binder Department Reports Financial Accounts: Balance Sheet, Profit & Loss Account Learning Process 1 2 3 4 5 6-7 8-9

Executive Summary
Mission statement: Resolve is a versatile company with various areas of interest. We are primarily a stationery company, which strives to provide innovative solutions to everyday problems through our range of Intelligent Stationery. We endeavour to make people rethink the way they use stationery and ensure that Resolve is associated with creative and high quality products. Products and Services: Leaflet designing, printing and distribution. Rebind -Hole Punching Ring binder. Summary of Interim Financial Results: Profit After Tax Share Capital Return on Share Capital YE Corporation Tax Provision

320.54 480.00 67% 35.62

YE VAT Provision 58.37 Resolve has had a very successful financial year so far with a total profit of 320.54. We have provided a substantial return of 67% on initial share capital. It should also be noted that unlike other companies, Resolve paid 245 in registration and insurance fees as our school were unable to provide complete financial support. We also have unsold stock in the form of materials of 64.61 after we manufactured the initial batch of folders ourselves. We have produced two main products which promote environmental awareness, solve genuine issues with existing stationery products and have put in a great deal of effort in order to achieve our financial results.

Message to Shareholders: We started the year full of ambition, energy and ideas ready to be put to the test. The company has since made rapid progress, enjoying incredible success whilst overcoming a multitude of challenges. The year has been a series of memorable moments, which represent key milestones in the development of the company. The first board meetings were crucial in determining the nature of the company where we decided to become a stationery company, focusing on solving issues with existing stationery products. Other highlights include pitching leaflets to businesses throughout Bromley, delivering the leaflets themselves a fortnight before Christmas, and manufacturing by hand the initial batch of folders. These memorable moments were also accompanied by a number of challenges through out the year, which have shaped our company and reiterate the learning process Young Enterprise emphasised. The team have been dedicated throughout the year in order to overcome these obstacles, helping us to become closer and achieve success. Resolve has developed into a determined and highly profitable organisation, with huge potential for future growth and are attempting to attract the attention of larger organisations. It has been immensely satisfying working in a team with such devoted and capable members. The Company has grown from humble beginnings into an accomplished and hugely profitable business and none of this would have been possible with out the efforts and guidance of Mr John Greenwood and Mr William Lawes. Yours Faithfully Aashish Panchasara
Managing Director

Company Structure:
Research Director Company Secretary

Finance Director

Sales Director

Deputy Sales Director

Marketing Director Human Resources & Marketing Operation Director

IT & Communications Director

Leaflet designing, printing and distribution

Product 1 The Company decided early on that we needed to produce an efficient product to raise some initial capital before expanding with our stationery product, having used 245 in share capital to cover registration costs. We swiftly chose to produce leaflets promoting an eco-friendly message and sell advertising space upon them to local business. In order to ensure the plausibility of our idea, we began pitching to local business throughout Bromley during October half term. This acted as our market research, allowing us to gauge interest for the product and set prices accordingly. We received positive responses from many of the businesses who were interested in promoting their products for the Christmas market as well as the environmental message. The sales team, having gained contact details from the market research, began emailing and calling interested business in order to gain an idea for the style of their advert and set prices based upon the position of the advert, distribution area and the number of leaflets. We then began to contact printers to get a quote for an order of 10,000 A5 double sided colour leaflets. Our search was primarily internet based which produced a broad spectrum of results, which were narrowed down by pricing, delivery costs and relevant offers. The marketing team having designed the adverts contacted the printer and were able to significantly reduce prices and remove delivery costs as they were based in Orpington. We finally delivered 10,000 A5 leaflets on foot two weeks before Christmas to households through out Bromley. The Company sold 466 worth of advertising space to two companies, making a gross profit of 319. Following on from this success we decided to continue selling advertising space on leaflets and have recently take a 400 deposit on a new batch of leaflets for a Construction company based in West Wickham. This was an extremely profitable and successful venture which put Resolve into a strong financial position and enabled the company to expand their Stationery products.

Rebind- Hole punching ring binder

Product 2
A problem every Sixth former has encountered within a lesson is not being able to file sheets of paper immediately as they do not have a hole punch to hand and ultimately misplace the sheets. This is an issue which can be extended beyond the classroom, to many businesses which have to keep hard copies of their accounts and other important documents and without a hole punch are often at a loss. The team then conducted a substantial amount of Market research in order to gauge interest for the product, both from Sixth formers and the wider public. We received large amounts of positive feedback, with the majority of people willing to pay up to 6 for the product and we began to take pre-orders for the product. The team were able to easily relate to the issue and began brainstorming upon how the product would work. Our IT director then produced a number of CAD designs and we began to construct prototypes within the Design Technology workshop, improving each time on our previous designs, until we felt we had produced the best design with the resources available. The entire team then began to contact manufacturers in order to discuss the feasibility of our designs and the costs. We approached a wide range of manufacturers both within the UK and abroad with over 20 companies based in China and Hong Kong, although discussions were initially unsuccessful due to financial reasons, we received much positive feedback regarding our product and professionalism .It was clear that these discussions would take time and so we to attempted to produce the first batch of 100 folders ourselves, creating a production line where each member of the team would carry out a different process, however it soon became clear that we would not be able to make them to high enough standard ourselves and we learnt a lot from this experience. The team continued discussions and decided that we could not pursue foreign manufacturers as our budget was simply too low and many simply did not have the capabilities to produce at an affordable price. Most recently the company had a meeting with a keen manufacturer leading to the production of a sample and we are now in negotiations over prices and production methods. The sample has generated further interest with many more orders now coming in and we have set up a website to take these orders. This has been an excellent learning experience for the entire team, demonstrating the difficulties with getting an idea into production and we have developed a wide range of skills for the future.

Department Reports
Human Resources:
All Company members were from Saint Olaves Grammar School, as a result the company was able to communicate with each other on a daily basis and a private Facebook group was set up allowing constant communication and gave the opportunity for members to voice their opinion with the entire team. Our IT director promptly set up company email accounts for individual members, allowing for cohesive discussions with external firms. The Company also had regular meetings every Monday and once a fortnight with our Business advisor, with generally full attendance and any absences explained. Additional meetings were also easily arranged when major developments occurred. Our dedicated company secretary took detailed notes of each meeting, which meant that members knew exactly what needed to be done before the next meeting. Early on two of our members felt that they would not able to make the full commitment to the company and stepped down, allowing us to take on new members who added much to the company. Further down the line the company had issues regarding members not taking on their full responsibilities and the company collectively decided to dismiss them. This was an extremely difficult decision, which provided a unique experience in dealing with personal issues.

Sales & Marketing:

Our Sales and Marketing strategies were crucial to Resolves success with both products. We took the traditional door to door salesman approach with regards to the leaflets, pitching to individual businesses throughout Bromley, to convince them that they were supporting the environment and promoting their products by purchasing advertising space, we took a formal approach using Ipads to display the designs of the leaflet giving a modern image. With regards to the folders, many people were interested simply on the basis of the idea and the launch of the website led to further interest and many more orders. We chose to produce and individual logo for the Folders in order to create a recognisable brand image and that would clearly associate the company with the product. Company Name: All members of the group felt it was suitable name which reflected the challenges we had overcome and our determined nature.

Financial Accounts
Company Accounts for Resolve
Balance Sheet:
Current Assets: Stock Debtors YE VAT Owed * Cash at Bank Cash in Hand TOTAL A Less: Current Liabilities: Bank Overdraft Loans Creditors YE Corporation Tax YE VAT Due TOTAL B BALANCE (C) Represented by: Issued Share Capital: 480 shares at 1 Profit & Loss Account * Shareholders' Funds (D) Note: The total at C should equal the total at D If the company has not liquidated at the time of the Company Report, this document must be signed by a third party, such as an Adviser, certifying the accuracy of the figures I have examined the accounts of the company and agree that the above figures are an accurate representation of the company's position. * Please note that at the end of the year Young Enterprise can not refund tax owed to companies which means that your profits may be overstated if the balance sheet shows that there is YE VAT owed to your company Signed: (Adviser) Date: Print Name: 480.00 320.54 800.54 0.00 0.00 20.44 35.62 58.37 114.43 800.54

As of 7-Apr-2012
64.61 240.00 0.00 613.36 -3.00 914.97

Company Accounts for Resolve

Profit and Loss Account:
Current Rate of Corporation Tax

As of 7-Apr-2012

10%

A B C D E Sales Purchases Production Wages Closing Stock Cost of Sales (B + C - D) (A - E) Gross Profit F G H I J Salaries, commissions and Bonuses Stationery Rent & Hire Miscellaneous Expenditure Registration Fee Total Expenses (F + G + H + I + J) Gross Profit Less Total Expenses Operating Profit (or Loss) Miscellaneous Income Net Profit (or Loss) 0.00 5.00 0.00 2.67 204.17 211.61 2.50 64.61

517.50

149.50 368.00

211.84 156.16 200.00 356.16

Net Profit Brought Down LESS Corporation Tax Payable to Young Enterprise Profit after Tax * 356.16 35.62 320.54

* Please note that at the end of the year Young Enterprise can not refund tax owed to companies which means that your profits may be overstated if the balance sheet shows that there is YE VAT owed to your company

Learning Process
Opening and Maintaining A Company: The members of the team have learnt the
key principles of how to open, maintain and develop a company in a sustainable fashion.

Working within a team: We have learnt the significance of working cohesively in

order to get the very best out of the company and the individual members.

Targets and Aims: Early we learnt the importance of setting deadlines and targets
for the entire company, to demonstrate what we were working towards and to ensure members worked efficiently. If deadlines were not met then the team learnt that extra resources were needed in this area and other members would step in to help meet the next deadline.

Communication: We have learnt the value Communication within a company as it

allows any issues to be swiftly identified and addressed.

Organisation: Time Management on a personal level was key to the success of the
company, where members were managing both academic pressures and keeping up with company deadlines.

Personal Challenges: All members of the group have learnt the importance of
every member pulling their weight and the difficult decision of dismissing an associate who was unable to fulfil their responsibilities.

Dealing with the Public: The Company learnt how to work with members of the
public they had previously not met and the importance of becoming respectable ambassadors for the company during meetings and negotiations with manufacturers and businesses.

Product Development: The members of the company have learnt the difficulties
associated with developing a product and getting it into production, both in terms of a producing a working design which was also affordable and negotiating production times and pricing.

Confidence in Addressing Issues: The team learnt that once issues had been
identified it was crucial that the team had the confidence to address them swiftly. It was also vital that the members understood their strengths and weaknesses and were able to choose areas of work accordingly in order to maximise efficiency.

Financial Accounts: The Company learnt the significance and benefits of keeping
accurate and detailed accounts, the members of the team have learnt a great deal about how to read and understand accounts and these are skills they will undoubtedly use in the future.

Learning Process
Evaluation:
Whilst the company has enjoyed many areas success, it is crucial for the company to assess the failures and disappointment that took place. Our first stationery product was a malleable pen grip, which could be used to produce a grip for any pen. A significant amount of time and resources wee spent on developing the idea and it soon became clear that there were a number of health and safety issues. These could have been identified much earlier on and the company would have had more time and resources to develop our other ideas and products. However through the development of this product we were able to create a relationship with the Design Technology department and suppliers that we benefited from in the development of our other products. The Company later realised the necessity of picking members who were committed to the Company and would fulfil their responsibilities. The Company required absolute dedication in order to set up, maintain and develop the Company during the early stages. The decision to dismiss uncommitted members was very difficult and we learnt a lot from this experience. It also soon became clear that members were under the most stress when having to also manage academic commitments and in the future this could be addressed by setting deadlines around academic pressures.

Future Aspirations:
The entire group have greatly benefited and enjoyed the complete process and the unique experience of running a company. Resolve has many future ambitions and prospects: The company aims to initially manufacture the Rebind ring binder within the UK, however in the future we plan to go abroad where the reduced costs will allow the company to further develop the product. We aim to begin discussions with larger stationery retailers about selling the product within their stores and financial assistance with regards to large scale manufacturing. Resolve plan to further develop their range of Intelligent Stationery, by identifying and solving further issues with existing stationery. Resolve also plan to maintain their leaflet department and continue to sell advertising space as a source of revenue. Resolve intend to extend the idea of solving everyday problems with their products beyond their range of stationery, into many other aspects of school life.