TECHNOLOGICAL INNOVATIONS UK LIMITED
COMPANY INFORMATION
Director
Mr R A Van Meeuwen
Secretary
Mr R A Van Meeuwen
Company number
03529864
Registered office
WeWork Building
Room 05125
London
EC2R 8EJ
Auditor
WSM Advisors Limited
Connect House
133-137 Alexandra Road
Wimbledon
London
SW19 7JY
TECHNOLOGICAL INNOVATIONS UK LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 18
TECHNOLOGICAL INNOVATIONS UK LIMITED
STRATEGIC REPORT
For the year ended 30 June 2021

The director presents the strategic report for the year ended 30 June 2021.

Fair review of the business

The results for the year and the financial position at the year end were considered satisfactory by the director.

Principal risks and uncertainties

A robust assessment of the principal risks and uncertainties and the potential impact on the business is continuously reviewed by the director.

 

The company continues to monitor and take actions to manage these risks.

 

The key risks identified are market and competition risks, as the company operates in a competitive and challenging market. The director is focussed on ensuring that the company's brand remains high profile in its market and that it offers a valuable and cost effective service to its customers.

 

The director has also considered key risks arising from a variety of possible Brexit scenarios. The potential loss of access and permissions to the EU is considered to be one of the most significant. The company has taken steps to mitigate the potential impact.

Development and performance

The director considered the company's profitability, cash flows and key financial ratios satisfactory and encouraging.

 

The company's position at the year end remains strong as indicated by the balance sheet position.

 

The director expects continued growth in the foreseeable future.

Key performance indicators

The key measures that are used to assess the performance of the company are as follows:

 

Total revenue for the year decreased by 40.0% from the previous year (2020 turnover decreased by 3.8% on previous year). A significant component of revenue is from Technological Innovations EMEA Group for entrepreneurial activities determined by reference to group residual profits which were lower than in the previous period.

 

The gross profit margin was 90.6% (2020: 84.2%) an increase of 6.4% from the previous year.

 

The net asset value per share at the year end was £65 (2020: £116) a decrease of £51 from the previous year.

 

The current assets as a % of current liabilities (quick ratio) was 1.70, an increase of 6% from the previous year, 1.60.

On behalf of the board

Mr R A Van Meeuwen
Director
30 May 2022
- 1 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
DIRECTOR'S REPORT
For the year ended 30 June 2021

The director presents his annual report and financial statements for the year ended 30 June 2021.

Principal activities

The principal activity of the company continued to be that of distribution of remote control audio, visual and lighting systems.

Director

The director who held office during the year and up to the date of signature of the financial statements was

Mr R A Van Meeuwen
Results and dividends

Ordinary dividends were paid amounting to £3,840,000. The director does not recommend payment of a further dividend.

Future developments

The director expects the company to continue the current growth strategy and to show an increase in turnover in future periods.

Auditor

In accordance with the company's articles, a resolution proposing that WSM Advisors Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as the director is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the director has taken all the necessary steps which ought to have been taken as director to make himself aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr R A Van Meeuwen
Director
30 May 2022
- 2 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
For the year ended 30 June 2021

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

- 3 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TECHNOLOGICAL INNOVATIONS UK LIMITED
Opinion
- 4 -

We have audited the financial statements of Technological Innovations UK Limited (the 'company') for the year ended 30 June 2021 which comprise the Statement of Comprehensive Income, the Statement Of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

 

In our evaluation of the director's conclusions, we considered the risks associated with the company’s business model, including effects arising from macro-economic uncertainties such as Covid-19, and analysed how those risks might affect the company’s financial resources or ability to continue operations over the period of at least twelve months from the date when the financial statements are authorised for issue. In accordance with the above, we have nothing to report in these respects.

 

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the company will continue in operation.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

TECHNOLOGICAL INNOVATIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TECHNOLOGICAL INNOVATIONS UK LIMITED

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the director's report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

- 5 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TECHNOLOGICAL INNOVATIONS UK LIMITED

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line

with our responsibilities, outlined above, to detect materials misstatements in respect of irregularities, including fraud.

The extent to which our procedures are capable of detecting irregularities is detailed below.

 

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements

(including the risk of override of controls) and determined the principal risks were related to management bias in

accounting estimates and posting inappropriate journal entries to manipulate the value of the company's assets.

 

Our tests included agreeing the financial statement disclosures to underlying supporting documents where relevant,

enquiries with management as to the risks of non-compliance and any instances thereof, challenging assumptions and

judgements made by management and identifying and testing journal entries, in particular journal entries with unusual

account combinations. Our audit procedures focused on laws and regulations which could give rise to a material

misstatement in the financial statements, including, but not limited to, the Companies Act 2006.

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising

that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting such a

misstatement resulting from error, as fraud may involve deliberate concealment by, for example, forgery,

misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further

removed non-compliance with laws and regulations is from the events and transactions reflected in the financial

statements, the less likely we are to become aware of it.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://

www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to him in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Marsh (Senior Statutory Auditor)
for and on behalf of WSM Advisors Limited
15 June 2022
Chartered Accountants
Statutory Auditor
Connect House
133-137 Alexandra Road
Wimbledon
London
SW19 7JY
- 6 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2021
2021
2020
Notes
£
£
Revenue
7,904,128
12,742,928
Cost of sales
(740,495)
(2,012,481)
Gross profit
7,163,633
10,730,447
Administrative expenses
(5,201,594)
(5,970,672)
Operating profit
3
1,962,039
4,759,775
Investment income
6
-
0
10,661
Finance costs
7
(11,637)
(12,032)
Profit before taxation
1,950,402
4,758,404
Taxation
8
(373,835)
(918,322)
Profit for the financial year
1,576,567
3,840,082

The income statement has been prepared on the basis that all operations are continuing operations.

- 7 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
STATEMENT OF FINANCIAL POSITION
As at 30 June 2021
2021
2020
Notes
£
£
£
£
Fixed assets
Property, plant and equipment
9
1,039,487
1,172,930
Current assets
Trade and other receivables
10
4,168,117
10,617,491
Cash at bank and in hand
466,076
138,008
4,634,193
10,755,499
Current liabilities
11
(2,733,434)
(6,714,800)
Net current assets
1,900,759
4,040,699
Total assets less current liabilities
2,940,246
5,213,629
Provisions for liabilities
(566)
(10,516)
Net assets
2,939,680
5,203,113
Equity
Called up share capital
15
45,000
45,000
Retained earnings
2,894,680
5,158,113
Total equity
2,939,680
5,203,113
The financial statements were approved and signed by the director and authorised for issue on 30 May 2022
Mr R A Van Meeuwen
Director
Company Registration No. 03529864
- 8 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2021
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 July 2019
45,000
5,518,031
5,563,031
Year ended 30 June 2020:
Profit and total comprehensive income for the year
-
3,840,082
3,840,082
Dividends
-
(4,200,000)
(4,200,000)
Balance at 30 June 2020
45,000
5,158,113
5,203,113
Year ended 30 June 2021:
Profit and total comprehensive income for the year
-
1,576,567
1,576,567
Dividends
-
(3,840,000)
(3,840,000)
Balance at 30 June 2021
45,000
2,894,680
2,939,680
- 9 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
STATEMENT OF CASH FLOWS
For the year ended 30 June 2021
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
5,564,733
5,480,516
Interest paid
(11,637)
(12,032)
Income taxes paid
(952,659)
(960,809)
Net cash inflow from operating activities
4,600,437
4,507,675
Investing activities
Purchase of property, plant and equipment
(264,985)
(6,154)
Proceeds on disposal of property, plant and equipment
79
500
Interest received
-
0
10,661
Net cash (used in)/generated from investing activities
(264,906)
5,007
Financing activities
Payment of finance leases obligations
(167,463)
(186,593)
Dividends paid
(3,840,000)
(4,200,000)
Net cash used in financing activities
(4,007,463)
(4,386,593)
Net increase in cash and cash equivalents
328,068
126,089
Cash and cash equivalents at beginning of year
138,008
11,919
Cash and cash equivalents at end of year
466,076
138,008
- 10 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2021
1
Accounting policies
Company information

Technological Innovations UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is WeWork Building, Room 05125, London, EC2R 8EJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) 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.

1.2
Going concern

At the time of approving the financial statements, the truedirector has undertaken an assessment of the adequacy of the resources available to the company as well as the expected support to businesses available from the government measures in place through the period of disruption caused by coronavirus. The director has a reasonable expectation the company has adequate resources to continue in operational existence for the foreseeable future accordingly continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue
- 11 -

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business and is shown net of discounts (if any) and VAT.

 

Commission earned on providing distribution agency services is recognised when the sale is contractually concluded by the principal or in the period or periods when the service is provided, if later. Commission is recognised at fair value which takes account of contract cancellations and credits when these are accepted by the principal.

 

Income from provision of strategic management services to other group companies is recognised by reference to the residual profits of the group for an accounting period such that any excess over the agreed benchmark operating return is shown as revenue in the company accounts for that period. Contributions to group profits for any shortfall in the agreed benchmark operating return are invoiced to the company and included as a cost in the trading account.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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:

Land and buildings Leasehold
Over the term of the lease
Aircraft
6% per annum straight line
Fixtures & Fittings
20% per annum straight line
Plant and machinery
33% per annum straight line

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.

TECHNOLOGICAL INNOVATIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2021
1
Accounting policies
(Continued)
1.5
Impairment of non-current 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.

1.6
Cash and cash equivalents

Cash and cash equivalents 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.

1.7
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 statement of financial position 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 trade and other receivables 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

- 12 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2021
1
Accounting policies
(Continued)
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

- 13 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2021
1
Accounting policies
(Continued)
1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Leases

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.12
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 profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

- 14 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2021
3
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
19,437
128,988
Fees payable to the company's auditor for the audit of the company's financial statements
19,500
19,400
Depreciation of owned property, plant and equipment
270,323
107,561
Depreciation of property, plant and equipment held under finance leases
-
0
174,145
Loss/(profit) on disposal of property, plant and equipment
128,025
(500)
Operating lease charges
361,371
91,689

Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £19,437 (2020 - £128,988).

4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2021
2020
Number
Number
Sales
23
23
Administration
3
3
Technical
1
1
Executive
2
-
Total
29
27

Their aggregate remuneration comprised:

2021
2020
£
£
Wages and salaries
3,376,494
3,673,795
Social security costs
434,202
472,203
Pension costs
100,169
130,553
3,910,865
4,276,551
5
Director's remuneration
2021
2020
£
£
Remuneration for qualifying services
268,000
268,000
Remuneration disclosed above comprises amounts paid to the sole director of the company.
- 15 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2021
6
Investment income
2021
2020
£
£
Interest income
Interest receivable from group companies
-
0
10,661

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
-
0
10,661
7
Finance costs
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
102
57
Other finance costs:
Interest on finance leases and hire purchase contracts
11,532
11,696
Other interest
3
279
11,637
12,032
8
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
383,785
953,667
Deferred tax
Origination and reversal of timing differences
(9,950)
(35,345)
Total tax charge
373,835
918,322
- 16 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2021
8
Taxation
(Continued)

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2021
2020
£
£
Profit before taxation
1,950,402
4,758,404
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
370,576
904,097
Tax effect of expenses that are not deductible in determining taxable profit
78,961
67,749
Permanent capital allowances in excess of depreciation
(65,752)
(18,179)
Deferred tax adjustment
(9,950)
(35,345)
Taxation charge for the year
373,835
918,322
9
Land and buildings Leasehold
Aircraft
Fixtures & Fittings
Plant and machinery
Total
£
£
£
£
£
Cost
At 1 July 2020
24,442
2,902,658
396,349
179,927
3,503,376
Additions
-
0
122,449
47,277
95,259
264,985
Disposals
(24,442)
-
0
(291,885)
(142,169)
(458,496)
At 30 June 2021
-
0
3,025,107
151,741
133,017
3,309,865
Depreciation and impairment
At 1 July 2020
22,695
1,958,872
293,879
55,001
2,330,447
Depreciation charged in the year
1,747
177,169
51,851
39,556
270,323
Eliminated in respect of disposals
(24,442)
-
0
(236,511)
(69,439)
(330,392)
At 30 June 2021
-
0
2,136,041
109,219
25,118
2,270,378
Carrying amount
At 30 June 2021
-
0
889,066
42,522
107,899
1,039,487
At 30 June 2020
1,747
943,787
102,470
124,926
1,172,930
- 17 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2021
9
(Continued)

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts in the prior year.

2021
2020
£
£
Aircraft
-
0
943,787
Depreciation charge for the year in respect of leased assets
-
174,145
10
Trade and other receivables
2021
2020
Amounts falling due within one year:
£
£
Trade receivables
8,721
98,156
Amounts owed by group undertakings
3,901,575
10,444,111
Other receivables
195,555
37,855
Prepayments and accrued income
62,266
37,369
4,168,117
10,617,491
11
Current liabilities
2021
2020
Notes
£
£
Obligations under hire purchase contracts
12
-
0
167,463
Trade payables
127,317
5,274
Amounts due to parent undertaking
1,008,431
2,280,167
Corporation tax
384,791
953,667
Other taxation and social security
126,130
-
0
Accruals and deferred income
1,086,765
3,308,229
2,733,434
6,714,800
12
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
170,743
Less: future finance charges
-
0
(3,280)
-
0
167,463
- 18 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2021
12
Finance lease obligations
(Continued)

Finance lease obligations are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2021
2020
£
£
Current liabilities
-
0
167,463
13
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
566
10,516
14
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
100,169
130,553

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
45,000 Ordinary of £1 each
45,000
45,000
- 19 -
TECHNOLOGICAL INNOVATIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2021
16
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2021
2020
£
£
Within one year
-
0
47,250
17
Ultimate controlling party

The ultimate parent company is Technological Innovations Group BVBA, a company registered in Belgium.

The ultimate controlling party is Robin Van Meeuwen, the director of the company.

 

The smallest and largest undertaking in which the accounts of the company are included in the group consolidated financial statements are those of Technological Innovations Group BVBA.

18
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
1,576,567
3,840,082
Adjustments for:
Taxation charged
373,835
918,322
Finance costs
11,637
12,032
Investment income
-
0
(10,661)
Loss/(gain) on disposal of property, plant and equipment
128,025
(500)
Depreciation and impairment of property, plant and equipment
270,321
281,706
Movements in working capital:
Decrease/(increase) in trade and other receivables
6,449,374
(1,712,171)
(Decrease)/increase in trade and other payables
(3,245,027)
2,151,707
Cash generated from operations
5,564,733
5,480,516
19
Analysis of changes in net funds/(debt)
1 July 2020
Cash flows
30 June 2021
£
£
£
Cash at bank and in hand
138,008
328,068
466,076
Obligations under finance leases
(167,463)
167,463
-
0
(29,455)
495,531
466,076
- 20 -
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