Company registration number 04121893 (England and Wales)
NORTHUMBERLAND BUSINESS SERVICE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NORTHUMBERLAND BUSINESS SERVICE LIMITED
COMPANY INFORMATION
Directors
M Rudd (Chairman)
P McEldon
D Nickalls
P Graham
G Miller
M Smith
Secretary
M Smith
Company number
04121893
Registered office
6 Esther Court
Wansbeck Business Park
Rotary Parkway
Ashington
Northumberland
NE63 8AP
Auditor
RMT Accountants & Business Advisors Ltd
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Bankers
Royal Bank of Scotland
31 Grey Street
Newcastle upon Tyne
Tyne and Wear
NE1 6ES
Solicitors
Sintons LLP
The Cube
Barrack Road
Newcastle upon Tyne
NE4 6DB
NORTHUMBERLAND BUSINESS SERVICE LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Profit and loss account
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 13
NORTHUMBERLAND BUSINESS SERVICE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -

The directors present their annual report and financial statements for the year ended 31 March 2022.

Principal activities

The principal activity of the company continued to be that of:

 

Review of the business

Income for the year ended 31 March 2022 was £2,269k (2021: £3,658k) with a post-tax surplus of £14k (2021: £288k).

Our Balance sheet is strong at £953k (2021: £939k)

Last 2020/21 year included significant but short-term national and regional Covid support schemes that, together with positive timing differences arising from the phasing of ERDF grant payments, contributed to last year’s surplus.

This year, 2021/22, has been more of “Business As Usual” - delivering our on-going successful programmes including:

 

During 2021/22 we were also successful in bidding for two new contracts:

 

We continue to develop case-studies and testimonials highlighting the trusted quality of our various services delivered by our staff.

 

Our people and our delivery ethos are the reasons for NBSL’s continuing strength together with being fortunate to have a range of partnerships, both formal and informal, that support our delivery ethos.

 

We continue our commitment to staff welfare and development and we were delighted to be awarded the North of Tyne Combined Authorities Advance Award for the Good Work Pledge - a scheme that recognises those businesses in North Tyneside committed to providing good jobs and looking after its workforce.

 

We will continue to cement our ability to network and create positive collaborations in the ever-changing landscape.

NORTHUMBERLAND BUSINESS SERVICE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M Rudd (Chairman)
P McEldon
D Nickalls
P Graham
G Miller
M Smith
Auditor

In accordance with the company's articles, a resolution proposing that RMT Accountants & Business Advisors Ltd be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
M Smith
Director
12 September 2022
NORTHUMBERLAND BUSINESS SERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NORTHUMBERLAND BUSINESS SERVICE LIMITED
- 3 -
Opinion

We have audited the financial statements of Northumberland Business Service Limited (the 'company') for the year ended 31 March 2022 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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 directors are 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.

Opinions on other matters prescribed by the Companies Act 2006

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

NORTHUMBERLAND BUSINESS SERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTHUMBERLAND BUSINESS SERVICE LIMITED
- 4 -
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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

NORTHUMBERLAND BUSINESS SERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTHUMBERLAND BUSINESS SERVICE LIMITED
- 5 -

Capability of the audit in detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

 

The following laws and regulations were identified as being of significance to the entity:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 them 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.

Stephen Slater
Senior Statutory Auditor
For and on behalf of RMT Accountants & Business Advisors Ltd
Statutory Auditor
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
13 September 2022
NORTHUMBERLAND BUSINESS SERVICE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
- 6 -
2022
2021
Notes
£
£
Turnover
2,269,279
3,657,762
Cost of sales
(2,227,849)
(3,343,614)
Gross surplus
41,430
314,148
Administrative expenses
(21,423)
(20,172)
Operating surplus
2
20,007
293,976
Interest payable and similar expenses
(6,000)
(6,000)
Surplus before taxation
14,007
287,976
Tax on surplus
-
0
-
0
Surplus for the financial year
14,007
287,976

The income and expenditure account has been prepared on the basis that all operations are continuing operations.

NORTHUMBERLAND BUSINESS SERVICE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 7 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
5,057
11,615
Current assets
Debtors
5
761,964
1,567,288
Cash at bank and in hand
456,928
142,728
1,218,892
1,710,016
Creditors: amounts falling due within one year
6
(270,621)
(782,310)
Net current assets
948,271
927,706
Net assets
953,328
939,321
Reserves
Profit and loss account
953,328
939,321
Members' funds
953,328
939,321

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 12 September 2022 and are signed on its behalf by:
M Smith
Director
Company Registration No. 04121893
NORTHUMBERLAND BUSINESS SERVICE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
Profit and loss
£
Balance at 1 April 2020
651,345
Year ended 31 March 2021:
Profit and total comprehensive income for the year
287,976
Balance at 31 March 2021
939,321
Year ended 31 March 2022:
Profit and total comprehensive income for the year
14,007
Balance at 31 March 2022
953,328
NORTHUMBERLAND BUSINESS SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
1
Accounting policies
Company information

Northumberland Business Service Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 6 Esther Court, Wansbeck Business Park, Rotary Parkway, Ashington, Northumberland, NE63 8AP.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The company has a net asset position of £953,328 as at 31 March 2022 (2021: £939,321). Budgets and cash flow forecasts are regularly reviewed and updated to ensure that the company has sufficient cash for the organisation to continue its day to day to day operations for at least 12 months. true

At the time of approving the financial statements. the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Income from contracts and other services rendered is included to the extent of the completion of the contract or service concerned.

 

Income receivable under contract with the Department for Levelling Up, Housing and Communities is recognised in line with defrayed expenditure incurred on delivering this provision as the best available estimate for the year.

 

Other revenue grant funding (including European) is recognised in the period to which it relates and is included in income.

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.

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 and fittings
7 years straight line
Computer equipment
3 years 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 surplus or deficit.

1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

NORTHUMBERLAND BUSINESS SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 10 -
1.6
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.

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 creditors 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.

 

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.

1.7
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 fixed assets.

 

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

1.8
Retirement benefits

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

1.9
Leases

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.

NORTHUMBERLAND BUSINESS SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 11 -
2
Operating surplus
2022
2021
Operating surplus for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,400
8,400
3
Employees

The average monthly number of persons employed by the company during the year was 24 (2021: 24).

4
Tangible fixed assets
Fixtures and fittings
Computer equipment
Total
£
£
£
Cost
At 1 April 2021
39,430
40,950
80,380
Additions
-
0
1,047
1,047
Disposals
-
0
(767)
(767)
At 31 March 2022
39,430
41,230
80,660
Depreciation and impairment
At 1 April 2021
37,752
31,013
68,765
Depreciation charged in the year
579
7,026
7,605
Eliminated in respect of disposals
-
0
(767)
(767)
At 31 March 2022
38,331
37,272
75,603
Carrying amount
At 31 March 2022
1,099
3,958
5,057
At 31 March 2021
1,678
9,937
11,615
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
22,410
27,368
Other debtors
739,554
1,539,920
761,964
1,567,288
NORTHUMBERLAND BUSINESS SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 12 -
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
44,414
16,532
Taxation and social security
17,444
21,337
Other creditors
208,763
744,441
270,621
782,310

Included within other creditors is an amount of £150,000 (2021: £150,000) in relation to a loan from North East Business and Innovation Centre Limited. This amount is secured by a fixed and floating charge over £250,000 debt. Interest is charged at 4% and is repayable on demand.

 

The loan was repaid in full post year end.

7
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
46,719
42,958

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. At the year end, the company owed £5,806 (2021: £4,811) to the pension scheme, included in other creditors.

8
Members' liability

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

9
Operating lease commitments
Lessee

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

2022
2021
£
£
Within one year
20,640
20,640
20,640
20,640
NORTHUMBERLAND BUSINESS SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 13 -
10
Related party transactions

There is a charge in place, as detailed in note 6, in favour of North East Business and Innovation Centre Limited, of which P McEldon, a director of the Company, is also a director. At 31 March 2022, £150,000 (2021: £150,000) was owed to this company via a loan between the two parties. This amount is included within other creditors due within one year.

 

The loan was repaid in full post year end.

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