Registration number: 10792432

Red2 Systems Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 7

Red2 Systems Limited

Company Information

Directors

D J Allister Miss C G O'Connor

Registered office

1 - 3 Chester Road Neston Cheshire CH64 9PA

Accountants

Phillip Bates and Co Limited Chartered Accountants 1 - 3 Chester Road Neston Cheshire CH64 9PA

Red2 Systems Limited

(Registration number: 10792432)
Balance Sheet as at 31 May 2023

	Note	2023 £	2022 £
Fixed assets
Tangible assets	4	908	5,821
Current assets
Debtors	5	7,352	12,034
Cash at bank and in hand		17,894	8,781
		25,246	20,815
Creditors: Amounts falling due within one year	6	(20,703)	(24,546)
Net current assets/(liabilities)		4,543	(3,731)
Total assets less current liabilities		5,451	2,090
Provisions for liabilities		(182)	(1,815)
Net assets		5,269	275
Capital and reserves
Called up share capital	7	100	100
Retained earnings		5,169	175
Shareholders' funds		5,269	275

For the financial year ending 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 29 August 2023 and signed on its behalf by:
 

......................................... D J Allister Director

Red2 Systems Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023

1	General information

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

The address of its registered office is:
1 - 3 Chester Road
Neston
Cheshire
CH64 9PA
United Kingdom

These financial statements were authorised for issue by the Board on 29 August 2023.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

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

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

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

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

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Red2 Systems Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Motor Vehicles	20% Straight Line
Office Equipment	33% Straight Line
Fixtures and fittings	25% Straight Line

Cash and cash equivalents

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

Trade debtors

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

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

Trade creditors

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

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

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Red2 Systems Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023

Share capital

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

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

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

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

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2022 - 2).

Red2 Systems Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023

4	Tangible assets

	Fixtures and fittings £	Office equipment £	Motor vehicles  £	Total £
Cost or valuation
At 1 June 2022	374	9,518	19,403	29,295
Disposals	-	-	(19,403)	(19,403)
At 31 May 2023	374	9,518	-	9,892
Depreciation
At 1 June 2022	94	7,858	15,522	23,474
Charge for the year	93	939	-	1,032
Eliminated on disposal	-	-	(15,522)	(15,522)
At 31 May 2023	187	8,797	-	8,984
Carrying amount
At 31 May 2023	187	721	-	908
At 31 May 2022	280	1,660	3,881	5,821

5

Debtors

Current	2023 £	2022 £
Trade debtors	6,866	11,681
Prepayments	374	353
Other debtors	112	-
	7,352	12,034

6

Creditors

Creditors: amounts falling due within one year

	2023 £	2022 £
Due within one year
Trade creditors	179	-
Taxation and social security	12,563	15,286
Accruals and deferred income	1,470	1,470
Other creditors	6,491	7,790
	20,703	24,546