Company registration number 04396515 (England and Wales)
TRUEBYTE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
TRUEBYTE LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
TRUEBYTE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property and equipment
4
31,345
52,814
Current assets
Trade and other receivables
5
196,827
254,341
Cash and cash equivalents
72,878
51,941
269,705
306,282
Current liabilities
6
(268,724)
(296,984)
Net current assets
981
9,298
Total assets less current liabilities
32,326
62,112
Non-current liabilities
7
(138,450)
(205,165)
Provisions for liabilities
8
(3,148)
(4,024)
Net liabilities
(109,272)
(147,077)
Equity
Called up share capital
9
100
100
Retained earnings
(109,372)
(147,177)
Total equity
(109,272)
(147,077)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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.
These financial statements have been prepared and delivered 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 28 September 2023 and are signed on its behalf by:
Mr M F Heath
Director
Company Registration No. 04396515
TRUEBYTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Truebyte Limited is a private company limited by shares incorporated in England and Wales. The registered office is Chantry House, 22 Upperton Road, Eastbourne, East Sussex, BN21 1BF. The principal place of business is Unit 2, 68 Grove Road, Eastbourne, East Sussex, BN21 4UH.
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 endeavoured to expand and diversify its operations with the recruitment of additional staff as it enters the post-covid recovery period. It is anticipated that the turnover for the next period will see significant growth. The company is dependent upon its bankers and Directors for support and is confident that it can trade out of its current loss-making situation. Thus, the financial statements have been prepared in a going concern basis.
1.3
Revenue
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
Income from maintenance contracts is deferred to the balance sheet and recognised to the profit and loss account over the period of the contract.
1.4
Property and equipment
Property 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:
Fixtures, fittings and equipment
25% on a straight line basis
Motor vehicles
20% on a straight line basis
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.
Items costing less than £500 are not capitalised but written off as repairs and renewals through the Income Statement in the year of purchase.
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.
TRUEBYTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 3 -
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.
1.6
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
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
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.
TRUEBYTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 4 -
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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 profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
25
26
TRUEBYTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
4
Property and equipment
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 April 2022
109,889
66,944
176,833
Additions
683
683
Disposals
(47,496)
(47,496)
At 31 March 2023
110,572
19,448
130,020
Depreciation and impairment
At 1 April 2022
61,937
62,082
124,019
Depreciation charged in the year
17,290
4,862
22,152
Eliminated in respect of disposals
(47,496)
(47,496)
At 31 March 2023
79,227
19,448
98,675
Carrying amount
At 31 March 2023
31,345
31,345
At 31 March 2022
47,952
4,862
52,814
5
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
87,768
146,380
Corporation tax recoverable
2,203
26,473
Amounts owed by group undertakings
26,739
45,000
Other receivables
66,433
17,975
Prepayments and accrued income
13,684
18,513
196,827
254,341
6
Current liabilities
2023
2022
£
£
Bank loans
10
79,115
77,154
Obligations under finance leases
3,921
3,921
Trade payables
54,506
105,785
Taxation and social security
93,660
78,212
Other payables
27,122
25,562
Accruals and deferred income
10,400
6,350
268,724
296,984
TRUEBYTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
7
Non-current liabilities
2023
2022
£
£
Bank loans and overdrafts (see note 10)
133,593
196,387
Obligations under Finance leases
4,857
8,778
138,450
205,165
8
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
3,148
4,024
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
TRUEBYTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
10
Borrowings
2023
2022
£
£
Bank loans
212,708
273,541
Payable within one year
79,115
77,154
Payable after one year
133,593
196,387
Barclays Bank
This loan is a bounce back loan from Barclays for a term of 6 years from September 2020 with no capital repayments until October 2021. Interest at 2.5% is charged on the loan from September 2021.
Recovery Loan Scheme (RLS)
This loan is from Funding Circle Eclipse Lending Ltd for a term of 5 years and interest rate of 9.4%.
11
Operating lease commitments
Lessee
The lease for the office at Windsor Castle in Bath was renewed until 31 January 2027 with the break date of 1 February 2025. The annual rent remains the same at £13,000 per annum.
The Eastbourne property is on a monthly rolling contract with a years term.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
30,000
27,833
12
Related party transactions
As at the balance sheet date the the directors owed £12,238.04 to the company (2022: £13,650).