Company Registration No. 08241216 (England and Wales)
NETWORTHNET LTD
WORTH INTERNET SYSTEMS
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
NETWORTHNET LTD
WORTH INTERNET SYSTEMS
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 7
NETWORTHNET LTD
WORTH INTERNET SYSTEMS
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF NETWORTHNET LTD FOR THE PERIOD ENDED 31 MAY 2023
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Networthnet Ltd for the period ended 31 May 2023 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance.
This report is made solely to the Board of Directors of Networthnet Ltd, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Networthnet Ltd and state those matters that we have agreed to state to the Board of Directors of Networthnet Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Networthnet Ltd and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Networthnet Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Networthnet Ltd. You consider that Networthnet Ltd is exempt from the statutory audit requirement for the period.
We have not been instructed to carry out an audit or a review of the financial statements of Networthnet Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Carpenter Box
13 October 2023
Chartered Accountants
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
NETWORTHNET LTD
WORTH INTERNET SYSTEMS
BALANCE SHEET
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
6,764
12,224
Current assets
Debtors
4
909,718
867,825
Cash at bank and in hand
1,290,865
2,682,735
2,200,583
3,550,560
Creditors: amounts falling due within one year
5
(511,273)
(744,547)
Net current assets
1,689,310
2,806,013
Total assets less current liabilities
1,696,074
2,818,237
Provisions for liabilities
(2,769)
(4,300)
Net assets
1,693,305
2,813,937
Capital and reserves
Called up share capital
6
53
53
Capital redemption reserve
47
47
Profit and loss reserves
1,693,205
2,813,837
Total equity
1,693,305
2,813,937
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial period ended 31 May 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 period 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.
NETWORTHNET LTD
WORTH INTERNET SYSTEMS
BALANCE SHEET (CONTINUED)
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 13 October 2023 and are signed on its behalf by:
Mr A N Marshall
Director
Company Registration No. 08241216
NETWORTHNET LTD
WORTH INTERNET SYSTEMS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MAY 2023
- 4 -
1
Accounting policies
Company information
Networthnet Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Davidson House, Forbury Square, Reading, RG1 3EU.
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
At the time of approving the financial statements, the directors have a reasonable expectation that thetrue 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
Reporting period
The accounts are presented for a 5 month period to 31 May 2023, in order to align the year end with group companies. As such, the figures are not entirely comparable with the prior year reporting to the year ended 31 December 2022.
1.4
Turnover
Turnover is recognised at the fair value of the consideration receivable for services provided in the normal course of business, and is shown net of VAT.
1.5
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:
Computer equipment
33% per annum 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.
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.
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.
NETWORTHNET LTD
WORTH INTERNET SYSTEMS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 5 -
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.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
1.8
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.
1.9
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.
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.
1.10
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.
1.11
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.
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
Employees
The average monthly number of persons (including directors) employed by the company during the period was 22 (2022 - 25).
NETWORTHNET LTD
WORTH INTERNET SYSTEMS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
- 6 -
3
Tangible fixed assets
Computer equipment
£
Cost
At 1 January 2023
127,620
Disposals
(75,705)
At 31 May 2023
51,915
Depreciation and impairment
At 1 January 2023
115,396
Depreciation charged in the period
4,187
Eliminated in respect of disposals
(74,432)
At 31 May 2023
45,151
Carrying amount
At 31 May 2023
6,764
At 31 December 2022
12,224
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
393,401
518,186
Amounts owed by group undertakings
62,684
30,787
Other debtors
453,633
318,852
909,718
867,825
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
68,111
215,910
Taxation and social security
321,768
384,688
Other creditors
121,394
143,949
511,273
744,547
6
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
5,264
5,264
53
53
NETWORTHNET LTD
WORTH INTERNET SYSTEMS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2023
- 7 -
7
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:
2023
2022
£
£
2,639
2,639
8
Events after the reporting date
On 7 June 2023, 100% of the company's share capital was acquired by Kerv Midco Limited, a company incorporated in England & Wales.
Since the balance sheet date dividends of £929,383 have been voted and paid to the shareholders pre completion of the acquisition from Kerv Midco Limited.
9
Parent company
At the period end, the ultimate controlling party was Mindcloud Limited whose registered office is Apex Plaza, 3 Forbury Road, Reading, RG1 1AX.