Company registration number 04996335 (England and Wales)
INTERCARD LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2023
PAGES FOR FILING WITH REGISTRAR
INTERCARD LIMITED
COMPANY INFORMATION
- 1 -
Directors
Ms Lauren Leach
Mr P Church
Secretary
Ms Lauren Leach
Company number
04996335
Registered office
2 Maylands Wood
Hall Road
Hemel Hempstead Industrial Estate
Hemel Hempstead
HP2 7BH
Accountants
Hallidays
Riverside House
Kings Reach Business Park
Yew Street
Stockport
Cheshire
SK4 2HD
INTERCARD LIMITED
CONTENTS
Page
Company information
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 11
INTERCARD LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2023
31 January 2023
- 2 -
31 January 2023
31 October 2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
108,082
186,212
Tangible assets
5
100,064
127,585
Investments
6
153,351
153,351
361,497
467,148
Current assets
Stocks
7
22,750
16,500
Debtors
8
237,861
169,263
Cash at bank and in hand
2,106
62,938
262,717
248,701
Creditors: amounts falling due within one year
9
(293,599)
(343,866)
Net current liabilities
(30,882)
(95,165)
Total assets less current liabilities
330,615
371,983
Creditors: amounts falling due after more than one year
10
(56,834)
(111,594)
Provisions for liabilities
(6,137)
(51,398)
Net assets
267,644
208,991
Capital and reserves
Called up share capital
13
625
625
Share premium account
741,857
741,857
Capital redemption reserve
375
375
Profit and loss reserves
(475,213)
(533,866)
Total equity
267,644
208,991
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 January 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.
INTERCARD LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JANUARY 2023
31 January 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 24 October 2023 and are signed on its behalf by:
Ms Lauren Leach
Director
Company registration number 04996335 (England and Wales)
INTERCARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2023
- 4 -
1
Accounting policies
Company information
Intercard Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Maylands Wood, Hall Road, Hemel Hempstead Industrial Estate, Hemel Hempstead, HP2 7BH.
1.1
Reporting period
The reporting period is longer than one year due to the year end being extended, therefore the comparatives are not entirely comparable.
1.2
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.
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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
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. The directors have reviewed the performance of the company since the period end of the accounting period. The level of turnover since the period end remains consistent that there are sufficient cashflows to meet the on-going liabilities and the company anticipates that it will remain profitable in the following years. The directors are satisfied that there are no material uncertainties that may cast doubt about the ability of the company to continue as a going concern.
1.3
Turnover
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.
INTERCARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 5 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Intangible fixed assets
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Internally generated software
development cost
25% Straight line
Goodwill
5% Straight line
1.6
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:
Plant and equipment
20% on reducing basis
Fixtures and fittings
20% on reducing basis
Computers
20% on reducing 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.
1.7
Fixed asset investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using he effective interest method.
Dividends on equity securities are recognised in income when receivable.
INTERCARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 6 -
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
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.
1.10
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.
1.11
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 profit and loss account 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 profit and loss account, 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.
INTERCARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 7 -
1.12
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.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 balance sheet 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.
1.15
Foreign exchange
The financial statements are presented in Sterling, which is also the functional currency of the Company. Transactions in currencies, other than the functional currency of the Company, are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the statement of comprehensive income. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated.
1.16
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
2
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2023
2021
Number
Number
Total
12
12
INTERCARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2023
- 8 -
3
Operating profit/(loss)
2023
2021
Operating profit/(loss) for the period is stated after charging:
£
£
Depreciation of owned tangible fixed assets
32,557
31,897
Amortisation of intangible assets
78,693
63,097
4
Intangible fixed assets
Goodwill
Internally generated software
development cost
Total
£
£
£
Cost
At 1 November 2021
1,227,857
11,821
1,239,678
Additions - internally developed
563
563
At 31 January 2023
1,227,857
12,384
1,240,241
Amortisation and impairment
At 1 November 2021
1,043,667
9,799
1,053,466
Amortisation charged for the Period
76,740
1,953
78,693
At 31 January 2023
1,120,407
11,752
1,132,159
Carrying amount
At 31 January 2023
107,450
632
108,082
At 1 October 2021
184,190
2,022
186,212
INTERCARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2023
- 9 -
5
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 November 2021
800,085
59,379
58,098
917,562
Additions
5,036
5,036
At 31 January 2023
800,085
59,379
63,134
922,598
Depreciation and impairment
At 1 November 2021
685,061
54,051
50,865
789,977
Depreciation charged in the Period
28,756
1,332
2,469
32,557
At 31 January 2023
713,817
55,383
53,334
822,534
Carrying amount
At 31 January 2023
86,268
3,996
9,800
100,064
At 1 October 2021
115,024
5,328
7,233
127,585
Included within the net book value of tangible fixed assets is leased assets of £53,242 (2021: £71,123). Depreciation for the year on these assets was £17,781 (2021: £17,781).
6
Fixed asset investments
2023
2021
£
£
Other investments other than loans
153,351
153,351
7
Stocks
2023
2021
£
£
Stocks
22,750
16,500
8
Debtors
2023
2021
Amounts falling due within one year:
£
£
Trade debtors
190,844
120,175
Corporation tax recoverable
5,402
Amounts owed by group undertakings and undertakings in which the company has a participating interest
38,642
35,578
Other debtors
8,375
8,108
237,861
169,263
INTERCARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2023
- 10 -
9
Creditors: amounts falling due within one year
2023
2021
£
£
Bank loans and overdrafts
29,227
24,250
Trade creditors
67,766
63,570
Taxation and social security
96,454
117,891
Other creditors
100,152
138,155
293,599
343,866
10
Creditors: amounts falling due after more than one year
2023
2021
£
£
Bank loans and overdrafts
53,166
85,319
Other creditors
3,668
26,275
56,834
111,594
Creditors amounts falling due after more than one year includes the above liabilities, on which security has been given by the company.
The providers of the hire purchase contract have a fixed charge over the asset for which the contract is established until such time as they are settled in full.
11
Loans and overdrafts
2023
2021
£
£
Bank loans
77,416
109,569
Bank overdrafts
4,977
82,393
109,569
Payable within one year
29,227
24,250
Payable after one year
53,166
85,319
12
Finance lease obligations
2023
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
17,982
18,329
In two to five years
3,668
26,275
21,650
44,604
INTERCARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2023
12
Finance lease obligations
(Continued)
- 11 -
13
Called up share capital
2023
2021
2023
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' of £0.01 each
19,500
19,500
195
195
Ordinary 'B' of £0.01 each
21,000
21,000
210
210
Ordinary 'C' of £0.01 each
22,000
22,000
220
220
62,500
62,500
625
625
14
Related party transactions
Transactions with related parties
During the Period the company entered into the following transactions with related parties:
At the balance sheet date the amount owed from related companies was £38,878 (2021: £35,578). This amount is interest free and repayable on demand.
15
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2021
£
£
587,934
678,330
The amount of non-cancellable operating lease payments recognised as an expense during the year was £106,895 (2021 - £85,749).
16
Control
The company is controlled by Mr P Church.
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