BUSINESS CLOUD INTEGRATION LIMITED |
Notes to the Accounts |
for the year ended 28 February 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The disclosure requirements of section 1A of FRS102 have been appled other than where additional disclosure is required to show a true and fair view. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Research and development expenditure |
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Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasilibilty can be demonstrated. |
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Intangible fixed assets other than goodwill |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. Intangible assets acquired on business combinations are recognised seperately from goodwill at the acquisition date, where it is probable that 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 legal rightss and the intangible asset is seperable from the entity. Amortisation is recognised so as to write off the costs or valuation of assets less their residual values over their useful lives on the following bases: |
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Research & Development |
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over 5 years |
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Cryptocurrency |
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over 10 years |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Fixtures, fittings and equipment |
25% straight line |
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Computer equipment |
33.33% straight line |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Cash and cash equivalents |
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Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investmenst with original maturities of three months or less, and bank overdrafts. |
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In the prior year the Directors determined that the company’s resources held in cryptocurrency should be treated as liquid resources in the Accounts, as this was the most appropriate basis for allowing the accounts to show a true and fair view, on the basis that the deposits in cryptocurrency represented temporary holdings of reserve funds. |
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The guidance issued in respect of the treatment of cryptocurrencies makes it clear that cryptocurrencies fail the international standards definition of cash and cash equivalents, partly because of the volatile nature of the holding. As the company continues to retain the cryptocurrency account the Directors confirm a change in accounting policy to present the cryptocurrency account as an Intangible Asset. |
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The Directors have considered restatement of the previous years accounts but have decided on the basis of materiality this is not required. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
15 |
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16 |
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3 |
Intangible fixed assets |
£ |
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Cost |
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At 1 March 2022 |
1,322,634 |
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Additions |
735,530 |
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Impairment losses |
(78,219) |
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At 28 February 2023 |
1,979,945 |
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Amortisation |
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At 1 March 2022 |
529,106 |
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Provided during the year |
302,576 |
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At 28 February 2023 |
831,682 |
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Net book value |
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At 28 February 2023 |
1,148,263 |
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At 28 February 2022 |
793,528 |
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Intangible assets include capitalised Research & Development (R & D) costs and Cryptocurrency . The Cryptocurrency is measured under the cost model less impairment losses and amortisation. |
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The breakdown between R & D and Cryptocurrency is as follows: |
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R & D |
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Crypto currency |
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Total |
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Cost |
£ |
£ |
£ |
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At 1 March 2022 |
1,322,634 |
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- |
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1,322,634 |
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Additions |
398,134 |
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337,396 |
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735,530 |
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Impairment losses |
- |
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(78,219) |
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(78,219) |
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At 28 February 2023 |
1,720,768 |
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259,177 |
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1,979,945 |
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Amortisation |
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At 1 March 2022 |
529,106 |
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- |
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529,106 |
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Provided during the year |
276,658 |
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25,918 |
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302,576 |
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At 28 February 2023 |
805,764 |
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25,918 |
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831,682 |
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Net book value |
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At 28 February 2023 |
915,004 |
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233,259 |
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1,148,263 |
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At 28 February 2022 |
793,528 |
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- |
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793,528 |
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R & D expenditure is being written off in equal instalments over its estimated ecomomic life of 5 years. |
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The Directors are unable to assign a reliable useful economic life to the cryptocurrency and therefore the maximum amortisation period of 10 years is being applied. |
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4 |
Tangible fixed assets |
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Plant and machinery etc |
£ |
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Cost |
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At 1 March 2022 |
44,354 |
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Additions |
14,724 |
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At 28 February 2023 |
59,078 |
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Depreciation |
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At 1 March 2022 |
25,914 |
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Charge for the year |
10,666 |
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At 28 February 2023 |
36,580 |
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Net book value |
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At 28 February 2023 |
22,498 |
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At 28 February 2022 |
18,440 |
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5 |
Investments |
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Other |
investments |
£ |
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Cost |
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At 1 March 2022 |
1 |
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At 28 February 2023 |
1 |
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6 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
148,278 |
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161,490 |
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Other debtors |
350,077 |
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491,305 |
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498,355 |
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652,795 |
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7 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Bank loans and overdrafts |
82,250 |
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80,360 |
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Trade creditors |
11,170 |
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29,424 |
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Taxation and social security costs |
170,108 |
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126,288 |
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Other creditors |
47,407 |
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156,153 |
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310,935 |
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392,225 |
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8 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
£ |
£ |
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Bank loans |
207,604 |
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151,974 |
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9 |
Pension commitments |
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The Company makes pension contributions to approved pension schemes. The total contributions made during the year amounted to £129,203 (£8,411 in the year to 28 February 2022). |
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10 |
Loans to directors |
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Description and conditions |
B/fwd |
Paid |
Repaid |
C/fwd |
£ |
£ |
£ |
£ |
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Mr A B Sumner |
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Loan |
241,387 |
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- |
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(149,857) |
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91,530 |
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Mrs S K Sumner |
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Loan |
241,387 |
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- |
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(149,857) |
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91,530 |
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482,774 |
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- |
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(299,714) |
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183,060 |
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11 |
Controlling party |
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Mr A Sumner and Mrs S Sumner, who are the Directors of the company, hold 100% of the share capital. |
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12 |
Other information |
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BUSINESS CLOUD INTEGRATION LIMITED is a private company limited by shares and incorporated in England. Its registered office is: |
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85 Great Portland Street |
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First Floor |
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London |
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W1W 7LT |