Company registration number 09899909 (England and Wales)
NEWSPACE SYSTEMS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
PAGES FOR FILING WITH REGISTRAR
NEWSPACE SYSTEMS LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
3 - 7
NEWSPACE SYSTEMS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
28 FEBRUARY 2023
28 February 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
17,338
14,415
Current assets
Debtors
4
79,037
96,963
Cash at bank and in hand
13,293
62,239
92,330
159,202
Creditors: amounts falling due within one year
5
(49,397)
(101,814)
Net current assets
42,933
57,388
Total assets less current liabilities
60,271
71,803
Creditors: amounts falling due after more than one year
6
(71,666)
(47,500)
Provisions for liabilities
(2,739)
Net (liabilities)/assets
(11,395)
21,564
Capital and reserves
Called up share capital
96
96
Profit and loss reserves
(11,491)
21,468
Total equity
(11,395)
21,564
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
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 19 July 2023 and are signed on its behalf by:
Mr J Moth
Director
Company Registration No. 09899909
NEWSPACE SYSTEMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 March 2021
96
27,867
27,963
Year ended 28 February 2022:
Loss and total comprehensive income for the year
-
(6,399)
(6,399)
Balance at 28 February 2022
96
21,468
21,564
Year ended 28 February 2023:
Loss and total comprehensive income for the year
-
(32,959)
(32,959)
Balance at 28 February 2023
96
(11,491)
(11,395)
NEWSPACE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
1
Accounting policies
Company information
Newspace Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is Meriden House, 6 Great Cornbow, Halesowen, West Midlands, B63 3AB.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
Due to the company being in a net liabilities position a letter of deferment has been provided by a related party creditor thus enabling the business to meet its debts as they fall due for at least 12 months from the date of signing these financial statements true
Therefore it is considered appropriate for these financial statements to be prepared under the going concern basis.
1.3
Turnover
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
1.4
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:
Fixtures and fittings
16.67% on cost
Computers
33.33% on cost
Workshop equipment
20% on cost
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.
1.5
Impairment of fixed 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.
NEWSPACE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 4 -
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
Financial instruments
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 using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
NEWSPACE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 5 -
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 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 income statement, 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.
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 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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Foreign exchange
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account arriving at the operating result.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
3
NEWSPACE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 6 -
3
Tangible fixed assets
Fixtures and fittings
Computers
Workshop equipment
Total
£
£
£
£
Cost
At 1 March 2022
925
12,088
3,539
16,552
Additions
10,303
10,303
At 28 February 2023
925
22,391
3,539
26,855
Depreciation and impairment
At 1 March 2022
244
1,200
693
2,137
Depreciation charged in the year
154
6,518
708
7,380
At 28 February 2023
398
7,718
1,401
9,517
Carrying amount
At 28 February 2023
527
14,673
2,138
17,338
At 28 February 2022
681
10,888
2,846
14,415
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
47,781
Amounts recoverable on contract
47,963
25,858
Corporation tax recoverable
2,588
2,588
Amounts owed by group undertakings
17,860
Other debtors
9,976
18,745
Prepayments and accrued income
650
1,991
79,037
96,963
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
6,667
2,500
Trade creditors
8,509
2,500
Amounts owed to group undertakings
34,734
Amounts owed to undertakings in which the company has a participating interest
17,672
3,649
Taxation and social security
2,883
2,581
Deferred income
44,894
Other creditors
304
270
Accruals and deferred income
13,362
10,686
49,397
101,814
NEWSPACE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 7 -
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
41,666
47,500
Amounts owed to group undertakings
30,000
71,666
47,500
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Mr Alan Edward Jones FCCA
Statutory Auditor:
Jerroms GCN Limited
8
Parent company
The ultimate controlling party is Newspace Systems (Pty) Ltd, a company registered in South Africa. The principal place of business is 12 Cyclonite, The Interchange, Somerset West 7310, South Africa.
9
Auditor liability limitation agreement
The company has, by resolution, waived the need for annual approval of the auditors' limited liability, which has been set at £2,000,000 within the letter of engagement dated 19 July 2023. This approval has been confirmed in the letter of representation dated 19 July 2023.