Company Registration No. 14413680 (England and Wales)
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
31 MARCH 2023
10 Bridge Street
Christchurch
Dorset
BH23 1EF
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
COMPANY INFORMATION
- 1 -
Directors
Mrs. PA Gray
(Appointed 23 February 2023)
Mr. EJ Bramall
(Appointed 23 February 2023)
Mr. JG Cook
(Appointed 23 February 2023)
Mr. RM Hiett
(Appointed 23 February 2023)
Company number
14413680
Registered office
Unit G1-G2 Platinum Jubilee Business Park
Hopclover Way
Ringwood
Hampshire
United Kingdom
BH24 3FW
Auditor
TC Group
10 Bridge Street
Christchurch
Dorset
BH23 1EF
Business address
Unit G1-G2 Platinum Jubilee Business Park
Hopclover Way
Ringwood
Hampshire
United Kingdom
BH24 3FW
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 2 -

The directors present the strategic report for the period ended 31 March 2023.

Fair review of the business

This is the first year of trading for the company with the pre-existing group partially consolidated into these financial statements from the date control was obtained. During the financial year the group has achieved Employee Ownership Trust status.  The new ownership model has had a positive impact on colleagues taking ownership and creating efficiencies.  The result of this is an increase in revenue and profit for the group for the full 12 months of trading. The average GP margin for the business has risen from 20% in 21/22 to 28% in 22/23.

 

In line with growth KPI’s, the group has achieved contracts with two net new customers, which will be reflected in the following FY.

 

The re-brand to Trusted Technology Partnership Ltd is reflective of the value that company places on relationships with each other, customers, and suppliers.  The group has implemented new holistic business and finance systems and has moved premises to a purpose-built office with separate warehousing facility. The new warehouse premises have secure purpose-built pallet storage facilities as well as a custom designed build centre to enable the preparation of IT equipment in advance of arrival at the customer site.

 

To complement the existing technological expertise, the company has created an in-house software development team to address both customer and internal needs.  With innovation creating efficiencies and new tools to access, present, and visualise information, this has resulted in cost savings as well as a new source of revenue. 

 

ISO 27001 (information security) and 14001 (environmental) are being externally audited in early 2024, with the group hoping to achieve certification at this time.

 

The group has implemented a profit share scheme for all qualifying colleagues, as well as an improved working environment and employment package. This aims to support the incentivisation of existing and recruitment of new colleagues. The company remains committed to being a diverse and inclusive employer.

 

Partnerships with customers and suppliers are key to future growth, and the group remains committed to its ethos of excellent customer service.

Principal risks and uncertainties

The increasing budgetary pressure within the Healthcare sector continues to present challenges as well opportunities for the company, to use technology and innovation to add value and create efficiencies to meet the needs of customers.  Further, continuing constraints within the supply chain remain a risk during this, and into the next financial year.

On behalf of the board

Mrs. PA Gray
Director
31 October 2023
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the period ended 31 March 2023.

Principal activities

The principal activity of the group was that of computer consultants and providers of computer hardware and maintenance services and solutions within the United Kingdom.

Results and dividends

The results for the period are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr. NT Payne
(Appointed 12 October 2022 and resigned 23 February 2023)
Mr. MC Trudgill
(Appointed 12 October 2022 and resigned 23 February 2023)
Mrs. PA Gray
(Appointed 23 February 2023)
Mr. EJ Bramall
(Appointed 23 February 2023)
Mr. JG Cook
(Appointed 23 February 2023)
Mr. RM Hiett
(Appointed 23 February 2023)
Auditor

TC Group were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mrs. PA Gray
Director
31 October 2023
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2023
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
- 5 -
Opinion

We have audited the financial statements of Trusted Technology Partnership (Holdings) Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
- 7 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

 

TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
- 8 -

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Dean Pullen FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
13 November 2023
Office: Christchurch
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2023
- 9 -
Period
ended
31 March
2023
Notes
£
Turnover
3
1,062,256
Cost of sales
(761,364)
Gross profit
300,892
Administrative expenses
(239,848)
Operating profit
4
61,044
Interest receivable and similar income
8
860
Amounts written off investments
9
(10)
Profit before taxation
61,894
Tax on profit
10
(7,822)
Profit for the financial period
21
54,072
Profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
Notes
£
£
Fixed assets
Goodwill
11
1,716,624
Tangible assets
12
115,505
1,832,129
Current assets
Stocks
15
34,582
Debtors
16
1,750,939
Cash at bank and in hand
1,915,580
3,701,101
Creditors: amounts falling due within one year
17
(2,604,858)
Net current assets
1,096,243
Total assets less current liabilities
2,928,372
Provisions for liabilities
Deferred tax liability
18
29,819
(29,819)
Net assets
2,898,553
Capital and reserves
Called up share capital
20
880
Other reserves
21
2,843,601
Profit and loss reserves
21
54,072
Total equity
2,898,553
The financial statements were approved by the board of directors and authorised for issue on 31 October 2023 and are signed on its behalf by:
31 October 2023
Mrs. PA Gray
Director
Company registration number 14413680 (England and Wales)
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
Notes
£
£
Fixed assets
Investments
13
879
Current assets
Debtors
16
1
Net current assets
1
Net assets
880
Capital and reserves
Called up share capital
20
880

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,255,520.

The directors of the company have elected not to include a copy of the profit and loss account 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 31 October 2023 and are signed on its behalf by:
31 October 2023
Mrs. PA Gray
Director
Company registration number 14413680 (England and Wales)
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 12 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 12 October 2022
-
0
-
-
0
-
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
-
54,072
54,072
Issue of share capital
20
880
-
-
880
Other movements
-
2,843,601
-
2,843,601
Balance at 31 March 2023
880
2,843,601
54,072
2,898,553
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 12 October 2022
-
0
-
0
-
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
2,255,520
2,255,520
Issue of share capital
20
880
-
880
Contribution to EOT
-
(2,255,520)
(2,255,520)
Balance at 31 March 2023
880
-
0
880
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
- 14 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
35,965
Investing activities
Purchase of business
4,133,991
Proceeds from disposal of tangible fixed assets
(586)
Proceeds from disposal of investments
(10)
Interest received
860
Net cash generated from/(used in) investing activities
4,134,255
Financing activities
Proceeds from issue of shares
880
Contribution to EOT
(2,255,520)
Net cash used in financing activities
(2,254,640)
Net increase in cash and cash equivalents
1,915,580
Cash and cash equivalents at beginning of period
-
0
Cash and cash equivalents at end of period
1,915,580
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

Trusted Technology Partnership (Holdings) Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit G1-G2 Platinum Jubilee Business Park, Hopclover Way, Ringwood, Hampshire, United Kingdom, BH24 3FW.

 

The group consists of Trusted Technology Partnership (Holdings) Ltd and all of its subsidiaries.

1.1
Reporting period

These financial statements represent the first trading period for Trusted Technology Partnership (Holdings) Limited. The financial statements represent the company and group results for the period of 21 February 2023 to 31 March 2023. The company was dormant prior to 21 February 2023 and therefore no comparative figures are reported for both the company and group.

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” as updated by Bulletin 2 published on 5 October 2018) and the requirements of the Companies Act 2006.

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 pound.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain tangible fixed assets. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

1.3
Business combinations

The consolidated financial statements incorporate those of Trusted Technology Partnership (Holdings) Limited and all of its subsidiaries.

TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Basis of consolidation

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.6
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of support services is recognised evenly over the period that the support is to be provided.

 

Revenue from contracts for the provision of installation and consultancy services is recognised by reference to the stage of completion of the related project, when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 ten 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.

TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.8
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
3 years straight line/25% reducing balance
Computers
5 years straight line

The directors have considered the estimated residual value of the Freehold land and buildings to be such that depreciation is immaterial to these financial statements.

 

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 recognised in the profit and loss account.

1.9
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
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 replacement cost and 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.

1.11
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.

TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Financial instruments

The group 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.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Other financial assets

Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities 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.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.14
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 group’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.

1.15
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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
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 leased asset are consumed.

1.18
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.

TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

There are no judgments or estimates that the directors consider to be material to the financial statements.

3
Turnover and other revenue

The total turnover of the group for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

2023
£
Turnover analysed by class of business
Product sales
339,357
Service and support
722,899
1,062,256
2023
£
Other revenue
Interest income
860
4
Operating profit
2023
£
Operating profit for the period is stated after charging:
Exchange losses
20
Depreciation of owned tangible fixed assets
4,156
Loss on disposal of tangible fixed assets
584
Operating lease charges
448
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 21 -
5
Auditor's remuneration
2023
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
3,000
Audit of the financial statements of the company's subsidiaries
13,000
16,000
For other services
All other non-audit services
3,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the period was:

Group
Company
2023
2023
Number
Number
98
6

Their aggregate remuneration comprised:

Group
Company
2023
2023
£
£
Wages and salaries
393,103
-
0
Social security costs
44,221
-
Pension costs
13,365
-
0
450,689
-
0
7
Directors' remuneration
2023
£
Remuneration for qualifying services
67,169
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
7
Directors' remuneration
(Continued)
- 22 -

As total directors' remuneration was less than £200,000 in the current period, no disclosure is provided for that period for the highest paid director. The directors consider themselves to be the key management for the group.

 

The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 6.

8
Interest receivable and similar income
2023
£
Interest income
Other interest income
860
9
Amounts written off investments
2023
£
Loss on disposal of investments held at fair value
(10)
10
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
11,684
Deferred tax
Origination and reversal of timing differences
(3,862)
Total tax charge
7,822
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 23 -

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2023
£
Profit before taxation
61,894
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00%
11,760
Tax effect of expenses that are not deductible in determining taxable profit
2,258
Permanent capital allowances in excess of depreciation
(6,196)
Taxation charge
7,822
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 12 October 2022
-
0
Additions
1,716,624
At 31 March 2023
1,716,624
Amortisation and impairment
At 12 October 2022 and 31 March 2023
-
0
Carrying amount
At 31 March 2023
1,716,624
The company had no intangible fixed assets at 31 March 2023.

The goodwill generated during the period has arisen from the acquisition of Trusted Technology Partnership Group Limited by a share for share exchange as part of the group reconstruction.

TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 24 -
12
Tangible fixed assets
Group
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 12 October 2022
-
0
-
0
-
0
Additions
81,477
38,184
119,661
At 31 March 2023
81,477
38,184
119,661
Depreciation and impairment
At 12 October 2022
-
0
-
0
-
0
Depreciation charged in the period
2,878
1,278
4,156
At 31 March 2023
2,878
1,278
4,156
Carrying amount
At 31 March 2023
78,599
36,906
115,505
The company had no tangible fixed assets at 31 March 2023.

Fixed asset additions represent the net book value of fixed assets held by the Trusted Technology Partnership Group Limited and its subsidiary at the date of acquisition.

13
Fixed asset investments
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
14
-
0
879
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
13
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 12 October 2022
-
Additions
879
At 31 March 2023
879
Carrying amount
At 31 March 2023
879
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Trusted Technology Partnership Group Limited
United Kingdom
Intermediary parent
Ordinary
100.00
Trusted Technology Partnership Limited
United Kingdom
Computer consultants
Ordinary
100.00

The registered office for both subsidiaries is Unit G1-G2, Platinum Jubilee Business Park, Hopclover Way, Ringwood, Hampshire, BH24 3FW.

15
Stocks
Group
Company
2023
2023
£
£
Raw materials and consumables
34,582
-
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 26 -
16
Debtors
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
1,660,797
-
0
Other debtors
695
1
Prepayments and accrued income
89,447
-
0
1,750,939
1
17
Creditors: amounts falling due within one year
Group
Company
2023
2023
£
£
Trade creditors
716,076
-
0
Other taxation and social security
453,256
-
Other creditors
521,058
-
0
Accruals and deferred income
914,468
-
0
2,604,858
-
0
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
2023
Group
£
Accelerated capital allowances
29,819
The company has no deferred tax assets or liabilities.
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
18
Deferred taxation
(Continued)
- 27 -
Group
Company
2023
2023
Movements in the period:
£
£
Asset at 12 October 2022
-
-
Charge to profit or loss
5,163
-
Other
24,656
-
Liability at 31 March 2023
29,819
-
19
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
13,365

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

20
Share capital
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary of £1 each
880
880
21
Reserves

Other reserves

Other reserves represents the merger reserve formed by the share for share exchange as part of the group reconstruction. The reserve represents the fair value of the acquired subsidiaries in excess of issued share capital and less any subsequent contributions.

Profit and loss reserves

The profit and loss account reflects cumulative profits and losses net of distributions to members.

TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 28 -
22
Acquisition of a business

On 21 February 2023 the group acquired 100 percent of the issued capital of Trusted Technology Partnership Group Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
119,661
-
119,661
Inventories
34,582
-
34,582
Trade and other receivables
1,728,940
-
1,728,940
Cash and cash equivalents
4,134,870
-
4,134,870
Trade and other payables
(2,151,602)
-
(2,151,602)
Tax liabilities
(453,256)
-
(453,256)
Provisions
(29,819)
-
(29,819)
Total identifiable net assets
3,383,376
-
3,383,376
Goodwill
1,716,624
Total consideration
5,100,000
The consideration was satisfied by:
£
Cash
879
Issue of shares
5,099,121
5,100,000
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,062,255
Profit after tax
54,072
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 29 -
23
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2023
£
£
Within one year
127,844
-
Between two and five years
86,746
-
214,590
-
24
Related party transactions

The company has taken advantage of the exemption available under Section 33 of FRS 102 from disclosing transactions with wholly-owned group companies.

25
Controlling party

The group is controlled by the employee ownership trust of Trusted Technology Trustee Limited.

26
Cash generated from/(absorbed by) group operations
2023
£
Profit for the period after tax
54,072
Adjustments for:
Taxation charged
7,822
Investment income
(860)
Loss on disposal of tangible fixed assets
584
Depreciation and impairment of tangible fixed assets
4,156
Other gains and losses
10
Decrease in provisions
(29,819)
Cash generated from/(absorbed by) operations
35,965
TRUSTED TECHNOLOGY PARTNERSHIP (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 30 -
27
Analysis of changes in net funds - group
12 October 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
-
1,915,580
1,915,580
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