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Registered Number: 04154363
England and Wales

 

 

 

IT SOLUTION SERVICES LIMITED


Abridged Accounts
 


Period of accounts

Start date: 01 April 2022

End date: 31 March 2023
Chartered Accountants' report to the board of directors on the preparation of the unaudited statutory accounts of IT Solution Services Limited for the year ended 31 March 2023.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of IT Solution Services Limited for the year ended 31 March 2023 which comprise of the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes from the companys accounting records and from information and explanations you have given us.


As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/members/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of IT Solution Services Limited , as a body, in accordance with the terms of our engagement letter dated 17 October 2023. Our work has been undertaken solely to prepare for your approval the accounts of IT Solution Services Limited and state those matters that we have agreed to state to the Board of Directors of IT Solution Services Limited , as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than IT Solution Services Limited and its Board of Directors as a body for our work or for this report.


It is your duty to ensure that IT Solution Services Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of IT Solution Services Limited . You consider that IT Solution Services Limited is exempt from the statutory audit requirement for the year.


We have not been instructed to carry out an audit or a review of the accounts of IT Solution Services Limited . For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts 31 March 2023.



....................................................
Wood & Disney Ltd
Lodge Park
Lodge Lane
Langham
Colchester
CO4 5NE
17 October 2023
1
 
 
Notes
 
2023
£
  2022
£
Fixed assets      
Intangible fixed assets 3 17,000    34,000 
Tangible fixed assets 4 311,009    296,182 
328,009    330,182 
Current assets      
Stocks 15,282    14,587 
Debtors 550,004    656,858 
Cash at bank and in hand 397,273    429,251 
962,559    1,100,696 
Creditors: amount falling due within one year (449,557)   (638,740)
Net current assets 513,002    461,956 
 
Total assets less current liabilities 841,011    792,138 
Creditors: amount falling due after more than one year (123,424)   (177,465)
Provisions for liabilities (77,752)   (56,275)
Net assets 639,835    558,398 
 

Capital and reserves
     
Called up share capital 5 100    100 
General Reserves 6 (645,689)   (432,135)
Profit and loss account 1,285,424    990,433 
Shareholder's funds 639,835    558,398 
 


For the year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:
  1. The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.
  2. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of Part 15 of the Companies Act 2006. In accordance with Section 444 of the Companies Act 2006 the income statement has not been delivered to the Registrar of Companies.

The members have agreed to the preparation of abridged accounts for this accounting period in accordance with section 444(2A).
The financial statements were approved by the board of directors on 17 October 2023 and were signed on its behalf by:


-------------------------------
A Piper-Hunter
Director
2
General Information
IT Solution Services Limited is a private company, limited by shares, registered in England and Wales, registration number 04154363, registration address 7 Faraday Close, Oakwood Industrial Estate, Clacton on Sea, Essex, CO15 4TR.

The presentation currency is £ sterling.
1.

Accounting policies

Significant accounting policies
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 (as applied to small entities by Section 1A of the standard)
Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Government grants
Government grants received are credited to deferred income. Grants towards capital expenditure are released to the income statement over the expected useful life of the assets. Grants received towards revenue expenditure are released to the income statement as the related expenditure is incurred.
Finance lease and hire purchase charges
The finance element of the rental payment is charged to the income statement on a straight line basis.
Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.
Share based payments for employee share schemes
The Company has granted share options to certain employees and to one non-employee consultant. These options must be measured at fair value and recognised as an expense in the profit and loss account with a corresponding increase in shareholders funds. The fair value of the options has been estimated at the date of grant using the Black-Scholes option-pricing model. The fair value will be charged as an expense in the profit and loss account over the vesting period. The charge is adjusted each year to reflect the expected and actual level of vesting. The credit entry is contained within a separate reserve called the Share-Based Payment Reserve in the companys reserves and is shown in the Movement in Shareholders Funds.

Employee Share Trust
The Company is the settler and sponsor of The IT Solution Services Employees Share Trust, a discretionary trust which was executed as a trust deed on 28th November, 2018. Since that time, for accounting purposes, the company has had de facto control of the assets and liabilities of the trust and, consequently, the assets and liabilities of the trust are recognised in the company accounts. The policy is that any consideration paid or received by the trust in respect of Company shares is shown in the Movement of Shareholders Funds.
During the year, the trust entered into a transaction with shareholders for the purchase of 80,645 Ordinary Shares (2022 nil) for which the trust paid a total consideration of £250,000 (2022 - £nil) to shareholders with funds that were settled into the trust by the company. As a consequence of the purchase of shares from existing shareholders during the current financial year and previous financial years, the trust is the owner of 22.54% of the issued share capital of the company.
Share-based payments for employee share schemes
On 1st August, 2018, the company granted options over 57,000 shares through the tax-advantaged Enterprise Management Incentives employee share option scheme to a total of twelve employees on a discretionary basis at an option price of £3.00 per share. The period over which the outstanding options are capable of subsisting is the period of ten years from August, 2018 to July, 2028. The period over which the outstanding options are capable of being exercised is the period of five years from August, 2023 to July, 2028 during the period of the employment of the scheme participants or at any exit event at any time in the full ten year period.
On 30th April, 2019, the company granted options over 59,000 shares through the tax-advantaged Enterprise Management Incentives employee share option scheme to a total of thirteen employees on a discretionary basis at an option price of £3.20 per share. The period over which the outstanding options are capable of subsisting is the period of ten years from April, 2019 to March, 2029. The period over which the outstanding options are capable of being exercised is the period of five years from April, 2024 to March, 2029 during the period of the employment of the scheme participants or at any exit event at any time in the full ten year period.
On 31st March, 2021, the company granted options over 32,000 shares through the tax-advantaged Enterprise Management Incentives employee share option scheme to a total of seven employees on a discretionary basis at an option price of £2.80 per share. The period over which the outstanding options are capable of subsisting is the period of ten years from March, 2021 to February, 2031. The period over which the outstanding options are capable of being exercised is the period of five years from March, 2026 to February, 2031 during the period of the employment of the scheme participants or at any exit event at any time in the full ten year period.
Except in the case of retirement, in the event that an individual employee who is a scheme participant leaves the company, the exercise of the option by the employee is fully at the discretion of the Board of Directors that must notify the employee of its decision within three months of the date of leaving and in the event that the Board of Directors does not give its permission to exercise the option then the option will lapse immediately following the decision.
In the event that the individual employee leaves the employment of the company as a consequence of retirement with the agreement of the Board of Directors then the employee will have the opportunity to exercise the option within the period of six months following the date of leaving
Share-based payments for consultant share schemes
On 1st August, 2018, the company granted an option over 3,000 shares through a non-tax-advantaged consultant share option scheme to one consultant on a discretionary basis at an option price of £3.00 per share. The period over which the outstanding option is capable of subsisting is the period of ten years from August, 2018 to July, 2028. The period over which the outstanding option is capable of being exercised is the period of five years from August, 2023 to July, 2028 during the period of the continued involvement of the scheme participant or at any exit event at any time in the full ten year period.
On 30th April, 2019, the company granted an option over 3,000 shares through a non-tax-advantaged consultant share option scheme to one consultant on a discretionary basis at an option price of £3.20 per share. The period over which the outstanding option is capable of subsisting is the period of ten years from April, 2019 to March, 2029. The period over which the outstanding option is are capable of being exercised is the period of five years from April, 2024 to March, 2029 during the period of the continued involvement of the scheme participant or at any exit event at any time in the full ten year period.
Except in the case of retirement, in the event that an individual consultant ceases to be involved with the company, the exercise of the option by the consultant is fully at the discretion of the Board of Directors that must notify the consultant of its decision within three months of the date of ceasing involvement and in the event that the Board of Directors does not give its permission to exercise the option then the option will lapse immediately following the decision.
In the event that the individual consultant ceases to be involved with the company as a consequence of retirement as recognised by the Board of Directors then the consultant will have the opportunity to exercise the option within the period of six months following the date of leaving.
The expense calculation for the options granted on 1st August, 2018, 30th April, 2019 and 31st March, 2021, using the Black-Scholes option-pricing valuation model, is shown from notes 18 to 23 below







Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Goodwill
Goodwill, being the amount paid in connection with the acquisition of businesses is being amortised evenly over its estimated useful life of 5 years.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property 25% Straight Line
Plant and Machinery 25% Straight Line
Motor Vehicles 25% Reducing Balance
Fixtures and Fittings 15% Straight Line
Computer Equipment 33% Straight Line
Assets on finance lease and hire purchase
Assets held under finance lease or hire purchase contracts i.e. those contracts where substantially all the risks and rewards of ownership have passed to the company, are included in the appropriate category of tangible fixed assets and depreciated over the shorter of the lease term and their estimated expected useful lives.
Future obligations under such contracts are included in creditors net of the finance charge allocated to future periods.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Provisions
Provisions are recognised when the company has a present obligation as a result of a past event which it is more probable than not will result in an outflow of economic benefits that can be reasonably estimated.
Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans with related parties.

Debt instruments that are payable or receivable within one year, such as trade payables or receivables, are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. Debt instruments that are repayable or receivable after one year are initially measured at the present value of the future cash flows and subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each financial year for evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised in the Income Statement.
2.

Average number of employees


Average number of employees during the year was 33 (2022 : 25).
3.

Intangible fixed assets

Cost Goodwill   Total
  £   £
At 01 April 2022 113,285    113,285 
Additions  
Disposals  
At 31 March 2023 113,285    113,285 
Amortisation
At 01 April 2022 79,285    79,285 
Charge for year 17,000    17,000 
On disposals  
At 31 March 2023 96,285    96,285 
Net book values
At 31 March 2023 17,000    17,000 
At 31 March 2022 34,000    34,000 


4.

Tangible fixed assets

Cost or valuation Improvements to property   Plant and Machinery   Motor Vehicles   Fixtures and Fittings   Computer Equipment   Total
  £   £   £   £   £   £
At 01 April 2022 13,714    459,904    11,995    17,291    33,090    535,994 
Additions   151,749        4,667    156,416 
Disposals         (24,339)   (24,339)
At 31 March 2023 13,714    611,653    11,995    17,291    13,418    668,071 
Depreciation
At 01 April 2022 13,714    177,633    10,017    12,687    25,761    239,812 
Charge for year   134,950    495    1,717    4,428    141,590 
On disposals         (24,340)   (24,340)
At 31 March 2023 13,714    312,583    10,512    14,404    5,849    357,062 
Net book values
Closing balance as at 31 March 2023   299,070    1,483    2,887    7,569    311,009 
Opening balance as at 01 April 2022   282,271    1,978    4,604    7,329    296,182 

The net book value of Plant and Machinery includes £ 27,500 (2022 £55,000) in respect of assets leased under finance leases or hire purchase contracts.

5.

Share Capital

Authorised
1,000,000 Ordinary shares of £0.0001 each
Allotted, called up and fully paid
2023
£
  2022
£
1,000,000 Ordinary shares of £0.0001 each 100    100 
100    100 

6.

General Reserves

2023
£
  2022
£
Purchase of Shares by Employee Share Trust (700,000)   (450,001)
Other reserves-Share based payment reserve 54,311    17,866 
(645,689)   (432,135)

3