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USYSTEMS LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST DECEMBER 2022






USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 14


USYSTEMS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2022







DIRECTORS: S Bailey
E Skelli-Levine
Y D Roullac





REGISTERED OFFICE: Systems House
235 Ampthill Road
Bedford
Bedfordshire
MK42 9QG





REGISTERED NUMBER: 04616025 (England and Wales)





AUDITORS: HW Bedford Limited
First Floor, Woburn Court
2 Railton Road
Woburn Rd Ind Est
Kempston
Bedfordshire
MK42 7PN

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2022

The directors present their strategic report for the year ended 31st December 2022.

REVIEW OF BUSINESS
During the financial year ending 31st December 2022 turnover increased by 1.5% compared to the prior year.

The forecast for year ending 31st December 2023 is very positive in terms of sales and profitability, so long as there are no issues with supply chains and staffing levels.

The directors are pleased with the trading performance of the company, which reports an operating profit of 1,026,545 compared to £581,915 in 2021. The trading activity is well diversified and considered by the directors to be low risk. Administrative costs were kept under control and this resulted in a higher profit for the year.

PRINCIPAL RISKS AND UNCERTAINTIES
Uncertainties within the UK and world economy are the main variable factor with regards to the ongoing operation of the group.

We do very little trade directly with Europe so believe the impact of Brexit should be minimal.

Financial risks
- changes in the economic environment; and impact of any future covid restrictions
- interest rate risks;

Supply
- Materials are imported from around the world so there is a risk to supply time delays if the situation deteriorates.

KEY PERFORMANCE INDICATORS
Given the nature of the business, the directors consider that the key performance indicators relevant to understand the development, performance and position of the group are debt and the yield from investments and loans. These are detailed above

FUTURE OUTLOOK
The directors expect the external environment to remain competitive in 2023 with a threat of variations in market potentially caused by Brexit, but remain confident that they can continue to achieve good returns on all loans and investments.

ON BEHALF OF THE BOARD:





S Bailey - Director


2nd February 2024

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2022

The directors present their report with the financial statements of the company for the year ended 31st December 2022.

DIVIDENDS
No A share dividends will be distributed for the year ended 31st December 2022 (2021 £Nil).

DIRECTORS
S Bailey has held office during the whole of the period from 1st January 2022 to the date of this report.

Other changes in directors holding office are as follows:

M Cook - resigned 6th June 2022
Z Loewe - resigned 6th June 2022
E Skelli-Levine - appointed 6th June 2022
Y D Roullac - appointed 6th June 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, HW Bedford Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S Bailey - Director


2nd February 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
USYSTEMS LIMITED

Opinion
We have audited the financial statements of USystems Limited (the 'company') for the year ended 31st December 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31st December 2022 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
USYSTEMS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Identifying and assessing the controls management has in place to prevent and detect fraud;
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
- Challenging assumptions and judgments made by management in its significant accounting estimates and judgments.
- Identifying and testing journal entries, in particular journal entries posted with unusual account combinations; and
- Assessing the extent of compliance with the relevant laws and regulations.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusions.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
USYSTEMS LIMITED


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 a Report of the Auditors 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.




Alberto Di Lorenzo FCA (Senior Statutory Auditor)
for and on behalf of HW Bedford Limited
First Floor, Woburn Court
2 Railton Road
Woburn Rd Ind Est
Kempston
Bedfordshire
MK42 7PN

5th February 2024

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2022

2022 2021
Notes £    £    £    £   

TURNOVER 3 9,403,622 9,261,587

Cost of sales 6,068,353 6,196,922
GROSS PROFIT 3,335,269 3,064,665

Distribution costs 15,335 5,760
Administrative expenses 2,296,929 2,652,134
2,312,264 2,657,894
1,023,005 406,771

Other operating income 3,540 112,200
OPERATING PROFIT 5 1,026,545 518,971

Interest receivable and similar income - 6
1,026,545 518,977

Interest payable and similar expenses 6 23,785 62,782
PROFIT BEFORE TAXATION 1,002,760 456,195

Tax on profit 7 65,509 116,136
PROFIT FOR THE FINANCIAL YEAR 937,251 340,059

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

937,251
Prior year adjustment (23,606 )
TOTAL COMPREHENSIVE INCOME
SINCE LAST ANNUAL REPORT

316,453

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

BALANCE SHEET
31ST DECEMBER 2022

2022 2021
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 209,268 253,390

CURRENT ASSETS
Stocks 9 1,853,282 1,597,206
Debtors 10 4,494,908 3,344,366
Cash at bank and in hand 255,884 81,316
6,604,074 5,022,888
CREDITORS
Amounts falling due within one year 11 4,304,459 3,178,233
NET CURRENT ASSETS 2,299,615 1,844,655
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,508,883

2,098,045

CREDITORS
Amounts falling due after more than one year 12 - (530,586 )

PROVISIONS FOR LIABILITIES 17 (52,317 ) (48,144 )
NET ASSETS 2,456,566 1,519,315

CAPITAL AND RESERVES
Called up share capital 18 834,185 834,185
Share premium 19 (852 ) (852 )
Retained earnings 19 1,623,233 685,982
SHAREHOLDERS' FUNDS 2,456,566 1,519,315

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

BALANCE SHEET - continued
31ST DECEMBER 2022


The financial statements were approved by the Board of Directors and authorised for issue on 2nd February 2024 and were signed on its behalf by:





S Bailey - Director


USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2022

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1st January 2021 834,185 369,529 (852 ) 1,202,862
Prior year adjustment - (23,606 ) - (23,606 )
As restated 834,185 345,923 (852 ) 1,179,256

Changes in equity
Total comprehensive income - 340,059 - 340,059
Balance at 31st December 2021 834,185 685,982 (852 ) 1,519,315

Changes in equity
Total comprehensive income - 937,251 - 937,251
Balance at 31st December 2022 834,185 1,623,233 (852 ) 2,456,566

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2022

2022 2021
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 154,521 1,381,457
Interest paid (23,785 ) (61,368 )
Interest element of hire purchase payments
paid

-

(1,414

)
Tax paid 128,376 53,425
Net cash from operating activities 259,112 1,372,100

Cash flows from investing activities
Purchase of tangible fixed assets (7,323 ) (9,350 )
Interest received - 6
Net cash from investing activities (7,323 ) (9,344 )

Cash flows from financing activities
Loans with group entities 1,565,760 -
Loan repayments in year (1,537,598 ) (1,821,916 )
Capital repayments in year (9,216 ) (20,184 )
Amount introduced by directors - 50,000
Amount withdrawn by directors (96,167 ) -
Government grants - 92,600
Net cash from financing activities (77,221 ) (1,699,500 )

Increase/(decrease) in cash and cash equivalents 174,568 (336,744 )
Cash and cash equivalents at beginning of
year

2

81,316

418,060

Cash and cash equivalents at end of year 2 255,884 81,316

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2022

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2022 2021
£    £   
Profit before taxation 1,002,760 456,195
Depreciation charges 51,446 73,900
Government grants - (92,600 )
Finance costs 23,785 62,782
Finance income - (6 )
1,077,991 500,271
Increase in stocks (256,076 ) (74,213 )
(Increase)/decrease in trade and other debtors (50,806 ) 691,592
(Decrease)/increase in trade and other creditors (616,588 ) 263,807
Cash generated from operations 154,521 1,381,457

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 255,884 81,316
Year ended 31st December 2021
31/12/21 1/1/21
£    £   
Cash and cash equivalents 81,316 418,127
Bank overdrafts - (67 )
81,316 418,060


USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2022

3. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1/1/22 Cash flow At 31/12/22
£    £    £   
Net cash
Cash at bank and in hand 81,316 174,568 255,884
81,316 174,568 255,884
Debt
Finance leases (11,595 ) 9,216 (2,379 )
Debts falling due within 1 year (1,009,361 ) 1,009,361 -
Debts falling due after 1 year (528,237 ) 528,237 -
(1,549,193 ) 1,546,814 (2,379 )
Total (1,467,877 ) 1,721,382 253,505

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022

1. STATUTORY INFORMATION

USystems Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The financial statements have been prepared on a going concern basis. The Director has reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Director has concluded that the company can continue to adopt the going concern basis in preparing the annual report and accounts.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
In the application of the company's accounting policies, the directors are required to make judgement, 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.

Revenue
Revenue is recognised when it is probable that future economic benefit will flow to the company and the revenue can be measured reliably. Revenue is measured at fair value of consideration received or receivable, excluding any discounts, rebates and value added tax. Listed below is the revenue recognition policy which must be met before revenue can be recognised:

Sale of equipment
Revenue from sale of equipment is recognised when risk and rewards have been transferred to the customer, this occurs upon dispatch of equipment. The company considers the effect of variable consideration where certain contracts require an upfront deposit which are treated as deferred income initially and recognised when risk and rewards have transferred to customer.

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2022

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 10% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost

Fixed assets are stated at cost less accumulated depreciation.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. The provision for slow moving and obsolete items within the financial year is £134,000 (2021: £102,115).

Fixed and Variable production overheads have been allocated to the costs of conversion. For Fixed overheads this has been included on the basis of actual production expected, and for Variable overheads it has effectively been allocated to each unit of production on the basis of actual use of the production facilities.

Work in Progress and Finished goods values are evaluated using a method of absorption costing. An uplift is applied to the hourly labour time to account for general overheads.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

2022 2021
Raw materials 1,247,175 1,203,599
WIP 55.876 41,013
Finished Goods 684,231 454,709

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 balance sheet date.


USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2022

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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 in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2022 2021
£    £   
United Kingdom 2,579,600 4,130,163
Europe 624,141 -
United States of America 6,199,881 5,131,424
9,403,622 9,261,587

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2022

4. EMPLOYEES AND DIRECTORS
2022 2021
£    £   
Wages and salaries 2,185,431 2,129,668
Social security costs 6,743 -
Other pension costs 42,987 45,793
2,235,161 2,175,461

The average number of employees during the year was as follows:
2022 2021

Directors 1 3
Management 2 2
Other 58 69
61 74

2022 2021
£    £   
Directors' remuneration 51,231 -
Directors' pension contributions to money purchase schemes 2,000 6,000

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2022 2021
£    £   
Depreciation - owned assets 37,940 70,864
Depreciation - assets on hire purchase contracts 13,505 3,036
Auditors' remuneration 29,900 5,000
Foreign exchange differences (213,062 ) 80,430

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2022 2021
£    £   
Barclays sales financing interest 10,283 31,852
Other interest 6,322 10,018
Other loan interest 7,180 16,086
Interest on late tax payment - 3,412
Hire purchase interest - 1,414
23,785 62,782

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2022

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2022 2021
£    £   
Current tax:
UK corporation tax 191,158 51,537
Prior period under/(over) provisions (93,876 ) 76,863
Research & development tax credit (35,946 ) -
Total current tax 61,336 128,400

Deferred tax 4,173 (12,264 )
Tax on profit 65,509 116,136

8. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1st January 2022 1,413,353 16,877 121,146 33,729 1,585,105
Additions - 1,482 - 5,841 7,323
At 31st December 2022 1,413,353 18,359 121,146 39,570 1,592,428
DEPRECIATION
At 1st January 2022 1,198,620 7,683 105,189 20,223 1,331,715
Charge for year 21,473 9,705 15,335 4,932 51,445
At 31st December 2022 1,220,093 17,388 120,524 25,155 1,383,160
NET BOOK VALUE
At 31st December 2022 193,260 971 622 14,415 209,268
At 31st December 2021 214,733 9,194 15,957 13,506 253,390

The net book value of tangible fixed assets includes £ 33,620 (2021 - £ 47,125 ) in respect of assets held under hire purchase contracts.

9. STOCKS
2022 2021
£    £   
Stocks 1,853,282 1,597,206

The write down of stocks to net realisable value amounted to £134,000 (2021 - £102,115).

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2022

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Trade debtors 1,199,061 1,270,007
Amounts owed by group undertakings 2,966,088 1,780,315
Other debtors 17,481 8,463
Tax - 86,037
VAT 134,224 166,886
Prepayments and accrued income 178,054 32,658
4,494,908 3,344,366

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Bank loans and overdrafts (see note 13) - 98,345
Other loans (see note 13) - 911,016
Hire purchase contracts (see note 14) 2,379 9,246
Trade creditors 909,493 1,544,242
Amounts owed to group undertakings 3,075,661 324,127
Corporation tax 155,212 51,537
Social security and other taxes 56,024 42,103
Other creditors 21,491 8,878
Company credit card 14,878 26,434
Directors' current accounts - 96,167
Accruals and deferred income 69,321 66,138
4,304,459 3,178,233

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2022 2021
£    £   
Bank loans (see note 13) - 370,018
Other loans (see note 13) - 158,219
Hire purchase contracts (see note 14) - 2,349
- 530,586

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2022

13. LOANS

An analysis of the maturity of loans is given below:

2022 2021
£    £   
Amounts falling due within one year or on demand:
Bank loans - 98,345
Barclays sales finance - 836,159
Other loans - 74,857
- 1,009,361

Amounts falling due between one and two years:
Bank loans - 1-2 years - 206,364
Other loans - 1-2 years - 77,657
- 284,021

Amounts falling due between two and five years:
Bank loans - 2-5 years - 163,654
Other loans - 2-5 years - 80,562
- 244,216

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2022 2021
£    £   
Net obligations repayable:
Within one year 2,379 9,246
Between one and five years - 2,349
2,379 11,595

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2022

15. SECURED DEBTS

The following secured debts are included within creditors:

2022 2021
£    £   
Bank loans - 468,363
Barclays sales finance - 836,159
Hire purchase contracts 2,379 11,595
2,379 1,316,117

Hire purchase agreements are secured against the assets to which they relate.

16. FINANCIAL INSTRUMENTS

Basic financial liabilities, including trade and other payables, bank loans, loans from group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measures at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

17. PROVISIONS FOR LIABILITIES
2022 2021
£    £   
Deferred tax 52,317 48,144

Deferred
tax
£   
Balance at 1st January 2022 48,144
Charge to Statement of Comprehensive Income during year 4,173
Movement during the year
Balance at 31st December 2022 52,317

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £    £   
18,518 ORDINARY A £1 18,518 18,518
815,667 ORDINARY B £1 815,667 815,667
834,185 834,185

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2022

19. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1st January 2022 685,982 (852 ) 685,130
Profit for the year 937,251 937,251
At 31st December 2022 1,623,233 (852 ) 1,622,381

20. PENSION COMMITMENTS

Employers pension contributions for the year were £40,973 (2021: £39,793).

21. CONTROLLING PARTY

The ultimate controlling party is Legrand.

The immediate parent company is 18MC Global Limited, a company incorporated in England & Wales.