London Smart Systems Limited
Unaudited Financial Statements
For the year ended 31 May 2023
Pages for Filing with Registrar
Company Registration No. 10177819 (England and Wales)
London Smart Systems Limited
Company Information
Directors
P Hitchens
W Fleming
Company number
10177819
Registered office
6th Floor
9 Appold Street
London
EC2A 2AP
Accountants
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
London Smart Systems Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 5
London Smart Systems Limited
Balance Sheet
As at 31 May 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
15,000
20,000
Tangible assets
4
2,775
4,625
17,775
24,625
Current assets
Cash at bank and in hand
835
9,578
Creditors: amounts falling due within one year
5
(126,525)
(114,562)
Net current liabilities
(125,690)
(104,984)
Total assets less current liabilities
(107,915)
(80,359)
Capital and reserves
Called up share capital
6
100
100
Profit and loss reserves
(108,015)
(80,459)
Total equity
(107,915)
(80,359)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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 8 February 2024 and are signed on its behalf by:
P Hitchens
Director
Company Registration No. 10177819
London Smart Systems Limited
Notes to the Financial Statements
For the year ended 31 May 2023
Page 2
1
Accounting policies
Company information

London Smart Systems Limited is a private company limited by shares incorporated and domiciled in England and Wales. The registered office is 6th Floor, 9 Appold Street, London, EC2A 2AP.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

During the year the company generated a loss of £27,556 (2022: £14,871) and had a net deficit of assets of £107,915 (2022: £80,359). The company is in its sixth year of operation and meets its day to day working capital requirements using a loan of £94,960 (2022: £94,770) granted from a company director. The director has confirmed that he will not recall the loan for repayment until such time that the company has sufficient working capital to do so and will continue to assist the company to pay its debt as they fall due for at least 12 months from the date these financial statements were approved. On this basis the accounts have been prepared as a going concern.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for 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.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 10 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.

1.5
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.

London Smart Systems Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2023
1
Accounting policies
(Continued)
Page 3

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:

Plant
20% Straight line
Motor vehicles
20% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.10
Retirement benefits

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

1.11
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.

London Smart Systems Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2023
Page 4
2
Employees

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

2023
2022
Number
Number
Total
2
2
3
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2022 and 31 May 2023
50,000
Amortisation and impairment
At 1 June 2022
30,000
Amortisation charged for the year
5,000
At 31 May 2023
35,000
Carrying amount
At 31 May 2023
15,000
At 31 May 2022
20,000
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 June 2022 and 31 May 2023
12,250
Depreciation and impairment
At 1 June 2022
7,625
Depreciation charged in the year
1,850
At 31 May 2023
9,475
Carrying amount
At 31 May 2023
2,775
At 31 May 2022
4,625
London Smart Systems Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2023
Page 5
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
-
0
3,005
Taxation and social security
4,624
6,004
Other creditors
117,351
101,383
Accruals and deferred income
4,550
4,170
126,525
114,562
6
Called up share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
100 Ordinary shares of £1 each
100
100
7
Related party transactions

The following amounts were outstanding at the reporting end date:

Included within other creditors is an amount of £23,000 (2022: £7,000) due to a company which the director holds an interest.

8
Directors' transactions

At the balance sheet date the company owed an amount of £94,770 (2022: £94,770) to a director in respect of a loan granted to the company. The balance is interest free, unsecured and repayable on demand.

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