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Registration number: 09085579

Telcom Networks Limited

Unaudited Filleted Financial Statements

for the Year Ended 30 June 2023

 

Telcom Networks Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 11

 

Telcom Networks Limited

Company Information

Directors

Mr Alistair Adams

Mr Martin Andrew Fenney

Mr Thomas Seddon

Registered office

Northstar
135-141 Oldham Street
Manchester
M4 1LN

Accountants

Williamson & Croft Audit Ltd
Chartered Accountants
York House
20 York Street
Manchester
M2 3BB

 

Telcom Networks Limited

(Registration number: 09085579)
Balance Sheet as at 30 June 2023

Note

2023
£

(As restated)

2022
£

Fixed assets

 

Intangible assets

4

34,300

-

Tangible assets

5

7,417,981

4,967,446

 

7,452,281

4,967,446

Current assets

 

Debtors

6

8,966,269

6,327,513

Cash at bank and in hand

 

613,847

272,488

 

9,580,116

6,600,001

Creditors: Amounts falling due within one year

7

(16,791,040)

(8,718,601)

Net current liabilities

 

(7,210,924)

(2,118,600)

Total assets less current liabilities

 

241,357

2,848,846

Creditors: Amounts falling due after more than one year

7

(45,021)

(177,625)

Net assets

 

196,336

2,671,221

Capital and reserves

 

Called up share capital

8

11,776

11,776

Share premium reserve

629,954

629,954

Retained earnings

(445,394)

2,029,491

Shareholders' funds

 

196,336

2,671,221

For the financial year ending 30 June 2023 the company was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

For the financial year ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

 

Telcom Networks Limited

(Registration number: 09085579)
Balance Sheet as at 30 June 2023

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account and Directors' Report has been taken.

Approved and authorised by the Board on 19 March 2024 and signed on its behalf by:
 

.........................................

Mr Martin Andrew Fenney
Director

 

Telcom Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office and principal place of activity is:
Northstar
135-141 Oldham Street
Manchester
M4 1LN
England

These financial statements were authorised for issue by the Board on 19 March 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in sterling which is the functional currency of the company.

Summary of disclosure exemptions

The accounts do not include a cash flow statement because the company, as a small reporting entity, is exempt from the requirements to prepare such a statement.

Going concern

The financial statements have been prepared on a going concern basis. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore they continue to adopt the going concern basis of accounting in the preparation of the financial statements.

 

Telcom Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Changes in accounting estimate

Depreciation of fixed assets

During the year management have re-assessed the period of depreciation of the some sub-categories of infrastructure works tangible fixed assets, changing the depreciation rate from 4% per annum to 20% per annum to more accurately reflect the useful economic life and replacement timeline of these specific components.

Prior period adjustments

Fixed assets with a total cost of £17,743 as at 30 June 2021 have been reclassified from intangible assets to tangible assets in the comparatives as in management's opinion this better reflects the nature of the asset to which these costs relate, being infrastructure works.

Associated amortisation at 30 June 2021 of £11,070 and charges for the year-ended 30 June 2022 of £885 were also reclassified as tangible fixed asset depreciation within the profit and loss account and balance sheet in the comparatives for 2022.

There is no impact on the total net liabilities of the company as previously reported in the 30 June 2022 financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Grants received towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred or when any terms and conditions relating to the grant are satisfied. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets.

Grants received in advance are included within other creditors whilst those for which the conditions have been met and which are virtually certain to be received by the company are included in other debtors.

Tax

The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Telcom Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% Straight line

Office equipment

33% Straight line

Motor vehicles

20% Straight line

Infrastructure works

4 - 20% Straight line

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Other intangibles

4 - 20% Straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Telcom Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Telcom Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 58 (2022 - 28).

 

Telcom Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

4

Intangible assets

Other intangible assets
 £

Total
£

Cost or valuation

Additions acquired separately

35,000

35,000

At 30 June 2023

35,000

35,000

Amortisation

Amortisation charge

700

700

At 30 June 2023

700

700

Carrying amount

At 30 June 2023

34,300

34,300

5

Tangible assets

Infrastructure works
 £

Motor vehicles
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 July 2022 (as restated)

4,849,805

208,358

1,226,496

6,284,659

Additions

4,208,215

-

22,993

4,231,208

Disposals

-

(135,510)

-

(135,510)

At 30 June 2023

9,058,020

72,848

1,249,489

10,380,357

Depreciation

At 1 July 2022 (as restated)

484,995

60,954

771,264

1,317,213

Charge for the year

1,504,838

32,637

170,926

1,708,401

Eliminated on disposal

-

(63,238)

-

(63,238)

At 30 June 2023

1,989,833

30,353

942,190

2,962,376

Carrying amount

At 30 June 2023

7,068,187

42,495

307,299

7,417,981

At 30 June 2022 (as restated)

4,364,810

147,404

455,232

4,967,446

 

Telcom Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

6

Debtors

Note

2023
£

2022
£

Trade debtors

 

3,100,902

507,437

Amounts due from group undertakings

10

5,804,923

5,643,374

Prepayments

 

17,108

85,608

Other debtors

 

43,336

91,094

   

8,966,269

6,327,513

7

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

52,932

150,985

Trade creditors

 

1,264,009

1,117,777

Amounts owed to group undertakings

10

14,886,694

7,138,444

Taxation and social security

 

104

-

Accruals and deferred income

 

587,300

310,578

Other creditors

 

1

817

 

16,791,040

8,718,601

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

45,021

177,625

Included within loans and borrowings is £97,953 (2022: £328,610) relating to finance lease agreements. These loans are secured by a fixed charge over the asset to which they relate.

 

Telcom Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

A Ordinary of £1 each

8,906

8,906

8,906

8,906

B Ordinary of £1 each

2,281

2,281

2,281

2,281

C Ordinary of £1 each

589

589

589

589

 

11,776

11,776

11,776

11,776

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £957,167 (2022 - £226,606). This relates to non-cancellable operating leases.

The total amount of guarantees not included in the balance sheet is £45,351,584 (2022 - £20,751,584). This relates to a cross guarantee in respect of the parent company Telcom Group Ltd.

10

Related party transactions

The company has taken advantage of the exemption conferred by FRS 102 (Section 1A) not to disclose transactions with wholly owned members of the group headed by Telcom Group Ltd.

Included within other debtors are total amounts owed by the directors to the company of £Nil (2022: £3,265). These amounts were provided interest free, unsecured and repayable on demand.

11

Parent and ultimate parent undertaking

The company's immediate parent is Telcom Group Ltd, incorporated in England and Wales.