Telelink (UK) Limited
Annual Report and Financial Statements
For the year ended 31 December 2022
Company registration number 09347564 (England and Wales)
Telelink (UK) Limited
Company Information
Director
M Pfurtscheller
(Appointed 20 September 2022)
Company number
09347564
Registered office
Unit 2 Turnhams Green Business Park
Pincents Lane
Theale
Tilehurst
Reading
England
RG31 4UH
Auditor
Moore Kingston Smith LLP
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Business address
Unit 2 Turnhams Green Business Park
Pincents Lane
Theale
Tilehurst
Reading
England
RG31 4UH
Telelink (UK) Limited
Contents
Page
Strategic report
1 - 2
Director's report
3 - 4
Director's responsibilities statement
5
Independent auditor's report
6 - 7
Income statement
8
Statement of financial position
9 - 10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 34
Telelink (UK) Limited
Strategic Report
For the year ended 31 December 2022
Page 1

The director presents the strategic report for the year ended 31 December 2022.

Fair Review of the Business and Key Performance Indicators

The momentum of 2021 continued into 2022 and the business achieved revenue of £33.26m (2021: £32.72m) proving the continued forecasted growth. This smaller than anticipated increase of 1.6% in revenue was due to delays related to acceptance and project scope changes, these resulted in a loss of revenue of £2.4m. This was also a reflection of the process changes and capacity issues at customer end which slowed down some of the delivery programs.

 

Caused by wide changes in the markets, we identified an increase in our cost of sales, squeezed by the increasing rates and prices. The ongoing initiatives related to company digitalisation, process optimisation and restructuring took longer than planned. This slowed down the expected results and impacted the profitability and the business ended the year with a pre-tax loss of £1.86m.

 

Issues have been identified and addressed while the new organisation structure and set up continue to mature in order to manage the continued growth path.

 

Considering the ongoing projects and forecasted sales in 2023, we are confident we will sustain the growth in 2023 and with the support of the Group will complete the ongoing initiatives and improve the performance and profitability substantially. Potential new workstreams were identified across the existing and new customers which open up additional opportunities for growth.

 

Principal risks and uncertainties

All our structure and process optimisations in combination with the digitalisation initiatives continued across 2022. Any potential issues identified as part of the processes and not detected during the fast growing phases, will be addressed and should further improve our operational and financial performance.

High attention is put on potential margin erosion due to continued price increases on the supplier side. These will be managed across all of our customers and adequate measures put in place if the trends continue. Changes in the financial markets might make it hard for some of our customers to keep the current projects run rate as high as they are and may result in some revenue erosion. Regular commercial reviews with the customers are performed and any trends should be addressed accordingly.

 

Resource related risks are adequately addressed and further optimisation across the entire Group are better utilised. Fast growing company issues are adequately measured by leadership and management of the company and are adequately addressed as part of the ongoing optimisations and improvement.

 

As presented by our auditors we have substantial WIP that we need to reduce in the coming year. This is a very typical telecoms service industry occurrence and is down to the way projects are delivered in the wireless delivery. A lot of the WIP stays open for the whole project delivery and may run over years. This is down to delays in the finalisation of the sites and the very long account clearance between the supplier and the operators/clients. Substantial progress to reduce the old WIP substantially has been already made over the past month in 2023 and will continue in 2024.

As part of the going concern all losses have been covered by additional loans from our group which will remain our main source of funding as required during the next year.

 

Telelink (UK) Limited
Strategic Report (Continued)
For the year ended 31 December 2022
Page 2
Future Developments of the Business

Sustainable growth across the industry is giving us confidence that we will achieve further increase in the sales through all our customers. Additional confidence is supported by our excellent operational performance and quality of work which should increase our competitiveness.

 

Telelink (UK) Limited focus remains on the sustainability and development of our key competitive advantages by incorporating the best market practices and technologies in the services delivered. Close working with our partners in parallel of the continued process optimisations and digitalisations will further boost our offerings and efficiency, generating additional benefit to our customers.

 

New customers will be targeted to enlarge our project base and derisk the limitation of our current customer base. Nevertheless, we are planning this process to be less aggressive and to allow the consolidation of the project and processes.

 

Substantial equity investment was completed in the Telelink Infra Services Group by BlackPeak Capital which will further help our business growth.

 

On behalf of the board

M Pfurtscheller
Director
20 February 2024
Telelink (UK) Limited
Director's Report
For the year ended 31 December 2022
Page 3

The director presents his annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company continued to be that of information and communication system design, integration, support and maintenance services.

Results and dividends

No dividends will be distributed for the year ended 31 December 2022.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

J M Filipov
(Resigned 30 September 2022)
M A Keise
(Appointed 5 January 2022 and resigned 15 August 2022)
K G Ivanov
(Appointed 17 October 2022 and resigned 6 October 2023)
P I Ivanov
(Appointed 17 October 2022 and resigned 6 October 2023)
L M Minchev
(Appointed 17 October 2022 and resigned 9 June 2023)
M Pfurtscheller
(Appointed 20 September 2022)
S J Robertson
(Appointed 17 October 2022 and resigned 6 October 2023)
Y G Popov
(Appointed 9 June 2023 and resigned 6 October 2023)
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the year end were equivalent to 52 day's purchases, based on the average daily amount invoiced by suppliers during the year.

Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Telelink (UK) Limited
Director's Report (Continued)
For the year ended 31 December 2022
Page 4
Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
M Pfurtscheller
Director
20 February 2024
Telelink (UK) Limited
Director's Responsibilities Statement
For the year ended 31 December 2022
Page 5

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom adopted International Accounting Standards. Under company law the director must not approve the financial statements unless he is 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, International Accounting Standard 1 requires that directors:

 

The director is 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. He is 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.

Telelink (UK) Limited
Independent Auditor's Report
To the Members of Telelink (UK) Limited
Page 6

Disclaimer of opinion

We were engaged to audit the financial statements of Telelink (UK) Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and notes to the financial statements, including accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom adopted International Accounting Standards.

We do not express an opinion on the accompanying financial statements. Because of the significance of the matter described in the 'Basis for Disclaimer of Opinion' section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

Basis for disclaimer of opinion on financial statements

With respect to work in progress having a carrying amount of £3,186,220 the audit evidence available to us was limited. Whilst certain balances had been recovered post year end, due to the nature of the company’s projects a significant amount of the work in progress remains outstanding at the date of approval of the financial statements. We were unable to obtain sufficient appropriate audit evidence to verify the recoverability of the outstanding balances by using other audit procedures. Consequently, we were unable to determine whether any adjustment to this balance was necessary. Were any adjustment to work in progress be required there would also be a corresponding adjustment to cost of sales and therefore the loss for the year and retained earnings.

 

In addition, were any adjustment to work in progress to be required, the strategic report would also need to be amended.

Opinions on other matters prescribed by the Companies Act 2006

Notwithstanding our disclaimer of an opinion on the financial statements, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:

 

 

Arising from the limitation of our work referred to above:

 

 

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:

 

Telelink (UK) Limited
Independent Auditor's Report (Continued)
To the Members of Telelink (UK) Limited
Page 7
Responsibilities of director

As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our responsibility is to conduct an audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. However, because of the matter described in the Basis for disclaimer of opinion section, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements.

 

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.

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.

Jonathan Seymour (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
20 February 2024
Chartered Accountants
Statutory Auditor
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Telelink (UK) Limited
Income Statement
For the year ended 31 December 2022
Page 8
2022
2021
Notes
£
£
Revenue
4
33,255,596
32,720,531
Cost of sales
(31,652,233)
(26,704,167)
Gross profit
1,603,363
6,016,364
Other operating income
14,932
11,591
Administrative expenses
(3,014,442)
(2,088,631)
Operating (loss)/profit
5
(1,396,147)
3,939,324
Finance income
212
130,703
Finance costs
9
(463,653)
(196,925)
(Loss)/profit before taxation
(1,859,588)
3,873,102
Income tax income/(expense)
10
471,050
(841,569)
(Loss)/profit and total comprehensive income for the year
(1,388,538)
3,031,533
Telelink (UK) Limited
Statement Of Financial Position
As at 31 December 2022
31 December 2022
Page 9
2022
2021
Notes
£
£
ASSETS
Non-current assets
Intangible assets
11
-
0
-
0
Property, plant and equipment
12
1,038,239
438,936
Contract assets
15
359,635
298,121
1,397,874
737,057
Current assets
Inventories
14
3,832,006
2,082,844
Contract assets
15
7,784,662
4,979,255
Trade and other receivables
16
633,658
3,297,332
Current tax recoverable
383,664
-
0
Cash and cash equivalents
923,367
274,327
13,557,357
10,633,758
Total assets
14,955,231
11,370,815
EQUITY
Called up share capital
27
10,000
10,000
Retained earnings
1,583,281
2,971,819
Total equity
1,593,281
2,981,819
LIABILITIES
Non-current liabilities
Lease liabilities
23
664,286
160,769
Deferred tax liabilities
24
9,775
97,161
Long term provisions
25
171,416
260,775
845,477
518,705
Telelink (UK) Limited
Statement Of Financial Position (Continued)
As at 31 December 2022
31 December 2022
2022
2021
Page 10
Current liabilities
Trade and other payables
22
7,752,491
5,530,501
Contract liabilities
15
879,483
92,807
Current tax liabilities
-
0
774,099
Borrowings
18
3,805,165
1,379,956
Lease liabilities
23
64,171
75,115
Provisions
25
15,163
17,813
12,516,473
7,870,291
Total liabilities
13,361,950
8,388,996
Total equity and liabilities
14,955,231
11,370,815
The financial statements were approved by the board of directors and authorised for issue on 20 February 2024 and are signed on its behalf by:
M  Pfurtscheller
Director
Company Registration No. 09347564
Telelink (UK) Limited
Statement of Changes in Equity
For the year ended 31 December 2022
Page 11
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2021
10,000
(59,714)
(49,714)
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
3,031,533
3,031,533
Balance at 31 December 2021
10,000
2,971,819
2,981,819
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(1,388,538)
(1,388,538)
Balance at 31 December 2022
10,000
1,583,281
1,593,281
Telelink (UK) Limited
Statement of Cash Flows
For the year ended 31 December 2022
Page 12
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
34
(393,444)
241,137
Interest paid
-
(196,925)
Tax paid
(774,099)
(12,308)
Net cash (outflow)/inflow from operating activities
(1,167,543)
31,904
Investing activities
Purchase of property, plant and equipment
(249,041)
(291,998)
Proceeds on disposal of property, plant and equipment
5,698
9,100
Interest received
212
52
Net cash used in investing activities
(243,131)
(282,846)
Financing activities
New loans in the year
2,357,576
1,519,039
Repayment of borrowings
-
(2,279,943)
Interest paid
(213,370)
-
0
Payment of lease liabilities
(84,492)
(97,397)
Net cash generated from/(used in) financing activities
2,059,714
(858,301)
Net increase/(decrease) in cash and cash equivalents
649,040
(1,109,243)
Cash and cash equivalents at beginning of year
274,327
1,383,570
Cash and cash equivalents at end of year
923,367
274,327
Telelink (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2022
Page 13
1
Accounting policies
Company information

Telelink (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2 Turhams Green Business Park Pincents Lane, Theale, Tilehurst, Reading, England, RG31 4UH. The company's principal activities and nature of its operations are disclosed in the director's report.

1.1
Accounting convention

The financial statements have been prepared in accordance with United Kingdom adopted International Accounting Standards (ISAs) and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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

The company made a loss before tax for the year of £1,859,588 and as at 31 December 2022 had net assets of £1,true593,281. The latest available management accounts show the company has continued to incur losses for 2023 but based on current projections is expecting a return to profitability in 2024.

 

The company meets its day-to-day working capital requirements through an overdraft facility and revenue from contracts with customers. The company also has a loan provided by its parent company amounting to £3,805,165 as at 31 December 2022, which was due for repayment on 31 December 2023. Post-year end this loan has been converted into equity as detailed in note 31. The parent company has provided further loans in 2023 and has confirmed it will not not seek repayment of these loans until such time as the company is able to repay them without compromising its ability to continue to trade and to meet its liabilities as they fall due.

 

The company has also received written assurances from its parent company that they will provide sufficient financial support to Telelink (UK) Limited, as required, to enable it to continue to trade and meet its liabilities as they fall due, for a period of at least one year from the date of signature of the audit report for the year ended 31 December 2022.

 

The company's forecasts and projections, which are based on existing long term contracts with large telecom companies, show that the company is able to operate within the level of its current facilities. After making enquiries, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

 

Whilst the director is confident that the company and group can meet their projections, and therefore believes it is appropriate to prepare the accounts on a going concern basis, given the inherent uncertainty in these projections there can be no certainty in this respect. If sufficient income cannot be generated the company will explore other options such as further cost reductions. As a result a material uncertainty exists as to whether the company can continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements. The financial statements do not include any adjustments that might be required in the event the company was unable to continue as a going concern.

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 14
1.3
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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. The normal credit term in 30 to 90 days upon delivery.

The Company typically provides warranties for general repairs of defects that existed at the time of sale, as required by the law. These assurance-type warranties are accounted for under IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

The Company provides services related to the design, implementation, legalization and maintenance services for mobile and wireless access, transmission and signalling networks and broadband infrastructure. Revenue from these services is recognised at the point in time when control of the asset is transferred to the customer and the performance obligation is satisfied. This assessment shall be viewed from a customer's perspective considering indicators such as transfer risks, customer acceptance and billing rights.

 

Contract Balances

Contract Assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 15
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 and equipment
30% on cost or 92% on cost for traffic management
Fixtures and fittings
15% on cost
Motor vehicles
25% on cost
Computer equipment
50% on cost
Leasehold land and buildings
Over the length of the lease

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 income statement.

1.5
Impairment of tangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Inventories

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

 

Inventories include raw materials, production and work in progress. Inventories are valued at the lower of cost or net realisable value. The cost of inventories reflects their purchase price plus any other costs necessary to bring them to their present location and condition and is determined using the weighted average method. Inventory cost should not include abnormal waste, storage costs, administrative and selling costs, foreign exchange differences. Net realisable value for finished goods is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. The net realisable value for raw materials is the estimated replacement cost in the ordinary course of business.

Write-downs to net realisable value are recognised as an expense in the period of the write-down. Reversals arising from an increase in net realisable value are recognised as a reduction of the inventory expense in the period in which they occur. Impairment for slow moving or obsolete inventories is made when necessary.

1.7
Cash and cash equivalents

Cash and cash equivalents 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.

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 16
1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognised initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

Impairment of financial assets

Financial assets, other than those measured at fair value through profit or loss, are assessed for indicators of impairment at each reporting date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 17
1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

 

 

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

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

1.11
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 income statement 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 18
Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

 

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1.13
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 inventories or non-current 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.

1.14
Retirement benefits

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

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 19
1.15
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

 

The leases are in relation to leasehold premises acquired.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.16
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.

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 20
2
Adoption of new and revised standards and changes in accounting policies
Standards which are in issue but not yet effective

At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the UK):

 

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 21
3
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the director is 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements
Useful economic life of property, plant and equipment

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residue values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of property, plant and equipment and note 1.4 for the useful economic lives for each class of asset.

Lease liabilities

In determining the lease term, the company assesses whether it is reasonably certain to exercise, or not to exercise, options to extend or terminate the lease. This assessment is made at the start of the lease and is re-assessed if significant events of changes in circumstances occur that are within the lessee's control.

 

The company uses judgement to assess whether the interest rate implicit in the lease is readily determinable. When the interest rate implicit in the lease is not readily determinable, the company estimates the incremental borrowing rate based on its external borrowing secured against similar assets, adjusted for the term of the lease.

4
Revenue
2022
2021
£
£
Revenue analysed by class of business
Sale of services in the United Kingdom (recognised over a period of time)
33,254,738
32,718,804
Sales of goods in the United Kingdom (recognised at a point in time)
858
1,727
33,255,596
32,720,531
Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
4
Revenue
(Continued)
Page 22
An analysis of the company's deferred and accrued revenue is as follows:
2022
2021
£
£
Deferred Revenue
Brought forward
92,807
69,369
Movement
786,676
23,438
Carried forward
879,483
92,807
2022
2021
£
£
Accrued revenue
Brought forward
5,277,376
3,241,596
Movement
2,866,921
2,035,780
Carried forward
8,144,297
5,277,376
5
Operating (loss)/profit
2022
2021
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Depreciation of property, plant and equipment
214,935
286,757
Loss on disposal of property, plant and equipment
1,206
-
Cost of inventories recognised as an expense
31,420,093
22,713,234
6
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
55,000
23,000
For other services
Tax services
2,500
2,000
Other services
4,500
3,750
Total non-audit fees
7,000
5,750
Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 23
7
Employees

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

2022
2021
Number
Number
Finance and administration
13
10
Technical/Wireless networks
55
48
Project management
5
2
Fixed networks
30
23
Health and Safety
9
7
Warehouse
6
4
Total
118
94

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
5,342,727
4,083,729
Social security costs
618,542
443,389
Pension costs
91,686
69,798
6,052,955
4,596,916

£5,048,644 (2021: £3,990,933) of the total payroll costs are included within direct costs in the income statement

8
Director's remuneration
2022
2021
£
£
Remuneration for qualifying services
417,132
116,563
Company pension contributions to defined contribution schemes
2,420
1,319
419,552
117,882
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
219,795
121,459
Company pension contributions to defined contribution schemes
770
1,319
Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 24
9
Finance costs
2022
2021
£
£
Interest on bank overdrafts and loans
10,170
5,942
Interest on lease liabilities
9,377
11,947
Interest payable to group companies
60,170
65,120
Foreign exchange losses
173,273
-
Bank charges
10,407
7,584
Factoring charges
193,485
106,332
Other interest payable
6,771
-
Total finance costs
463,653
196,925
10
Income tax expense
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
-
0
774,099
Adjustments in respect of prior periods
(383,664)
(18,116)
Total UK current tax
(383,664)
755,983
Deferred tax
Origination and reversal of temporary differences
(87,386)
85,586
Total tax charge/(credit)
(471,050)
841,569
Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
10
Income tax expense
(Continued)
Page 25

The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:

2022
2021
£
£
(Loss)/profit before taxation
(1,859,588)
3,873,102
Expected tax (credit)/charge based on a corporation tax rate of 19.00% (2021: 19.00%)
(353,322)
735,889
Effect of expenses not deductible in determining taxable profit
44,262
89,977
Adjustment in respect of prior years
-
(18,116)
Capital allowances
(44,682)
(59,317)
Deferred tax
(87,386)
85,586
Loss (profit) on disposal of tangible fixed assets
229
2,941
Fixed asset depreciation allowed under SP3/91
(15,069)
(14,170)
Other adjustments
(15,082)
18,779
Taxation (credit)/charge for the year
(471,050)
841,569
11
Intangible assets
Development costs
£
Cost
At 1 January 2021
220,246
At 31 December 2021
220,246
At 31 December 2022
220,246
Amortisation and impairment
At 1 January 2021
220,246
At 31 December 2021
220,246
At 31 December 2022
220,246
Carrying amount
At 31 December 2022
-
At 31 December 2021
-
Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 26
12
Property, plant and equipment
Leasehold land and buildings
Fixtures and fittings
Plant and equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2021
118,148
4,495
208,962
59,485
391,090
Additions
356,298
62,644
144,699
39,791
603,432
Disposals
(118,148)
-
0
(214,331)
(7,560)
(340,039)
At 31 December 2021
356,298
67,139
139,330
91,716
654,483
Additions
649,274
41,761
83,355
42,339
816,729
Disposals
-
0
(470)
(26,771)
(725)
(27,966)
At 31 December 2022
1,005,572
108,430
195,914
133,330
1,443,246
Accumulated depreciation and impairment
At 1 January 2021
91,777
1,042
122,913
28,516
244,248
Charge for the year
104,403
3,979
151,533
26,842
286,757
Eliminated on disposal
(118,148)
-
0
(190,807)
(6,503)
(315,458)
At 31 December 2021
78,032
5,021
83,639
48,855
215,547
Charge for the year
89,662
11,550
74,916
38,807
214,935
Eliminated on disposal
-
0
(312)
(24,438)
(725)
(25,475)
At 31 December 2022
167,694
16,259
134,117
86,937
405,007
Carrying amount
At 31 December 2022
837,878
92,171
61,797
46,393
1,038,239
At 31 December 2021
278,266
62,118
55,691
42,861
438,936
At 31 December 2020
26,371
3,453
86,049
30,969
146,842
Right-of-use assets
Carrying amount at 1 January 2022 (as restated)
236,854
-
-
-
236,854
Additions
585,241
-
-
-
585,241
Depreciation
(79,309)
-
-
-
(79,309)
Carrying amount at 31 December 2022
742,786
-
-
-
742,786
The opening balance figure above has been restated to reflect the correct carrying amount of the Right-of-use assets at 1 January 2022 after taking into consideration the depreciation written off from the prior year disposal.
Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 27
13
Credit risk

Credit risk arises principally from cash and cash equivalents and deposits with banks and financial institutions as well as credit exposure to customers including committed transactions and outstanding receivables. The Company reviews its banking arrangements carefully to minimise such risks and has put in place credit control procedures to mitigate against risks arising from customers including the obtaining of references, setting of credit limits and monitoring of limits.

Except as detailed below, the carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the company's maximum exposure to credit risk.

The company does not hold any collateral or other credit enhancements to cover this credit risk.

14
Inventories
2022
2021
£
£
Work in progress
3,186,220
1,270,739
Finished goods
645,786
812,105
3,832,006
2,082,844
15
Contracts with customers
2022
2021
£
£
Contracts in progress
Contract assets
8,144,297
5,277,376
Contract liabilities
(879,483)
(92,807)
Analysis of contract assets
2022
2021
£
£
Contract assets < 1 year
7,784,662
4,979,255
Contract assets > 1 year
359,635
298,121
8,144,297
5,277,376

Contract assets and contract liabilities arise from the company's design and construction services, which enter into contracts that can take a few months to years to complete, because cumulative payments received from customers at each balance sheet date do not necessarily equal the amount of revenue recognised on the contracts.

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 28
16
Trade and other receivables
2022
2021
£
£
Trade receivables
359,121
3,158,852
Other receivables
145,966
19,237
Prepayments
128,571
119,243
633,658
3,297,332
17
Trade receivables - credit risk
Fair value of trade receivables

The director considers that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

18
Borrowings
2022
2021
£
£
Borrowings held at amortised cost:
Other loans
-
18,541
Loans from parent undertaking
3,805,165
1,361,415
3,805,165
1,379,956

The loan from parent undertaking of £3,805,165 was payable by 31 December 2023. Interest is at 3.5%, which the lender may unilaterally change in case of a substantial change in EURIBOR. On 31 August 2023, the loan was included in a debt to equity conversion whereby the parent company converted outstanding loans at that date of £4,408,614 to 4,408,614 Ordinary shares of £1 each.

 

The other loans and loans from parent company are unsecured.

19
Fair value of financial liabilities

The director considers that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 29
20
Liquidity risk

The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.

Less than 1 year
1 – 5 years
Total
£
£
£
At 31 December 2021
Trade payables
3,720,102
-
3,720,102
Other payables
1,903,206
-
1,903,206
Current tax liabilities
770,002
-
770,002
Borrowings
1,379,956
-
1,379,956
Lease liabilities
75,115
160,769
235,884
7,848,381
160,769
8,009,150
At 31 December 2022
Trade payables
4,737,110
-
4,737,110
Other payables
3,895,004
-
3,895,004
Borrowings
3,805,165
-
3,805,165
Lease liabilities
64,171
664,286
728,457
12,501,450
664,286
13,165,736
Liquidity risk management

Responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company's funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

21
Market risk
Market risk management

The Company is exposed primarily to the financial risks of changes in foreign current exchange rates.

 

There has been no change to the Company's exposure to market risks or the manner in which these risks are managed and measured.

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
21
Market risk
(Continued)
Page 30
Foreign exchange risk

The carrying amounts of the company's foreign currency denominated monetary assets and liabilities at the reporting date are as follows:

2022
2021
£
£
Trade Creditor (EUR)
291,802
106,856
Trade Creditor (BGN)
7,354
32,441
Loans (EUR)
4,290,895
1,621,038
22
Trade and other payables
2022
2021
£
£
Trade payables
4,737,110
3,720,102
Accruals
1,514,214
847,017
Social security and other taxation
1,077,582
691,676
Other payables
423,585
271,706
7,752,491
5,530,501
23
Lease liabilities
2022
2021
Maturity analysis
£
£
Within one year
117,531
84,492
In two to five years
753,157
172,665
Total undiscounted liabilities
870,688
257,157
Future finance charges and other adjustments
(142,231)
(21,273)
Lease liabilities in the financial statements
728,457
235,884

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2022
2021
£
£
Current liabilities
64,171
75,115
Non-current liabilities
664,286
160,769
728,457
235,884
Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
23
Lease liabilities
(Continued)
Page 31
2022
2021
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
9,377
11,947
Other leasing information is included in note 28.
24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Accelerated Capital Allowances
Total
£
£
Deferred tax liability at 1 January 2021
11,575
11,575
Deferred tax movements in prior year
Charge/(credit) to profit or loss
85,586
85,586
Deferred tax liability at 1 January 2022
97,161
97,161
Deferred tax movements in current year
Charge/(credit) to profit or loss
(87,386)
(87,386)
Deferred tax liability at 31 December 2022
9,775
9,775
25
Provisions for liabilities
2022
2021
£
£
Other Provisions
186,579
278,588

Provisions are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

Current liabilities
15,163
17,813
Non-current liabilities
171,416
260,775
186,579
278,588
Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
25
Provisions for liabilities
(Continued)
Page 32
Movements on provisions:
£
At 1 January 2022
278,588
Other movements
(92,009)
At 31 December 2022
186,579

The warranty provision relates to the contracts held with customers during the year ended 31 December 2022 which is 2.5% of contract value for civil work completed up to 31 December 2022.

26
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
91,686
69,798

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

At the year end, there was an outstanding credit balance of £43,744 (2021: £14,419).

27
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
10,000 Ordinary shares of £1 each
10,000
10,000
10,000
10,000
28
Other leasing information
Lessee

Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:

2022
2021
£
£
Depreciation of right-of-use assets
79,309
104,403
Interest expense on lease liabilities
9,377
11,947
88,686
116,350
Information relating to lease liabilities is included in note 23.
Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 33
29
Capital risk management

The company is not subject to any externally imposed capital requirements.

30
Related party transactions

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due to related parties
£
£
Parent company
3,817,306
1,373,606

The balance of £3,817,306 is made up of the following amounts:

 

On 20 June 2019 the company obtained a loan from its parent company (Telelink Bulgaria AD), of which £3,805,880 is outstanding at 31 December 2022. This loan is to be repaid by 31 December 2023, with an interest rate of 3.5% which the lender may unilaterally change rate in case of substantial change in EURIBOR.

 

At 31 December 2022 a trade creditor balance of £11,426 was due to Telelink Bulgaria AD.

 

The company made interest payments amounting to £60,170 to Telelink Bulgaria AD.

31
Events after the reporting date

At 31 December 2022 the company owed £3,805,165 to the parent company, The company received additional funding of £587,776 on 16 February 2023. On 31 August 2023, the company converted the full loan balance of £4,408,614 to equity by issuing 4,408,614 Ordinary shares of £1 each.

 

32
Controlling party

Telelink Bulgaria AD is considered to be the parent company of Telelink (UK) Limited and owns 100% of the company's shareholding.

 

The ultimate controlling party is considered Mr Lyubomir Minchev.

Telelink (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 34
33
Analysis of changes in net debt
1 January 2022
Cash flows
New finance leases
Other non-cash changes
31 December 2022
£
£
£
£
£
Cash at bank and in hand
274,327
649,040
-
-
923,367
Borrowings excluding overdrafts
(1,379,956)
(2,357,576)
-
(67,633)
(3,805,165)
Obligations under finance leases
(235,884)
84,492
(567,688)
(9,377)
(728,457)
(1,341,513)
(1,624,044)
(567,688)
(77,010)
(3,610,255)
34
Cash (absorbed by)/generated from operations
2022
2021
£
£
(Loss)/profit for the year after tax
(1,388,538)
3,031,533
Adjustments for:
Taxation (credited)/charged
(471,050)
841,569
Finance costs
290,380
196,925
Finance Income
(212)
(130,703)
Loss on disposal of property, plant and equipment
1,206
-
Depreciation and impairment of property, plant and equipment
214,935
286,757
Profit on disposal of fixed assets
(4,413)
15,481
(Decrease)/increase in provisions
(92,009)
179,756
Movements in working capital:
Increase in inventories
(1,749,162)
(1,015,482)
Increase in contract assets
(2,866,921)
(2,035,780)
Decrease/(increase) in trade and other receivables
2,663,674
(2,869,793)
Increase in contract liabilities
786,676
23,438
Increase in trade and other payables
2,221,990
1,717,436
Cash (absorbed by)/generated from operations
(393,444)
241,137
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