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COMPANY REGISTRATION NUMBER: 03802179
Safenames Ltd
Financial Statements
30 October 2023
Safenames Ltd
Financial Statements
Year ended 30 October 2023
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
Statement of income and retained earnings
10
Statement of financial position
11
Statement of cash flows
12
Notes to the financial statements
13
Safenames Ltd
Officers and Professional Advisers
The board of directors
Ms S F McManus
Mr J Stock
Mr A McManus
Company secretary
Ms S F McManus
Registered office
Safenames House
Sunrise Parkway
Linford Wood
Milton Keynes
MK14 6LS
Auditor
MHA
Chartered accountants & statutory auditor
Milton Keynes
United Kingdom
Auditor's Information:
MHA is the trading name of MacIntyre Hudson LLP, a
limited liabilty partnership in England and Wales (registered
number OC312313)
Safenames Ltd
Strategic Report
Year ended 30 October 2023
The Directors present their Strategic Report for the year ended 30 October 2023 to provide a review of the Company's business, principal risks and uncertainties and performance alongside key performance indicators. The Directors consider the state of the Company to be satisfactory, with increasing profits this year, due to a decrease in administration because of the exceptional item last year. The Directors believe the key performance indicators of the business to be gross profit and operating profit (before exceptional items) as a percentage of turnover. These key performance indicator's have been met in this financial year. Revenue has increased from £20.0 million to £20.5 million an increase of 2.5% Gross Profit has decreased from £5.4 million to £4.3 million a decrease of 26% Operating Margin before tax has increased from £534,500 to £1.7 million giving a percentage increase of 225% The profit for the year, after taxation, amounted to £1,269,185. Particulars of dividends paid are detailed in note 12 to the financial statements. The Company's principal financial instruments comprise bank balances, trade creditors, trade debtors and finance lease agreements. The main purpose of these instruments is to raise funds and to finance the company's operations. Due to the nature of the financial instruments used by the company, there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below. a)The Company is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet payments when they arise. b)Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. c)Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. The Company continues to invest in research and development and will do so into the foreseeable future. It is the policy of the Company to settle terms of payment with suppliers on a timely basis in the ordinary course of business, and to agree appropriate terms and conditions in advance with its suppliers. The Company endeavours to make payment in accordance with those terms and conditions provided that the supplier has complied with them. Suppliers and their payment terms are looked at on an individual basis and regularly reviewed. The Company believes that the average payment period of suppliers is 60 days. A copy of the Company's standard payment practice can be obtained from the company's premises.
This report was approved by the board of directors on 30 July 2024 and signed on behalf of the board by:
Mr A McManus
Director
Safenames Ltd
Directors' Report
Year ended 30 October 2023
The directors present their report and the financial statements of the company for the year ended 30 October 2023 .
Directors
The directors who served the company during the year were as follows:
Ms S F McManus
Mr J Stock
Mr A McManus
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Future developments
Safenames Ltd future developments will consist of further developing our use of green energy and how we can increase the efficiency of our energy usage.
We will also be looking at developing our corporate structure and exploring possible investment acquisitions to help provide more opportunities for the business to grow.
We plan to further develop our data centre and internal tools with an understanding of the impact on the environment and society as a whole.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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 judgments 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. Disclosure of information to auditors
Each of the persons who is a director at the date of approval of this report confirms that: - so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. - the auditors, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.
This report was approved by the board of directors on 30 July 2024 and signed on behalf of the board by:
Mr A McManus
Director
Safenames Ltd
Independent Auditor's Report to the Members of Safenames Ltd
Year ended 30 October 2023
Opinion
We have audited the financial statements of Safenames Limited (the 'Company') for the period ended 30 October 2023, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 30 October 2023 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we 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 included in the Annual Report, other than the financial statements and our Auditors' Report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 Directors' Report. 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: - adequate accounting records have not been kept, or returns adequate for our audit have 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 - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement on page 4, 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 controls as the Directors determine 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 Directors are responsible for assessing the Company's ability to continue as a going concern, discussing, 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 cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor’s report 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - Enquiry of management and those charged with governance around actual and potential litigation and claims; - Enquiry of entity staff in tax and compliance functions to identify and instances of non-compliance with laws and regulations - Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; - Reviewing minutes of meetings of those charged with governance; and - Reviewing financial statement disclosures and testing to supporting documentation to access compliance with applicable laws and regulations; - Performing substantive tests of detail over the completeness of income within the financial system. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities including those leading to material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with law or regulation is removed from events and transactions reflected the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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 Auditors Report. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Simon Knibbs MA FCA
(Senior Statutory Auditor)
For and on behalf of
MHA
Chartered accountants & statutory auditor
Milton Keynes
United Kingdom
30 July 2024
Safenames Ltd
Statement of Income and Retained Earnings
Year ended 30 October 2023
2023
2022
Note
£
£
Turnover
4
20,503,107
20,071,027
Cost of sales
16,133,686
14,625,359
-------------
-------------
Gross profit
4,369,421
5,445,668
Administrative expenses
2,645,125
4,914,924
Other operating income
5
1,705
3,756
------------
------------
Operating profit
6
1,726,001
534,500
Interest payable and similar expenses
11
177
4,434
------------
------------
Profit before taxation
1,725,824
530,066
Tax on profit
12
530,358
116,528
------------
---------
Profit for the financial year and total comprehensive income
1,195,466
413,538
------------
---------
Dividends paid and payable
13
( 2,400,000)
( 2,285,776)
Retained earnings at the start of the year
14,126,978
15,999,216
-------------
-------------
Retained earnings at the end of the year
12,922,444
14,126,978
-------------
-------------
All the activities of the company are from continuing operations.
Safenames Ltd
Statement of Financial Position
30 October 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
15
1,404,643
1,266,784
Current assets
Debtors
16
6,342,421
6,852,831
Cash at bank and in hand
7,111,598
7,513,558
-------------
-------------
13,454,019
14,366,389
Creditors: amounts falling due within one year
17
1,862,394
1,506,090
-------------
-------------
Net current assets
11,591,625
12,860,299
-------------
-------------
Total assets less current liabilities
12,996,268
14,127,083
Provisions
Taxation including deferred tax
18
73,719
-------------
-------------
Net assets
12,922,549
14,127,083
-------------
-------------
Capital and reserves
Called up share capital
21
105
105
Profit and loss account
12,922,444
14,126,978
-------------
-------------
Shareholders funds
12,922,549
14,127,083
-------------
-------------
These financial statements were approved by the board of directors and authorised for issue on 30 July 2024 , and are signed on behalf of the board by:
Mr A McManus
Director
Company registration number: 03802179
Safenames Ltd
Statement of Cash Flows
Year ended 30 October 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
1,195,466
413,538
Adjustments for:
Depreciation of tangible assets
62,041
72,565
Interest payable and similar expenses
177
4,434
Tax on profit
530,358
116,528
Accrued (income)/expenses
( 251,544)
2,000
Changes in:
Trade and other debtors
767,654
( 567,785)
Trade and other creditors
110,350
766,787
------------
---------
Cash generated from operations
2,414,502
808,067
Interest paid
( 177)
( 4,434)
Tax paid
( 216,385)
( 341,202)
------------
---------
Net cash from operating activities
2,197,940
462,431
------------
---------
Cash flows from investing activities
Purchase of tangible assets
( 199,900)
( 87,510)
Proceeds from sale of tangible assets
( 1)
------------
---------
Net cash used in investing activities
( 199,900)
( 87,511)
------------
---------
Cash flows from financing activities
Proceeds from borrowings
( 53,762)
Dividends paid
( 2,400,000)
( 2,285,776)
------------
------------
Net cash used in financing activities
( 2,400,000)
( 2,339,538)
------------
------------
Net decrease in cash and cash equivalents
( 401,960)
( 1,964,618)
Cash and cash equivalents at beginning of year
7,513,558
9,478,176
------------
------------
Cash and cash equivalents at end of year
7,111,598
7,513,558
------------
------------
Safenames Ltd
Notes to the Financial Statements
Year ended 30 October 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Safenames House, Sunrise Parkway, Linford Wood, Milton Keynes, MK14 6LS.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain assets and liabilities and investment properties measured at fair value through profit and loss. The financial statements are prepared in sterling,which is the functional currency of the entity. The amounts are rounded pounds.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Exceptional items
Exceptional items are disclosed separately in the financial statements in order to provide further understanding of the financial performance of the entity. They are material items of income or expense that have been shown separately because of their nature or amount.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Land and buildings
-
Land and buildings - 2%/10% Straight line
Computer Equipment
-
Computer equipment - 33% Straight line
Office Equipment
-
Office Equipment - 20% Straight line
Motor Vehicle
-
Motor Vehicles - 10% Straight line
The land included in the land and building is not depreciated and the land and building is expected to have a residual value of £!m.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exisit. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cah inflows that largely independent of the cash inflows from other assets or groups of assets.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
20,503,107
20,071,027
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2023
2022
£
£
United Kingdom
7,354,598
7,754,888
Overseas
13,148,509
12,316,139
-------------
-------------
20,503,107
20,071,027
-------------
-------------
5. Other operating income
2023
2022
£
£
Other operating income
1,705
3,756
-------
-------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
62,041
72,565
Impairment of trade debtors
104,978
153,150
Foreign exchange differences
57,135
( 907,014)
---------
---------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
32,800
25,500
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Administrative staff
92
89
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
5,491,694
6,617,012
Social security costs
644,214
993,531
Other pension costs
137,921
108,742
------------
------------
6,273,829
7,719,285
------------
------------
Key management personnel are deemed to be the Directors only.
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
797,676
2,849,110
Company contributions to defined contribution pension plans
10,505
8,433
---------
------------
808,181
2,857,543
---------
------------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
1
1
----
----
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
299,817
1,238,171
Company contributions to defined contribution pension plans
10,505
8,433
---------
------------
310,322
1,246,604
---------
------------
10. Exceptional items
2023
2022
£
£
Exceptional item
1,081,997
----
------------
During the year 30 October 2022 the EMI scheme was terminated and a payment of £1,081,997 was made to employees of the scheme via a bonus equilvalent to the value of the scheme.
11. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
177
4,434
----
-------
12. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
399,746
116,528
Adjustments in respect of prior periods
56,893
---------
---------
Total current tax
456,639
116,528
---------
---------
Deferred tax:
Origination and reversal of timing differences
73,719
---------
---------
Tax on profit
530,358
116,528
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 25 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
1,725,824
530,066
------------
---------
Profit on ordinary activities by rate of tax
431,456
100,713
Adjustment to tax charge in respect of prior periods
56,893
Effect of expenses not deductible for tax purposes
47,312
18,120
Effect of capital allowances and depreciation
( 35,245)
( 2,305)
Effect of different UK tax rates on some earnings
(44,328)
Tax chargeable on loans to participators
551
------------
---------
Tax on profit
456,639
116,528
------------
---------
Factors that may affect future tax expense
On 24 May 2021 the UK Government substantively enacted the increase in Corporation Tax rate from 19% to 25% with effect from 1 April 2023.
13. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
2,400,000
2,285,776
------------
------------
14. Share based payments
The company has granted an approved Enterprise Management Incentive to certain senior employees. The terms of the incentive grant an option to the employees to acquire 416 ordinary shares at an exercise price of £131.73 per share at the date of exercise. The option to acquire these shares is exercisable only in the event of a significant reorganisation of the company. There are no performance conditions attached to the options.
This scheme was terminated in the year 30 October 2022 and payments were made to employees via a bonus equivalent to the value of the scheme.
15. Tangible assets
Land and buildings
Computer Equipment
Office Equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 31 October 2022
1,245,822
73,274
49,591
39,670
1,408,357
Additions
148,672
7,059
11,428
32,741
199,900
------------
--------
--------
--------
------------
At 30 October 2023
1,394,494
80,333
61,019
72,411
1,608,257
------------
--------
--------
--------
------------
Depreciation
At 31 October 2022
53,248
37,675
30,103
20,547
141,573
Charge for the year
26,920
21,808
8,861
4,452
62,041
------------
--------
--------
--------
------------
At 30 October 2023
80,168
59,483
38,964
24,999
203,614
------------
--------
--------
--------
------------
Carrying amount
At 30 October 2023
1,314,326
20,850
22,055
47,412
1,404,643
------------
--------
--------
--------
------------
At 30 October 2022
1,192,574
35,599
19,488
19,123
1,266,784
------------
--------
--------
--------
------------
Capital commitments
2023
2022
£
£
Contracted for but not provided for in the financial statements
167,232
----
---------
During the year 30 October 2022, the company was in the process of purchasing solar panels for the Company building, for the benefit of generating power for the building.
16. Debtors
2023
2022
£
£
Trade debtors
3,679,244
3,994,829
Prepayments and accrued income
385,225
144,126
Directors loan account
805,904
812,671
Other debtors
1,472,048
1,901,205
------------
------------
6,342,421
6,852,831
------------
------------
17. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,244,740
1,058,542
Accruals and deferred income
47,294
24,000
Corporation tax
249,746
9,492
Social security and other taxes
244,453
298,068
Open Data Centre Ltd
68,855
Short term borrowings
76,161
47,133
------------
------------
1,862,394
1,506,090
------------
------------
The loans are secured by a fixed and floating charge secured on all the property and undertakings of the company.
18. Provisions
Deferred tax (note 19)
£
At 31 October 2022
Additions
73,719
--------
At 30 October 2023
73,719
--------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 18)
73,719
--------
----
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
73,719
--------
----
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 137,921 (2022: £ 108,742 ).
At the year end 30 October 2023, the amount owing to the companies pension scheme was £49,087.19
21. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 0.01 each
10,000
100
10,000
100
Ordinary A shares of £ 1 each
1
1
1
1
Ordinary B shares of £ 1 each
1
1
1
1
Ordinary C shares of £ 1 each
1
1
1
1
Ordinary D shares of £ 1 each
1
1
1
1
Ordinary E shares of £1 each
1
1
1
1
--------
----
--------
----
10,005
105
10,005
105
--------
----
--------
----
22. Analysis of changes in net debt
At 31 Oct 2022
Cash flows
At 30 Oct 2023
£
£
£
Cash at bank and in hand
7,513,558
(401,960)
7,111,598
------------
---------
------------
Safenames Ltd
Notes to the Financial Statements (continued)
Year ended 30 October 2023
23. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Ms S F McManus
744,996
1,633
746,629
Mr J Stock
28,012
28,012
Mr A McManus
39,663
( 8,400)
31,263
---------
-------
-------
---------
812,671
1,633
( 8,400)
805,904
---------
-------
-------
---------
2022
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Ms S F McManus
1,054,400
229,212
( 538,616)
744,996
Mr J Stock
430,329
136,267
( 538,584)
28,012
Mr A McManus
42,100
7,763
( 10,200)
39,663
------------
---------
------------
---------
1,526,829
373,242
( 1,087,400)
812,671
------------
---------
------------
---------
At the year end the overdrawn directors loan accounts were: Ms S F McManus £746,630, Mr J Stock £28,012 and Mr A McManus £31,263 the loans were interest free with no set repayments.
24. Related party transactions
The company was under the control of Ms S F McManus , Mr A McManus and Mr J Stock throughout the current year. Mr A McManus is the controlling party. At the year end the company owed £242,702 (2022 - (£68,855) to Open Data Centre Services Limited,a company owned by Mr J Stock ,who is also a Director and Shareholder of Safenames Ltd . Safenames Limited paid rent to Open Data Centre Services of £230,000 in the year, (2022 - £240,000).During the year the Directors withdrew dividends totalling £2,400,000 (2022:£2,285,776) and were all paid to the Directors of the company.