Registered number: 06900558
ORBITAL MANAGEMENT SYSTEMS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
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ORBITAL MANAGEMENT SYSTEMS LIMITED
REGISTERED NUMBER: 06900558
BALANCE SHEET
AS AT 31 OCTOBER 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 July 2024.
The notes on pages 2 to 5 form part of these financial statements.
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ORBITAL MANAGEMENT SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
Orbital Management Systems Limited is a private company limited by shares, incorporated in England and Wales (registered number: 06900558). Its registered office is Digital Media Centre, County Way, Barnsley, South Yorkshire, S70 2JW. The principal activity of the Company throughout the year continued to be that of a labour agency supplying workers to contractors.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The Company's functional and presentation currency is pounds sterling.
The following principal accounting policies have been applied:
At the balance sheet date, the Company had net liabilities of £230,852. Accordingly, management have produced detailed forecasts and projections based on current and forecast growth rates. These forecasts have been subject to sensitivity analysis to ensure all likely scenarios have been considered. As a result, the director is confident that the Company will be able to pay its debts as they fall due and accordingly these accounts are prepared on a going concern basis.
Turnover represents the fair value of consideration received or receivable from the sale of consultancy services. Fair value reflects the amount agreed in the form of contractual charges for each type of service. Fee income is stated net of amounts collected on behalf of third parties such as sales taxes, goods and services taxes and value added taxes.
Turnover is recognised to the extent that the Company obtains the right to consideration in exchange for its performance. Right to consideration is based on the Company confirming completion of its contractual obligations in relation to the services provided.
The contractor will complete an assignment for an agency who will then pay Orbital Management Systems Limited the agreed contract rate (after deducting their fee). Orbital Management Systems Limited will then recognise the gross revenue in respect of this assignment and the cost of the contractor. Once the contractor then submits their timesheet, Orbital Management Systems Limited will transfer the remuneration due to the contractor to them after deducting the fee (margin).
This means that there are two elements of revenue recognised; the gross revenue received from the agency which is recognised when the money is received from the agency (which is net nil as it is equal to the cost of the contractors), and the margin recognised when processing timesheets.
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ORBITAL MANAGEMENT SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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Current and deferred taxation
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Tax is recognised in the Statement of Income and Retained Earnings.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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No significant judgements have had to be made by management in preparing these financial statements.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimate will, by definition, seldom equal the related actual results. The estimate and assumption that has the greatest level of uncertainty is addressed below:
(i) Impairment of debtors
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of the debtors and historical experience. The bad debt provision as at the year end was £184,624 (2022: £243,994).
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ORBITAL MANAGEMENT SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
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Amounts owed by group undertakings
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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Tax losses carried forward
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ORBITAL MANAGEMENT SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
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Allotted, called up and fully paid
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1,000 (2022 - 1,000) Ordinary shares of £1.00 each
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The ultimate parent company is Orbital Payroll Group Limited, with a registered office of Digital Media Centre, County Way, Barnsley, South Yorkshire, S70 2JW. Consolidated accounts are prepared for Orbital Payroll Group Limited which can be obtained from Companies House.
The auditors' report on the financial statements for the year ended 31 October 2023 was qualified.
The qualification in the audit report was as follows:
In seeking to obtain sufficient appropriate audit evidence in respect of the trade debtors balance at 31 October 2021 and 31 October 2022, we were unable to confirm or verify by alternative means the recoverability, completeness or accuracy of this material balance.
The nature of the Company’s (and the wider Group’s) business is that it processes large amounts of payroll data for its clients and often these clients trade with several different companies within the Group. In many instances, payments are made by clients either to the incorrect Group company or in round sum amounts with no payment reference to the original invoice being settled.
Against the backdrop of Covid-19, a decision was taken by the director to focus on continuing to deliver a high level of service to the Group’s clients and the collection of cash, rather than its allocation to the individual invoices raised. Accordingly, due to the sheer volume of transactions (both in invoices raised by Orbital and cash received from clients), a material level of unallocated cash received, and outstanding trade debtors existed across all Group Companies at 31 October 2021 and 31 October 2022.
We were therefore unable to determine whether any adjustments might have been found necessary in respect of amounts recorded or unrecorded for trade debtors, and the elements making up the Statement of Income and Retained Earnings and the Balance Sheet in the current and previous year.
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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
The audit report was signed on 30 July 2024 by Andrew Irvine (Senior Statutory Auditor) on behalf of Shorts.
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