(1) General Information
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The company is a private company limited by shares and is registered in England and Wales. The address of the registered office is Suite 22 Winsor And Newton Building, Whitefriars Avenue, Harrow And Wealdstone, HA3 5RN. |
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(2) Statement of compliance
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These individual financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Section 1A and Companies Act 2006, as applicable to companies subject to the small companies' regime. |
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(3) Significant Accounting Policies
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Basis of Preparation
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The financial statements have been prepared on the historical cost basis and in accordance with the Companies Act 2006. The presentation and functional currency of the company is pounds sterling. The financial statements are presented in pound units (£) unless stated otherwise. |
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Revenue recognition
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Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met as described below. |
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Sale of goods
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Sales of goods are recognised when the company has delivered the goods to the customer, no other significant obligation remains unfulfilled that may affect the customer's acceptance of the products and risks and rewards of ownership have transferred to them. |
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Rendering of Services
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Revenue from provision of services rendered in the reporting period is recognised when the outcome of a transaction for the rendering of services can be estimated reliably in terms of revenue, costs and its stage of completion of the specific transaction at the end of the reporting period. The stage of completion is determined on the basis of the actual completion of a proportion of the total services to be rendered. When the outcome of a service contract cannot be estimated reliably the company only recognises revenue to the extent of the recoverable expenses recognised. |
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Foreign currency
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Transactions in foreign currencies other than its functional currency are recorded at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the year-end date are translated at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement within financial income or expense, as appropriate. Non-monetary assets that are measured in terms of historical cost in foreign currency are translated using the exchange rate at the date of the transaction. |
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Borrowing costs
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All borrowing related costs are included within the statement of income in the period in which they are incurred using the effective interest method. |
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Intangible fixed assets
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Development costs
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Internally developed software (Development costs)
Expenditure on the research phase of projects to develop new software for accounitng and taxation systems is recognised as an expense as incurred.
Costs that are directly attributable to a project’s development phase are recognised as intangible assets, provided they meet all of the following recognition requirements:
• the development costs can be measured reliably • the project is technically and commercially feasible • the Group intends to and has sufficient resources to complete the project • the Group has the ability to use or sell the software, and • the software will generate probable future economic benefits.
Development costs not meeting these criteria for capitalization are expensed as incurred.
Directly attributable costs include employee costs incurred on software development along with an appropriate portion of relevant overheads and borrowing costs.
Subsequent measurement
All finiteÂlived intangible assets, including capitalized internally developed software, are accounted for using the cost model whereby capitalized costs are amortized on a straight Âline basis over their estimated useful lives. If there is an indication that there has been a significant change in amortization rate, useful life or residual value of an intangible asset, the amortization is revised prospectively to reflect the new expectations.
In addition, they are subject to impairment testing The following useful lives are applied: • software: 5 years
Any capitalized internally developed software that is not yet complete is not amortized but is subject to impairment testing
Amortization has been included within depreciation, amortization and impairment of nonÂfinancial assets.
Subsequent expenditures on the maintenance of computer software and brand names are expensed as incurred. |
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Taxation
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Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period. |
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Current Tax
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The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the income statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. |
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Employee benefits
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Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
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(4) Turnover
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The revenue from company's operations comprise: |
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| | | 2024 | | 2023 | | £ | | £ | | Sales | 748,901 | | 587,245 | | | | | | | | | | 748,901 | | 587,245 |
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(5) Operating profit
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Operating profit for the year from continuing operations has been arrived after charging: | | 2024 | | 2023 | | £ | | £ | | | | | | Staff costs | 96,691 | | 242,123 | Director's remuneration | 39,945 | | 83,365 | | | | | | | | | | | | | | 136,636 | | 325,488 | |
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(6) Employees
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During the year, the average number of employees including director was 3 (2023 : 9). |
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The above numbers are averages for the year and calculated on a full-time equivalent basis. The aggregate payroll costs of the above were: | | | 2024 | | 2023 | | £ | | £ | | Wages and salaries | 126,837 | | 292,204 | Social security cost | 7,596 | | 25,774 | Pension contributions | 2,203 | | 5,264 | | 136,636 | | 323,243 | |
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(7) Interest payable and similar charges
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| | | 2024 | | 2023 | | £ | | £ | | Interest on bank loans and overdrafts | 52,491 | | 81,938 | | 52,491 | | 81,938 | |
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(8) Tax
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Current tax
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| | 2024 | | 2023 | | £ | | £ | | Corporation tax charge for current year | -64,120 | | -109,824 | | | | | Total current tax | -64,120 | | -109,824 |
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(9) Intangible fixed assets
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| Development Costs | | £ | Cost | | As at 01 May 2023 | 5,557,725 | Additions | 1,140,198 | As at 30 April 2024 | 6,697,923 | Amortisation | | As at 01 May 2023 | 1,779,697 | As at 30 April 2024 | 1,779,697 | Net book value | | As at 30 April 2024 | 4,918,226 | As at 30 April 2023 | 3,778,028 |
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(10) Debtors
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Amounts falling due within one year
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| | | 2024 | | 2023 | | £ | | £ | | Trade debtors | 18,340 | | 17,339 | Other debtors | 18,564 | | 13,970 | Prepayments and accrued income | 28,537 | | 25,414 | | 65,440 | | 56,723 |
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(11) Cash and cash equivalents
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| | | 2024 | | 2023 | | £ | | £ | | Bank balance | 27,721 | | 34,368 | | | | | | 27,721 | | 34,368 |
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(12) Creditors: Amounts falling due within one year
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| | | 2024 | | 2023 | | £ | | £ | | Trade creditors | 133,760 | | 160,097 | Bank loans and overdrafts | 5,385 | | 6,252 | | | | | Other taxes and social security | 1,898 | | 3,773 | Other creditors | 579,965 | | 22,386 | Accruals and deferred income | 4,500 | | 9,000 | | 725,508 | | 201,508 |
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(13) Creditors: Amounts falling due after more than one year
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| | | 2024 | | 2023 | | £ | | £ | | Bank loans and overdrafts | 30,059 | | 35,447 | | | | | Other creditors | - | | 1,224,516 | | 30,059 | | 1,259,963 |
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(14) Share capital and reserves
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| Alloted, called up and fully paid: | 2024 | | 2023 | | £ | | £ | | 4,081,424 (2023 : 3,645,055) Ordinary shares of £ 0.01 each | 40,814 | | 36,451 | | 40,814 | | 36,451 | | | | Retained earnings | | | 2024 | | | | £ | At 1 May 2023 | | | (2,062,360) | Profit of the year | | | 318,706 | | | | | At 30 April 2024 | | | (1,743,654) | |
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(15) Prior Period Adjustment
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Following balance have been restated in prior period:
In 2023, the company erroneously recorded the subcontractor costs of £6,214 to legal and professional fees which has been presented correctly in current financial statement. |
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