Company registration number 2471123 (England and Wales)
OPTIMA SYSTEMS LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
OPTIMA SYSTEMS LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
OPTIMA SYSTEMS LTD
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
4,101
8,736
Current assets
Stocks
1,409
1,359
Debtors
5
132,222
251,654
Cash at bank and in hand
8,560
51,824
142,191
304,837
Creditors: amounts falling due within one year
6
(459,965)
(293,886)
Net current (liabilities)/assets
(317,774)
10,951
Total assets less current liabilities
(313,673)
19,687
Creditors: amounts falling due after more than one year
7
(138,092)
(323,459)
Provisions for liabilities
(1,478)
(1,478)
Net liabilities
(453,243)
(305,250)
Capital and reserves
Called up share capital
1,000
1,000
Capital redemption reserve
2,000
2,000
Profit and loss reserves
(456,243)
(308,250)
Total equity
(453,243)
(305,250)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 13 August 2024 and are signed on its behalf by:
Mr P Grosvenor
Director
Company Registration No. 2471123
OPTIMA SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information
Optima Systems Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Optima House, Mill Court, Spindle Way, Crawley, RH10 1TT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
The parent, and group headed by it, qualify as small as set out in section 383 of the Act and the group is not ineligible as set out in section 384 of the Companies Act 2006.
1.2
Going concern
These financial statements are prepared on the going concern basis relying on the continued support of the directors. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern . The directors have appointed KSA Group to prepare a CVA for all creditors.
The decrease in sales has impacted significantly on cash flow such that if adequate refinancing is not found the company will have to be wound up.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
OPTIMA SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
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 machinery
25% reducing balance basis
Fixtures, fittings & equipment
25% straight line,33% reducing balance basis
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 credited or charged to profit or loss.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and 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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
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 company after deducting all of its liabilities.
OPTIMA SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.8
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 profit and loss account 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing 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 profit and loss account, 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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
OPTIMA SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
OPTIMA SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
12
14
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2023 and 31 March 2024
62,346
Depreciation and impairment
At 1 April 2023
53,610
Depreciation charged in the year
4,635
At 31 March 2024
58,245
Carrying amount
At 31 March 2024
4,101
At 31 March 2023
8,736
OPTIMA SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
(Continued)
- 7 -
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
36,574
32,851
Corporation tax recoverable
47,601
47,601
Other debtors
122,764
Prepayments and accrued income
7,487
7,878
91,662
211,094
2024
2023
Amounts falling due after more than one year:
£
£
Corporation tax recoverable
40,560
40,560
Total debtors
132,222
251,654
The amounts due from Optima Systems Holdings Ltd include legal fees and payments connected to the acquisition of PAS Consulting Limited ,the other subsidiary in the group, as no bank account was open for the holding company. Following the cessation of trade for PAS Consulting Limited a full provision has been made against the monies due.
Please see note 13 for the details of the Director's loan account detailed within other debtors.
Debtors due after more than one year relate to the March 2022 losses due for repayment .These have been delayed due to the ongoing Corporation tax liabilities arising on the overdrawn director's loan account which was repaid in November 2023
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
120,047
123,641
Trade creditors
54,390
52,814
Corporation tax
49,845
47,601
Other taxation and social security
217,295
55,987
Other creditors
18,388
13,843
459,965
293,886
OPTIMA SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
138,092
213,459
Amounts due to group undertakings
110,000
138,092
323,459
The directors have taken out Coronavirus Business Interruption Loans (CBILS) with Funding Circle at 5% interest repayable within 5 years. During 2022 a further loan from Funding Circle was obtained at an interest rate of 5.3% repayable within 6 years. Further capital repayment holidays have been taken in the year.
8
Loans and overdrafts
2024
2023
£
£
Bank loans
258,139
337,100
Payable within one year
120,047
123,641
Payable after one year
138,092
213,459
Several Funding Circle Loans were taken out for between four and six year terms with an interest rate of 5-5.3% per annum AER. Capital repayment holidays have been taken.
9
Operating lease commitments
Lessee
At the reporting end date the company had annual outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
39,905
39,274
11
Directors' transactions
Dividends totalling £0 (2023 - £0) were paid in the year in respect of shares held by the company's directors.
THe director's loan to Mr P Grosvenor was fully repaid in November 2023.
OPTIMA SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Directors' transactions
(Continued)
- 9 -
Loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Mr P Grosvenor -
2.00
122,764
505
(123,269)
-
122,764
505
(123,269)
-
12
Control
The shares in Optima Systems Ltd were transferred in a share for share exchange on 14th October 2021 to Optima Systems Holdings Ltd whose registered office is Optima House. Mill Court. Spindle Way,Crawley,West Sussex,UK RH10 1TT.
Following the cessation of trade for the other acquisition in Optima Systems Holdings Ltd it was decided to facilitate a share for share exchange back to Mr and Mrs P Grosvenor.
The ultimate controlling parties are the directors Mr and Mrs P Grosvenor by virtue of their ownership of 100% of the issued share capital of the company Optima Systems Ltd.