REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
NETWORK SALES & SOLUTIONS LIMITED |
REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
NETWORK SALES & SOLUTIONS LIMITED |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31st December 2023 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 4 |
Income Statement | 8 |
Other Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
NETWORK SALES & SOLUTIONS LIMITED |
COMPANY INFORMATION |
for the Year Ended 31st December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
100 Barbirolli Square |
Manchester |
M2 3BD |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
REPORT OF THE DIRECTORS |
for the Year Ended 31st December 2023 |
The directors present their report and the financial statements of the Company for the year ended 31 December 2023. Some disclosures that would normally be included in the directors' report are included in the strategic report. These include the review of the principal risks and uncertainties facing the business and an indication of likely future developments for the Company. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of managed service provider. |
DIVIDENDS |
During the year, the Company declared no dividends (2022: £nil). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
GOING CONCERN |
In November 2023 the board opted to hive the trade and assets of the company to a fellow subsidiary in the UK group. As a result of this the company ceased to trade from November 2023. |
FINANCIAL RISK MANAGEMENT AND POLICIES |
As the Company trade and assets have been hived up to Nimans Limited from 1 November 2023, it will no longer represent a going concern and as a result, all risks and uncertainties have transferred with the business. |
Directors' and officers' liability insurance |
The Company maintains insurance cover for the directors and key personnel against liabilities which may be incurred by them while carrying out their duties. |
Employee involvement and policies |
From the perspective of the Board, as a result of the Group governance, the Group Board has taken the lead in carrying out the duties of a Board in respect of the Company's employees, including engaging with them, having regard to their interests and the effect of that regard (including on the principal decisions taken by the company during the financial year). The Board of the Company has also considered relevant matters where appropriate. An explanation of how the Group Board has carried out these responsibilities (for the Group and for the Company) is set out in the Group's annual report, which does not form part of this report. |
We recognise the importance of our staff to the success of the business since our product sales rely on the excellent service provided by our team. We aim to attract, motivate and retain the best people in our industry, regardless of race, age or disability. The Company provides its employees with information and consults with staff on matters of concern to them. |
The Company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the Company's policy whenever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate. |
The Board would like to thank our staff for the support, commitment and enthusiasm shown last year. |
Other stakeholders |
Similarly, from the perspective of the Board, as a result of the Group governance structure, the Group Board has taken the lead in carrying out the duties of a Board in respect of the Company's other stakeholders. The Board of the Company has also considered relevant matters where appropriate. An explanation of how the directors on the Group Board have had regard to the need to foster the Company's business relationships with suppliers, customers and others, and the effect of that regard, including on the principal decisions taken by the Company during the financial year, is set out (for the Group and for the Company) in the Group's annual report, which does not form part of this report. |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
REPORT OF THE DIRECTORS |
for the Year Ended 31st December 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. 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 of 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 judgements 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. |
The directors are 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. They are 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditor, Xeinadin Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NETWORK SALES & SOLUTIONS LIMITED |
Opinion |
We have audited the financial statements of Network Sales & Solutions Limited (the 'company') for the year ended 31st December 2023 which comprise the Profit and Loss Account, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, 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 101 'Reduced Disclosure Framework' (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 31st December 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 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 opinion. |
Conclusions relating to departure from the going concern basis of accounting |
In forming our opinion on the financial statements, which is not modified, we have considered the presentation of the financial statements on a break-up basis, the adjustments arising from this presentation, and the adequacy of the disclosures made in the notes to the financial statements. The break-up basis of accounting has been adopted by the Directors in preparing the financial statements due to the trade of the business being hived up to Nimans Limited on 1st July 2023. No date for liquidation has been set. It is therefore appropriate to prepare these financial statements on the break-up basis of accounting. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has 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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 not 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; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NETWORK SALES & SOLUTIONS LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 control as the directors determine 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, disclosing, 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 to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NETWORK SALES & SOLUTIONS LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following: |
- | The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets; |
- | Results of the enquiries of management about their own identification and assessment of the risks of irregularities; |
- | Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- | the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income and going concern. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, environmental laws, employment law, health and safety, pensions legislation and tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- | enquiring of management concerning actual and potential litigation and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NETWORK SALES & SOLUTIONS LIMITED |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
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 Report of the Auditors. |
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. |
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 a Report of the Auditors 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. |
for and on behalf of |
100 Barbirolli Square |
Manchester |
M2 3BD |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
INCOME STATEMENT |
for the Year Ended 31st December 2023 |
2023 | 2023 | 2023 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
REVENUE | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT | - | 824,280 | 824,280 |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT and |
PROFIT BEFORE TAXATION | 7 |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
INCOME STATEMENT |
for the Year Ended 31st December 2023 |
2022 | 2022 | 2022 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
REVENUE | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT | 1,368,232 | - | 1,368,232 |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT and |
PROFIT BEFORE TAXATION | 7 |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31st December 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
Other comprehensive income | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
STATEMENT OF FINANCIAL POSITION |
31st December 2023 |
2023 | 2022 |
Notes | £ | £ |
ASSETS |
NON-CURRENT ASSETS |
Property, plant and equipment | 9 |
CURRENT ASSETS |
Inventories | 10 |
Trade and other receivables | 11 |
Cash at bank |
1,401,427 | 1,766,177 |
CAPITAL, RESERVES AND LIABILITIES |
CAPITAL AND RESERVES |
Share capital | 12 |
Share premium |
Retained earnings | 13 |
SHAREHOLDERS' FUNDS |
LIABILITIES | 14 |
The financial statements were approved by the Board of Directors and authorised for issue on |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31st December 2023 |
Share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1st January 2022 |
Profit for the year | - | 360,925 | - | 360,925 |
Total comprehensive income | - | - |
Balance at 31st December 2022 |
Profit for the year | - | 200,011 | - | 200,011 |
Total comprehensive income | - | - |
Balance at 31st December 2023 |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31st December 2023 |
1. | STATUTORY INFORMATION |
Network Sales & Solutions Limited is a private company limited by share capital, incorporated in England and Wales, registration number 01785588. The address of the registered office is Midwich Limited, Vinces Road, Diss, IP22 4YT. The principal place of business is Agecroft Road, Pendlebury, Swinton, Manchester, Lancashire, M27 8SB. |
2. | ACCOUNTING POLICIES |
Basis of preparation |
The Company maintains its books and records in sterling ("£") and presents its annual financial statements in conformity with United Kingdom laws and regulations. |
These annual financial statements have been prepared in accordance with Financial Reporting Standard FRS 101 and in accordance with applicable accounting standards, as adopted by the European Union and the Companies Act 2006. |
The company transferred its trade, assets and liabilities to Nimans Limited on 1st November 2023 and ceased trading at that date. The directors therefore do not consider it to be appropriate to adopt the going concern basis of accounting and have prepared the financial statements on the basis that the company is no longer a going concern. |
However, given that the trade is being carried on by Nimans Limited, and having regard to the nature of the entity's assets and liabilities, no adjustments to, or reclassifications of, the amounts included in these financial statements as a result of the financial statements being prepared on a break up basis. |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework": |
• | the requirements of IFRS 7 Financial Instruments: Disclosures; |
• | the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement; |
• | the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1; |
• | the requirements of IAS 7 Statement of Cash Flows; |
• | the requirements of paragraphs 88C and 88D of IAS 12 Income Taxes; |
• | the requirements of paragraph 74(b) of IAS 16; |
• | the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures; |
• | the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group; |
• | the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of Assets. |
Turnover |
Revenue arises from the sale of services. |
Revenue from services is recognised over time as the services are performed. Where contracts for the sales of services include multiple performance obligations the transaction price is allocated to each separate performance obligation within the contract. Revenue for each performance obligation is estimated based on expected cost-plus margin and is recognised over time as the service is performed. |
Finance costs |
Finance costs include the changes in fair value of derivatives and other financial instruments measured at fair value through profit or loss. |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Property, plant and equipment |
Property, plant and equipment are stated at historical costs less depreciation less any impairment losses. Costs includes expenditure that is directly attributable to the acquisition or construction of these items. Subsequent costs are included in the asset's carrying amount only when it is probable that future economic benefits associated with the item will flow to the Company and the costs can be measured reliably. All other costs, including repairs and maintenance costs, are charged to the income statement in the period in which they are incurred. |
Depreciation is calculated on a straight-line basis on property, plant and equipment as follows: |
Plant and equipment | - | 3 - 10 years |
Depreciation is provided on cost less residual value. The residual value, depreciation method and useful lives are annually reassessed. Each asset's estimated useful life has been assessed for limitations in its physical life and for possible future variations in those assessments. Estimates of remaining useful lives are made on a regular basis for all machinery and equipment, with annual reassessments for major items. Changes in estimates are accounted for prospectively. The gain or loss arising on disposal or scrapping of an asset is determined as the difference between the sales proceeds, net of selling costs, and the carrying amount of the asset and is recognised in the income statement. |
Inventory |
Inventory is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. Cost comprises purchase price and directly attributable costs incurred in bringing products to their present location and condition. |
Taxation |
Current tax payable or recoverable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because some items of income or expense are taxable or deductible in different years or may never be taxable or deductible. The Company's liability for current tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the end of the reporting period date. |
Deferred taxation |
Deferred taxation is calculated using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, if the deferred tax arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss, it is not accounted for. No deferred tax is recognised on initial recognition of goodwill or on investment in subsidiaries. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred tax asset is realised, or the deferred tax liability is settled. Deferred tax liabilities are provided in full and are not discounted. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. |
Employee benefit costs |
Provision is made in the financial statements for all employee benefits. Liabilities for wages and salaries, including non monetary benefits and annual leave obliged to be settled within 12 months of the reporting date, are recognised in accruals. Contributions to defined contribution pension plans are charged to the income statement in the period to which the contributions relate. |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Trade and other receivables |
Trade and other receivables are financial assets recognised when the Company becomes party to the contractual provisions of the instrument. Included within trade and other receivables are vendor rebates. |
Trade and other receivables are initially measured at transaction price plus directly attributable transaction costs. Transaction price is equivalent to fair value for trade and other receivables that do not contain a significant financing component. Where trade and other receivables do contain a significant financing component the fair value is equivalent to the transaction price adjusted for the effects of discounting. The effects of discounting are not adjusted if it is expected at the inception of the contract that there will be a period of one year or less from when the goods or services are transferred to the customer to the payment date. |
Trade and other receivables are subsequently measured at amortised cost using the effective interest method less expected credit losses. Expected credit losses are calculated based on probability weighted amounts derived from a range of possible outcomes that are based on reasonable supporting information and discounted for the time value of money. The Company applies the simplified approach to measure the loss allowance at an amount equal to lifetime expected credit losses including where trade receivables contain a significant financing component. The effects of expected credit losses are omitted if immaterial. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less from inception. |
Trade and other payables |
Trade and other payables are financial liabilities recognised when the Company becomes party to the contractual provisions of the instrument. Trade and other payables are initially measured at fair value minus transaction costs directly attributable to the issue of the financial liability. Trade and other payables are subsequently measured at amortised cost using the effective interest method. |
Equity |
Equity comprises the following: |
- "Share capital" represents the nominal value of equity shares issued. |
- "Share premium" represents amounts subscribed for share capital, net of issue costs, in excess of nominal value. |
- "Retained earnings" represents the accumulated profits and losses attributable to equity shareholders. |
Discontinued operations |
On 1st November 2023 the company hived-up it's business to a fellow subsidiary in the group. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies above, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 period. |
Provisions |
A general bad debt provision of £Nil (2022: £203,050) has been provided and is assessed on a regular basis. |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 482,594 | 729,908 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Sales and distribution |
6. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration |
7. | PROFIT BEFORE TAXATION |
The profit before taxation is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
8. | TAXATION |
Analysis of tax expense |
2023 | 2022 |
£ | £ |
Current tax: |
Tax |
Total tax expense in income statement |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2023 |
9. | PROPERTY, PLANT AND EQUIPMENT |
Computer |
equipment |
£ |
COST |
At 1st January 2023 |
Transferred | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Transferred | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
The company transferred its fixed assets to Nimans Limited on 1st November 2023. |
10. | INVENTORIES |
2023 | 2022 |
£ | £ |
Inventories | - | 13,871 |
11. | TRADE AND OTHER RECEIVABLES |
2023 | 2022 |
£ | £ |
Trade receivables |
Amounts owed by group undertakings |
Other receivables |
12. | SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1.00 | 100 | 100 |
13. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1st January 2023 | 1,194,551 |
Profit for the year |
At 31st December 2023 | 1,394,562 |
NETWORK SALES & SOLUTIONS LIMITED (REGISTERED NUMBER: 01785588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2023 |
14. | TRADE AND OTHER PAYABLES |
2023 | 2022 |
£ | £ |
Trade payables |
Taxation |
Other payables |
Accrued expenses |
15. | SECURED DEBTS |
The Company is party to a composite agreement with its bankers. There is a fixed and floating charge registered in favour of HSBC Corporate Trustee Company (UK) Limited dated 3 January 2023, covering all the property of the undertaking of the Company. |
The Company is party to a security accession deed with its bankers. There is a fixed and floating charge registered in favour of HSBC Corporate Trustee Company (UK) Limited dated 14 December 2022, covering all the property of the undertaking of the Company. |
16. | ULTIMATE PARENT COMPANY |
Midwich Group plc is the ultimate parent company. Midwich Group plc is incorporated in England and Wales and its registered office is Vinces Road, Diss, Norfolk, IP22 4YT. |
Midwich Group plc, is the parent undertaking of the largest group which prepares publicly available consolidated financial statements for the year ended 31 December 2023. Copies of the consolidated financial statements may be obtained from Companies House. |
17. | TRADE HIVE UP |
On 1 November 2023 the company hived up all its trading activity and assets to a fellow subsidiary in the UK group of Midwich Group plc. |