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REGISTERED NUMBER: 04047798 (England and Wales)















VIRTUA UK LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30TH APRIL 2024






VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30TH APRIL 2024










Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4

Report of the Independent Auditors 5 to 7

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11 to 18


VIRTUA UK LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30TH APRIL 2024







DIRECTORS: Mr B J Watt
Mr A J Richards
Mr G S Firth



REGISTERED OFFICE: Unit 5 Wildmere Close
BANBURY
Oxfordshire
OX16 3TL



REGISTERED NUMBER: 04047798 (England and Wales)



AUDITORS: Morris Owen
Statutory Auditors
43-45 Devizes Road
SWINDON
Wiltshire
SN1 4BG



BANKERS: Barclays Bank Plc
15 Queen Square
BRISTOL
Avon
BS1 4NP

VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

STRATEGIC REPORT
FOR THE YEAR ENDED 30TH APRIL 2024


OUR MARKET PLACE AND BUSINESS MODEL
The group operates broadly across 4 markets:

- Broadcast (ceased in 2023/24)
- RF Solutions/ In Building
- FTTx
- Network Solutions

Each part of the business interacts in order that the business can offer a one stop shop across these markets thereby increasing our offer to the market and de-risking reliance on any individual market sector.

STRATEGIC OBJECTIVES
The year to 30th April 2024 saw the company cease work within the Broadcast Division. Due to low margins and high risk the decision was taken to cease high mast work. The company continued to only take on work at minimum acceptable margins in order to ensure ongoing profitability.
The ongoing objective is to continue to provide a wide offering across a range of working platforms and customers, providing a one stop turnkey solution, and building strategic partnerships within the industry. This ensures that the company is not reliant on any sector of the market or individual customer and can respond to changing priorities and trends within the marketplace.

PERFORMANCE
Sales increased from £18.5m for the 12 months to 30th April 2023 to £21m for the year to 30th April 2024. This was mainly due to an increase in work within our Networks Division. Gross Profit Margins increased to 29.4% during the year compared to 23.6 % in 2023. Broadcast margins were poor at 17% but other Divisions performed in line with expectations.

PRINCIPAL RISKS AND UNCERTAINTIES

Risk Impact Mitigation


Over-reliance on too few
customers

Risk of impact of loss of key
accounts and contracts.
Increasing offer across several
markets to increase customer
base.


Seasonality
Creates peaks and troughs of
work.
Diversifying into areas that are
less seasonal in nature.


Risk of customer going into
liquidation

Risk of amounts owed to the
not group being paid.
Careful selection of customers to
ensure credit-worthiness, and
strict credit control procedures.



Cash impact of expansion

Additional cash requirement
above current facility.
All new work is cash profiled to
ensure that a cash positive
situation is maintained.



Increased credit lines with
suppliers


Additional cash requirement if
credit limits not increased.
Maintain and develop good
current relationships with
suppliers. Improving profitability
will increase also credit limits.


Ability to resource manpower
required to maintain expansion
Inability to deliver new
workstreams if resource is not
available.
Continuing development of
database of resource to call on in
any situation.



Impact of Brexit

Potential Delays on imported
goods.
Appointment of specialist import
agent. Build in additional lead
times into project timescales.



VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

STRATEGIC REPORT
FOR THE YEAR ENDED 30TH APRIL 2024

KPI'S
The group expects the following minimum Gross Margins across the individual markets it operates in:

- RF Solutions/ In Building - 25%
- FTTx - 30%
- Network Solutions - 30%

The group does not expect the revenue with any one customer to exceed 20% of overall revenue.
The group expects to make a 5% EBITDA profit for the financial year 2024/25, a 7% EBITDA profit by 2025/26 and 10% by 2026/27.

LETTER FROM THE BOARD
The year to 30th April 2024 saw the company continuing to focus on work that attracts a minimum acceptable margin. As a result we saw Gross Profit Margins for the year increase to over 29% despite only achieving 17% margins on the final work within the Broadcast Division. Other Divisions achieved margins in line with expectations.
The group has a very a strong order book for 2024/25 onwards and anticipates achieving overall margins of at least 30% overall. This is underpinned by several long-term projects which provide ongoing reliable revenue streams into the foreseeable future.
The ongoing invoice discounting facility with Shawbrook Bank provides sufficient operating cash and with profits now being generated, the group is in a sound financial position.

FINANCIAL INSTRUMENTS
Debtors:
- Trade Debtors are all within terms and no amounts outstanding are in dispute.
- Amounts Recoverable on Contract have been recovered since year end.
- Accrued Income has all been invoiced since the year end.

Creditors:
- Trade Creditors are within terms and there are no outstanding disputes.
- Amounts owed to Group Undertakings are owed to the holding company, Virtua Holdings Limited, who are supportive of the company.
- Other Creditors includes £428k owed for Sales Invoice Financing which is an ongoing facility available to the company.
- All Social Security, Tax and VAT payments are up to date.

ON BEHALF OF THE BOARD:





Mr A J Richards - Director


12th September 2024

VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30TH APRIL 2024


The directors present their report with the financial statements of the company for the year ended 30th April 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of telecommunications and network infrastructure solutions.

DIVIDENDS
No dividends will be distributed for the year ended 30th April 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st May 2023 to the date of this report.

Mr B J Watt
Mr A J Richards
Mr G S Firth

DISCLOSURE IN THE STRATEGIC REPORT
A statement in respect of the company's future developments can be found in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, 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 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 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.

ON BEHALF OF THE BOARD:





Mr A J Richards - Director


12th September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VIRTUA UK LIMITED


Opinion
We have audited the financial statements of Virtua UK Limited (the 'company') for the year ended 30th April 2024 which comprise the Statement of Comprehensive Income, 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 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 30th April 2024 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 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 in the Strategic Report and 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VIRTUA UK LIMITED


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 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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate
competence, capabilities and skills to identify or recognise non-compliance with applicable laws
and regulations through the audit planning process;
- we identified the laws and regulations applicable to the company through discussions with directors
and other management, and from our commercial knowledge and experience of the company's
industry;
- we focused on specific laws and regulations which we considered may have a direct material effect
on the financial statements or the operations of the company, including the Companies Act,
taxation legislation, employment legislation, health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through
making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team
remained alert to instances of non-compliance throughout the audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VIRTUA UK LIMITED

We assessed this susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

- making enquiries of management as to where they considered there was susceptibility to fraud,
their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws
and regulations.

As a result of the company having a small management and finance team, we identified a risk of fraud through management bias and ability to override of controls, including lack of segregation of duties, which could lead to a misappropriation of cash and other assets. To address this we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries and sales credit notes to identify unusual transactions;
- assessed whether judgements and assumptions made in determining accounting estimates were
indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims;
- reviewing correspondence with HM Revenue & Customs (HMRC) and any legal correspondence;
- making enquiries of the company's solicitors.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.




Mr Robert Andrew Beale (Senior Statutory Auditor)
for and on behalf of Morris Owen
Statutory Auditors
43-45 Devizes Road
SWINDON
Wiltshire
SN1 4BG

18th September 2024

VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30TH APRIL 2024

2024 2023
Notes £    £   

REVENUE 4 21,088,003 18,529,622

Cost of sales 14,905,897 14,150,499
GROSS PROFIT 6,182,106 4,379,123

Administrative expenses 5,418,747 5,279,209
OPERATING PROFIT/(LOSS) 6 763,359 (900,086 )


Interest payable and similar expenses 7 5,137 11,150
PROFIT/(LOSS) BEFORE TAXATION 758,222 (911,236 )

Tax on profit/(loss) 8 (100,000 ) -
PROFIT/(LOSS) FOR THE
FINANCIAL YEAR

858,222

(911,236

)

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

858,222

(911,236

)

VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

STATEMENT OF FINANCIAL POSITION
30TH APRIL 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 9 212,369 317,569

CURRENT ASSETS
Inventories 10 227,212 256,336
Debtors 11 4,447,650 3,713,106
Cash at bank 22,017 51,949
4,696,879 4,021,391
CREDITORS
Amounts falling due within one year 12 12,088,049 12,375,983
NET CURRENT LIABILITIES (7,391,170 ) (8,354,592 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(7,178,801

)

(8,037,023

)

PROVISIONS FOR LIABILITIES 15 4,000 4,000
NET LIABILITIES (7,182,801 ) (8,041,023 )

CAPITAL AND RESERVES
Called up share capital 16 143 143
Capital redemption reserve 17 40 40
Retained earnings 17 (7,182,984 ) (8,041,206 )
SHAREHOLDERS' FUNDS (7,182,801 ) (8,041,023 )

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 12th September 2024 and were signed on its behalf by:




Mr A J Richards - Director



Mr G S Firth - Director


VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30TH APRIL 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1st May 2022 143 (7,129,970 ) 40 (7,129,787 )

Changes in equity
Total comprehensive income - (911,236 ) - (911,236 )
Balance at 30th April 2023 143 (8,041,206 ) 40 (8,041,023 )

Changes in equity
Total comprehensive income - 858,222 - 858,222
Balance at 30th April 2024 143 (7,182,984 ) 40 (7,182,801 )

VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30TH APRIL 2024


1. STATUTORY INFORMATION

The company is a private company limited by shares and incorporated in England and Wales.

The registered office address is Unit 5 Wildmere Close, Banbury, Oxfordshire, OX16 3TL.

These financial statements are presented in British Pounds (GBP) rounded to the nearest pound, which is the company's functional and presentational currency.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Going concern
During the period the company has continued to utilise their invoice discounting facility and operated within this.

Included with other creditors is £6,591,764 relating to intercompany debt with its Parent company. The company has received assurance that, although the loan has no specific terms or date of repayment and accordingly is technically repayable on demand, there is no intention to ask for the loan to be repaid for the foreseeable future. Any repayment of the loan would only be at a stage where the Parent company was entirely confident that the company had sufficient cash reserves to repay the debt, taking in to account its current position and its future trading prospects.

The company has received additional funding post year end from its Parent company.

The company are not delaying supplier payments and HMRC liabilities are up to date at the year end.

The directors have produced formal budgets and cashflows for the forthcoming period which shows the company operating comfortably within its borrowing limited.

The directors have produced management accounts to date and formal budgets and forecasts prepared show continued profitability.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirement of paragraph 33.7.

The parent company in which Virtua UK Limited's financial statements are consolidated is Virtua Holdings Limited. Financial statements for Virtua Holdings Limited can be obtained from Unit 5 Wildmere Close, Banbury, Oxfordshire, OX16 3TL.

VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30TH APRIL 2024


3. ACCOUNTING POLICIES - continued

Significant judgements and estimates
In preparing these financial statements, the directors have made the following judgements:

-Determine whether leases entered into by the company as a lessee are operating leases or
finance leases. These decisions depend on an assessment of whether the risks and rewards of
ownership have been transferred from the lessor to the lessee on a lease by lease basis.

-Determine the period of useful economic life of goodwill acquired in order to write off the
value of goodwill over that period.

-Determine the period of useful economic life and any residual value of all tangible fixed assets
order to write off the value of each asset over that period.

-Determine an appropriate provision for bad and doubtful debts by assessing the
recoverability of all balances on a balance by balance basis.

-Determine an appropriate provision for obsolete and slow moving stocks by assessing the net
realisable value of all stock lines on a line by line basis.

-Determine an appropriate provision for dilapidations by assessing the probable future
obligations expected to exist at the end of the property lease.

-Determine the valuation of revenue as described in the turnover accounting policy below.

Revenue
Revenue from the sale of services is recognised when, and to the extent that, the company obtains the right to consideration in exchange for its performance under those contracts.

Long term contract revenue is recognised when the outcome of the transaction can be assessed reliably. Revenue is recognised by reference to the stage of completion which is dependent on the nature of the contract, but will generally be based on the completion of discrete statements of work, the achievement of contractual milestones, or the percentage of actual costs incurred compared with forecast total cost to completion, where appropriate.

During the year, the make up of long term contracts has shifted such that the majority of such revenue streams are now being recognised based upon the completion of discrete statements of work or achievement or contractual milestones, adjusted where necessary to present a true and fair view where a statement of work or milestones is significantly progressed at the year such that the outcome of the contracted work can be assessed reliably.

All revenue is derived from the principal activities and within the UK.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery - 20% on cost
Office equipment and furniture - 20% on cost
Motor vehicles - 33% on cost
Computer equipment - 33% on cost

All tangible fixed assets are measured using the cost model, being cost less accumulated depreciation and accumulated impairment losses.

Inventories
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items, on a first in, first out basis.

Work in progress is measured at cost after making due allowances for loss making contracts.


VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30TH APRIL 2024


3. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Warranties and retentions
The warranty provision is considered by assessing the obligations of the completed contracts on a contract by contract basis.

Customer contract retentions are recognised as earned in line with the on-going contract applications rather than being recognised when the retention is released by the customer. Any liabilities arising in the fulfilment of these contracts are covered by the company's warranty provision.

Financial instruments
Financial instruments are classified by the directors as basic or advanced following the conditions in FRS 102 Section 11. The company only has basic financial instruments and these are recognised at amortised cost using the effective interest method.

4. REVENUE

All revenue is derived from the company's principal activity and from within the UK.

VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30TH APRIL 2024


5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 5,130,422 5,106,280
Social security costs 562,398 575,716
Other pension costs 145,259 143,992
5,838,079 5,825,988

The average number of employees during the year was as follows:
2024 2023

Engineers & project managers 74 82
Administration 37 39
111 121

The directors are employed by the parent company, Virtua Holdings Limited, and so there are no directors' wages in Virtua UK Limited. The directors' wages do however form part of the management recharge from Virtua Holdings Limited as follows:

20242023
£   £   
Directors' remuneration567,745497,050
Directors pension contributions to money purchase schemes18,32819,149

Information regarding the highest paid director, included within the management charge, is as follows:

20242023
£   £   
Emoluments etc258,477222,689
Pension contributions to money purchase schemes6,8456,844

Details of directors remuneration for those directors directly employed by Virtua UK are as follows:

2024 2023
£    £   
Directors' remuneration - -

6. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 147,997 160,940
Depreciation - assets on hire purchase contracts or finance leases - 29,108
Profit on disposal of fixed assets (8,300 ) (2,260 )
Auditors' remuneration 25,667 16,500
Auditors' remuneration for non audit work 1,200 1,200
Foreign exchange differences 882 -
Operating leases - rent 177,418 146,785

VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30TH APRIL 2024


7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Other interest 4,848 5,871
Leasing 289 5,279
5,137 11,150

8. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2024 2023
£    £   
Deferred tax (100,000 ) -
Tax on profit/(loss) (100,000 ) -

UK corporation tax has been charged at 25% .

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit/(loss) before tax 758,222 (911,236 )
Profit/(loss) multiplied by the standard rate of corporation tax in
the UK of 25% (2023 - 19%)

189,556

(173,135

)

Effects of:
Expenses not deductible for tax purposes 8,965 16,868
Depreciation in excess of capital allowances 90,541 89,696
Utilisation of tax losses (389,062 ) 60,338
credit
enhanced deduction
Unprovided tax losses - 6,233
Total tax credit (100,000 ) -

The company has unprovided tax losses as at 30 April 2024 of £5,582,175 (2023:£6,461,130) which are available for offset against future taxable profits.

A deferred tax asset of £100,000 has been recognised however, a deferred tax asset amounting to £1,242,451 (2023:£1,167,277) has not been recognised because the directors do not expect to utilise these tax losses in the near future.

The UK corporation tax rate was set to remain at 19% as enacted on 22 July 2020. The budget held on 3 March 2021 however announced that the main UK corporation tax rate has increased to 25% from 1 April 2023 as enacted on 24 May 2021.

VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30TH APRIL 2024


9. PROPERTY, PLANT AND EQUIPMENT
Office
Plant and furniture Motor Computer
machinery & equipment vehicles equipment Totals
£    £    £    £    £   
COST
At 1st May 2023 1,148,630 175,771 24,971 564,565 1,913,937
Additions 85 18,759 - 36,350 55,194
Disposals (47,851 ) - - (8,073 ) (55,924 )
At 30th April 2024 1,100,864 194,530 24,971 592,842 1,913,207
DEPRECIATION
At 1st May 2023 940,129 136,024 24,971 495,244 1,596,368
Charge for year 86,911 14,571 - 46,515 147,997
Eliminated on disposal (45,462 ) - - 1,935 (43,527 )
At 30th April 2024 981,578 150,595 24,971 543,694 1,700,838
NET BOOK VALUE
At 30th April 2024 119,286 43,935 - 49,148 212,369
At 30th April 2023 208,501 39,747 - 69,321 317,569

All tangible fixed assets are measured using the cost model, being cost less accumulated depreciation and accumulated impairment losses.

10. INVENTORIES
2024 2023
£    £   
Stocks 40,916 88,447
Work-in-progress 186,296 167,889
227,212 256,336

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,719,652 2,505,845
Other debtors 27,971 34,094
Deferred tax asset 100,000 -
Prepayments 313,571 167,173
Accrued income 286,456 1,005,994
4,447,650 3,713,106

Deferred tax asset
2024 2023
£    £   
Accelerated capital allowances (53,093 ) (60,338 )
Deferred tax losses 153,093 60,338
100,000 -

VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30TH APRIL 2024


12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 2,768,162 2,312,227
Amounts owed to group undertakings 6,591,764 6,453,046
Social security and other taxes 375,907 509,997
VAT 626,008 407,659
Other creditors 390,586 456,922
Sales invoice financing 427,909 1,440,257
Accruals and deferred income 907,713 795,875
12,088,049 12,375,983

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 168,854 110,654
Between one and five years 285,783 224,630
454,637 335,284

14. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Sales invoice financing 427,909 1,440,257

The finance lease balance is secured over the assets it relates to. The debt is secured by personal guarantees by a director of the company.

The sales invoice financing is secured by way of a fixed and floating charge over the company's assets together with a cross guarantee from the Parent company, Virtua Holdings Limited.

There is a also a fixed and floating charge over assets in the company as part of a cross guarantee with the Parent company, Virtua Holdings Limited.

15. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Other provisions 4,000 4,000

Deferred Other
tax provisions
£    £   
Balance at 1st May 2023 - 4,000
Credit to Statement of Comprehensive Income during year (100,000 ) -
Balance at 30th April 2024 (100,000 ) 4,000

VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30TH APRIL 2024


15. PROVISIONS FOR LIABILITIES - continued

Other provisions relate to a dilapidation provision.

The directors' have considered the company's accounting policy and believe that no warranty provision is required.

Details of unprovided deferred tax losses can be found in note 8 to the accounts.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid

Number Class Nominal Value 2024 2023
£    £   

143 Ordinary shares 1.00 143 143
143 143

Each share carries the right to vote at a general meeting of the Company, the right to receive a dividend and the right to a return of capital on a winding up or otherwise.

17. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1st May 2023 (8,041,206 ) 40 (8,041,166 )
Profit for the year 858,222 858,222
At 30th April 2024 (7,182,984 ) 40 (7,182,944 )

18. PENSION COMMITMENTS

As at 30 April 2024, the company had outstanding pension commitments totalling £34,071 (2023: £29,082)

19. ULTIMATE PARENT COMPANY

Virtua Holdings Limited is regarded by the directors as being the company's ultimate parent company.

The largest group of undertakings for which group accounts have been drawn up is that headed by Virtua Holdings Limited, a company registered in England and Wales with registration number 08822163. Consolidated group accounts can be found at Companies House.

20. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year there were no transactions with directors.

21. ULTIMATE CONTROLLING PARTY

There is not considered to be one controlling party.