REGISTERED NUMBER: |
VIRTUA UK LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
30TH APRIL 2024 |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
43-45 Devizes Road |
SWINDON |
Wiltshire |
SN1 4BG |
BANKERS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Statutory Auditors |
43-45 Devizes Road |
SWINDON |
Wiltshire |
SN1 4BG |
VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 30TH APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
REVENUE | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT/(LOSS) | 6 | ( |
) |
Interest payable and similar expenses | 7 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 8 | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
VIRTUA UK LIMITED (REGISTERED NUMBER: 04047798) |
STATEMENT OF FINANCIAL POSITION |
30TH APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 9 |
CURRENT ASSETS |
Inventories | 10 |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 15 |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Capital redemption reserve | 17 |
Retained earnings | 17 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
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 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30th April 2023 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 30th April 2024 | ( |
) | ( |
) |
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 |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Engineers & project managers | 74 | 82 |
Administration | 37 | 39 |
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: |
2024 | 2023 |
£ | £ |
Directors' remuneration | 567,745 | 497,050 |
Directors pension contributions to money purchase schemes | 18,328 | 19,149 |
Information regarding the highest paid director, included within the management charge, is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 258,477 | 222,689 |
Pension contributions to money purchase schemes | 6,845 | 6,844 |
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 |
Depreciation - assets on hire purchase contracts or finance leases |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Foreign exchange differences |
Operating leases - rent |
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 |
Leasing |
8. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Deferred tax | ( |
) |
Tax on profit/(loss) | ( |
) |
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 | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( |
) |
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 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30th April 2024 |
DEPRECIATION |
At 1st May 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30th April 2024 |
NET BOOK VALUE |
At 30th April 2024 |
At 30th April 2023 |
All tangible fixed assets are measured using the cost model, being cost less accumulated depreciation and accumulated impairment losses. |
10. | INVENTORIES |
2024 | 2023 |
£ | £ |
Stocks |
Work-in-progress |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Deferred tax asset |
Prepayments |
Accrued income | 286,456 | 1,005,994 |
Deferred tax asset |
2024 | 2023 |
£ | £ |
Accelerated capital allowances | (53,093 | ) | (60,338 | ) |
Deferred tax losses | 153,093 | 60,338 |
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 |
Amounts owed to group undertakings |
Social security and other taxes |
VAT | 626,008 | 407,659 |
Other creditors |
Sales invoice financing | 427,909 | 1,440,257 |
Accruals and deferred income |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
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 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 30th April 2024 | ( |
) |
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 | ( |
) | (8,041,166 | ) |
Profit for the year |
At 30th April 2024 | ( |
) | (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. |