QUIKA LTD |
Registered number: |
11084762 |
Strategic Report |
|
The director presents his strategic report for the year ended 31 December 2023. |
|
Business review |
The results for the year and the financial position of the company is as shown in the financial statement. The total turnover of the company during the period amounted to $556,422; 2022: $634,667 and profit/(loss) before tax of ($823,978); 2022: ($131,542). The Shareholder's funds at the period end were ($776,401); 2022: ($157,996). |
Principal risks and uncertainties |
The director is responsible for the company's system of internal controls and for reviewing its effectiveness. The internal control system is designed to manage, rather than eliminate the risk of failure to achieve the company's business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. |
Covid-19 has had a significant impact on the business, and it will remain a key focus of management for at least the short term. |
The impact of pandemic which started early 2020 and continued until end of 2021 with lingering effect into the future. |
The company has been negatively impacted by the effects of the world-wide COVID -19 pandemic. |
The company is closely monitoring its operations, liquidity, and capital resources and is actively working to minimise the current and future impact of this unprecedented situation. There have been strong, early signs of recovery following successful vaccination programme rolled out globally. |
The company has taken several mitigation efforts in response to the pandemic, including managing human capital needs, negotiating rent abatements and deferments with its landlord, delayed planned capital expenditures, and non-essential contracts have been cancelled or amended where possible to yield additional savings going forward. |
Foreign currency exchange risk can be high during uncertain economic climate when income is received in dollars and some salaries and overheads in UK are payables in sterling. |
The director has adopted policy of forward contracts which minimises exchange risks and to exchange funds when the rates are more favourable. Overall to date this risk has not been material. |
Rise in energy costs and general inflation is another uncertainty but the director is of the opinion that its impact is not relevant to the company's business. |
|
Going concern |
The director refers to Note 1 of the financial statements which indicate that the Company has net assets/(liabilities) of ($776,401); 2022: ($157,996). The Company's ability to continue as a going concern is dependent on the continued financial support from its ultimate parent undertaking, Commercis plc and continued availability of the bank loan facilities. |
Considering the current resources and review of the financial forecasts and projections, the director has a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months from approval of the financial statements. |
|
Financial key performance indicators |
|
|
2023 |
2022 |
|
$ |
$ |
|
Profit/(Loss) before taxation |
(823,978) |
(131,542) |
Net assets/(liabilities) |
(779,413) |
(157,996) |
|
|
This report was approved by the board on 15 August 2024 and signed on its behalf. |
|
|
|
Mr Falak Yussouf |
Director |
|
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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 United Kingdom, including the Financial Reporting Council'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. |
|
Material uncertainty related to going concern |
We draw attention to note 1 in the financial statements, which indicates that the Company has made a profit/(loss) after tax of ($618,405) and has net current liabilities of ($1,485,063) and net liabilities of ($776,401). Quika ltd is part of Commercis group and Based on the financial projections,the Director has assessed that the Group and the Company will continue to meet its liabilities as they fall due over the next twelve months from the date of approval of these financial statements. |
We have examined the forecast provided and can conclude that it is quiet realistic and achievable. The Group has been successful in navigating through the global recession, staffing shortages, and inflationary pressures. During the year Group has bestowed its growth strategy by acquiring a German based subsidiary Also during the year the Group has migrated to a new accounting system which has helped in bringing good controls in overall accounting which is a positive sign. |
However The Group is owned by a sole shareholder ,Mr Alan Afrasiab which brings in a material uncertainty that may cast significant doubt on the Group's or the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
● |
the Directors' Report has been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. Our audit procedures were designed to respond to the risk faced by the company, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, financial reporting legislation, the Companies Act 2006, distributable profits legislation and UK pensions and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, review of board and committee meeting minutes, enquiries with management, enquiries of external legal advisors, review of correspondence with external legal advisors and review of external press releases. There are inherent limitations in the audit procedures described above and, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. |
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates. We addressed the risk of management override of internal controls through testing journals, in particular any entries posted with unusual account combinations or posted by senior management. |
We evaluated whether there was evidence of bias by the Directors in accounting estimates that represented a risk of material misstatement due to fraud. We challenged assumptions and judgements made by management in their significant accounting estimates, in particular in relation to contract accounting, the valuation of investment properties and defined benefit pension scheme accounting. |
|
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 an Auditors' 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 |
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|
Mr Mark Stockwell FCA, FCCA |
31 High Street |
(Senior Statutory Auditor) |
Wellingborough |
for and on behalf of |
England |
McMillan Woods Audits Ltd |
NN8 4HL |
Chartered Certified Accountants and Statutory Auditors |
15 August 2024 |
|
QUIKA LTD |
Notes to the Accounts |
for the year ended 31 December 2023 |
|
1 |
Summary of significant accounting policies |
|
|
Basis of preparation |
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The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. |
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Going Concern |
|
The Company made a profit/(loss) after tax of ($618,405) and had net current liabilities of ($1,485,063) and net liabilities of ($776,401). The Director has assessed the going concern risks to the Company and has concluded that: |
|
Financial projections indicate that the Company will continue to meet its liabilities as they fall due over the next twelve months from the date of approval of these financial statements. |
|
Based on these indicators the Director believe that it remains appropriate to prepare the Company financial statements on a going concern basis. There are no material uncertainties relating to this going concern conclusion. |
|
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
|
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Tangible fixed assets |
|
Fixtures and fittings |
over 5 years |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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|
2 |
Judgements in applying accounting policies and key sources of estimation uncertainty |
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|
The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Judgements used in preparation of these financial statements include the ownership of an asset, which is only transferred when substantially all the significant risks and rewards of that particular asset are transferred. Estimates used in preparation of these financial statements include the recoverable amounts of the various categories of fixed assets and determination of their appropriate depreciation policies. Assumptions used in the preparation of these financial statements ignore the effect of technological obsolescence on stock. The company makes estimates and assumptions concerning the future. The resulting accounting estimates, will by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year. |
|
|
3 |
Analysis of turnover |
2023 |
|
2022 |
$ |
$ |
|
|
Sale of goods |
556,422 |
|
634,667 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
556,422 |
|
634,667 |
|
|
|
|
|
|
|
|
|
|
4 |
Operating profit |
2023 |
|
2022 |
$ |
$ |
|
This is stated after charging: |
|
|
Depreciation |
55,289 |
|
24,740 |
|
Auditors' remuneration for audit services |
2,588 |
|
2,588 |
|
|
|
|
|
|
|
|
|
|
5 |
Staff costs |
2023 |
|
2022 |
$ |
$ |
|
|
Wages and salaries |
158,337 |
|
116,840 |
|
Social security costs |
6,927 |
|
8,292 |
|
|
|
|
|
|
165,264 |
|
125,132 |
|
|
|
|
|
|
|
|
|
|
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Average number of employees during the year |
Number |
Number |
|
|
Administration |
1 |
|
1 |
|
Engineering |
4 |
|
4 |
|
Sales |
2 |
|
2 |
|
|
|
|
|
|
7 |
|
7 |
|
|
|
|
|
|
|
|
|
6 |
Taxation |
2023 |
|
2022 |
$ |
$ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
1,566 |
|
- |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
(207,139) |
|
(82,545) |
|
|
|
|
|
|
|
|
|
|
|
Tax on loss on ordinary activities |
(205,573) |
|
(82,545) |
|
|
|
|
|
|
|
|
|
|
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Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2023 |
|
2022 |
$ |
$ |
|
Loss on ordinary activities before tax |
(823,978) |
|
(131,542) |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
25% |
|
$ |
$ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
(205,995) |
|
(32,886) |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
1,153,231 |
|
1,485,650 |
|
Capital allowances for period in excess of depreciation |
(58,557) |
|
(561,291) |
|
Utilisation of tax losses |
(887,113) |
|
(891,473) |
|
|
Current tax charge for period |
1,566 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
|
|
7 |
Tangible fixed assets |
|
|
|
|
Plant and machinery |
|
Fixtures, fittings, tools and equipment |
|
Total |
|
|
|
|
At cost |
|
At cost |
$ |
$ |
$ |
|
Cost or valuation |
|
At 1 January 2023 |
549,496 |
|
147,553 |
|
697,049 |
|
Additions |
64,987 |
|
48,859 |
|
113,846 |
|
At 31 December 2023 |
614,483 |
|
196,412 |
|
810,895 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 January 2023 |
18,649 |
|
28,295 |
|
46,944 |
|
Charge for the year |
22,160 |
|
33,129 |
|
55,289 |
|
At 31 December 2023 |
40,809 |
|
61,424 |
|
102,233 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 December 2023 |
573,674 |
|
134,988 |
|
708,662 |
|
At 31 December 2022 |
530,847 |
|
119,258 |
|
650,105 |
|
|
|
|
|
|
|
|
|
|
|
8 |
Debtors |
2023 |
|
2022 |
$ |
$ |
|
|
Trade debtors |
(22,487) |
|
- |
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
- |
|
814,901 |
|
Deferred tax asset (see note 10) |
|
|
|
|
289,684 |
|
82,545 |
|
Other debtors |
11,515 |
|
3,891 |
|
Prepayments and accrued income |
125,401 |
|
116,941 |
|
|
|
|
|
|
404,113 |
|
1,018,278 |
|
|
|
|
|
|
|
|
|
|
9 |
Creditors: amounts falling due within one year |
2023 |
|
2022 |
$ |
$ |
|
|
Trade creditors |
282,874 |
|
410,123 |
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
1,616,308 |
|
1,416,081 |
|
Other taxes and social security costs |
44 |
|
(8) |
|
Director loan account |
- |
|
(132) |
|
Other creditors |
- |
|
3,340 |
|
Accruals and deferred income |
5,604 |
|
16,453 |
|
|
|
|
|
|
1,904,830 |
|
1,845,857 |
|
|
|
|
|
|
|
|
|
|
10 |
Deferred taxation |
2023 |
|
2022 |
$ |
$ |
|
|
Accelerated capital allowances |
(289,684) |
|
(82,545) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
$ |
$ |
|
|
At 1 January |
(82,545) |
|
- |
|
Credited to the profit and loss account |
(207,139) |
|
(82,545) |
|
|
At 31 December |
(289,684) |
|
(82,545) |
|
|
|
|
|
|
|
|
|
|
|
11 |
Share capital |
Nominal |
|
2023 |
|
2023 |
|
2022 |
value |
Number |
$ |
$ |
|
Allotted, called up and fully paid: |
|
100 Ordinary shares £1 each |
$1.32 |
|
100 |
|
132 |
|
132 |
|
|
|
|
|
|
|
|
|
|
12 |
Profit and loss account |
2023 |
|
2022 |
$ |
$ |
|
|
At 1 January |
(158,128) |
|
(109,131) |
|
Loss for the financial year |
(618,405) |
|
(48,997) |
|
|
At 31 December |
(776,533) |
|
(158,128) |
|
|
|
|
|
|
|
|
|
|
13 |
Related party transactions |
|
|
Advantage has been taken of the exemption available under FRS 101 Reduced Disclosure Framework not to disclose transactions with other wholly owned members of the group. |
|
|
14 |
Controlling party |
|
|
Commercis PLC obtained 90% ownership of Quika Ltd on the 1 February 2021. Commercis PLC is a Public Limited Company and incorporated in England. Its registered office is Third Floor, 6-8 James Street, London W1U 1ED. |
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|
15 |
Presentation currency |
|
|
The financial statements are presented in USD. |
|
|
16 |
Legal form of entity and country of incorporation |
|
|
Quika Ltd is a private company limited by shares and incorporated in England. |
|
|
Third Floor |
|
6 - 8 James Street |
|
London |
|
United Kingdom |
|
W1U 1ED |