Company registration number 06493761 (England and Wales)
NIO COMM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
NIO COMM LIMITED
COMPANY INFORMATION
Director
Mr S Farrell
Secretary
Ms K A Neal
Company number
06493761
Registered office
Ground Floor, Unit 3
High Cross Farm Henfield Road
Albourne
Hassocks
West Sussex
BN6 9JH
Auditor
Sumer Audit
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
NIO COMM LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
NIO COMM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -
The director presents the strategic report for the year ended 29 February 2024.
Strategy and business model
Nio Comm Limited design and deploy networks for major internet providers. We can provide full turnkey solutions or the individual elements of consultancy, design, and delivery. The company leverages its extensive industry experience to provide high quality no excuses solutions. It is this ability that enables Nio Comm Limited to stand out amongst its peers and endear itself to clients.
Business Review
The business experienced another year of growth. Turnover in the year of £23.8m was £4.7m million up on the previous year. Gross profit margin in the year fell from 32.6% to 26.8%. Changes to the customer mix and increased costs mean we expect this margin to become the new norm. Following discussions with our clients the company is planning for further growth in the coming year. This will be managed by continued investment in people, systems, and equipment.
Principal risks and uncertainties
The director has identified the following principal risks and uncertainties affecting the company.
Market risk: Two customers stopped work in the year and the company now operates with two main customers. The performance of the business is closely affected by the performance of those customers and their ability to purchase our services. This risk is closely monitored and managed. We finished the year with an order book of over £20m and expect the year ended February 2025 to be busier than year ended February 2024. By restricting the number of customers, we can maintain close working relationships to ensure their needs and expectations are met. While not currently a favoured option if the need arose there are other potential customers in the marketplace that would like to work with the company.
Competitor risk: The company operates in Southeast England. The managing director has a good knowledge of all companies operating within the sector. There are currently no competitors in our area that pose a significant threat to the business. There are various barriers to entry including being large enough to deal directly with the telecoms companies, availability of skilled staff at a local level and the technical knowledge to be able to understand and quote for work.
Supply risk: The bulk of materials are supplied by our clients. Consumables, tools, and aggregates are supplied by the company. Most of the items we purchase are available from multiple sources so generally speaking supply should never be an issue.
Key performance indicators
These are key metrics kept under regular review by the Board:
FY2024 FY2023
Turnover £ 23.8m £ 19.1m
Profit/(Loss) before tax £ 3.7m £ 3.8m
Gross profit £ 6.4m £ 6.2m
Net assets £ 5.3m £ 3.8m
Environment and social responsibility
The company is very aware of its social and environmental responsibilities. These areas are very important to the director and are central to the company’s ethos. The company refers to these areas as being part of its Pink Culture. Everyone in the company is made aware of its importance. Health and safety is a central to Pink Culture. We have an excellent reputation in the industry and are constantly looking to improve. Performance is measured using a number of KPIs. Riddor Injuries in the year were 0 and lost time Injuries were 3. The company looks to recycle wherever possible. Having previously met our target to divert 95% of waste from landfill the target was increased to 98%. This target was met every month during the year. The company had 0 major environment Incidents in the year. Wherever possible the company uses local suppliers to benefit the local community and lessen environmental impacts.
NIO COMM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
Mr S Farrell
Director
21 September 2024
NIO COMM LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
The director presents his annual report and financial statements for the year ended 29 February 2024.
Principal activities
The company provides UK telecommunication companies with a complete “in house” project delivery solution, from consultancy and planning through to civils, cabling, splicing and testing.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £1,302,346. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr S Farrell
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Future developments
The directors believe that there are no future developments that require disclosure.
Auditor
The auditor, Sumer Audit, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the director individually has taken all the necessary steps that they ought to have taken as director in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr S Farrell
Director
21 September 2024
NIO COMM LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
NIO COMM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF NIO COMM LIMITED
- 5 -
Opinion
We have audited the financial statements of NIO Comm Limited (the 'company') for the year ended 29 February 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 29 February 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.
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 Auditor's 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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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 our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
NIO COMM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF NIO COMM LIMITED
- 6 -
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 director's report.
We have nothing to report in respect of the following matters in relation to which 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
Obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;
Obtaining an understanding of the company’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud; and
Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the company and our sector-specific experience.
As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: employment law, health and safety laws and compliance with the UK Companies Act.
NIO COMM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF NIO COMM LIMITED
- 7 -
In addition to the above, our procedures to respond to risks identified included the following:
Making enquiries of management, about any known or suspected instances of non-compliance with laws and regulations and fraud;
Challenging assumptions and judgements made by management in their significant accounting estimates; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Alex Chidwick FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Audit
23 September 2024
Chartered Accountants
Statutory Auditor
Worthing
Sumer Audit is the trading name of Sumer Auditco Limited
NIO COMM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
23,794,783
19,057,842
Cost of sales
(17,417,249)
(12,836,814)
Gross profit
6,377,534
6,221,028
Administrative expenses
(2,707,699)
(2,404,274)
Other operating income
100
Operating profit
4
3,669,935
3,816,754
Interest receivable and similar income
44,803
5,433
Interest payable and similar expenses
3,827
(21,993)
Profit before taxation
3,718,565
3,800,194
Tax on profit
7
(886,535)
(708,427)
Profit for the financial year
2,832,030
3,091,767
The profit and loss account has been prepared on the basis that all operations are continuing operations.
NIO COMM LIMITED
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 9 -
29 February 2024
28 February 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
233,806
224,606
Current assets
Stocks
10
105,095
90,624
Debtors
11
5,416,499
4,002,809
Cash at bank and in hand
2,038,167
2,489,242
7,559,761
6,582,675
Creditors: amounts falling due within one year
12
(2,308,931)
(2,831,238)
Net current assets
5,250,830
3,751,437
Total assets less current liabilities
5,484,636
3,976,043
Creditors: amounts falling due after more than one year
13
(108,817)
(123,333)
Provisions for liabilities
Deferred tax liability
16
37,631
44,206
(37,631)
(44,206)
Net assets
5,338,188
3,808,504
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
5,338,088
3,808,404
Total equity
5,338,188
3,808,504
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 21 September 2024
Mr S Farrell
Director
Company registration number 06493761 (England and Wales)
NIO COMM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
100
2,484,934
2,485,034
Year ended 28 February 2023:
Profit and total comprehensive income
-
3,091,767
3,091,767
Dividends
8
-
(1,768,297)
(1,768,297)
Balance at 28 February 2023
100
3,808,404
3,808,504
Year ended 29 February 2024:
Profit and total comprehensive income
-
2,832,030
2,832,030
Dividends
8
-
(1,302,346)
(1,302,346)
Balance at 29 February 2024
100
5,338,088
5,338,188
NIO COMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
1
Accounting policies
Company information
NIO Comm Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor, Unit 3, High Cross Farm Henfield Road, Albourne, Hassocks, West Sussex, BN6 9JH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future, The directors have considered relevant information, including the company's principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the company, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
NIO COMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the life of the lease
Plant and equipment
33.33% per annum on a straight line basis
Fixtures and fittings
25% per annum on a diminishig value basis and 33.33% per annum on a straight line basis
Computers
33.33% per annum on a straight line basis
Motor vehicles
33.33% per annum on a straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include deposits held at call with banks.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other receivables and payables.
Debt instruments like other receivables and payables are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
NIO COMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 13 -
Current tax
The tax currently payable is based on taxable profit for the year.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Accrued income
The director has made key assumptions in determining the appropriate amount of income recognised in each accounting period for projects in progress at the year end date based on stage of completion. The value of work performed by the year-end yet to be invoiced totaled £2,518,876 (2023: £1,929,129).
NIO COMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Turnover derived from the company's principal activity
23,683,964
18,975,609
Turnover derived from services provided to fellow group members
110,819
82,233
23,794,783
19,057,842
Turnover is derived entirely from within the United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
-
1,010
Fees payable to the company's auditor for the audit of the company's financial statements
17,500
17,500
Depreciation of owned tangible fixed assets
138,007
153,419
Depreciation of tangible fixed assets held under finance leases
8,250
-
Profit on disposal of tangible fixed assets
(39,576)
-
Operating lease charges
194,170
141,159
5
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
11,850
11,850
Company pension contributions to defined contribution schemes
31,646
-
43,496
11,850
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Fieldwork
38
41
Planning
11
11
Project management
11
12
Administration and support
11
11
Directors
1
1
Total
72
76
NIO COMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
6
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,094,283
3,192,332
Social security costs
355,338
343,887
Pension costs
259,283
171,627
3,708,904
3,707,846
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
894,684
700,335
Adjustments in respect of prior periods
(1,574)
Total current tax
893,110
700,335
Deferred tax
Origination and reversal of timing differences
(6,575)
8,092
Total tax charge
886,535
708,427
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,718,565
3,800,194
Expected tax charge based on the standard rate of corporation tax in the UK of 24.50% (2023: 19.00%)
911,048
722,037
Tax effect of expenses that are not deductible in determining taxable profit
4,594
1,205
Adjustments in respect of prior years
(1,574)
Effect of change in corporation tax rate
12,178
Group relief
(8,498)
(20,182)
Other non-reversing timing differences
(19,035)
(6,811)
Taxation charge for the year
886,535
708,427
NIO COMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 16 -
8
Dividends
2024
2023
£
£
Final paid
1,302,346
1,768,297
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
455,228
12,110
77,912
159,327
704,577
Additions
31,963
68,011
10,421
13,512
75,000
198,907
Disposals
(141,029)
(908)
(24,944)
(159,327)
(326,208)
At 29 February 2024
31,963
382,210
21,623
66,480
75,000
577,276
Depreciation and impairment
At 1 March 2023
275,731
7,766
49,373
147,101
479,971
Depreciation charged in the year
738
104,911
1,496
19,211
19,901
146,257
Eliminated in respect of disposals
(98,155)
(908)
(24,944)
(158,751)
(282,758)
At 29 February 2024
738
282,487
8,354
43,640
8,251
343,470
Carrying amount
At 29 February 2024
31,225
99,723
13,269
22,840
66,749
233,806
At 28 February 2023
179,497
4,344
28,539
12,226
224,606
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
66,750
10
Stocks
2024
2023
£
£
Finished goods and goods for resale
105,095
90,624
NIO COMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 17 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,916,268
1,611,542
Amounts owed by group undertakings
3,483
Other debtors
754,380
365,066
Prepayments and accrued income
2,742,368
2,026,201
5,416,499
4,002,809
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
40,000
40,000
Obligations under finance leases
15
20,239
Trade creditors
1,378,259
808,144
Corporation tax
344,684
374,305
Other taxation and social security
295,683
1,190,288
Other creditors
35,247
24,503
Accruals and deferred income
194,819
393,998
2,308,931
2,831,238
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
70,000
123,333
Obligations under finance leases
15
38,817
108,817
123,333
14
Loans and overdrafts
2024
2023
£
£
Bank loans
110,000
163,333
Payable within one year
40,000
40,000
Payable after one year
70,000
123,333
The bank hold a fixed and floating charge over the company's assets.
The bank loan is repayable in monthly instalments and it is due to be fully repaid by November 2026. Interest is applied monthly at a rate of 2.5%.
NIO COMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 18 -
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
20,239
In two to five years
38,817
59,056
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The amounts are secured over the related assets.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
37,631
44,206
2024
Movements in the year:
£
Liability at 1 March 2023
44,206
Credit to profit or loss
(6,575)
Liability at 29 February 2024
37,631
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
259,283
171,627
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
NIO COMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
18
Share capital
(Continued)
- 19 -
Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
185,437
124,086
Between two and five years
270,317
125,754
455,754
249,840
20
Ultimate controlling party
The immediate and ultimate parent company is Nio Group Limited, a company incorporated in England and Wales. The registered office is Kingsfold Village Hall, Truslers Hill Lane, Albourne, Hassocks, England, BN6 9JN.
Nio Group Limited prepares consolidated financial statements and copies can be obtained from Companies House.
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