Telco UK plc |
Strategic Report |
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The directors present their Strategic Report for Telco UK plc for the year ended 31 March 2024. |
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Introduction |
The principal activity of the company continued to be that of a provider of out-sourced business analysis and research-based management consultancy to the financial services and UK telecommunications sectors. The company is looking at diversification opportunities in the telecom sector. |
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Business review |
The year ended 31 March 2024 continued to be negatively affected due to the implementation of IR35 by the financial sector clients of Telco UK plc. The company continued to be engaging with London based financial services clients. The impact of IR35 continues to depend upon the legislative environment. The company also received income under the FIT scheme for the supply of renewable energy and is looking to expand this area. |
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Principal risks and uncertainties |
The key risks and uncertainties affecting the company are the level of demand from clients and potential clients for services and our ability to develop other markets. Also, the general economic climate and regulatory environment affects our clients’ spend. |
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Financial key performance indicators |
Given the straight forward nature of the business the directors see no need for further analysis of key performance indicators to understand the company’s position. |
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Company's policy for payment of creditors |
It is the policy of the company to settle the terms of payment with suppliers when agreeing each transaction or series of transactions, to ensure that suppliers are made aware of these terms and abide by them. The company is a member of the ‘Better Payment Practice Group’s (BPPG) Pay on Time Charter.' |
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Approved and authorised for issue by the board of directors on 26 September 2024 and signed |
on their behalf by: |
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M A Jackson |
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 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. |
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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. |
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Other information |
The other information comprises the information included in the annual report other than the financial statements and our auditor’s 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
Telco UK plc |
Statement of Cash Flows |
for the year ended 31 March 2024 |
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Notes |
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2024 |
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2023 |
£ |
£ |
Operating activities |
Loss for the financial year |
(12,806) |
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(32,535) |
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Adjustments for: |
Interest receivable |
(1,801) |
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(72) |
Interest payable |
8 |
|
- |
Tax on loss on ordinary activities |
- |
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(811) |
Depreciation |
4,706 |
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5,197 |
(Increase)/decrease in debtors |
(712) |
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4,398 |
Increase in creditors |
21,906 |
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18,802 |
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11,301 |
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(5,021) |
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Interest received |
1,801 |
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72 |
Interest paid |
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(8) |
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- |
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Cash generated by/(used in) operating activities |
13,094 |
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(4,949) |
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Investing activities |
Payments to acquire tangible fixed assets |
(1,564) |
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(1,982) |
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Cash used in investing activities |
(1,564) |
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(1,982) |
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Net cash generated/(used) |
Cash generated by/(used in) operating activities |
13,094 |
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(4,949) |
Cash used in investing activities |
(1,564) |
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(1,982) |
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Net cash generated/(used) |
11,530 |
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(6,931) |
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Cash and cash equivalents at 1 April |
160,518 |
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167,449 |
Cash and cash equivalents at 31 March |
172,048 |
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160,518 |
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Cash and cash equivalents comprise: |
Cash at bank |
172,048 |
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160,518 |
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Debtors |
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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 |
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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. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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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 |
Analysis of turnover |
2024 |
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2023 |
£ |
£ |
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Services rendered |
2,014 |
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- |
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Supply of renewable energy |
3,583 |
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- |
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5,597 |
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- |
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By geographical market: |
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UK |
5,597 |
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- |
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3 |
Operating profit |
2024 |
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2023 |
£ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
4,706 |
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5,197 |
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Auditors' remuneration for audit services |
2,150 |
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1,950 |
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4 |
Directors' emoluments |
2024 |
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2023 |
£ |
£ |
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Emoluments |
- |
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12,564 |
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5 |
Staff costs |
2024 |
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2023 |
£ |
£ |
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Wages and salaries |
- |
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12,564 |
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Social security costs |
- |
|
503 |
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- |
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13,067 |
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Average number of employees during the year |
Number |
Number |
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Administration |
1 |
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1 |
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1 |
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1 |
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6 |
Interest payable |
2024 |
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2023 |
£ |
£ |
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Interest charge |
8 |
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- |
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7 |
Taxation |
2024 |
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2023 |
£ |
£ |
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Analysis of charge in period |
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Deferred tax: |
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Origination and reversal of timing differences |
- |
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(811) |
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Tax on loss on ordinary activities |
- |
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(811) |
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Factors affecting tax charge for period |
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The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
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2024 |
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2023 |
£ |
£ |
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Loss on ordinary activities before tax |
(12,806) |
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(33,346) |
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Standard rate of corporation tax in the UK |
25% |
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19% |
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8 |
Tangible fixed assets |
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Land and buildings |
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Computer and office equipment |
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Fixtures and fittings |
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Total |
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At cost |
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At cost |
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At cost |
£ |
£ |
£ |
£ |
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Cost or valuation |
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At 1 April 2023 |
448,005 |
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44,763 |
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39,165 |
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531,933 |
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Additions |
- |
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1,564 |
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- |
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1,564 |
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At 31 March 2024 |
448,005 |
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46,327 |
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39,165 |
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533,497 |
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Depreciation |
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At 1 April 2023 |
39,046 |
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43,276 |
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36,609 |
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118,931 |
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Charge for the year |
2,990 |
|
887 |
|
829 |
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4,706 |
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At 31 March 2024 |
42,036 |
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44,163 |
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37,438 |
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123,637 |
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Carrying amount |
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At 31 March 2024 |
405,969 |
|
2,164 |
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1,727 |
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409,860 |
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At 31 March 2023 |
408,959 |
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1,487 |
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2,556 |
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413,002 |
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9 |
Debtors |
2024 |
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2023 |
£ |
£ |
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Called up share capital not paid |
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37,499 |
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37,499 |
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Other debtors |
1,910 |
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1,198 |
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39,409 |
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38,697 |
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10 |
Creditors: amounts falling due within one year |
2024 |
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2023 |
£ |
£ |
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Director's loan account |
139,947 |
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117,189 |
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Other taxes and social security costs |
- |
|
388 |
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Accruals and deferred income |
3,890 |
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4,354 |
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143,837 |
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121,931 |
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11 |
Deferred taxation |
2024 |
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2023 |
£ |
£ |
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2024 |
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2023 |
£ |
£ |
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At 1 April |
- |
|
811 |
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Credited to the profit and loss account |
- |
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(811) |
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At 31 March |
- |
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- |
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12 |
Share capital |
Nominal |
|
2024 |
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2024 |
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2023 |
value |
Number |
£ |
£ |
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Allotted, called up and fully paid: |
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Ordinary shares |
£1 each |
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50,000 |
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50,000 |
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50,000 |
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13 |
Profit and loss account |
2024 |
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2023 |
£ |
£ |
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At 1 April |
440,286 |
|
472,821 |
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Loss for the financial year |
(12,806) |
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(32,535) |
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At 31 March |
427,480 |
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440,286 |
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14 |
Other financial commitments |
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Total future minimum lease payments under non-cancellable operating leases: |
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Land and buildings |
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Land and buildings |
Other |
Other |
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2024 |
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2023 |
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2024 |
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2023 |
£ |
£ |
£ |
£ |
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Falling due: |
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in over five years |
670 |
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670 |
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- |
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- |
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15 |
Related party transactions |
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M A Jackson is a director and controlling shareholder of the company. The amount due to M A Jackson at 31 March 2024 was £139,947 (2023 £117,189). |
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16 |
Controlling party |
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The company is controlled by M A Jackson, a director. |
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17 |
Presentation currency |
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The financial statements are presented in Sterling. |
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18 |
Legal form of entity and country of incorporation |
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Telco UK plc is a private company limited by shares and incorporated in England. |
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19 |
Principal place of business |
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The address of the company's principal place of business and registered office is: |
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The Television Centre |
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City Road |
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Newcastle Upon Tyne |
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NE99 5BB |