Hubstar Systems Limited |
Notes to the Accounts |
for the year ended 31 December 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts 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 (as applied to small entities by section 1A of the standard). |
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2 |
Going concern |
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The company is dependent on loans from companies under the control of the ultimate controlling party to provide working capital and to enable it to pay its liabilities as they fall due. The directors have received assurances from the ultimate controlling party that he will continue to provide this support for the foreseeable future and will not seek repayment of the amounts due to the various companies until there are alternative sources of finance available. As such, these loans, which are interest free are under FRS102 classed as capital contributions and presented as such. On this basis and in conjunction with their forecasts for the coming twelve months the directors are satisfied that the company is a going concern and accordingly the accounts have been prepared on that basis. |
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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 |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Fixtures, fittings, and equipment |
over 3 years |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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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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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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3 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
28 |
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26 |
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4 |
Tangible fixed assets |
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Office equipment etc |
£ |
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Cost |
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At 1 January 2023 |
50,954 |
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Disposals |
(13,519) |
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At 31 December 2023 |
37,435 |
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Depreciation |
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At 1 January 2023 |
32,492 |
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Charge for the year |
10,584 |
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On disposals |
(13,519) |
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At 31 December 2023 |
29,557 |
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Net book value |
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At 31 December 2023 |
7,878 |
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At 31 December 2022 |
18,462 |
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5 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
259,491 |
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347,027 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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364,000 |
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- |
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Other taxes |
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394,314 |
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766,628 |
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Other debtors |
9,007 |
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904 |
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1,026,812 |
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1,114,559 |
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6 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Trade creditors |
258,136 |
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261,055 |
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Taxation and social security costs |
122,826 |
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61,734 |
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Other creditors |
14,511 |
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17,675 |
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395,473 |
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340,464 |
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7 |
Contingent assets |
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The company has tax losses carried forward of £716,199 (2022: £716,199). The potential deferred tax asset in respect of these losses is £179,050 (2022: £179,050). No provision has been made for this asset as the timing of the recoverability of these tax losses is uncertain. |
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8 |
Controlling party |
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The company is a wholly owned subsidiary of Hubstar Group Limited, whose registered office is Regent House, 316 Beulah Hill, London SE19 3HF. |
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9 |
Other information |
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Hubstar Systems Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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Corner Cottage |
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Hempstead |
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Norwich |
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NR12 0SH |