OSF DIGITAL UK LTD |
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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Going concern |
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The financial statements have been prepared on a going concern basis. The company has made a significant profit during the year and had net assets of £1,143,955 at the year end. The director has prepared budget projections for the foreseeable future, considering uncertain trading environment. In addition, the company is reliant on its parent company as well as other companies within the group for funds to support its working capital. The parent company has pledged continued support for the company for at least 12 months from the date of the approval of these financial statements and in particular will not seek repayment of the amounts currently made available. This should enable the company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payments. As with any company placing reliance on other related parties for financial support, that there are no certainty that this support will continue although at the date of approval of these financial statements, there is no reason to believe that they will not do so. On this basis, the director believes that it remains appropriate to prepare the financial statements on a going concern basis. |
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Turnover |
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Turnover includes revenue earned from the provision of information technology consultancy services net of value added taxes and trade discounts. 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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Plant and machinery |
33% straight line |
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Equipment |
33% straight line |
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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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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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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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2 |
Audit information |
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The audit report is unqualified. |
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Senior statutory auditor: |
Indra Raj Giri ACA, FCCA |
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Firm: |
Makesworth Audit Services Ltd |
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Date of audit report: |
23 September 2024 |
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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 |
60 |
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33 |
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4 |
Tangible fixed assets |
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Plant and machinery etc |
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Furniture and fixtures |
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Total |
£ |
£ |
£ |
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Cost |
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At 1 January 2023 |
87,974 |
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- |
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87,974 |
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Additions |
76,086 |
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292 |
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76,378 |
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Disposals |
(39,861) |
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- |
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(39,861) |
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At 31 December 2023 |
124,199 |
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292 |
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124,491 |
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Depreciation |
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At 1 January 2023 |
44,110 |
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- |
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44,110 |
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Charge for the year |
35,062 |
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93 |
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35,155 |
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On disposals |
(30,895) |
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- |
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(30,895) |
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At 31 December 2023 |
48,277 |
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93 |
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48,370 |
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Net book value |
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At 31 December 2023 |
75,922 |
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199 |
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76,121 |
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At 31 December 2022 |
43,864 |
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- |
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43,864 |
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5 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
1,954,815 |
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1,321,021 |
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Amounts owed by group undertakings |
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4,472,012 |
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357,142 |
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Prepayments and accrued income |
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442,073 |
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80,953 |
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Other debtors |
23,090 |
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45,981 |
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6,891,990 |
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1,805,097 |
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6 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Bank loans |
116,667 |
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50,000 |
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Trade creditors |
406,833 |
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80,965 |
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Amounts owed to group undertakings |
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3,120,916 |
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4,551,780 |
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Taxation and social security costs |
660,363 |
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347,432 |
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Accruals and deferred income |
1,105,437 |
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324,023 |
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5,410,216 |
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5,354,200 |
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7 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
£ |
£ |
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Bank loans |
151,389 |
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129,167 |
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Amounts owed to group undertakings |
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2,568,521 |
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- |
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2,719,910 |
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129,167 |
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8 |
Loans |
2023 |
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2022 |
£ |
£ |
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Creditors include: |
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Secured bank loans |
151,389 |
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129,167 |
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The bank loans are secured against the company's assets by way of fixed and floating charges. |
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9 |
Related party transactions |
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During the year, the company made sales to group comapnies amounting to £10,460,642 (2022 : £3,294,252). During the year, the company made purchases from group companies amounting to £7,754,201 (2022 : £8,128,887). The tranasctions were conducted under normal commercial terms. Included within creditors due within one year is an amount of £3,120,916 (2022: £4,551,780) owed to its group companies. Included within creditors due over one year is an amount of £2,568,521 (2022: £nil) owed to its group companies. Included within debtors is an amount of £4,472,012 (2022 : £357,142) from its group companies. |
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10 |
Controlling party |
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The immediate parent undertaking and the controlling party of the company is OSF Global Services Inc. incorporated in Canada, whose registered office is at 5600 Boulevard des Galeries, Bur 530, Quebec, Canada, G2K 2H. The smallest and largest group for which accounts are prepared and of which the company is a member of OSF Global Services Inc. incorporated in Canada. Copies of the consolidated group accounts can be obtained from its registered office. |
11 |
Other information |
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OSF DIGITAL UK LTD is a private company limited by shares and incorporated in England. Its registered office is: |
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First Floor |
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28-30 Worship Street |
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London |
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EC2A 2AH |