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REGISTERED NUMBER: 09510718 (England and Wales)











FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

UTP MERCHANT SERVICES LIMITED

UTP MERCHANT SERVICES LIMITED (REGISTERED NUMBER: 09510718)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


UTP MERCHANT SERVICES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTOR: M J Ault





REGISTERED OFFICE: Reading Bridge House
George Street
Reading
RG1 8LS





REGISTERED NUMBER: 09510718 (England and Wales)





AUDITORS: Haines Watts
Chartered Accountants and Statutory Auditors
Advantage
87 Castle Street
Reading
Berkshire
RG1 7SN

UTP MERCHANT SERVICES LIMITED (REGISTERED NUMBER: 09510718)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £ £ £ £
FIXED ASSETS
Intangible assets 4 15,063 104
Tangible assets 5 72,714 60,053
87,777 60,157

CURRENT ASSETS
Stocks 215,149 198,780
Debtors 6 466,587 424,076
Cash at bank and in hand 100,820 72,276
782,556 695,132
CREDITORS
Amounts falling due within one year 7 26,967,926 20,250,581
NET CURRENT LIABILITIES (26,185,370 ) (19,555,449 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(26,097,593

)

(19,495,292

)

PROVISIONS FOR LIABILITIES 9 80,920 66,614
NET LIABILITIES (26,178,513 ) (19,561,906 )

CAPITAL AND RESERVES
Called up share capital 1,000 1,000
Retained earnings (26,179,513 ) (19,562,906 )
(26,178,513 ) (19,561,906 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved and authorised for issue by the director and authorised for issue on 26 September 2024 and were signed by:





M J Ault - Director


UTP MERCHANT SERVICES LIMITED (REGISTERED NUMBER: 09510718)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

UTP Merchant Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The disclosure requirements of section 1A FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 principal accounting policies adopted are set out below.

Going concern
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. The foreseeable future is defined as a period not less than 12 months from the date of approval of these financial statements.

During the year the company made a loss after tax £6,616,607 (2022: £6,036,252). At the balance sheet date, the company had net current liabilities of £26,185,370 (2022: £19,555,449) and net liabilities of £26,178,513 (2022: £19,561,906).

The company meets its day to day working capital requirements through continued support from UTP Group Limited, the immediate parent company. Continued support is expected and therefore the financial statements have been prepared on a going concern basis.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the leasing of terminals is recognised when the leases are funded.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Land and buildings - Straight line over 3 years
Plant and machinery etc - Straight line over 3 years

UTP MERCHANT SERVICES LIMITED (REGISTERED NUMBER: 09510718)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits
The costs of short-term employee benefits are recognised are recognised as a liability and an expenses.

Cash and cash equivalents
Cash and cash equivalents are basic financial instruments and include cash in hand and deposits held at call with banks.

UTP MERCHANT SERVICES LIMITED (REGISTERED NUMBER: 09510718)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

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 when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Basic financial assets
Basic financial assets, which include trade and other debtors, amounts owed to group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at market rate of interest.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including trade and other creditors and amounts owed to group undertakings, 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 payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Equity instruments
Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs.

UTP MERCHANT SERVICES LIMITED (REGISTERED NUMBER: 09510718)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Foreign exchange
Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate that fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 92 (2022 - 112 ) .

4. INTANGIBLE FIXED ASSETS
Other
intangible
assets
£
COST
At 1 January 2023 9,056
Additions 24,925
At 31 December 2023 33,981
AMORTISATION
At 1 January 2023 8,952
Charge for year 9,966
At 31 December 2023 18,918
NET BOOK VALUE
At 31 December 2023 15,063
At 31 December 2022 104

UTP MERCHANT SERVICES LIMITED (REGISTERED NUMBER: 09510718)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


5. TANGIBLE FIXED ASSETS
Plant and
Land and machinery
buildings etc Totals
£ £ £
COST
At 1 January 2023 17,176 146,614 163,790
Additions 29,756 25,052 54,808
Disposals - (693 ) (693 )
At 31 December 2023 46,932 170,973 217,905
DEPRECIATION
At 1 January 2023 10,329 93,408 103,737
Charge for year 11,259 30,195 41,454
At 31 December 2023 21,588 123,603 145,191
NET BOOK VALUE
At 31 December 2023 25,344 47,370 72,714
At 31 December 2022 6,847 53,206 60,053

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade debtors 45,125 (17,994 )
Amounts owed by group undertakings 185,787 301,166
Other debtors 235,675 140,904
466,587 424,076

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade creditors 314,140 458,310
Amounts owed to group undertakings 26,255,608 19,264,722
Taxation and social security 77,841 108,916
Other creditors 320,337 418,633
26,967,926 20,250,581

UTP MERCHANT SERVICES LIMITED (REGISTERED NUMBER: 09510718)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


8. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£ £
Within one year 214,945 234,775
Between one and five years 188,816 306,209
403,761 540,984

9. PROVISIONS FOR LIABILITIES
2023 2022
£ £
Deferred tax 10,820 14,114
Other provisions 70,100 52,500
80,920 66,614

Deferred Dilapidat-
tax ions
£ £
Balance at 1 January 2023 14,114 52,500
Provided during year (5,460 ) -
Charge to Income Statement during year 2,166 -
Balance at 31 December 2023 10,820 52,500

10. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Jacqueline Biggs FCCA ACA (Senior Statutory Auditor)
for and on behalf of Haines Watts

11. RELATED PARTY DISCLOSURES

During the year the company was recharged £263,663 (2022: £942,138) from UTP Merchant Services (Gibraltar) Limited a related party through common ownership. The company made sales of £56,574 (2022: £95,166) to the company and made purchases of £152,966 (2022: £78,416). The balance outstanding and owed to the company at the year end is £82,150 (2022: £53,221).

During the year the company made sales to Faster Processing Limited a related party through common ownership, of £401 (2022: £1,571) and made purchases from them of £119 (2022: £nil). The balance outstanding and owed by the company at the year end is £nil (2022: £60,324).

UTP MERCHANT SERVICES LIMITED (REGISTERED NUMBER: 09510718)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


12. PARENT COMPANY

The immediate parent company is UTP Group Limited, a company incorporated in England and Wales. The registered office is Sapphire Plaza, Watlington Street, Reading, RG1 4RE.

The ultimate parent is Sterling Capital Trust, a trust based in the United States of America. The registered address of Sterling Capital Trust is c/o Premier Trust Inc, 4465 S. Jones Blvd, Las Vegas, NV 8910, USA.