Company registration number 04121893 (England and Wales)
NORTHUMBERLAND BUSINESS SERVICE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
NORTHUMBERLAND BUSINESS SERVICE LIMITED
CONTENTS
Page
Directors' report
1 - 2
Balance sheet
3
Notes to the financial statements
4 - 8
NORTHUMBERLAND BUSINESS SERVICE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of:

Review of the business

Income for the year ended 31 March 2024 was £1,476k (2023: £2,557k) with a post-tax deficit of £366.1k (2023: deficit of £37.5k ). Our Balance sheet is at £550k (2023: £916k).

The year 2023/​24 has long been expected as a challenging year as the ERDF programme closed with our related programme contracts finishing in June 2023. We were reasonably confident (based on skills, experience, and track-record) that we would be successful in an expected number of smaller opportunities that, cumulatively, would replace our previous programmes.

We had built up a very strong Balance Sheet to withstand the inevitable delays expected for the new local UK Shared Prosperity funding tenders. There were various delays in national procurement, and we prudently expected that opportunities may not be finalised until December 2023. Timelines were therefore going to be tight, and we would need to start successful contracts with immediate effect. We thus committed circa £330k to invest in the retention of our skilled and experienced staff for 6 months in order to rapidly deploy them on new funded contracts as and when they crystallised.

During 2023/4, we were successful in achieving below contracts:

 

Many of the above tenders were issued much later than expected and it became necessary to undertake a restructuring exercise in January 2024. This was effected, as smoothly as possible in the circumstances, by a mixture of redundancies, secondment placing and new posts at reduced hours. This allowed us to minimise the number of redundancies whilst leaving us with potential extra capacity that could be rapidly realised as needed.

We thank our highly valued staff and colleagues for their patience, hard work and loyalty and are grateful that colleagues who were not able to reduce their hours quickly found alternative employment due to their valuable experience and skills-sets.

Together with a strong opening balance sheet, the forecast for 24/25 is sustainable to withstand some more inevitable delays with the formation/operationalisation of NECA.

 

NORTHUMBERLAND BUSINESS SERVICE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M Rudd
(Resigned 30 May 2023)
P McEldon
D Nickalls
P Graham
G Miller
M Smith
Auditor

In accordance with the company's articles, a resolution proposing that Sumer Auditco Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

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 directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
M Smith
Director
31 May 2024
NORTHUMBERLAND BUSINESS SERVICE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 3 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,564
3,368
Current assets
Debtors
5
96,068
525,011
Cash at bank and in hand
520,991
646,639
617,059
1,171,650
Creditors: amounts falling due within one year
6
(68,956)
(259,228)
Net current assets
548,103
912,422
Net assets
549,667
915,790
Reserves
Income and expenditure account
549,667
915,790
Members' funds
549,667
915,790

The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 31 May 2024 and are signed on its behalf by:
M Smith
Director
Company registration number 04121893 (England and Wales)
NORTHUMBERLAND BUSINESS SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
1
Accounting policies
Company information

Northumberland Business Service Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 6 Esther Court, Wansbeck Business Park, Rotary Parkway, Ashington, Northumberland, NE63 8AP.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of 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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The company has a net asset position of £549,667 as at 31 March 2024 (2023: £915,790). Budgets and cash flow forecasts are regularly reviewed and updated to ensure that the company has sufficient cash for the organisation to continue its day to day-to-day operations for at least 12 months. true

In preparing these forecasts, the directors have considered ongoing and expected changes to the availability of grant funding and its administration following the cessation of the ERDF. The directors have prepared various scenarios and performed sensitivity analysis, which take account of potential reductions in future income streams to gain assurance over the going concern of the company. A restructuring exercise was undertaken in early January 2024 to consolidate costs for 2024/25. Various contracts have been attained in line with forecast expectations and the company is currently finalising several late contracts, further strengthening the forecast position.

At the time of approving the financial statements the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Income from contracts and other services rendered is included to the extent of the completion of the contract or service concerned.

 

Income receivable under contract with the Department for Levelling Up, Housing and Communities is recognised in line with defrayed expenditure incurred on delivering this provision as the best available estimate for the year.

 

Other revenue grant funding (including European) is recognised in the period to which it relates and is included in income.

NORTHUMBERLAND BUSINESS SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
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.

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:

Fixtures and fittings
7 years straight line
Computer equipment
3 years straight line

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 surplus or deficit.

1.5
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, 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 debtors 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 transaction is measured at the present value of the future receipts discounted at a 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 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.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.6
Taxation

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

NORTHUMBERLAND BUSINESS SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 6 -
1.7
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.8
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.9
Leases

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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Operating deficit
2024
2023
Operating deficit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,400
8,400
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
23
24
NORTHUMBERLAND BUSINESS SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
4
Tangible fixed assets
Fixtures and fittings
Computer equipment
Total
£
£
£
Cost
At 1 April 2023
39,430
25,698
65,128
Disposals
(1,480)
(5,629)
(7,109)
At 31 March 2024
37,950
20,069
58,019
Depreciation and impairment
At 1 April 2023
38,909
22,851
61,760
Depreciation charged in the year
167
1,637
1,804
Eliminated in respect of disposals
(1,480)
(5,629)
(7,109)
At 31 March 2024
37,596
18,859
56,455
Carrying amount
At 31 March 2024
354
1,210
1,564
At 31 March 2023
521
2,847
3,368
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,945
12,384
Other debtors
90,123
512,627
96,068
525,011
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
24,334
53,726
Corporation tax
481
-
0
Other taxation and social security
14,387
25,663
Other creditors
29,754
179,839
68,956
259,228
NORTHUMBERLAND BUSINESS SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
7
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
49,902
49,444

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. At the year end, the company owed £5,256 (2023: £5,664) to the pension scheme, included in other creditors.

8
Members' liability

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

9
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
Within one year
21,985
21,985
Between two and five years
336
1,681
22,321
23,666
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Stephen Slater
Statutory Auditor:
Sumer Auditco Limited
Date of audit report:
05 June 2024
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