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Company registration number: 03499223
Criterion Systems Ltd
Unaudited filleted financial statements
31 May 2024
Criterion Systems Ltd
Contents
Accountants report
Statement of financial position
Statement of changes in equity
Notes to the financial statements
Criterion Systems Ltd
Accountants report to the director on the preparation of the
unaudited statutory financial statements of Criterion Systems Ltd
Year ended 31 May 2024
As described on the statement of financial position, the director of the company is responsible for the preparation of the financial statements for the year ended 31 May 2024 which comprise the statement of financial position, statement of changes in equity and related notes.
You consider that the company is exempt from an audit under the Companies Act 2006. In accordance with your instructions we have compiled these unaudited financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and from information and explanations supplied to us.
Purcell & Co
Certified Public Accountants
204 Mauldeth Rd
Burnage
Manchester
M19 1AJ
4 October 2024
Criterion Systems Ltd
Statement of financial position
31 May 2024
2024 2023
Note £ £ £ £
Fixed assets
Tangible assets 6 65,927 64,193
_______ _______
65,927 64,193
Current assets
Stocks 7,500 7,950
Debtors 7 31,322 35,432
Cash at bank and in hand 23 12
_______ _______
38,845 43,394
Creditors: amounts falling due
within one year 8 ( 83,720) ( 76,701)
_______ _______
Net current liabilities ( 44,875) ( 33,307)
_______ _______
Total assets less current liabilities 21,052 30,886
Creditors: amounts falling due
after more than one year 9 ( 10,457) ( 18,836)
Provisions for liabilities ( 2,187) ( 2,326)
_______ _______
Net assets 8,408 9,724
_______ _______
Capital and reserves
Called up share capital 4 4
Profit and loss account 8,404 9,720
_______ _______
Shareholder funds 8,408 9,724
_______ _______
For the year ending 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
- The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
- The director acknowledges their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 04 October 2024 , and are signed on behalf of the board by:
Mr Lee Smith
Director
Company registration number: 03499223
Criterion Systems Ltd
Statement of changes in equity
Year ended 31 May 2024
Called up share capital Profit and loss account Total
£ £ £
At 1 June 2022 4 3,118 3,122
Profit for the year 47,325 47,325
_______ _______ _______
Total comprehensive income for the year - 47,325 47,325
Dividends paid and payable ( 40,723) ( 40,723)
_______ _______ _______
Total investments by and distributions to owners - ( 40,723) ( 40,723)
_______ _______ _______
At 31 May 2023 and 1 June 2023 4 9,720 9,724
Profit for the year 66,761 66,761
_______ _______ _______
Total comprehensive income for the year - 66,761 66,761
Dividends paid and payable ( 68,077) ( 68,077)
_______ _______ _______
Total investments by and distributions to owners - ( 68,077) ( 68,077)
_______ _______ _______
At 31 May 2024 4 8,404 8,408
_______ _______ _______
Criterion Systems Ltd
Notes to the financial statements
Year ended 31 May 2024
1. General information
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is Criterion Systems Ltd, Mansion House, Wellington Road South, Stockport, SK1 3UA.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 that are expected to apply to the reversal of the timing difference.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 25 % reducing balance
Motor vehicles - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 2 (2023: 2 ).
5. Tax on profit
Major components of tax expense
2024 2023
£ £
Current tax:
UK current tax expense 24,815 9,893
_______ _______
Deferred tax:
Origination and reversal of timing differences ( 138) 772
_______ _______
Tax on profit 24,677 10,665
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 23.02 % (2023: 19.34%).
2024 2023
£ £
Profit before taxation 91,438 57,990
_______ _______
Profit multiplied by rate of tax 21,049 11,215
Effect of expenses not deductible for tax purposes 116 218
Effect of capital allowances and depreciation 3,650 1,835
S455 tax repayable - ( 3,375)
_______ _______
Tax on profit 24,815 9,893
_______ _______
6. Tangible assets
Freehold property Plant and machinery Motor vehicles Total
£ £ £ £
Cost
At 1 June 2023 51,770 37,690 17,076 106,536
Additions 18,910 3,891 - 22,801
Disposals - ( 624) - ( 624)
_______ _______ _______ _______
At 31 May 2024 70,680 40,957 17,076 128,713
_______ _______ _______ _______
Depreciation
At 1 June 2023 10,354 27,720 4,269 42,343
Charge for the year 14,136 3,378 3,202 20,716
Disposals - ( 273) - ( 273)
_______ _______ _______ _______
At 31 May 2024 24,490 30,825 7,471 62,786
_______ _______ _______ _______
Carrying amount
At 31 May 2024 46,190 10,132 9,605 65,927
_______ _______ _______ _______
At 31 May 2023 41,416 9,970 12,807 64,193
_______ _______ _______ _______
7. Debtors
2024 2023
£ £
Trade debtors 10,278 12,617
Other debtors 21,044 22,815
_______ _______
31,322 35,432
_______ _______
8. Creditors: amounts falling due within one year
2024 2023
£ £
Bank loans and overdrafts 22,329 24,042
Trade creditors 5,696 7,293
Corporation tax 37,822 28,663
Social security and other taxes 14,509 13,974
Other creditors 3,364 2,729
_______ _______
83,720 76,701
_______ _______
The director has given a personal guarantee of £20,000 in favour of National Westminster Bank, as security for the bank overdraft granted to the company.
9. Creditors: amounts falling due after more than one year
2024 2023
£ £
Bank loans and overdrafts 10,457 18,836
_______ _______
10. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024 2023
£ £
Included in provisions (note ) 2,187 2,326
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2024 2023
£ £
Accelerated capital allowances ( 138) 772
_______ _______
11. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2024 2023
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 10,277 12,616
Director's loan 14,952 14,952
_______ _______
25,229 27,568
_______ _______
Financial liabilities measured at amortised cost
Bank and other loans 21,105 29,484
Trade creditors 5,696 7,293
Accruals 3,364 2,729
Bank overdrafts 11,681 13,394
_______ _______
41,846 52,900
_______ _______
12. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 8,118 7,693
_______ _______
The operating lease relates to the lease of the business premises.
13. Directors advances, credits and guarantees
During the year the director entered into the following advances and credits with the company:
2024
Balance brought forward Amounts repaid Balance o/standing
£ £ £
Mr Lee Smith 14,952 - 14,952
_______ _______ _______
2023
Balance brought forward Amounts repaid Balance o/standing
£ £ £
Mr Lee Smith 24,952 ( 10,000) 14,952
_______ _______ _______
14. Controlling party
The company is controlled by the director Mr Lee Smith as he owns all of the issued share capital in the company.