Company registration number 14423581 (England and Wales)
XTEL UK LTD
Financial statements
For the period ended 31 December 2023
Pages for filing with registrar
XTEL UK LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
XTEL UK LTD
BALANCE SHEET
As at 31 December 2023
- 1 -
2023
Notes
£
£
Current assets
Debtors
4
5,122,157
Cash at bank and in hand
166,679
5,288,836
Creditors: amounts falling due within one year
5
(5,114,508)
Net current assets
174,328
Capital and reserves
Called up share capital
1
Profit and loss reserves
174,327
Total equity
174,328
The directors of the company have elected not to include a copy of the profit and loss 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 6 November 2024 and are signed on its behalf by:
Mr A Servi
Director
Company registration number 14423581 (England and Wales)
XTEL UK LTD
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 31 December 2023
- 2 -
1
Accounting policies
Company information
Xtel UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is C/O Tmf Group, 13th Floor, One Angel Court, London, EC2R 7HJ.
1.1
Reporting period
The company was incorporated on 17th October 2022 and started to trade on 1st February 2023. These financial statements detail the results of the company for the period from 1st February 2023 to 31st December 2023. The accounting year end was chosen to coincide with the other group companies.
1.2
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.
1.3
Turnover
Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business and is shown net of discounts (if any) and VAT.
The entity engages in inter-company transactions that involve the transfer of services between group entities. The entity is remunerated on a Cost-Plus basis under the arm’s length principle, by providing a mark-up on the total cost base incurred in providing the services, which are in line with the OECD Transfer Pricing Guidelines.
Intercompany service transactions are valued at their transaction price, determined using the transfer pricing methods previously mentioned. Adjustments needed to comply with the arm's length principle are made at the conclusion of each reporting period.
Invoices are generated annually, and revenue is recognized in the period when costs are incurred and services rendered. This recognition occurs even if the invoice has not yet been issued, as long as the revenue amount can be reliably measured and is expected to be received.
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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.
XTEL UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 December 2023
1
Accounting policies
(Continued)
- 3 -
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. Financial assets classified as receivable within one year are not amortised.
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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.
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
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
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.
XTEL UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 December 2023
1
Accounting policies
(Continued)
- 4 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The directors believe that the transfer pricing mark-up made in relation to the revenue is an area of judgement. The company uses an external professional company to determine the appropriate range of mark-up percentages to be applied.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
Number
Total
21
XTEL UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 December 2023
- 5 -
4
Debtors
2023
Amounts falling due within one year:
£
Amounts owed by group undertakings
5,078,499
Other debtors
43,658
5,122,157
5
Creditors: amounts falling due within one year
2023
£
Trade creditors
23,771
Amounts owed to group undertakings
4,714,499
Corporation tax
54,869
Other taxation and social security
98,747
Other creditors
222,622
5,114,508
6
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:
Michael Spink ACA
Statutory Auditor:
WSM Advisors Limited
Date of audit report:
6 November 2024
7
Parent company
At 31st December 2023 the company's immediate parent company is Step Up RGM BV, a company incorporated in Belgium . The address is Diestsevest 14 bus 3, 3000 Leuven, Belgium.
At 31st December 2023 the company's ultimate controlling party is Bond Lux Top Co SARL. a company incorporated in Luxembourg. The address is 4 Rue Lou Hemmer, 1748 Senningerberg, Luxembourg. The accounts will be consolidated into the group financial statements of Bond Lux Top Co SARL.