Company Registration No. NI040916 (Northern Ireland)
FONEZONE TELECOMMUNICATIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
FONEZONE TELECOMMUNICATIONS LIMITED
COMPANY INFORMATION
Director
Mr Britt Megahey
Secretary
Mrs Elizabeth Megahey
Company number
NI040916
Registered office
Grove House
145-149 Donegall Pass
Belfast
BT7 1DT
Auditor
Falconer Stewart Chartered Accountants
248 Upper Newtownards Road
Belfast
BT4 3EU
FONEZONE TELECOMMUNICATIONS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
FONEZONE TELECOMMUNICATIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -
The director presents the strategic report for the year ended 28 February 2024.
Fair review of the business
During the period the company's turnover decreased due to the directors decision to move its digital service trade to a separate company. The director is committed to continually looking for opportunities to achieve greater profitability and increasing shareholder value.
There are clear targets and objectives defined to reflect the changing nature of the market place and the business. The director continues to examine the business on an ongoing basis to ensure further opportunities are exploited to improve performance, quality, profitability and shareholder value. The director would like to acknowledge the part played by all employees in this period.
Principal risks and uncertainties
Performance in the sector is affected by general economic conditions. The director carries out regular strategic reviews including assessments of competitor activity, market trends and forecasts and customer behaviour. The security of product supply is monitored by the director on an ongoing basis with supplier financial strength, product, quality and service levels regularly reviewed.
Key performance indicators
The director considers the key performance indicators to be sales and profitability. Over the year the company has decreased sales. The past two years' financial performance is summarised below:
Sales £2,248,406 (2023 £6,790,101)
Gross Profit 37.5% (2023 31.6%)
Operating profit £20,289 (2023 £743,046)
Mr Britt Megahey
Director
29 November 2024
FONEZONE TELECOMMUNICATIONS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -
The director presents his annual report and financial statements for the year ended 28 February 2024.
Principal activities
The principal activity of the company and group continued to be that of the sale of telecommunications and digital services and property development.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr Britt Megahey
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The director does not recommend payment of a further dividend.
Auditor
The auditor is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mr Britt Megahey
Director
29 November 2024
FONEZONE TELECOMMUNICATIONS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
FONEZONE TELECOMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FONEZONE TELECOMMUNICATIONS LIMITED
- 4 -
Opinion
We have audited the financial statements of Fonezone Telecommunications Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 28 February 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
FONEZONE TELECOMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FONEZONE TELECOMMUNICATIONS LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA's (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company and industry, we identified that the principle risks of non-compliance with laws and regulations related to tax legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of overrride of controls), and determined that the principal risks were related to posting inappropriate journal entries to improve results. Audit procedures performed by the engagement team included:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management and those charged with governance about existing ad potential litigation and claims, and known or suspected instances of non-compliance with laws and regulations and fraud;
addressing the risk of fraud through management override controls by testing the appropriateness of journal entries including journal entries with unusual account combinations.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
FONEZONE TELECOMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FONEZONE TELECOMMUNICATIONS LIMITED
- 6 -
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Michael J Crooks
For and on behalf of
29 November 2024
Falconer Stewart Chartered Accountants
Chartered Accountants
Statutory Auditor
248 Upper Newtownards Road
Belfast
BT4 3EU
FONEZONE TELECOMMUNICATIONS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
2,248,406
6,790,101
Cost of sales
(1,404,876)
(4,644,331)
Gross profit
843,530
2,145,770
Administrative expenses
(990,065)
(1,455,988)
Other operating income
162,082
53,208
Operating profit
4
15,547
742,990
Interest receivable and similar income
8
5,470
483
Profit before taxation
21,017
743,473
Tax on profit
9
2,512
(193,565)
Profit for the financial year
23,529
549,908
Profit for the financial year is all attributable to the owners of the parent company.
FONEZONE TELECOMMUNICATIONS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 8 -
2024
2023
£
£
Profit for the year
23,529
549,908
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
Total comprehensive income for the year
23,529
549,908
Total comprehensive income for the year is all attributable to the owners of the parent company.
FONEZONE TELECOMMUNICATIONS LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2024
28 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,614,651
1,669,833
Investment property
13
1,517,381
1,469,867
3,132,032
3,139,700
Current assets
Stocks
16
1,995,986
1,690,199
Debtors
17
4,560,181
4,679,411
Cash at bank and in hand
1,038,091
1,332,760
7,594,258
7,702,370
Creditors: amounts falling due within one year
18
(3,852,568)
(3,988,665)
Net current assets
3,741,690
3,713,705
Total assets less current liabilities
6,873,722
6,853,405
Provisions for liabilities
Deferred tax liability
19
251,768
254,980
(251,768)
(254,980)
Net assets
6,621,954
6,598,425
Capital and reserves
Called up share capital
21
3
3
Capital redemption reserve
1
1
Profit and loss reserves
6,621,950
6,598,421
Total equity
6,621,954
6,598,425
The financial statements were approved and signed by the director and authorised for issue on 29 November 2024
29 November 2024
Mr Britt Megahey
Director
Company registration number NI040916 (Northern Ireland)
FONEZONE TELECOMMUNICATIONS LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2024
28 February 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,614,651
1,669,833
Investment property
13
1,517,381
1,469,867
Investments
14
200
200
3,132,232
3,139,900
Current assets
Stocks
16
334,730
68,354
Debtors
17
6,224,261
6,302,438
Cash at bank and in hand
1,032,639
1,331,506
7,591,630
7,702,298
Creditors: amounts falling due within one year
18
(3,845,271)
(3,988,666)
Net current assets
3,746,359
3,713,632
Total assets less current liabilities
6,878,591
6,853,532
Provisions for liabilities
Deferred tax liability
19
251,768
254,980
(251,768)
(254,980)
Net assets
6,626,823
6,598,552
Capital and reserves
Called up share capital
21
3
3
Capital redemption reserve
1
1
Profit and loss reserves
6,626,819
6,598,548
Total equity
6,626,823
6,598,552
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £28,270 (2023 - £549,963 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 29 November 2024
29 November 2024
Mr Britt Megahey
Director
Company registration number NI040916 (Northern Ireland)
FONEZONE TELECOMMUNICATIONS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
3
1
6,288,513
6,288,517
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
549,908
549,908
Dividends
10
-
-
(240,000)
(240,000)
Balance at 28 February 2023
3
1
6,598,421
6,598,425
Year ended 28 February 2024:
Profit and total comprehensive income
-
-
23,529
23,529
Balance at 28 February 2024
3
1
6,621,950
6,621,954
FONEZONE TELECOMMUNICATIONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
3
1
6,288,584
6,288,588
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
549,964
549,964
Dividends
10
-
-
(240,000)
(240,000)
Balance at 28 February 2023
3
1
6,598,548
6,598,552
Year ended 28 February 2024:
Profit and total comprehensive income
-
-
28,271
28,271
Balance at 28 February 2024
3
1
6,626,819
6,626,823
FONEZONE TELECOMMUNICATIONS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
101,905
281,263
Income taxes paid
(137,302)
(232,545)
Net cash (outflow)/inflow from operating activities
(35,397)
48,718
Investing activities
Purchase of tangible fixed assets
(403,991)
(207,717)
Proceeds from disposal of tangible fixed assets
186,763
41,050
Purchase of investment property
(47,514)
(34,946)
Interest received
5,470
483
Net cash used in investing activities
(259,272)
(201,130)
Financing activities
Dividends paid to equity shareholders
(240,000)
Net cash used in financing activities
-
(240,000)
Net decrease in cash and cash equivalents
(294,669)
(392,412)
Cash and cash equivalents at beginning of year
1,332,760
1,725,172
Cash and cash equivalents at end of year
1,038,091
1,332,760
FONEZONE TELECOMMUNICATIONS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
97,707
284,217
Income taxes paid
(137,302)
(232,545)
Net cash (outflow)/inflow from operating activities
(39,595)
51,672
Investing activities
Purchase of tangible fixed assets
(403,991)
(207,717)
Proceeds from disposal of tangible fixed assets
186,763
41,050
Purchase of investment property
(47,514)
(34,946)
Interest received
5,470
483
Net cash used in investing activities
(259,272)
(201,130)
Financing activities
Dividends paid to equity shareholders
-
(240,000)
Net cash used in financing activities
-
(240,000)
Net decrease in cash and cash equivalents
(298,867)
(389,458)
Cash and cash equivalents at beginning of year
1,331,506
1,720,964
Cash and cash equivalents at end of year
1,032,639
1,331,506
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 15 -
1
Accounting policies
Company information
Fonezone Telecommunications Limited (“the company”) is a private limited company domiciled and incorporated in Northern Ireland. The registered office is Grove House, 145-149 Donegall Pass, Belfast, Co.Antrim, N Ireland, BT7 1DT.
The group consists of Fonezone Telecommunications Limited and all of its subsidiaries.
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.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Fonezone Telecommunications Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 28 February 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Development costs
Straight line over 5 years
1.7
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:
Freehold land and buildings
2% straight line per annum
Plant and equipment
10% straight line per annum
Fixtures and fittings
10%/25% straight line per annum
Computers
35% straight line per annum
Motor vehicles
25% straight line per annum
Other assets
20% straight line per annum
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 recognised in the profit and loss account.
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.8
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.11
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.12
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.
1.13
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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. Financial assets classified as receivable within one year are not amortised.
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group 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.
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 20 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group 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 group.
1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 if, and only if, there is 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.
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 21 -
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.19
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is 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.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Telecommunications and digital services
2,248,406
6,790,101
2024
2023
£
£
Other revenue
Interest income
5,470
483
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 22 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
1,419
991
Depreciation of owned tangible fixed assets
314,318
355,051
Profit on disposal of tangible fixed assets
(41,908)
(34,055)
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £1,419 (2023 - £991).
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
47,800
23,000
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
26
63
24
63
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
523,534
1,731,784
523,534
1,731,784
Social security costs
80,574
219,577
80,574
219,577
Pension costs
16,557
43,580
16,557
43,580
620,665
1,994,941
620,665
1,994,941
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 23 -
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
4,106
4,312
Company pension contributions to defined contribution schemes
-
72,000
5,127
76,615
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
67
97
Other interest income
5,403
386
Total income
5,470
483
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
67
97
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
12,972
149,699
Adjustments in respect of prior periods
(12,272)
Total current tax
700
149,699
Deferred tax
Origination and reversal of timing differences
(3,212)
43,866
Total tax (credit)/charge
(2,512)
193,565
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
9
Taxation
(Continued)
- 24 -
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
21,017
743,473
Expected tax charge based on the standard rate of corporation tax in the UK of 24.25% (2023: 19.00%)
5,097
141,260
Tax effect of expenses that are not deductible in determining taxable profit
314
Unutilised tax losses carried forward
1,150
11
Effect of change in corporation tax rate
1,461
-
Permanent capital allowances in excess of depreciation
5,264
8,114
Under/(over) provided in prior years
(12,272)
Deferred tax
(3,212)
43,866
Taxation (credit)/charge
(2,512)
193,565
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
-
240,000
11
Intangible fixed assets
Group
Development costs
£
Cost
At 1 March 2023 and 28 February 2024
1,765,035
Amortisation and impairment
At 1 March 2023 and 28 February 2024
1,765,035
Carrying amount
At 28 February 2024
At 28 February 2023
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
11
Intangible fixed assets
(Continued)
- 25 -
Company
Development costs
£
Cost
At 1 March 2023 and 28 February 2024
1,765,035
Amortisation and impairment
At 1 March 2023 and 28 February 2024
1,765,035
Carrying amount
At 28 February 2024
At 28 February 2023
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 26 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Other assets
Total
£
£
£
£
£
£
£
Cost
At 1 March 2023
699,265
1,447,101
1,184,229
234,980
122,525
30,607
3,718,707
Additions
293,505
109,081
1,405
403,991
Disposals
(321,900)
(37,216)
(359,116)
At 28 February 2024
699,265
1,418,706
1,293,310
234,980
85,309
32,012
3,763,582
Depreciation and impairment
At 1 March 2023
178,653
791,300
726,345
227,264
104,658
20,654
2,048,874
Depreciation charged in the year
13,985
91,710
185,508
5,373
9,990
7,752
314,318
Eliminated in respect of disposals
(177,045)
(37,216)
(214,261)
At 28 February 2024
192,638
705,965
911,853
232,637
77,432
28,406
2,148,931
Carrying amount
At 28 February 2024
506,627
712,741
381,457
2,343
7,877
3,606
1,614,651
At 28 February 2023
520,612
655,801
457,884
7,716
17,867
9,953
1,669,833
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
12
Tangible fixed assets
(Continued)
- 27 -
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Other assets
Total
£
£
£
£
£
£
£
Cost
At 1 March 2023
699,265
1,447,101
1,184,229
234,980
122,525
30,607
3,718,707
Additions
293,505
109,081
1,405
403,991
Disposals
(321,900)
(37,216)
(359,116)
At 28 February 2024
699,265
1,418,706
1,293,310
234,980
85,309
32,012
3,763,582
Depreciation and impairment
At 1 March 2023
178,653
791,300
726,345
227,264
104,658
20,654
2,048,874
Depreciation charged in the year
13,985
91,710
185,508
5,373
9,990
7,752
314,318
Eliminated in respect of disposals
(177,045)
(37,216)
(214,261)
At 28 February 2024
192,638
705,965
911,853
232,637
77,432
28,406
2,148,931
Carrying amount
At 28 February 2024
506,627
712,741
381,457
2,343
7,877
3,606
1,614,651
At 28 February 2023
520,612
655,801
457,884
7,716
17,867
9,953
1,669,833
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 28 -
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 March 2023
1,469,867
1,469,867
Additions through external acquisition
47,514
47,514
At 28 February 2024
1,517,381
1,517,381
Investment property comprises the following:
The top floor of the building owned by the company which is let to a 3rd party.
Land and property at Carnanee, Templepatrcik
Property at 11 Manse Road, Templepatrick
The fair value of the investment property has been arrived at on the basis of a valuation carried out by the director.
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
200
200
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 28 February 2024
200
Carrying amount
At 28 February 2024
200
At 28 February 2023
200
15
Subsidiaries
Details of the company's subsidiaries at 28 February 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Ballybentra Developments Limited
Northern Ireland
Ordinary
100.00
Rosstown Developments Ltd
Northern Ireland
Ordinary
100.00
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 29 -
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
1,951,442
1,621,845
290,186
-
Finished goods and goods for resale
44,544
68,354
44,544
68,354
1,995,986
1,690,199
334,730
68,354
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,804,002
2,545,012
1,804,002
2,545,012
Amounts owed by group undertakings
-
-
1,668,610
1,626,043
Other debtors
2,615,493
1,819,079
2,610,963
1,816,063
Prepayments and accrued income
140,686
315,320
140,686
315,320
4,560,181
4,679,411
6,224,261
6,302,438
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
2,789,403
2,521,228
2,782,105
2,521,228
Corporation tax payable
12,972
149,574
12,972
149,574
Other taxation and social security
14,135
190,563
14,135
190,563
Other creditors
60,771
338,108
60,771
338,108
Accruals and deferred income
975,287
789,192
975,288
789,193
3,852,568
3,988,665
3,845,271
3,988,666
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
251,768
254,980
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
19
Deferred taxation
(Continued)
- 30 -
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
251,768
254,980
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 March 2023
254,980
254,980
Credit to profit or loss
(3,212)
(3,212)
Liability at 28 February 2024
251,768
251,768
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
16,557
43,580
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of 1p each
100
100
1
1
Ordinary B of £1 each
2
2
2
2
102
102
3
3
22
Related party transactions
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Entities over which the group has control, joint control or significant influence
1,833,236
929,878
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
22
Related party transactions
(Continued)
- 31 -
Company
Entities over which the company has control, joint control or significant influence
1,833,236
929,278
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
2,912,945
3,084,113
Company
Entities over which the company has control, joint control or significant influence
4,573,839
4,710,156
23
Controlling party
The controlling party is Britt Megahey.
24
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
23,529
549,908
Adjustments for:
Taxation (credited)/charged
(2,512)
193,565
Investment income
(5,470)
(483)
Gain on disposal of tangible fixed assets
(41,908)
(34,055)
Depreciation and impairment of tangible fixed assets
314,318
355,051
Movements in working capital:
Increase in stocks
(305,787)
(47,395)
Decrease/(increase) in debtors
119,230
(583,256)
Increase/(decrease) in creditors
505
(152,072)
Cash generated from operations
101,905
281,263
FONEZONE TELECOMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 32 -
25
Cash generated from operations - company
2024
2023
£
£
Profit for the year after tax
28,271
549,964
Adjustments for:
Taxation (credited)/charged
(2,512)
193,565
Investment income
(5,470)
(483)
Gain on disposal of tangible fixed assets
(41,908)
(34,055)
Depreciation and impairment of tangible fixed assets
314,318
355,051
Movements in working capital:
Increase in stocks
(266,376)
(40,692)
Decrease/(increase) in debtors
78,177
(587,059)
Decrease in creditors
(6,793)
(152,074)
Cash generated from operations
97,707
284,217
26
Analysis of changes in net funds - group
1 March 2023
Cash flows
28 February 2024
£
£
£
Cash at bank and in hand
1,332,760
(294,669)
1,038,091
27
Analysis of changes in net funds - company
1 March 2023
Cash flows
28 February 2024
£
£
£
Cash at bank and in hand
1,331,506
(298,867)
1,032,639
2024-02-282023-03-01falseCCH SoftwareCCH Accounts Production 2024.210Mr Britt MegaheyMrs Elizabeth 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