Company registration number 04601838 (England and Wales)
REFERENCE TECHNOLOGY LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
REFERENCE TECHNOLOGY LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 6
REFERENCE TECHNOLOGY LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,282,144
1,187,417
Current assets
Stocks
29,622
32,802
Debtors
5
387,091
358,803
Cash at bank and in hand
25,273
113,177
441,986
504,782
Creditors: amounts falling due within one year
6
(579,917)
(450,300)
Net current (liabilities)/assets
(137,931)
54,482
Total assets less current liabilities
1,144,213
1,241,899
Creditors: amounts falling due after more than one year
7
(258,359)
(278,550)
Provisions for liabilities
(33,806)
(182,867)
Net assets
852,048
780,482
Capital and reserves
Called up share capital
100
100
Revaluation reserve
754,117
754,117
Profit and loss reserves
97,831
26,265
Total equity
852,048
780,482
REFERENCE TECHNOLOGY LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 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.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 27 December 2024 and are signed on its behalf by:
Mr S Clayton
Director
Company registration number 04601838 (England and Wales)
REFERENCE TECHNOLOGY LTD
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 3 -
1
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.
2
Accounting policies
Company information
Reference Technology Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1-3 The Pavilions, Amber Close, Tamworth, Staffordshire, B77 4RP.
2.1
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, [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.
2.2
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.
2.3
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:
Land and buildings
Not depreciated
Hire Equipment
25% Reducing balance & 33% Straight line
Fixtures and fittings
15% Reducing balance & 25% Straight line
Equipment & Software
25% Reducing balance & 33% Straight line
Motor vehicles
20% Reducing balance
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 profit or loss.
REFERENCE TECHNOLOGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 4 -
The freehold property was revalued on 27 April 2021 by Calders Chartered Surveyors (RICS registered valuer) on a percentage yield market value.
2.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
2.5
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.
2.6
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.
2.7
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.
2.8
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.
2.9
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.
REFERENCE TECHNOLOGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 5 -
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.
2.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
28
19
4
Tangible fixed assets
Land and buildings
Hire Equipment
Fixtures and fittings
Equipment & Software
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
1,150,000
194,151
45,127
190,904
32,325
1,612,507
Additions
106,318
4,681
16,343
127,342
At 31 December 2023
1,150,000
300,469
49,808
207,247
32,325
1,739,849
Depreciation and impairment
At 1 January 2023
185,932
27,887
178,946
32,325
425,090
Depreciation charged in the year
21,214
2,874
8,527
32,615
At 31 December 2023
207,146
30,761
187,473
32,325
457,705
Carrying amount
At 31 December 2023
1,150,000
93,323
19,047
19,774
1,282,144
At 31 December 2022
1,150,000
8,219
17,240
11,958
1,187,417
REFERENCE TECHNOLOGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
146,651
55,849
Corporation tax recoverable
40,126
104,484
Other debtors
200,314
198,470
387,091
358,803
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
117,233
68,297
Trade creditors
86,677
22,445
Taxation and social security
172,677
134,118
Other creditors
203,330
225,440
579,917
450,300
The bank borrowings are secured by a debenture over the assets of the company, a legal charge over the company's freehold property and a joint personal guarantee from Mr S Clayton and Mr K Clayton limited to £105,000.
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
213,500
278,550
Other creditors
44,859
258,359
278,550
The bank borrowings are secured by a debenture over the assets of the company, a legal charge over the company's freehold property and a joint personal guarantee from Mr S Clayton and Mr K Clayton limited to £105,000.