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Registration number: 07819576

Prepared for the registrar

IT Services Livonia Limited

Annual Report and Financial Statements

for the Year Ended 30 September 2024

 

IT Services Livonia Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 7

 

IT Services Livonia Limited

Company Information

Directors

E Bullard

G Russell

A Hajialexandrou

Registered office

Staverton Court
Staverton
Cheltenham
GL51 0UX

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

IT Services Livonia Limited

(Registration number: 07819576)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Investments

4

7,012,553

7,012,553

Current assets

 

Cash at bank and in hand

 

100

3,200

Creditors: Amounts falling due within one year

5

(2,453,573)

(2,433,382)

Net current liabilities

 

(2,453,473)

(2,430,182)

Net assets

 

4,559,080

4,582,371

Capital and reserves

 

Called up share capital

7

603,175

603,175

Share premium reserve

177,381

177,381

Capital redemption reserve

8,522

8,522

Retained earnings

3,770,002

3,793,293

Shareholders' funds

 

4,559,080

4,582,371

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 27 January 2025 and signed on its behalf by:
 


G Russell
Director

 

IT Services Livonia Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The company has adopted Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', taking advantage of the small company exemptions to produce reduced disclosure accounts under section 1A of FRS 102.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Group accounts not prepared

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts.

Going concern

The directors have prepared forecasts for the next 12 months and beyond. After reviewing those forecasts and projections, the directors have a reasonable expectation that the Company has access to adequate resources via its subsidiary to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

No significant judgements or key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

 

IT Services Livonia Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

 

2

Accounting policies (continued)

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Share based payments

The group operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as a expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.


Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

 

IT Services Livonia Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

 

2

Accounting policies (continued)


Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2023 - 3).

 

4

Investments

2024
£

2023
£

Investments in subsidiaries

7,012,553

7,012,553

Subsidiaries

£

Cost

At 1 October 2023 and at 30 September 2024

8,570,629

Provision for impairment

At 1 October 2023 and at 30 September 2024

(1,558,076)

Carrying amount

At 1 October 2023 and at 30 September 2024

7,012,553

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

 

IT Services Livonia Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

 

4

Investments (continued)

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

Wavex Technology Limited

England and Wales

Ordinary

100%

100%

Subsidiary undertakings

Wavex Technology Limited

The principal activity of Wavex Technology Limited is information technology consultancy activities.

 

5

Creditors

2024
£

2023
£

Due within one year

Amounts due to related parties

2,450,671

2,427,381

Accrued expenses

2,901

6,000

Other creditors

1

1

2,453,573

2,433,382

 

6

Reserves


Called up share capital
Called up share capital is made up of shares which have been issued and fully paid.

Share premium reserve
The share premium reserve is made up of the excess paid on the nominal value of shares.

Capital redemption reserve
The capital redemption reserve is made up of the redemption or purchase of a company's own shares.

Profit and loss account
Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

 

7

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary 'A' shares of £0.10 each

1,750,000

175,000.00

1,750,000

175,000.00

Ordinary 'B' shares of £0.10 each

3,887,573

388,757.30

3,887,573

388,757.30

Ordinary 'C' shares of £0.10 each

394,181

39,418.10

394,181

39,418.10

 

6,031,754

603,175

6,031,754

603,175

The classes of share referred to above carry separate rights to dividends but in all other respects rank pari passu.

 

IT Services Livonia Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

 

8

Share Based Payments


Effects of share-based payments on the profit or loss and financial position

No expense has been recognised in the profit and loss for the year or liability arising from share based payments included on the balance sheet on the basis that neither are considered material to the results for they year or financial position at the year end.

 

9

Related party transactions

Summary of transactions with other related parties

Included within creditors is a loan of £2,450,671 (2023 - £2,427,381) from Wavex Technology Limited, a subsidiary company. The loan is interest free and is repayable on demand.
 

 

10

Parent and ultimate parent undertaking

The company is controlled by G Russell.

 

11

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 27 January 2025 was Felicity Sang, who signed for and on behalf of Hazlewoods LLP.