Company registration number 13576894 (England and Wales)
SOLID TELECOMMUNICATIONS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SOLID TELECOMMUNICATIONS LTD
COMPANY INFORMATION
Directors
Mr Jun Kyeoung Kim
Mr Steven Manus Gallagher
(Appointed 2 January 2025)
Company number
13576894
Registered office
13 Approach Road
London
SW20 8BA
Auditor
UHY Hacker Young
Quadrant House - Floor 6
4 Thomas More Square
London
E1W 1YW
SOLID TELECOMMUNICATIONS LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Income statement
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
SOLID TELECOMMUNICATIONS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

The company comprises businesses with UK mobile operators, Neutral host customers and big enterprise. Traditionally the business with UK mobile operators is used to occupy large portions before Covid period. After Covid period many of Neutral host players are emerging to the market and taking key role of investing to mobile coverage of big venues such as Metro, Airport, Stadium, shopping mall, Convention center etc. on behalf of mobile operator. London Underground project would be good example of this trend. The company manages Solid relationship with all Neutral host customers in UK.

The company also make strategic collaboration with ORAN CU/DU supplier through IOT test arranged by UK Mobile operators. ORAN collaboration will reduce CAPEX investment by neutral host customers, mobile operators which will open new market of the company for enterprise customers.

Principal risks and uncertainties

The UK economy has slowed down due to continued high interest rate, high energy price and exchange rate volatility. There is always certain risk of delaying large projects such as Railway/METRO, Airport and Stadium etc in UK due to increasing financial pressure. The company manage to minimize the risk by regular monitor of the customer/market and entrance to new market through ORAN collaboration.

Key performance indicators

Revenue decreased from £19.1 million in 2023 to £14 million in 2024, representing a 26.3% decrease. Gross profit increased from approximately £859k in 2023 to £1.3 million in 2024, representing at 50% increase. The gross profit margin has also increased, from 4.50% in 2023 to 9.17% in 2024. The loss before tax increased from approximately £317k loss in 2023 to approximately £721k loss in 2024, representing a increase in losses of 127% during the year 2024.

On behalf of the board

Mr Jun Kyeoung Kim
Director
28 February 2025
SOLID TELECOMMUNICATIONS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company is that of the sale of telecommunications hardware.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Jun Kyeoung Kim
Mr Steven Manus Gallagher
(Appointed 2 January 2025)
Auditor

The auditor, UHY Hacker Young, is deemed to be re-appointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SOLID TELECOMMUNICATIONS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
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 company’s auditor 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 company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr Jun Kyeoung Kim
Director
28 February 2025
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SOLID TELECOMMUNICATIONS LTD
- 4 -
Opinion

We have audited the financial statements of Solid Telecommunications Ltd (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity, the 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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 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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SOLID TELECOMMUNICATIONS LTD (CONTINUED)
- 5 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SOLID TELECOMMUNICATIONS LTD (CONTINUED)
- 6 -
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 ISAs (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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, 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 preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).

 

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, enquiries of management and testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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.

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.

Use of our report

This report is made solely to the company’s member 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 member, those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SOLID TELECOMMUNICATIONS LTD (CONTINUED)
- 7 -
Vinodkumar Vadgama (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
28 February 2025
Chartered Accountants
Statutory Auditor
SOLID TELECOMMUNICATIONS LTD
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Revenue
2
14,041,877
19,065,601
Cost of sales
(12,754,217)
(18,206,902)
Gross profit
1,287,660
858,699
Administrative expenses
(2,035,677)
(1,202,136)
Other operating income
-
0
811
Operating loss
3
(748,017)
(342,626)
Investment income
6
32,323
32,658
Finance costs
7
(4,981)
(6,636)
Loss before taxation
(720,675)
(316,604)
Tax on loss
8
48,471
-
0
Loss and total comprehensive income for the financial year
(672,204)
(316,604)
SOLID TELECOMMUNICATIONS LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
119,540
160,065
Current assets
Inventories
10
61,531
99,372
Trade and other receivables
11
664,558
7,442,142
Cash and cash equivalents
2,370,555
1,336,187
3,096,644
8,877,701
Current liabilities
12
(3,095,347)
(8,212,693)
Net current assets
1,297
665,008
Total assets less current liabilities
120,837
825,073
Non-current liabilities
12
(51,229)
(83,261)
Net assets
69,608
741,812
Equity
Called up share capital
16
640,000
640,000
Retained earnings
(570,392)
101,812
Total equity
69,608
741,812

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 28 February 2025 and are signed on its behalf by:
Mr Jun Kyeoung Kim
Director
Company registration number 13576894 (England and Wales)
SOLID TELECOMMUNICATIONS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2023
640,000
418,416
1,058,416
Year ended 31 December 2023:
Loss and total comprehensive income
-
(316,604)
(316,604)
Balance at 31 December 2023
640,000
101,812
741,812
Year ended 31 December 2024:
Loss and total comprehensive income
-
(672,204)
(672,204)
Balance at 31 December 2024
640,000
(570,392)
69,608
SOLID TELECOMMUNICATIONS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
18
988,974
(1,920,396)
Interest paid
(4,981)
(153)
Income taxes refunded/(paid)
48,471
(102,505)
Net cash inflow/(outflow) from operating activities
1,032,464
(2,023,054)
Investing activities
Purchase of property, plant and equipment
-
0
(72,987)
Interest received
32,323
32,658
Net cash generated from/(used in) investing activities
32,323
(40,329)
Financing activities
Payment of lease liabilities
(30,419)
(35,400)
Net cash used in financing activities
(30,419)
(35,400)
Net increase/(decrease) in cash and cash equivalents
1,034,368
(2,098,783)
Cash and cash equivalents at beginning of year
1,336,187
3,434,970
Cash and cash equivalents at end of year
2,370,555
1,336,187
SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Solid Telecommunications Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 13 Approach Road, London, SW20 8BA. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

 

Where required, equivalent disclosures are given in the group accounts of Solid Technologies, Inc. The group accounts of Solid Technologies, Inc. are available to the public and can be obtained as set out in note 17.

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future.

 

The ability of the company to continue in operational existence is dependent on the continued support of the parent company. The group has confirmed that this support will continue for the foreseeable future, and it is also the case that the amounts due on intercompany balances will not be called for until such time as the company is in a position to make payments.

 

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Turnover from the sale of telecommunication hardware is recognised when the significant risks and rewards of the ownership of the goods have been transferred to the buyer which is at the point of delivery of the goods.

SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Property, plant and equipment

Property, plant and equipment 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:

Leasehold land and buildings
Over the term of the lease
Fixtures and fittings
3 years straight line

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 income statement.

1.5
Impairment of tangible and intangible assets

At each reporting 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.

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.

 

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.

1.6
Inventories

Inventories 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 inventories to their present location and condition.

 

Inventories 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.

SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Impairment of financial assets

Financial assets, other than those measured at fair value through profit or 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 at the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
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 income statement 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.

1.12
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 inventories or non-current 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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.14
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.15
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.

SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Revenue
2024
2023
£
£
Revenue analysed by class of business
Sale of telecommunication hardware
14,041,877
19,065,601
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
13,578,865
19,065,601
Europe
57,345
-
Rest of the world
405,667
-
14,041,877
19,065,601
3
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
2,911
(3,001)
Fees payable to the company's auditor for the audit of the company's financial statements
18,950
17,000
Depreciation of property, plant and equipment
40,525
43,563
Cost of inventories recognised as an expense
12,754,217
18,206,902
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
11
11
SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,364,607
721,095
Social security costs
189,327
100,297
Pension costs
63,925
67,758
1,617,859
889,150
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
181,276
90,171
6
Investment income
2024
2023
£
£
Interest income
Other interest income
32,323
32,658
7
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
4,981
6,483
Interest on other loans
-
0
153
4,981
6,636
8
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(48,471)
-
SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 19 -

The charge for the year can be reconciled to the loss per the income statement as follows:

2024
2023
£
£
Loss before taxation
(720,675)
(316,604)
Expected tax credit based on a corporation tax rate of 25.00% (2023: 25.00%)
(180,169)
(79,151)
Unutilised tax losses carried forward
131,698
79,151
Taxation credit for the year
(48,471)
-
9
Property, plant and equipment
Leasehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2024
141,853
76,703
218,556
At 31 December 2024
141,853
76,703
218,556
Accumulated depreciation and impairment
At 1 January 2024
42,556
15,935
58,491
Charge for the year
28,371
12,154
40,525
At 31 December 2024
70,927
28,089
99,016
Carrying amount
At 31 December 2024
70,926
48,614
119,540
At 31 December 2023
99,297
60,768
160,065

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2024
2023
£
£
Net values at the year end
Property
70,927
99,297
SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Property, plant and equipment
(Continued)
- 20 -
Depreciation charge for the year
Property
28,371
28,371
10
Inventories
2024
2023
£
£
Finished goods
61,531
99,372
11
Trade and other receivables
2024
2023
£
£
Trade receivables
431,720
7,397,808
VAT recoverable
183,517
-
Other receivables
16,165
16,165
Prepayments and accrued income
33,156
28,169
664,558
7,442,142
12
Liabilities
Current
Non-current
2024
2023
2024
2023
Notes
£
£
£
£
Trade and other payables
13
2,906,634
7,351,933
-
0
-
0
Taxation and social security
156,681
830,341
-
-
Lease liabilities
14
32,032
30,419
51,229
83,261
3,095,347
8,212,693
51,229
83,261
SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
13
Trade and other payables
2024
2023
£
£
Trade payables
1,125
2,615
Amount owed to parent undertaking
2,882,324
7,324,683
Accruals and deferred income
23,185
24,635
2,906,634
7,351,933
14
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
35,400
35,400
In two to five years
53,100
88,500
Total undiscounted liabilities
88,500
123,900
Future finance charges and other adjustments
(5,239)
(10,220)
Lease liabilities in the financial statements
83,261
113,680

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
32,032
30,419
Non-current liabilities
51,229
83,261
83,261
113,680
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
4,981
6,483
SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
63,925
67,758

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

 

 

16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
640,000
640,000
640,000
640,000
17
Controlling party

The company is controlled by Solid Inc., a company incorporated in South Korea, by virtue of it's 100% shareholding.

 

The financial statements of this company is consolidated with the financial statements of Solid Inc. which are available at 10th Floor, Solidspace 220 Pangyoyeok-Ro, Bundang-Gu, Seongnam-Si, Gyeonggi-Do 13493, South Korea.

SOLID TELECOMMUNICATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
18
Cash generated from/(absorbed by) operations
2024
2023
£
£
Loss for the year before income tax
(720,675)
(316,604)
Adjustments for:
Finance costs
4,981
6,636
Investment income
(32,323)
(32,658)
Depreciation and impairment of property, plant and equipment
40,525
43,563
Movements in working capital:
Decrease/(increase) in inventories
37,841
(29,111)
Decrease in trade and other receivables
6,777,584
767,843
Decrease in trade and other payables
(5,118,959)
(2,360,065)
Cash generated from/(absorbed by) operations
988,974
(1,920,396)
19
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,336,187
1,034,368
2,370,555
Obligations under finance leases
(113,680)
30,419
(83,261)
1,222,507
1,064,787
2,287,294
1 January 2023
Cash flows
31 December 2023
Prior year:
£
£
£
Cash at bank and in hand
3,434,970
(2,098,783)
1,336,187
Obligations under finance leases
(142,597)
28,917
(113,680)
3,292,373
(2,069,866)
1,222,507
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