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Registration number: SC364161

M3 Networks Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 August 2024

 

M3 Networks Limited

Contents

Company Information

1

Statement of Financial Position

2 to 3

Notes to the Unaudited Financial Statements

4 to 11

 

M3 Networks Limited

Company Information

Directors

M A Riddell

Mrs M A Brodie

M Lamb

Registered office

Inveralmond Business Centre
Auld Bond Road
South Inveralmond
PERTH
PH1 3FX

Accountants

Morris & Young
Chartered Accountants
6 Atholl Crescent
PERTH
PH1 5JN

 

M3 Networks Limited

(Registration number: SC364161)
Statement of Financial Position as at 31 August 2024

Note

2024
£

(As restated)

2023
£

Fixed assets

 

Intangible assets

4

196

365

Tangible assets

5

29,276

31,554

 

29,472

31,919

Current assets

 

Stocks

6

24,919

23,147

Debtors

7

73,690

144,184

Cash at bank and in hand

 

381,159

283,928

 

479,768

451,259

Creditors: Amounts falling due within one year

8

(324,902)

(323,379)

Net current assets

 

154,866

127,880

Total assets less current liabilities

 

184,338

159,799

Creditors: Amounts falling due after more than one year

8

(9,013)

(19,047)

Provisions for liabilities

(6,546)

(7,030)

Net assets

 

168,779

133,722

Capital and reserves

 

Called up share capital

9

875

875

Capital redemption reserve

125

125

Retained earnings

167,779

132,722

Shareholders' funds

 

168,779

133,722

For the financial year ending 31 August 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A.

 

M3 Networks Limited

(Registration number: SC364161)
Statement of Financial Position as at 31 August 2024

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 6 February 2025 and signed on its behalf by:
 

.........................................
M A Riddell
Director

.........................................
Mrs M A Brodie
Director

.........................................
M Lamb
Director

 

M3 Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

1

General information

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
Inveralmond Business Centre
Auld Bond Road
South Inveralmond
PERTH
PH1 3FX

These financial statements were authorised for issue by the Board on 6 February 2025.

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

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

M3 Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Property improvements

10% straight line

Fixtures and fittings

20% straight line

Motor vehicles

25% straight line

Computer equipment

33% straight line

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Other intangibles

20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

M3 Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

M3 Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 22 (2023 - 19).

 

M3 Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

4

Intangible assets

Other intangible assets
 £

Total
£

Cost or valuation

At 1 September 2023

847

847

At 31 August 2024

847

847

Amortisation

At 1 September 2023

482

482

Amortisation charge

169

169

At 31 August 2024

651

651

Carrying amount

At 31 August 2024

196

196

At 31 August 2023

365

365

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 September 2023

4,018

51,113

21,715

76,846

Additions

-

12,336

-

12,336

At 31 August 2024

4,018

63,449

21,715

89,182

Depreciation

At 1 September 2023

583

31,835

12,874

45,292

Charge for the year

343

9,484

4,787

14,614

At 31 August 2024

926

41,319

17,661

59,906

Carrying amount

At 31 August 2024

3,092

22,130

4,054

29,276

At 31 August 2023

3,435

19,278

8,841

31,554

 

M3 Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

Included within the net book value of land and buildings above is £Nil (2023 - £Nil) in respect of long leasehold land and buildings and £3,091 (2023 - £3,435) in respect of short leasehold land and buildings.
 

6

Stocks

2024
£

2023
£

Other inventories

24,919

23,147

7

Debtors

Current

2024
£

2023
£

Trade debtors

49,855

110,496

Prepayments

12,010

28,676

Other debtors

11,825

5,012

 

73,690

144,184

 

M3 Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

8

Creditors

Creditors: amounts falling due within one year

Note

2024
£

(As restated)

2023
£

Due within one year

 

Loans and borrowings

10

10,052

12,891

Trade creditors

 

111,465

157,698

Taxation and social security

 

96,900

84,690

Accruals and deferred income

 

26,502

23,824

Other creditors

 

79,983

44,276

 

324,902

323,379

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

10

9,013

19,047

9

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary A of £1 each

200

200

200

200

Ordinary B of £1 each

200

200

200

200

Ordinary C of £1 each

200

200

200

200

Ordinary D of £1 each

125

125

125

125

Ordinary E of £1 each

50

50

50

50

Ordinary F of £1 each

50

50

50

50

Ordinary G of £1 each

50

50

50

50

875

875

875

875

 

M3 Networks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

10

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

9,013

19,047

Current loans and borrowings

2024
£

2023
£

Bank borrowings

10,052

10,053

Hire purchase contracts

-

2,838

10,052

12,891

Bank borrowings

HSBC BBL is denominated in GBP with a nominal interest rate of 2.05%, and the final instalment is due on 15 June 2026. The carrying amount at year end is £19,066 (2023 - £29,099).