Registration number: 12445555

Connect Systems Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 9

Connect Systems Limited

Company Information

Directors

D Dodds E Hynds S Holt

Registered office

The Island Moor Road Chesham HP5 1NZ

Accountants

Sterling Grove Accountants Limited Chartered Certified AccountantsFawley House 2 Regatta Place Marlow Road Bourne End Buckinghamshire SL8 5TD

Connect Systems Limited

(Registration number: 12445555)
Balance Sheet as at 31 January 2025

	Note	2025 £	2024 £
Fixed assets
Intangible assets	4	1,440,232	1,680,270
Tangible assets	5	15,349	24,276
		1,455,581	1,704,546
Current assets
Stocks	6	22,940	53,141
Debtors	7	857,462	804,600
Cash at bank and in hand		435,371	531,327
		1,315,773	1,389,068
Creditors: Amounts falling due within one year	8	(1,439,881)	(1,598,281)
Net current liabilities		(124,108)	(209,213)
Total assets less current liabilities		1,331,473	1,495,333
Creditors: Amounts falling due after more than one year	8	-	(4,649)
Net assets		1,331,473	1,490,684
Capital and reserves
Called up share capital		100	100
Share premium reserve		1,404,450	1,404,450
Retained earnings		(73,077)	86,134
Shareholders' funds		1,331,473	1,490,684

For the financial year ending 31 January 2025 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 financial statements have been prepared and 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 2 April 2025 and signed on its behalf by:
 

......................................... D Dodds Director

Connect Systems Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2025

1	General information

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

The address of its registered office is:
The Island
Moor Road
Chesham
HP5 1NZ
England

These financial statements were authorised for issue by the Board on 2 April 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 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.

Connect Systems Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2025

Tangible assets

Tangible assets are stated in the balance sheet 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
Office Equipment	Straight line over 4 years
Vehicles	25% Reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

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:

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.

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.

Connect Systems Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2025

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.

Leases

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 balance sheet 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.

Connect Systems Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2025

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 41 (2024 - 38).

4	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 February 2024	2,400,384	2,400,384
At 31 January 2025	2,400,384	2,400,384
Amortisation
At 1 February 2024	720,114	720,114
Amortisation charge	240,038	240,038
At 31 January 2025	960,152	960,152
Carrying amount
At 31 January 2025	1,440,232	1,440,232
At 31 January 2024	1,680,270	1,680,270

The aggregate amount of research and development expenditure recognised as an expense during the period is £39,320 (2024 - £33,046).
 

Connect Systems Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2025

5	Tangible assets

	Motor vehicles  £	Plant and machinery £	Total £
Cost or valuation
At 1 February 2024	22,840	26,671	49,511
At 31 January 2025	22,840	26,671	49,511
Depreciation
At 1 February 2024	9,995	15,240	25,235
Charge for the year	3,212	5,715	8,927
At 31 January 2025	13,207	20,955	34,162
Carrying amount
At 31 January 2025	9,633	5,716	15,349
At 31 January 2024	12,845	11,431	24,276

6

Stocks

	2025 £	2024 £
Other inventories	22,940	53,141

7

Debtors

Current	2025 £	2024 £
Trade debtors	568,314	519,933
Other debtors	289,148	284,667
	857,462	804,600

Connect Systems Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2025

8

Creditors

Creditors: amounts falling due within one year

	Note	2025 £	2024 £
Due within one year
Loans and borrowings	9	15,929	23,597
Trade creditors		203,518	153,159
Taxation and social security		233,913	262,314
Accruals and deferred income		47,340	25,674
Other creditors		939,181	1,133,537
		1,439,881	1,598,281

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £15,929 (2023 - £23,597).

Creditors: amounts falling due after more than one year

	Note	2025 £	2024 £
Due after one year
Loans and borrowings	9	-	4,649

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £0 (2024 - £4,649).

9	Loans and borrowings

Non-current loans and borrowings

	2025 £	2024 £
Hire purchase contracts	-	4,649

Current loans and borrowings

	2025 £	2024 £
Hire purchase contracts	15,929	23,597

Connect Systems Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2025

10	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2025 £	2024 £
Not later than one year	50,877	67,781
Later than one year and not later than five years	68,355	28,106
	119,232	95,887

The amount of non-cancellable operating lease payments recognised as an expense during the year was £72,311 (2024 - £67,781).

11	Related party transactions

Connect Systems Ltd rents an office building which is owned by a self-invested pension fund for 2 directors (2024: 3 directors). The amounts charged to the business for the year are £40,000 (2024: £40,000).