Company Registration No. 01269151 (England and Wales)
SPARC SYSTEMS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
PAGES FOR FILING WITH REGISTRAR
SPARC SYSTEMS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 10
SPARC SYSTEMS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
5
-
16,070
Tangible assets
6
19,105
35,175
Current assets
Stocks
5,127
1,679,584
Debtors falling due after more than one year
7
1,952,909
Debtors falling due within one year
7
479,644
3,547,720
Cash at bank and in hand
28,405
102,748
513,176
7,282,961
Creditors: amounts falling due within one year
8
(30,152)
(1,562,500)
Net current assets
483,024
5,720,461
Total assets less current liabilities
483,024
5,755,636
Capital and reserves
Called up share capital
9
39,885
39,885
Share premium account
3,565
3,565
Profit and loss reserves
439,574
5,712,186
Total equity
483,024
5,755,636
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on
25 March 2025 and are signed on its behalf by:
2025-05-28
Mr S T Gidman
Director
Company Registration No. 01269151
SPARC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
1
Accounting policies
Company information
Sparc Systems Limited is a private company limited by shares incorporated in England and Wales (company number: 01269151). The registered office is Granta Lodge, 71 Graham Road, Malvern, Worcestershire, WR14 2JS.
1.1
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. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements the directors have a reasonable expectation that the group of which this company forms part has adequate resources to continue in operational existence for the foreseeable future. The ultimate parent company has confirmed continued support to the United Kingdom operations, however, a decision was made to hive the trade into Fortress Technology (Europe) Limited. Accordingly, under FRS 102, Sparc Systems Limited is no longer deemed a going concern. The trade and the contracts have been novated to Fortress Technology (Europe) Limited. The accounting presentation has been amended and any such change in policy that is required from this will be highlighted within the relevant accounting policy.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT. Turnover is recognised when the goods are physically delivered to the customer.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Software
Over 5 years on cost
As a consequence of the decision to hive up of the trade to Fortress Technology (Europe) Limited the assets owned by Sparc Systems Limited were sold to Fortress Technology (Europe) Limited in the year.
SPARC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 3 -
1.5
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:
Leasehold improvements
Over the lease (15 years)
Plant and machinery
15% on cost
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.
As a consequence of the decision to hive up of the trade to Fortress Technology (Europe) Limited the assets owned by Sparc Systems Limited were sold to Fortress Technology (Europe) Limited in the year.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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).
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. A reversal of an impairment loss is recognised immediately in profit or loss.
1.7
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.
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.
1.8
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, and deposits held at call with banks.
SPARC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 4 -
1.9
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
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.
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 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.
Group relief is paid for in full to the surrendering group company at the rate of tax prevailing in the relevant accounting period.
SPARC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 5 -
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 stock or fixed 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.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
3
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
5,498
12,083
SPARC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
16
22
5
Intangible fixed assets
Software
£
Cost
At 1 October 2023
141,886
Disposals
(138,922)
Group transfers
(2,964)
At 30 September 2024
-
Amortisation and impairment
At 1 October 2023
125,816
Amortisation charged for the year
15,773
Disposals
(138,922)
Group transfers
(2,667)
At 30 September 2024
Carrying amount
At 30 September 2024
-
At 30 September 2023
16,070
SPARC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
6
Tangible fixed assets
Leasehold improvements
Plant and machinery
Total
£
£
£
Cost
At 1 October 2023
102,300
440,058
542,358
Disposals
(102,300)
(408,617)
(510,917)
Group transfers
(31,441)
(31,441)
At 30 September 2024
Depreciation and impairment
At 1 October 2023
98,833
424,420
523,253
Depreciation charged in the year
3,467
4,792
8,259
Eliminated in respect of disposals
(102,300)
(408,617)
(510,917)
Group transfers
(20,595)
(20,595)
At 30 September 2024
Carrying amount
At 30 September 2024
At 30 September 2023
3,467
15,638
19,105
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
441,702
534,752
Corporation tax recoverable
Amounts owed by group undertakings
2,912,983
Other debtors
37,689
5,000
Prepayments and accrued income
253
94,985
479,644
3,547,720
2024
2023
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
1,952,909
Total debtors
479,644
5,500,629
SPARC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
8
Creditors: amounts falling due within one year
2024
2023
£
£
Payments received on account
21,058
143,481
Trade creditors
2,429
172,176
Amounts due to group undertakings
1,194,698
Other taxation and social security
26,469
Accruals and deferred income
6,665
25,676
30,152
1,562,500
9
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
39,885 Ordinary shares of £1 each
39,885
39,885
10
Financial commitments, guarantees and contingent liabilities
A debenture, in favour HSBC Bank plc, was created over the assets of Sparc Systems Limted on 6 December 2017.
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
Within one year
86,313
Between two and five years
50,972
137,285
SPARC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.
The auditor's report is unqualified and includes the following:
Emphasis of matter - Financial statements prepared other than on a going concern basis
We draw your attention to note 1.2 in the financial statements, which indicates that the financial statements have been prepared on a basis other than that of a going concern basis. Our opinion is not modified in respect of this matter.
The senior statutory auditor was David Farebrother BSc(Hons) BFP ACA.
The auditor was Kendall Wadley LLP.
13
Related party transactions
Remuneration of key management personnel
2024
2023
£
£
Aggregate compensation
54,028
144,180
SPARC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
13
Related party transactions
(Continued)
- 10 -
Other information
The company has elected to make use of the exemption provided in FRS102.33.1A (Related Party Transactions) not to disclose related party transactions with other members of the group.
14
Parent company
The company's parent is Sparc Malvern Limited and ultimate parent is Fortress Technology Inc. The company's accounts are included in the consolidated accounts of the overarching group, copies of which are available from its registered office 51 Grand Marshall Drive, Scarborough, Ontario, Canada M1B 5NS.
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