Custom Technology Solutions Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 03147562

Custom Technology Solutions Limited

Filleted Financial Statements

31 August 2024

Custom Technology Solutions Limited

Financial Statements

Year ended 31 August 2024

Contents	Page

Statement of financial position	1

Notes to the financial statements	3

Custom Technology Solutions Limited

Statement of Financial Position

31 August 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	5	137,341	37,465

Current assets

Stocks		284,256	340,748
Debtors	6	4,859,555	4,996,586
Cash at bank and in hand		190,820	152,609
		------------	------------
		5,334,631	5,489,943

Creditors: amounts falling due within one year	7	1,557,211	2,586,526
		------------	------------
Net current assets		3,777,420	2,903,417
		------------	------------
Total assets less current liabilities		3,914,761	2,940,882

Creditors: amounts falling due after more than one year	8	594,331	20,833

Provisions	34,252	9,366
	------------	------------
Net assets	3,286,178	2,910,683
	------------	------------

Capital and reserves

Called up share capital	200	200
Profit and loss account	3,285,978	2,910,483
	------------	------------
Shareholders funds	3,286,178	2,910,683
	------------	------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

Custom Technology Solutions Limited

Statement of Financial Position (continued)

31 August 2024

These financial statements were approved by the board of directors and authorised for issue on 1 September 2025 , and are signed on behalf of the board by:

Mr A Marston	Mr B Evans
Director	Director

Mr M A H Kachingwe
Director

Company registration number: 03147562

Custom Technology Solutions Limited

Notes to the Financial Statements

Year ended 31 August 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Belfont House, Mucklow Hill, Halesowen, West Midlands, B62 8DD.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.The financial statements are prepared in sterling, which is the functional currency of the entity. Borrowing costs All borrowing costs are recognised in profit or loss in the period in which they are incurred. Going concern The directors have considered going concern with particular reference to the amounts owed to the company by other group companies. The directors have received confirmation of support from the other companies in the group and the group has also received confirmation from the ultimate shareholder that they will continue to support the entity to meet its liabilities as they fall due. The directors have no reason to believe that this will not be received, if required, and continue to prepare the accounts on this basis. Disclosure exemptions The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Ilektra Limited as at 31 August 2024 which can be obtained from 27 New Dover Road, Canterbury, Kent, United Kingdom, CT1 3DN. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) Disclosures in respect of share-based payments have not been presented. (d) No disclosure has been given for the aggregate remuneration of key management personnel. These exemptions have been applied on the basis that Ilektra Limited includes equivalent disclosures for Custom Technology Solutions Limited in it's consolidated financial statements prepared in accordance with UK GAAP. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revenue recognition Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Income tax The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 that are expected to apply to the reversal of the timing difference. Operating leases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. Tangible assets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	25% straight line
Fixtures and fittings	-	25% straight line
Motor vehicles	-	25% straight line
Equipment	-	25% straight line

Impairment of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

Inventories are measured at the lower of cost and net realisable value. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition and is assigned by using the weighted average cost formula. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. When inventories are sold, the carrying amount of those inventories is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of inventories to net realisable value and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value, is recognised as a reduction in the number of inventories recognised as an expense in the period in which the reversal occurs.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Debtors and creditors with no stated interest rate and receivable and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 18 (2023: 21 ).

5. Tangible assets

	Plant and machinery	Fixtures and fittings	Motor vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 September 2023	50,823	7,420	122,997	10,748	191,988
Additions	–	–	114,100	1,112	115,212
Disposals	–	–	( 12,225)	–	( 12,225)
	--------	-------	---------	--------	---------
At 31 August 2024	50,823	7,420	224,872	11,860	294,975
	--------	-------	---------	--------	---------
Depreciation
At 1 September 2023	19,395	7,420	122,997	4,711	154,523
Charge for the year	9,341	–	4,754	1,240	15,335
Disposals	–	–	( 12,224)	–	( 12,224)
	--------	-------	---------	--------	---------
At 31 August 2024	28,736	7,420	115,527	5,951	157,634
	--------	-------	---------	--------	---------
Carrying amount
At 31 August 2024	22,087	–	109,345	5,909	137,341
	--------	-------	---------	--------	---------
At 31 August 2023	31,428	–	–	6,037	37,465
	--------	-------	---------	--------	---------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery	Motor vehicles	Total
	£	£	£
At 31 August 2024	21,697	109,345	131,042
	--------	---------	---------
At 31 August 2023	30,834	–	30,834
	--------	---------	---------

6. Debtors

	2024	2023
	£	£
Trade debtors	722,951	943,693
Amounts owed by group undertakings and undertakings in which the company has a participating interest	4,098,748	4,042,891
Other debtors	37,856	10,002
	------------	------------
	4,859,555	4,996,586
	------------	------------

Included in trade debtors is £568,530 (2023: 621,751) of book debts purchased by IGF Business Credit Ltd. The factor has full recourse on the company for unpaid debts.'

7. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	377,280	1,350,918
Trade creditors	681,367	923,929
Amounts owed to group undertakings and undertakings in which the company has a participating interest	8,793	–
Corporation tax	103,985	21,575
Social security and other taxes	91,493	78,085
Other creditors	294,293	212,019
	------------	------------
	1,557,211	2,586,526
	------------	------------

The company has a charge, both fixed and floating, as security against its liabilities. IGF Invoice Finance Limited (Charge number: 0314 7562 0002), a fixed charge over the property owned by Custom Technology Solutions Ltd, all land vested in or charged to the owner including all Fixtures and Fittings and rents receivable, all plant & machinery including any associated warranties and maintenance contracts, all the goodwill of the owner's business, any uncalled capital, all stock, shares and other securities held by the owner or by a subsidiary of the owner all intellectual property, licenses, claims, insurance policies, proceeds of any insurance and any other legal rights. Charge number 0314 7562 002 also contains a floating charge over all of the other property, assets and right of Custom Technology Solutions Ltd which are not subject to a fixed charge by any party. The balance due at the period end is £852,260 (2023: £1,350,918), of which £356,427 is due within one year and £495,833 due after one year.

8. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Bank loans and overdrafts	495,833	–
Other creditors	98,498	20,833
	---------	--------
	594,331	20,833
	---------	--------

9. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2024	2023
	£	£
Not later than 1 year	16,263	–
	--------	----

10. Contingencies

The company has a contingent liabilities of £1,795,236 relating to consolidated group debt to the group's factoring providers.

11. Summary audit opinion

The auditor's report dated 1 September 2025 was unqualified .

The senior statutory auditor was Richard Stewart FCA , for and on behalf of Burgess Hodgson Audit Limited .

12. Related party transactions

Related party transactions with group companies have not been disclosed as consolidated accounts are prepared by the parent entity. Rent of £31,992 (2023 - £31,992) was paid to a director during the period.

13. Controlling party

The immediate parent of the company is Eberbach Limited. The ultimate parent and controlling party, and the parent of both the largest and smallest group for which consolidated accounts are available, is Ilektra Limited. Both companies are registered at Camburgh House, 27 New Dover Road, Canterbury, England, CT1 3DN.

14. Post balance sheet events

In November 2024, the group refinanced all of its cashflow loan facilities, resulting in a simplified capital structure, with capacity to draw on additional funding to support future acquisitions.