Network Security and Alarms Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 02792940

Network Security and Alarms Limited

Filleted Financial Statements

31 August 2024

Network Security and Alarms Limited

Financial Statements

Year ended 31 August 2024

Contents	Page

Statement of financial position	1

Notes to the financial statements	2

Network Security and Alarms Limited

Statement of Financial Position

31 August 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	5	19,624	47,213

Current assets

Stocks		44,475	94,475
Debtors	7	89,473	482,972
Cash at bank and in hand		37,618	25,068
		---------	---------
		171,566	602,515

Creditors: amounts falling due within one year	8	2,184,510	2,638,367
		------------	------------
Net current liabilities		2,012,944	2,035,852
		------------	------------
Total assets less current liabilities		( 1,993,320)	( 1,988,639)

Creditors: amounts falling due after more than one year	9	128,100	117,956

Provisions	3,065	8,267
	------------	------------
Net liabilities	( 2,124,485)	( 2,114,862)
	------------	------------

Capital and reserves

Called up share capital	40,000	40,000
Share premium account	( 4,971)	( 4,971)
Capital redemption reserve	20,000	20,000
Profit and loss account	( 2,179,514)	( 2,169,891)
	------------	------------
Shareholders deficit	( 2,124,485)	( 2,114,862)
	------------	------------

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.

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 M A H Kachingwe	Mr S R Wootton
Director	Director

Company registration number: 02792940

Network Security and Alarms 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 Unit 1, Sovereign Park, Cleveland Way, Hemel Hempstead Industrial Estate, Hemel Hempstead, HP2 7DA, England.

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, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss. 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 which they are incurred.

Going concern

The directors have considered going concern with particular reference to the net liability position of £2,124,485 (2023: £2,114,862). In making their assessment they have communicated with the lender to whom they owe £146,056 (2023: £314,728) and confirmed they are satisfied with the company performance in assessing its covenant position. The directors have also received confirmation form the ultimate shareholder that they will continue to support the entity to meet it liabilities as they fall due. Without the support there would be material uncertainty in the company's ability to continue as a going concern. The directors have no reason to believe 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 31st 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 Network Security and Alarms Limited in its 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% reducing balance
Fixtures and fittings	-	25% reducing balance
Equipment	-	25% reducing balance

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

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

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

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 or 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 2 (2023: 26 ).

5. Tangible assets

	Plant and machinery	Fixtures and fittings	Equipment	Total
	£	£	£	£
Cost
At 1 September 2023 and 31 August 2024	87,114	41,891	95,837	224,842
	--------	--------	--------	---------
Depreciation
At 1 September 2023	80,710	26,031	70,888	177,629
Charge for the year	4,999	5,928	16,662	27,589
	--------	--------	--------	---------
At 31 August 2024	85,709	31,959	87,550	205,218
	--------	--------	--------	---------
Carrying amount
At 31 August 2024	1,405	9,932	8,287	19,624
	--------	--------	--------	---------
At 31 August 2023	6,404	15,860	24,949	47,213
	--------	--------	--------	---------

6. Investments

	Shares in group undertakings
	£
Cost
At 1 September 2023 and 31 August 2024	1,519,710
	------------
Impairment
At 1 September 2023 and 31 August 2024	1,519,710
	------------

Carrying amount
At 31 August 2024	–
	------------
At 31 August 2023	–
	------------

7. Debtors

	2024	2023
	£	£
Trade debtors	71,254	392,308
Amounts owed by group undertakings and undertakings in which the company has a participating interest	17,602	17,352
Other debtors	617	73,312
	--------	---------
	89,473	482,972
	--------	---------

Included in trade debtors is £71,254 (2023: £165,191) of book debts secured by IGF Business Credit Ltd.

8. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	17,956	314,728
Trade creditors	128,215	98,829
Amounts owed to group undertakings and undertakings in which the company has a participating interest	1,696,051	1,619,151
Corporation tax	6,800	–
Social security and other taxes	95,621	237,688
Other creditors	239,867	367,971
	------------	------------
	2,184,510	2,638,367
	------------	------------

IGF Invoice Finance Limited (Charge number: 0279 2940 0003), a fixed charge over the property owned by Network Security and Alarms Limited , 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 0279 2940 0003 also contains a floating charge overall of the other property, assets and right of Network Security and Alarms Limited which are not subject to a fixed charge by any party. The balance due at the period end is £146,056 (2023: £432,684), of which £17,956 is due within one year and £128,100 due after one year. The liabilities owed to IGF Invoice Finance Limited are supported by a personal guarantee from the director.

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

	2024	2023
	£	£
Bank loans and overdrafts	128,100	117,956
	---------	---------

10. Operating leases

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

	2024	2023
	£	£
Not later than 1 year	12,791	12,791
Later than 1 year and not later than 5 years	23,451	36,242
	--------	--------
	36,242	49,033
	--------	--------

11. Contingencies

The company has a contingent liability of £2,501,441 relating to cross company guarantees for security given to IGF Business Credit Ltd.

12. Summary audit opinion

The auditor's report dated 1 September 2025 was unqualified , however, the auditor drew attention to the following by way of emphasis.

We draw attention to the going concern policy shown in note 3 of the financial statements, which outlines the directors' consideration of the company's ability to continue as a going concern, given the net liability position of £2,124,485 as at 31st August 2024. As stated in the note, the company is reliant on the ongoing support of its ultimate shareholder to meet its liabilities as they fall due. Without this support, there would be material uncertainty regarding the company's ability to continue as a going concern. The directors have received confirmation from the shareholder of their intention to provide such support, and therefore the financial statements have been prepared on a going concern basis. Our opinion is not modified in respect of this matter.

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

13. Related party transactions

Related party transactions with group companies have not been disclosed as consolidated accounts are prepared by the parent entity.

14. Controlling party

The immediate parent of the company is Wiesloch 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.

15. 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.