Registered number: 05531233
FOR THE YEAR ENDED 31 DECEMBER 2024
NETWORKS CENTRE LIMITED
COMPANY INFORMATION
NETWORKS CENTRE LIMITED
CONTENTS
NETWORKS CENTRE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present the strategic report for the twelve months ended 31 December 2024.
Fair review of the business
The company operates in three main areas: Telecommunications, Enterprise Networks and Data Centres. The company's core products include fibre optic products, copper twisted pair physical infrastructure systems; rack level power and monitoring solutions; enclosures and containment and test and measurement equipment. The company offers a wide variety of training and other associated services.
The Directors are pleased with the performance of the business in the current year. The company is a member of the group headed by Networks Centre Holding Company Limited (NWC Group). NWC Group revenue decreased 6.7% or £3.8m to £52.9 million (£56.5m in 2023). The Group's continued strong performance has been facilitated by the opening of the Netherlands and Scotland branches in 2021. Many UK customers of NWC are now transacting with our Dutch operation to facilitate their European business needs. The group is looking to expand further into Europe in 2025.
Events within the financial year:
The business continued to focus on warehouse space optimisation and fulfilment, maintaining a significant and varied stock profile.
In addition to the above, highlights of the company's activity during the year included:
Fair review of the business
The company operates in three main areas: Telecommunications, Enterprise Networks and Data Centres. The company's core products include fibre optic products, copper twisted pair physical infrastructure systems; rack level power and monitoring solutions; enclosures and containment and test and measurement equipment. The company offers a wide variety of training and other associated services.
The Directors are pleased with the performance of the business in the current year. The company is a member of the group headed by Networks Centre Holding Company Limited (NWC Group). NWC Group revenue decreased 6.7% or £3.8m to £52.9 million (£56.5m in 2023). The Group's continued strong performance has been facilitated by the opening of the Netherlands and Scotland branches in 2021. Many UK customers of NWC are now transacting with our Dutch operation to facilitate their European business needs. The group is looking to expand further into Europe in 2025.
Events within the financial year:
The business continued to focus on warehouse space optimisation and fulfilment, maintaining a significant and varied stock profile.
In addition to the above, highlights of the company's activity during the year included:
∙Investment in staff training and development.
∙Addition of key personnel.
∙Continued investment in the website and new e-commerce website.
∙Addition of eco-friendly waste reducing machinery and systems.
∙Enhancement of EV motor fleet.
Although the office enterprise part remains relatively quiet, the growth in the UK fibre rollout and the Data Centre projects are allowing the company to still grow at double digit growth. As the return to offices has now started, we expect this area to bounce back quickly. The company has a very healthy pipeline for this financial year, and we again expect revenue growth of around 10%.
Principal risks and uncertainties
The Directors acknowledge that, with significant assets tied up in stock, liquidity remains a significant risk. However, they are satisfied that adequate measures are in place to manage stock portfolio and cash flow and so to mitigate this risk.
Although Brexit still provides challenges, it also provides opportunity. With strong partnerships, exports to Europe remain strong with the added advantage of a group company in the Netherlands.
Furthermore, the environment within which the entity operates, particularly that related to changes in technology, is always evolving. The Directors take an active interest in the market, monitoring changes and developments in the industry. Active participation and ongoing investment ensure that opportunities are not missed, and the company is well placed to remain at the forefront of the industry and so manage the risk of not keeping pace with these developments.
Principal risks and uncertainties
The Directors acknowledge that, with significant assets tied up in stock, liquidity remains a significant risk. However, they are satisfied that adequate measures are in place to manage stock portfolio and cash flow and so to mitigate this risk.
Although Brexit still provides challenges, it also provides opportunity. With strong partnerships, exports to Europe remain strong with the added advantage of a group company in the Netherlands.
Furthermore, the environment within which the entity operates, particularly that related to changes in technology, is always evolving. The Directors take an active interest in the market, monitoring changes and developments in the industry. Active participation and ongoing investment ensure that opportunities are not missed, and the company is well placed to remain at the forefront of the industry and so manage the risk of not keeping pace with these developments.
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NETWORKS CENTRE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Directors' statement of compliance with duty to promote the success of the company
Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In doing this, section 172 requires a director to have regard, amongst other matters, to the:
• likely consequences of any decisions in the long-term;
• interests of the company’s employees;
• need to foster the company’s business relationships with suppliers, customers and others;
• impact of the company’s operations on the community and environment;
• desirability of the company maintaining a reputation for high standards of business conduct; and
• need to act fairly as between members of the company.
In discharging our section 172 duties we have regard to the factors set out above. In concluding our decisions due regard is given to what is in the long-term company interest, while bearing in mind other stakeholders, for example employees, the environment, customers, to ensure a rounded view.
The Directors recognise their personal responsibility to promote the success of Networks Centre on behalf of its shareholders, and to protect the interests of the various stakeholders connected to the company and ensure that Networks centre remains a going concern indefinitely. The company’s long-term goal is to increase market share and deliver sustainable growth across the Networks Centre group of companies. This ambition is in line with the direction set by our shareholders and aims to enhance shareholder returns through increased share value.
This is mainly evidenced in the continued growth of Networks Centre. This success is seen in the improvement year on year in Gross Profit Margin, Profit before tax and increase in Net assets held by the business. This shows that shareholder return and stability is a priority for the company leadership.
Financial success is supported by the underlying culture of the company. The directors have created a supportive culture to its employees and set standards through policies and values related to ethical business practice. Through setting these high standards, the directors ensure that employees feel valued and work in a supportive environment.
Customer and supplier relationships are also recognised to be critical to the Networks centres success and the company has developed numerous policies that it adheres to for the purpose of ensuring positive relations are maintained and the company operates in a legal and ethical way. This seeks to reduce potential operating or Financial risk that could occur, as well as the impact of the Networks centre business operation on local and minority interests.
While we acknowledge that every decision we make will not necessarily result in a positive outcome for all of our stakeholders, by considering the Company’s mission statement, strategic aims and core values and having a process in place for decision making, we do, however, aim to make sure that our decisions are consistent.
During the period the Company received information to help it understand the interests and views of the company’s key stakeholders and other relevant factors when making decisions. This was disseminated in a in a wide variety of ways and covered financial and operational performance, non-financial KPIs, risk, environmental, social and outcomes of specific pieces of engagement. As a result of this, the Company has had an overview of engagement with stakeholders and other relevant factors which allows it to understand the nature of the stakeholders’ concerns and to comply with its section 172 duty to promote the success of the company.
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NETWORKS CENTRE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board on 13 July 2025 and signed on its behalf.
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NETWORKS CENTRE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their report and the financial statements for the year ended 31 December 2024.
The results for the year are set out on page 10.
No ordinary dividends were paid in the year (2023 - £nil). The directors do not recommend payment of a dividend.
No ordinary dividends were paid in the year (2023 - £nil). The directors do not recommend payment of a dividend.
The Directors who held office during the year and up to the date of signature of the financial statements were as follows:
Financial risk management objectives and policies
The company operates management policies designed to minimise its exposure to financial risk:
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts, and loans. Regular cash flow forecasts are prepared to ensure the company is able to cover its interest payments and continually monitors the market rate of interest.
Credit risk
Investments of cash surpluses, borrowings, and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade receivables are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
After successful expansions in Holland and Scotland, Networks Centre is considering other opportunities in Europe, which will also be supported by its parent company, Alcadon. Further acquisitions to grow the Networks centre brand are likely to happen in 2025.
The Directors expectation is that the business will continue to perform strongly for the foreseeable future.
The Directors expectation is that the business will continue to perform strongly for the foreseeable future.
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NETWORKS CENTRE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Introduction and background
We understand our role in limiting climate change and are committed to complying with new government legislation implemented by The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 ("the 2018 regulations") on Streamlined Energy and Carbon Reporting (SECR).
In order to fulfil the requirements, set by the Streamlined Energy and Carbon Reporting legislation, we will disclose energy and carbon information in our annual reports for the year ending 31 December 2024. The energy and carbon reporting report covers a 12-month period, January to December 2024 and includes:
• UK energy use (to include as a minimum energy classified within Scope 1 and Scope 2)
• Associated greenhouse gas emissions
• At least one intensity ratio
• Energy efficiency actions undertaken during the reporting period
Methodology
The company uses the third-party platform “Position Green” to record and report emissions data. The platform calculates emissions based on a combination of actual consumption data and estimated data derived from business expenditure. The methodology is in line with industry standards for emissions reporting, ensuring an accurate reflection of the company’s environmental impact.
Greenhouse gas emissions, energy consumption and energy efficiency action
As part of its reporting obligations under the Companies Act, the company discloses the following information regarding its greenhouse gas emissions and energy consumption from Scope 1 and Scope 2 in the UK:
1.Energy consumption resulting from activities for which the company is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (Scope 1):
Emissions (in tonnes of CO2 equivalent/year): 39.33
Energy use (kWh): 215,471
2.Energy consumption resulting from the purchase of the electricity by the company for its own use, including the purposes of transport (in tonnes of CO2 equivalent) (Scope 2):
Emissions (in tonnes of CO2 equivalent/year): 69.01
Energy use (kWh): 336,749
We understand our role in limiting climate change and are committed to complying with new government legislation implemented by The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 ("the 2018 regulations") on Streamlined Energy and Carbon Reporting (SECR).
In order to fulfil the requirements, set by the Streamlined Energy and Carbon Reporting legislation, we will disclose energy and carbon information in our annual reports for the year ending 31 December 2024. The energy and carbon reporting report covers a 12-month period, January to December 2024 and includes:
• UK energy use (to include as a minimum energy classified within Scope 1 and Scope 2)
• Associated greenhouse gas emissions
• At least one intensity ratio
• Energy efficiency actions undertaken during the reporting period
Methodology
The company uses the third-party platform “Position Green” to record and report emissions data. The platform calculates emissions based on a combination of actual consumption data and estimated data derived from business expenditure. The methodology is in line with industry standards for emissions reporting, ensuring an accurate reflection of the company’s environmental impact.
Greenhouse gas emissions, energy consumption and energy efficiency action
As part of its reporting obligations under the Companies Act, the company discloses the following information regarding its greenhouse gas emissions and energy consumption from Scope 1 and Scope 2 in the UK:
1.Energy consumption resulting from activities for which the company is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (Scope 1):
Emissions (in tonnes of CO2 equivalent/year): 39.33
Energy use (kWh): 215,471
2.Energy consumption resulting from the purchase of the electricity by the company for its own use, including the purposes of transport (in tonnes of CO2 equivalent) (Scope 2):
Emissions (in tonnes of CO2 equivalent/year): 69.01
Energy use (kWh): 336,749
The UK Government Greenhouse Gas Conversion factors for company reporting (2024) have been used to convert energy consumption to carbon dioxide equivalent emissions. The conversion factors used are summarised above.
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NETWORKS CENTRE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
We are actively looking to reduce company energy consumption and associated greenhouse gas emissions. The company is proactively minimising its environmental impact by striving to become more energy conscious by reducing carbon emissions and being committed to their energy efficiency actions.
Intensity ratios compare emissions data with an appropriate business metric or financial indicator. This allows a comparison of energy efficiency performance over time and with other similar types of organisation.
The emissions intensity ratio is calculated by dividing total emissions by revenue. The company’s ratio for the reporting period is as follows:
The ratios demonstrate the company’s carbon intensity relative to its business turnover.
The ratios demonstrate the company’s carbon intensity relative to its business turnover.
The auditor, Nyman Libson Paul LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
There have been no significant events affecting the Company since the year end.
Where necessary, disclosure relating to principle risks and uncertainties, and financial risk management, have been made in the Strategic Report and have not been repeated here in accordance with Section 414C of the Companies Act 2006.
Director's Indemnity Insurance
Director's Indemnity Insurance is in place with a cover of £1,000,000.
Director's Indemnity Insurance is in place with a cover of £1,000,000.
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NETWORKS CENTRE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board on 13 July 2025 and signed on its behalf.
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NETWORKS CENTRE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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NETWORKS CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NETWORKS CENTRE LIMITED
We have audited the financial statements of Networks Centre Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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NETWORKS CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NETWORKS CENTRE LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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NETWORKS CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NETWORKS CENTRE LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance;
• results of our enquiries of management about their own identification and assessment of the risks of irregularities, including those that are specific to the Company's business sector;
• results of our discussions and enquiries with management and those charged with governance regarding any known or suspected instances of fraud;
• any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
We obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation. In addition, we considered other laws and regulations that could have an effect on the company and result in the imposition of financial or other penalties and litigation.
We discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements, any opportunities or incentives for fraud and potential indicators of fraud. All matters in relation to non-compliance with relevant laws and regulations and potential fraud risks were communicated to all members of the engagement team, who were all deemed to have appropriate competence and capabilities, and we remained alert to any indications of fraud or non-compliance throughout the audit.
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NETWORKS CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NETWORKS CENTRE LIMITED (CONTINUED)
Non-compliance with laws and regulations
Our procedures to respond to risks identified included the following:
• enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations;
• reviewing and considering any meeting minutes of those charged with governance for any instances of non-compliance with laws and regulations;
• reviewing and considering any correspondence with tax authorities for any instances of non-compliance with laws and regulations;
• assessing the appropriateness of disclosures concerning actual and potential litigation and claims, and where appropriate, discussing with third parties;
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; and
• reviewing any legal expenditure accounts to understand the nature of expenditure incurred.
These limited procedures did not identify any actual or suspected non-compliance. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Fraud
As a result of our risk assessment procedures, we identified the area with the greatest potential for fraud to be revenue recognition.
In common with all audits under ISAs (UK), we are required to presume there is a fraud risk in relation to revenue recognition, and we are also required to perform specific procedures to respond to the risk of management override of controls.
In addressing the risk of fraud through management override of controls, we reviewed and tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
Our procedures to respond to the risks identified included the following:
• performing substantive audit procedures on the revenue recognised during the year by agreeing to supporting documentation;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
• reviewing and considering any meeting minutes of those charged with governance.
Our procedures to respond to risks identified included the following:
• enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations;
• reviewing and considering any meeting minutes of those charged with governance for any instances of non-compliance with laws and regulations;
• reviewing and considering any correspondence with tax authorities for any instances of non-compliance with laws and regulations;
• assessing the appropriateness of disclosures concerning actual and potential litigation and claims, and where appropriate, discussing with third parties;
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; and
• reviewing any legal expenditure accounts to understand the nature of expenditure incurred.
These limited procedures did not identify any actual or suspected non-compliance. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Fraud
As a result of our risk assessment procedures, we identified the area with the greatest potential for fraud to be revenue recognition.
In common with all audits under ISAs (UK), we are required to presume there is a fraud risk in relation to revenue recognition, and we are also required to perform specific procedures to respond to the risk of management override of controls.
In addressing the risk of fraud through management override of controls, we reviewed and tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
Our procedures to respond to the risks identified included the following:
• performing substantive audit procedures on the revenue recognised during the year by agreeing to supporting documentation;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
• reviewing and considering any meeting minutes of those charged with governance.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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NETWORKS CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NETWORKS CENTRE LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Hetal Mistry (Senior Statutory Auditor)
for and on behalf of
Chartered Accountants
NW3 5JS
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NETWORKS CENTRE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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NETWORKS CENTRE LIMITED
REGISTERED NUMBER: 05531233
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 July 2025 .
The notes on pages 17 to 33 form part of these financial statements.
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NETWORKS CENTRE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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NETWORKS CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Networks Centre Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bentley House, Wiston Business Park, London Road, Ashington, West Sussex, RH20 3DJ.
2.Accounting policies
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.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position, and profit or loss of the group.
The company has therefore taken advantage of exemptions from the following disclosure requirements:
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position, and profit or loss of the group.
The company has therefore taken advantage of exemptions from the following disclosure requirements:
∙Section 7 ;Statement of Cash Flows': Presentation of a statement of cash flow and related notes and disclosures;
∙Section 33 'Related Party Disclosures': Consolidation for key management personnel.
The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the annual budget, forecast future cash flows, and the impact of subsequent events in making their assessment, benefitting from increased demand in the data centre space and intelligent buildings, the directors have performed a robust analysis of forecast future cash flows to July 2026.
Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and financial statements.
Alcadon Group AB, our parent, have issued a letter of support to the director's of Networks Centre Limited, for the waiver of the intercompany loan, for the going concern period to June 2026.
Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and financial statements.
Alcadon Group AB, our parent, have issued a letter of support to the director's of Networks Centre Limited, for the waiver of the intercompany loan, for the going concern period to June 2026.
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NETWORKS CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Turnover is recognised at fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts, and volume rebates.
Turnover 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.
Turnover 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.
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 basis: .
The gain or loss arising on the disposal of an asset is determined as the difference between sale proceeds and the carrying value of the asset, as is credited or charged to profit or loss.
Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of direct materials that have been incurred in bringing the stock to their present location and condition.
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NETWORKS CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other receivables, 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.
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 trade and other payables, bank loans and loans from fellow group companies, 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.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other receivables, 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.
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 trade and other payables, bank loans and loans from fellow group companies, 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.
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.
The tax currently payable is based on taxable profit for the year. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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NETWORKS CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant yearly rate of interest on the remaining balance of the liability.
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.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant yearly rate of interest on the remaining balance of the liability.
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.
The costs of short-term employee benefits are recognised as a liability and an expense.
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 are included in the statement of comprehensive income for the year.
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NETWORKS CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised where the revision affects only that year, or in the year of the revision and future years where the revision affects both current and future years.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Stock provisions
The company maintains significant levels of stock, including older lines to allow the company to service and maintain a wide range of infrastructure on behalf of its clients. As a consequence, there are a number of slow moving and older stock lines, with £341,988 (2023 - £290,588), invested in stock lines where no sales were recorded in the year prior to the reporting date. Given the potential that these lines may be utilised on future projects and the advantage that maintaining a larger range of stock brings in allowing the company to quickly service its customers, coupled with the inherent scrap value of the goods themselves, the directors have opted to provide £118,000 (2023 - £42,000) provision for obsolescence or slow moving inventory.
All turnover is derived from the sales and distribution of goods. An analysis of the company's turnover by geographical market is as follows:
Analysis of turnover by country of destination:
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NETWORKS CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NETWORKS CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NETWORKS CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NETWORKS CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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