Digbits Limited
for the Year Ended 31 December 2024
Digbits Limited
Company Information
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Directors |
Mr J H M Clay Mr M J Clay |
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Company secretary |
Mr J H M Clay |
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Registered office |
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Digbits Limited
(Registration number: 2615482)
Statement of Financial Position as at 31 December 2024
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Note |
2024 |
(As restated) |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
- |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
100 |
100 |
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Revaluation reserve |
1,045,457 |
1,045,457 |
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Retained earnings |
877,748 |
975,139 |
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Shareholders' funds |
1,923,305 |
2,020,696 |
For the financial year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Digbits Limited
(Registration number: 2615482)
Statement of Financial Position as at 31 December 2024
Approved and authorised by the
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Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of
exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the
operating result.
Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
Tangible assets
Land and buildings are carried at their revalued amounts, being fair value at the date of valuation less
subsequent depreciation and impairment losses. Revaluations are performed by professional qualified valuers
with sufficient regularity to ensure that the carrying amounts do not differ materially from those that would be
determined using fair values at the end of each reporting period. Any accumulated depreciation at the date of
revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the
revalued amount of the asset.
Any revaluation increase in the carrying amount of land and buildings is recognised in other comprehensive
income and included in a revaluation reserve in equity, except to the extent that it reverses a revaluation
decrease of the same asset previously recognised in profit or loss, in which case the increase is credited to profit
and loss to the extent of the decrease previously expended.
Decreases that offset previous increases of the same asset are charged in other comprehensive income and
debited against revaluation reserve in equity; decreases exceeding the balance in revaluation reserve relating to
an asset are recognised in profit or loss. Each year the difference between depreciation based on the revalued
carrying amount of the asset recognised in profit or loss and depreciation based on the asset’s original cost is
transferred from revaluation reserve to retained earnings.
Plant and machinery, fixtures and fittings, motor vehicles and computer equipment are carried at cost less
accumulated depreciation and accumulated impairment losses.
Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Depreciation
Land is not depreciated. Depreciation on other assets is calculated so as to write off the cost or valuation of an
asset, less its residual value, over their estimated useful lives.
On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is
recognised in profit or loss, and included in other operating income.
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Asset class |
Depreciation method and rate |
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Freehold property |
2% on cost |
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Plant & machinery |
15% on reducing balance |
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Fixtures and fittiings |
20% on reducing balance |
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Motor vehicles |
25% on reducing balance |
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Computer equipment |
33% on reducing balance |
Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2002, has been written off evenly over its estimated useful life of twenty years,
The period represented the period over which the directors deem that the company had derived economic benefit, as far as can be prudently ascertained.
Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost
less any accumulated amortisation and any accumulated impairment losses.
Trade marks are being amortised evenly over their estimated useful life of twenty years.
Web development costs are being amortised evenly over their estimated useful life of ten years.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a
result of a past event, it is probable that the company will be required to settle the obligation and the amount ofthe obligation can be reliably estimated.
Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting
date.
Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.
Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Financial instruments
Classification
assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third
parties, loans to related parties and investments in non-puttable ordinary shares.
Recognition and measurement
for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is
recognised in profit or loss.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an
asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective
interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss
is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference
between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the
company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when
there is an 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.
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
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Intangible assets |
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Goodwill |
Trademarks, patents and licenses |
Web development |
Total |
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Cost or valuation |
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At 1 January 2024 |
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- |
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Additions acquired separately |
- |
- |
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At 31 December 2024 |
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Amortisation |
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At 1 January 2024 |
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- |
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Amortisation charge |
- |
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- |
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At 31 December 2024 |
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- |
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Carrying amount |
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At 31 December 2024 |
- |
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At 31 December 2023 |
- |
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- |
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Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
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Tangible assets |
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Land and buildings |
Improvements to property |
Fixtures and fittings |
Motor vehicles |
Other tangible assets |
Total |
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Cost or valuation |
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At 1 January 2024 |
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Additions |
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- |
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Disposals |
- |
- |
- |
( |
- |
( |
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At 31 December 2024 |
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Depreciation |
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At 1 January 2024 |
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Charge for the year |
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Eliminated on disposal |
- |
- |
- |
( |
- |
( |
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At 31 December 2024 |
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Carrying amount |
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At 31 December 2024 |
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At 31 December 2023 |
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Included within the net book value of land and buildings above is £2,070,411 (2023 - £2,101,942) in respect of freehold land and buildings.
Included in cost or valuation of land and buildings is freehold land of £588,510 (2023 - £588,510) which is not depreciated.
Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Revaluation
The fair value of the company's Freehold Property is revalued on a periodic basis by the directors.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
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Debtors |
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Current |
2024 |
As restated |
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Trade debtors |
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Prepayments |
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Other debtors |
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Prior year figures have been restated to account for timing on dividends declared.
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Creditors |
Creditors: amounts falling due within one year
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Note |
2024 |
2023 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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- |
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The bank loans and overdraft are secured by a mortgage debenture including fixed charge over all present freehold and leasehold property and first floating charge over all assets and undertaking both present and future dated 05 June 2006.
Hire purchase loans are secured against the assets to which they relate.
Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Current loans and borrowings
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2024 |
2023 |
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Bank borrowings |
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Bank overdrafts |
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HP and finance lease liabilities |
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Creditors: amounts falling due after more than one year
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Note |
2024 |
2023 |
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Due after one year |
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Loans and borrowings |
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Other financial liabilities |
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The bank loans and overdraft are secured by a mortgage debenture including fixed charge over all present freehold and leasehold property and first floating charge over all assets and undertaking both present and future dated 05 June 2006.
Hire purchase loans are secured against the assets to which they relate.
Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Non-current loans and borrowings
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2024 |
2023 |
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Bank borrowings |
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HP and finance lease liabilities |
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Share capital |
Allotted, called up and fully paid shares
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2024 |
2023 |
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No. |
£ |
No. |
£ |
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50 |
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50 |
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50 |
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50 |
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Reserves |
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A deferred tax liability provision has been made in respect of the revaluations
Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
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Financial commitments, guarantees and contingencies |
The total amount of financial commitments not included in the statement of financial position is £6,419 (2023 - £
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Related party transactions |
Digbits Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
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Transactions with directors |
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2024 |
(As restated) |
Advances to director |
At 31 December 2024 |
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Mr J H M Clay |
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J H M Clay |
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Mr M J Clay |
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M J Clay |
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2023 |
At 1 January 2023 |
Advances to director |
At 31 December 2023 |
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Mr J H M Clay |
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J H M Clay |
( |
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Mr M J Clay |
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M J Clay |
( |
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