MS3 Networks Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 08190151 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31st October 2018

for

MS3 Networks Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

R Tarbotton

H van Dommele

A J Hales

REGISTERED OFFICE:

Owen House

Owen Avenue

Priory Park West

Hessle

East Yorkshire

HU13 9PD

REGISTERED NUMBER:

08190151 (England and Wales)

ACCOUNTANTS:

cbaSadofskys

Chartered Accountants

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

BANKERS:

Barclays Bank plc

P O Box 11

Trinity House Lane

Hull

HU1 2JB

FIXED ASSETS

Tangible assets

4

4,005,958

1,089,861

CURRENT ASSETS

Stocks

-

1,655,286

Debtors

5

485,005

310,877

Cash at bank and in hand

9,925

104,544

494,930

2,070,707

CREDITORS

Amounts falling due within one year

6

280,766

293,889

NET CURRENT ASSETS

214,164

1,776,818

TOTAL ASSETS LESS CURRENT LIABILITIES

4,220,122

2,866,679

CREDITORS

Amounts falling due after more than one year

7

(3,372,529

)

(3,115,529

)

PROVISIONS FOR LIABILITIES

(59,650

)

-

NET ASSETS/(LIABILITIES)

787,943

(248,850

)

CAPITAL AND RESERVES

Called up share capital

9

5,000

5,000

Revaluation reserve

10

1,275,615

-

Retained earnings

(492,672

)

(253,850

)

SHAREHOLDERS' FUNDS

787,943

(248,850

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st October 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st October 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors on 31st July 2019 and were signed on its behalf by:

A J Hales - Director

1.	STATUTORY INFORMATION

MS3 Networks Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The accounts are prepared on a going concern basis. The Directors are aware that the company has a deficit on

the profit and loss account as a result of losses incurred since the company started to trade. The development of

the Network is now substantially complete and the Directors are confident that the company will now be able to

trade profitably. In view of this the Directors have revalued the Network and details are shown in the accounts.

Significant judgements and estimates

In preparing the accounts the Directors have revalued the Network at £4m. This is an estimated value based in the

Director's knowledge of the telecommunications industry.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

20% on cost, 15% on reducing balance and 10% on reducing balance

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance

for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2017 - 8 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST OR VALUATION

At 1st November 2017

1,606,338

Additions

48,617

Revaluations

710,091

Reclassification/transfer

1,649,196

At 31st October 2018

4,014,242

DEPRECIATION

At 1st November 2017

516,477

Charge for year

116,981

Revaluation adjustments

(625,174

)

At 31st October 2018

8,284

NET BOOK VALUE

At 31st October 2018

4,005,958

At 31st October 2017

1,089,861

Cost or valuation at 31st October 2018 is represented by:

Plant and

machinery

etc

£

Valuation in 2018

4,000,000

Cost

14,242

4,014,242

If plant and machinery had not been revalued it would have been included at the following historical cost:

2018

2017

£

£

Cost

1,640,712

-

Aggregate depreciation

625,172

-

The Network was valued on an open market basis basis on 31st October 2018 by the directors .

The directors have revalued the Network in the accounts at £4m and estimate it has a useful life of 10 years.

5.

DEBTORS

2018

2017

£

£

Amounts falling due within one year:

Trade debtors

25,740

14,630

Amounts owed by participating interests

3,950

3,950

Other debtors

5,461

5,461

Prepayments

42,605

36,650

77,756

60,691

Amounts falling due after more than one year:

Other debtors

407,249

250,186

Aggregate amounts

485,005

310,877

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

228,212

267,458

Taxation

1

1

Social security and other taxes

13,081

2,745

Directors' current accounts

24,917

21,542

Accruals and deferred income

14,555

2,143

280,766

293,889

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Loan from Compass Infrastructure UK (CI UK) Limited

884,000

627,000

Trade creditor - Compass Infrastructure UK (CI UK) Limited

2,488,529

2,488,529

3,372,529

3,115,529

8.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Loan from Compass Infrastructure UK (CI UK) Limited

884,000

627,000

The loan is secured by a debenture over the assets of the company and carries interest at 5%. The interest charge

has been suspended for the foreseeable future.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

5,000

Ordinary

£1

5,000

5,000

10.

RESERVES

Revaluation

reserve

£

Revaluation of Network

1,275,615

At 31st October 2018

1,275,615

11.	RELATED PARTY DISCLOSURES

MS3 Networks Limited is 43% owned by RDS Telecoms Limited which is a company registered in England and

Wales. At 31 October 2018 the company was owed £2,150 (2017: £2,150) in relation to unpaid share capital.

MS3 Networks Limited is 36% owned by Welch Civils (Mid Wales) Limited, a company registered in England

and Wales. At 31 October 2018 the company was owed £1,800 (2017: £1,800) in relation to unpaid share

capital.

Mr H van Domelle is a director of Compass Infrastructure UK (CI UK) Limited. This company has made a loan

of £884,000 (2017: £627,000) and is owed £2,488,529 (2017: £2,488,529) as a trade creditor. Both amounts have

been included as amounts due after more than one year. Interest payable on the loan of 5% has been waived for

the foreseeable future.