Sero Consulting Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04857920 (England and Wales)

Report of the Directors and

Unaudited Financial Statements for the Year Ended 31 December 2019

for

SERO CONSULTING LIMITED

Page

Company Information

1

Report of the Directors

2

Income Statement

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTORS:

Mrs E Wallis

Mrs J Kay

I Wallis

REGISTERED OFFICE:

Sheffield Technology Parks

Cooper Buildings

Arundel Street

Sheffield

South Yorkshire

S1 2NS

REGISTERED NUMBER:

04857920 (England and Wales)

ACCOUNTANTS:

S Burgess & Co Ltd

11 Slayleigh Avenue

Sheffield

South Yorkshire

S10 3RA

The directors present their report with the financial statements of the company for the year ended 31 December 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the provision of consulting

services, related to education, skills and economic development.

REVIEW OF BUSINESS

In 2019, the company has focussed on stability and streamlining the business in order to maximise revenue

in areas of core expertise.

During 2019, the company ceased to develop revenue streams in its Sero HE work, which specialised in use

of digital technology in the higher education sector. Instead, the company has grown revenue in its two other

areas of specialisation: Sero Skills, which focuses on educational technology and digital skills development,

and Sero Creative, which focuses on digital marketing and PR. Both Sero Skills and Sero Creative work

across the education and skills sectors, embracing schools, further education and training, and adult

community learning. The reason for ceasing Sero HE activity after summer 2019 was to better align with

core expertise within the company and to streamline operations.

This strategy has proved successful. The company's turnover has increased substantially and profitability has

also increased. This has laid the foundation for seeking to expand the company's client base in 2020. It is

anticipated that there will be opportunity for well-managed organic growth in 2020 given the increasing

emphasis from government on use of technology in learning and digital skills, alongside the resilience of

digital marketing requirements.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2019 to the date

of this report.

Mrs E Wallis

Mrs J Kay

I Wallis

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006

relating to small companies.

ON BEHALF OF THE BOARD:

Mrs E Wallis - Director

29 May 2020

TURNOVER

624,173

496,298

Cost of sales

349,654

298,588

GROSS PROFIT

274,519

197,710

Administrative expenses

190,952

207,668

83,567

(9,958

)

Other operating income

6,644

3,350

OPERATING PROFIT/(LOSS)

90,211

(6,608

)

Interest receivable and similar income

184

215

PROFIT/(LOSS) BEFORE TAXATION

90,395

(6,393

)

Tax on profit/(loss)

1,813

-

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

88,582

(6,393

)

FIXED ASSETS

Tangible assets

5

2,027

-

CURRENT ASSETS

Debtors

6

103,787

52,305

Cash at bank and in hand

172,610

128,989

276,397

181,294

CREDITORS

Amounts falling due within one year

7

91,273

53,110

NET CURRENT ASSETS

185,124

128,184

TOTAL ASSETS LESS CURRENT LIABILITIES

187,151

128,184

PROVISIONS FOR LIABILITIES

385

-

NET ASSETS

186,766

128,184

CAPITAL AND RESERVES

Called up share capital

8

1,000

1,000

Retained earnings

185,766

127,184

SHAREHOLDERS' FUNDS

186,766

128,184

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2019 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 in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 29 May 2020 and were signed on its behalf by:

Mrs E Wallis - Director

I Wallis - Director

1.	STATUTORY INFORMATION

Sero Consulting 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.

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.

The significant accounting policies applied in the preparation of these financial statements are set out

below. These policies have been consistently applied to all years presented unless otherwise stated.

Turnover

Turnover comprises the invoiced value, under contract, of consulting services in relation to education,

skills and economic development, excluding value added tax, and, also, grant income in furtherance

of the company's objectives. Turnover is recognised in accordance with the contract or grant terms,

with contracts ongoing over the year end treated in accordance with the accounting policy set out

under the heading "work in progress".

Tangible fixed assets

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

Fixtures and fittings

-

33% on cost

Computer equipment

-

33% on cost

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.

Work in progress

Income on work in progress contracts is recognised by reference to the valuation of the time spent on

each contract at the year end.

Profit on work in progress contracts is recognised when the outcome of the contracts can be assessed

with reasonable certainty, and is that amount which is estimated to reflect fairly the profit arising up

to the year end. Profit on work in progress contracts is reflected in the profit and loss account as the

difference between the reported turnover, and the related costs.

Debtors and creditors due within one year

Debtors and creditors with no stated interest rate, which are due within one year, are stated at the

transaction price. Any losses arising from impairment are recognised in the statement of

comprehensive income within administrative expenses.

Impairment

At each balance sheet date, assets are reviewed to determine whether there is any indication that any

of the individual assets have suffered an impairment. If such indication exists, the recoverable amount

of the asset, or the assets cash generating unit, is estimated and compared to the carrying amount.

Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the

statement of comprehensive income.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2018 - 7 ) .

4.

DIVIDENDS

31.12.19

31.12.18

£

£

A Ordinary shares of £1 each

Interim

30,000

32,500

5.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 January 2019

7,467

36,924

44,391

Additions

-

3,041

3,041

At 31 December 2019

7,467

39,965

47,432

DEPRECIATION

At 1 January 2019

7,467

36,924

44,391

Charge for year

-

1,014

1,014

At 31 December 2019

7,467

37,938

45,405

NET BOOK VALUE

At 31 December 2019

-

2,027

2,027

At 31 December 2018

-

-

-

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.19

31.12.18

£

£

Trade debtors

102,700

51,333

Other debtors

613

500

Prepayments

474

472

103,787

52,305

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.19

31.12.18

£

£

Trade creditors

51,137

24,973

Corporation tax

1,592

164

Social security and other taxes

2,848

2,670

VAT

28,010

19,179

Other creditors

4,988

4,124

Accruals & deferred income

2,698

2,000

91,273

53,110

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.19

31.12.18

value:

£

£

500

A Ordinary

£1

500

500

500

B Ordinary

£1

500

500

1,000

1,000

9.	POST BALANCE SHEET EVENTS

After the year end, the coronavirus pandemic has spread across the whole world. It has had a

significant impact on the United Kingdom economy, and continues to do so. Against this background,

there has been an impact on the company's trade, with continuing uncertainty and challenges for the

company for the year ahead. The directors are continuously monitoring the trading position of the

company, and are aware of the UK government initiatives to alleviate some of the potential financial

impact. At the time of finalisation of the financial statements, it has not been possible for the directors

to quantify the financial effect of the coronavirus pandemic on the company's trading position, given

the current considerable uncertainty.