Hostwave Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC366873 (Scotland)

HOSTWAVE LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2019

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

8

Chartered Accountants' Report

9

DIRECTORS:

Thomas John Flynn

Jenny Constance Claxton

SECRETARY:

Thomas John Flynn

REGISTERED OFFICE:

c/o Milne Craig

79 Renfrew Road

Paisley

Renfrewshire

PA3 4DA

REGISTERED NUMBER:

SC366873 (Scotland)

ACCOUNTANTS:

Milne Craig

Chartered Accountants

Abercorn House

79 Renfrew Road

Paisley

Renfrewshire

PA3 4DA

FIXED ASSETS

Tangible assets

4

11,582

12,764

CURRENT ASSETS

Stocks

5

5,000

10,671

Debtors

6

705,057

273,053

Cash at bank

674,610

482,109

1,384,667

765,833

CREDITORS

Amounts falling due within one year

7

927,109

375,236

NET CURRENT ASSETS

457,558

390,597

TOTAL ASSETS LESS CURRENT LIABILITIES

469,140

403,361

PROVISIONS FOR LIABILITIES

9

2,176

2,170

NET ASSETS

466,964

401,191

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

466,864

401,091

SHAREHOLDERS' FUNDS

466,964

401,191

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

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 16 July 2020 and were signed on its behalf by:

Jenny Constance Claxton - Director

1.	STATUTORY INFORMATION

Hostwave Limited is a private limited company, limited by shares, registered in Scotland. The company's

registered number is SC366873 and its registered office is Abercorn House 79 Renfrew Road Paisley PA3 4DA.

The nature of the Company's operations and its principal activities are the supply of lighting products.

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 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 £.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the Company

has adequate resources to continue in operational existence for the foreseeable future. Thus the directors

continue to adopt the going concern basis of accounting in preparing the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where

appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending

on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life

cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as

future market conditions, the remaining life of the asset and projected disposal values.

Assets are considered for indications of impairment. If required an impairment review will be carried out and a

decision made on possible impairment. Factors taken into consideration in reaching such a decision include the

economic viability and expected future financial performance of the asset and where it is a component of a larger

cash-generating unit, the viability and expected future performance of that unit.

Bad debts are provided for where objective evidence of the need for a provision exists.

Inventories are assessed for evidence of obsolescence and a provision is made against any inventory unlikely to

be sold, or where stock is sold post year end at a loss.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and

the revenue can be reliably measured. Consideration is given to the point at which the Company is entitled to

receive the income, excluding discounts, rebates, value added tax and other sales taxes. The following criteria

must also be met before revenue is recognised:

Revenue from the provision of services is recognised in the period in which the services are provided when all of

the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due;

- the costs incurred can be measured reliably.

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

-

25% on reducing balance

Computer equipment

-

25% on cost

Financial instruments

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 balance sheet when the Company becomes party to the contractual provisions of the

instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements,

when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction

price including transactions costs and are subsequently carried at amortised cost using the effective interest

method unless the arrangement constitutes a financing transaction, where the transaction is measured at the

present value of the future receipts discounted at a market rate of interest. Financial assets classified as

receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are

settled, or when the Company transfers the financial asset and substantially all the risks and rewards of

ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the

asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 creditors, 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.

Research and development

Expenditure on research activities is recognised in the income statement as an expense as incurred.

Expenditure on development activities is capitalised if the product or process is technically and commercially

feasible and the Company intends to and has the technical ability and sufficient resources to complete

development, future economic benefits are probable and if the Company can measure reliably the expenditure

attributable to the intangible asset during its development. Development activities improve a plan or design for

the production of new or substantially improved products or processes. The expenditure capitalised includes the

cost of materials, direct labour and an appropriate proportion of overheads and capitalised borrowing costs.

Other development expenditure is recognised in the income statement as an expense as incurred. Capitalised

development expenditure is stated at cost less accumulated amortisation and less accumulated impairment losses

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.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks

and other short-term liquid investments with original maturities of three months or less.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet

date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described

below.

Non-financial assets

An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after

initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an

asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine

reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable

value does not lead to a revised carrying amount higher than the carrying value had no impairment been

recognised.

Financial assets

For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's

carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original

effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's

carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at

the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event

occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal.

An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable

value does not lead to a revised carrying amount higher than the carrying value had no impairment been

recognised.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2018 - 13 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 November 2018

11,224

18,011

29,235

Additions

-

4,912

4,912

At 31 October 2019

11,224

22,923

34,147

DEPRECIATION

At 1 November 2018

7,112

9,359

16,471

Charge for year

1,037

5,057

6,094

At 31 October 2019

8,149

14,416

22,565

NET BOOK VALUE

At 31 October 2019

3,075

8,507

11,582

At 31 October 2018

4,112

8,652

12,764

5.

STOCKS

2019

2018

£

£

Stocks

5,000

10,671

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

697,756

265,642

Prepayments

7,301

7,411

705,057

273,053

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

-

9,333

Other loans

-

10,186

Trade creditors

371,499

189,088

Amounts owed to group undertakings

150,000

-

Corporation tax

129,659

46,946

Social security and other taxes

12,380

9,191

VAT

181,291

96,395

Other creditors

6,049

979

Directors' current accounts

1,118

527

Accrued expenses

75,113

12,591

927,109

375,236

8.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Bank loans

-

9,333

Other loans

-

10,186

-

19,519

9.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

2,176

2,170

Deferred

tax

£

Balance at 1 November 2018

2,170

Accelerated capital allowances

6

Balance at 31 October 2019

2,176

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At 31 October 2019 interest free loans with no fixed repayment terms were due to the directors from the

company and totalled £1,118 (2018 - £527).

11.	RELATED PARTY DISCLOSURES

The amount due to the ultimate parent company, Hostwave Holdings Limited as at 31st October 2019 amounted

to £150,000 (2018 - £nil).

12.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Hostwave Holdings Limited.

The following reproduces the text of the report prepared for the directors in respect of the company's annual

unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file

a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the

Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of Hostwave Limited for the year ended 31 October 2019 which comprise the Statement of Income

and Retained Earnings, Balance Sheet and the related notes from the company's accounting records and from

information and explanations you have given us.

As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to the Board of Directors of Hostwave Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Hostwave Limited and state those matters that we have agreed to state to the Board of Directors of Hostwave Limited, as a body, in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Hostwave Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Hostwave Limited. You consider that Hostwave Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Hostwave Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Milne Craig

Chartered Accountants

Abercorn House

79 Renfrew Road

Paisley

Renfrewshire

PA3 4DA

16 July 2020