New Net Technologies Ltd 31/10/2019 iXBRL

NEW NET TECHNOLOGIES LTD - Company Information

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Company registration number: 05601327

New Net Technologies Ltd

Unaudited filleted financial statements

31 October 2019

New Net Technologies Ltd

Contents

Directors and other information

Accountants report

Statement of financial position

Statement of changes in equity

Notes to the financial statements

New Net Technologies Ltd

Directors and other information


	Directors	Mr Mark Kedgley
		Mr Mark Kerrison
		Mr Russell Wilcox


	Company number	05601327


	Registered office	Rivers Lodge
		West Common
		Harpenden
		Hertfordshire
		AL5 2JD


	Accountants	Sterling Accounting Solutions Ltd
		SAS House
		Friarswood
		Chipperfield Road
		Kings Langley
		WD4 9JB

New Net Technologies Ltd

Chartered accountants report to the board of directors on the preparation of the

unaudited statutory financial statements of New Net Technologies Ltd

Year ended 31 October 2019

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of New Net Technologies Ltd for the year ended 31 October 2019 which comprise the statement of financial position, statement of changes in equity and related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com /en/members/regulations-standards-and-guidance/.

This report is made solely to the board of directors of New Net Technologies Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of New Net Technologies Ltd and state those matters that we have agreed to state to the board of directors of New Net Technologies Ltd as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than New Net Technologies Ltd and its board of directors as a body for our work or for this report.

It is your duty to ensure that New Net Technologies Ltd 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 New Net Technologies Ltd. You consider that New Net Technologies Ltd 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 New Net Technologies Ltd. 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.

Sterling Accounting Solutions Ltd

Chartered Accountants

SAS House

Friarswood

Chipperfield Road

Kings Langley

WD4 9JB

29 October 2020

New Net Technologies Ltd

Statement of financial position

31 October 2019

		2019		2018
				as restated
	Note	£	£	£	£

Fixed assets
Intangible assets	10	1,438,686		897,066
Tangible assets	11	9,333		2,872
		_______		_______
			1,448,019		899,938

Current assets
Debtors	12	3,747,955		2,072,178
Cash at bank and in hand		103,254		37,792
		_______		_______
		3,851,209		2,109,970
Creditors: amounts falling due
within one year	13	( 1,343,882)		( 605,625)
		_______		_______
Net current assets			2,507,327		1,504,345
			_______		_______
Total assets less current liabilities			3,955,346		2,404,283

Creditors: amounts falling due
after more than one year	14		( 1,523,573)		( 470,566)
			_______		_______
Net assets			2,431,773		1,933,717
			_______		_______

Capital and reserves
Called up share capital	15		170		170
Share premium account			169,916		169,916
Capital redemption reserve			14		14
Profit and loss account			2,261,673		1,763,617
			_______		_______
Shareholders funds			2,431,773		1,933,717
			_______		_______

For the year ending 31 October 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

These financial statements were approved by the board of directors and authorised for issue on 29 October 2020 , and are signed on behalf of the board by:

Mr Mark Kedgley

Director

Company registration number: 05601327

New Net Technologies Ltd

Statement of changes in equity

Year ended 31 October 2019

	Called up share capital	Share premium account	Capital redemption reserve	Profit and loss account	Total
	£	£	£	£	£


At 1 November 2017 as previously stated	170	169,916	14	1,329,355	1,499,455
Prior period adjustments	(-)	(-)	(-)	(92,673)	(92,673)
	_______	_______	_______	_______	_______
At 1 November 2017 as restated	170	169,916	14	1,236,682	1,406,782

Profit for the year				596,439	596,439
	_______	_______	_______	_______	_______
Total comprehensive income for the year	-	-	-	596,439	596,439

Dividends paid and payable				( 69,504)	( 69,504)
	_______	_______	_______	_______	_______
Total investments by and distributions to owners	-	-	-	( 69,504)	( 69,504)

	_______	_______	_______	_______	_______
At 31 October 2018 as restated	170	169,916	14	1,763,617	1,933,717

Profit for the year				644,579	644,579
	_______	_______	_______	_______	_______
Total comprehensive income for the year	-	-	-	644,579	644,579

Dividends paid and payable				( 146,523)	( 146,523)
	_______	_______	_______	_______	_______
Total investments by and distributions to owners	-	-	-	( 146,523)	( 146,523)

	_______	_______	_______	_______	_______
At 31 October 2019	170	169,916	14	2,261,673	2,431,773
	_______	_______	_______	_______	_______

New Net Technologies Ltd

Notes to the financial statements

Year ended 31 October 2019

1. General information

The company is a private company limited by shares, registered in United Kingdom. The address of the registered office is Rivers Lodge, West Common, Harpenden, Hertfordshire, AL5 2JD.

2. Statement of compliance

These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:


Development Costs	-	10 %	straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research and development

Research expenditure is written off in the year in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Plant and machinery	-	33 %	straight line
Fittings fixtures and equipment	-	33 %	straight line

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.

4. Other operating income

	2019	2018
	£	£
Management charges receivable	183,172	171,499
	_______	_______

5. Operating profit

Operating profit is stated after charging/(crediting):

	2019	2018
	£	£
Amortisation of intangible assets	105,959	82,766
Depreciation of tangible assets	2,141	541
Foreign exchange differences	( 15,653)	267
	_______	_______

6. Staff costs

The aggregate payroll costs incurred during the year were:

	2019	2018
	£	£
Wages and salaries	502,824	346,755
Social security costs	58,223	37,768
Other pension costs	12,514	9,803
	_______	_______
	573,561	394,326
	_______	_______

7. Employee numbers

The average number of persons employed by the company during the year amounted to 13 (2018: 12 ).

8. Directors remuneration

The directors aggregate remuneration in respect of qualifying services was:

	2019	2018
	£	£
Directors remuneration	168,341	152,537
	_______	_______

9. Tax on profit

Major components of tax income

	2019	2018
	£	£
Current tax:
UK current tax income	( 81,472)	( 94,449)
	_______	_______
Tax on profit	( 81,472)	( 94,449)
	_______	_______

10. Intangible assets

	Other intangible assets	Total
	£	£
Cost
At 1 November 2018	1,059,760	1,059,760
Additions	647,579	647,579
	_______	_______
At 31 October 2019	1,707,339	1,707,339
	_______	_______
Amortisation
At 1 November 2018	162,694	162,694
Charge for the year	105,959	105,959
	_______	_______
At 31 October 2019	268,653	268,653
	_______	_______
Carrying amount
At 31 October 2019	1,438,686	1,438,686
	_______	_______
At 31 October 2018	897,066	897,066
	_______	_______

11. Tangible assets

	Plant and machinery	Fixtures, fittings and equipment	Total
	£	£	£
Cost
At 1 November 2018	12,961	-	12,961
Additions	6,717	1,885	8,602
	_______	_______	_______
At 31 October 2019	19,678	1,885	21,563
	_______	_______	_______
Depreciation
At 1 November 2018	10,089	-	10,089
Charge for the year	1,855	286	2,141
	_______	_______	_______
At 31 October 2019	11,944	286	12,230
	_______	_______	_______
Carrying amount
At 31 October 2019	7,734	1,599	9,333
	_______	_______	_______
At 31 October 2018	2,872	-	2,872
	_______	_______	_______

12. Debtors

	2019	2018
		as restated
	£	£
Trade debtors	2,193,114	879,325
Other debtors	1,554,841	1,192,853
	_______	_______
	3,747,955	2,072,178
	_______	_______

13. Creditors: amounts falling due within one year

	2019	2018
		as restated
	£	£
Trade creditors	18,587	7,466
Social security and other taxes	85,155	72,556
Other creditors	1,240,140	525,603
	_______	_______
	1,343,882	605,625
	_______	_______

14. Creditors: amounts falling due after more than one year

	2019	2018
		as restated
	£	£
Other creditors	1,523,573	470,566
	_______	_______

15. Called up share capital

Issued, called up and fully paid

	2019		2018
	No	£	No	£
Ordinary Shares shares of £ 0.01 each	9,642	96	9,642	96
Preference Shares shares of £ 0.01 each	7,389	74	7,389	74
	_______	_______	_______	_______
	17,031	170	17,031	170
	_______	_______	_______	_______

16. Operating leases

The company had total commitments of £38,170 at the balance sheet date.

17. Revenue recognition - prior period adjustments

The accounts have been restated to incorporate the impact of a change in accounting policy with respect to revenue recognition and the cost of sales associated with that revenue. The change in policy has been made to align the policy for recognising revenue with respect to new software sales made on a subscription basis to that with the provision of software support. The change has resulted in profits available for distribution at 31st October 2019 decreasing by £179, 461. The 2018 adjustment of £86,788 is in respect of the profit for the year previously reported as £683,227.

18. Other financial commitments

The Company operates a defined contribution pension scheme. Contributions totalling £5,139 (2018: £2,540) were payable to the scheme at the reporting date and are included in other creditors.

19. Related party transactions

During the year the company made sales of £2,849,022 (2018: £1,776,161) and purchases of£2,088,131 (2018: £1,151,600) to New Net Technologies LLC, a US based partnership in which bothMark Kerrison and Mark Kedgley are managing members. As at the year end a balance of £1,363,128 (2018: £870,227) was owed and is included within other debtors.