Digital View Group Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04376204 (England and Wales)

DIGITAL VIEW GROUP LIMITED

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2019

Page

Company Information

1

Report of the Directors

2

to

3

Report of the Independent Auditors

4

to

6

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Statement of Financial Position

9

Company Statement of Financial Position

10

to

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Notes to the Consolidated Financial Statements

14

to

22

DIRECTORS:

J R W Henry

R S F Lytton Cobbold

REGISTERED OFFICE:

The Estate Office Knebworth Park

Old Knebworth

Knebworth

Hertfordshire

SG3 6PY

REGISTERED NUMBER:

04376204 (England and Wales)

AUDITORS:

Wags LLP t/a Wagstaffs

Chartered Accountants and Statutory Auditors

Richmond House

Walkern Road

Stevenage

Hertfordshire

SG1 3QP

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

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 1st January 2019 to the date of this report.

J R W Henry

R S F Lytton Cobbold

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Wags LLP t/a Wagstaffs, are deemed to be reappointed in accordance with Section 487(2) of the Companies Act 2006.

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:

R S F Lytton Cobbold - Director

22nd December 2020

Opinion

We have audited the financial statements of Digital View Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2019 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2019 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

J E Fox FCCA (Senior Statutory Auditor)

for and on behalf of Wags LLP t/a Wagstaffs

Chartered Accountants and Statutory Auditors

Richmond House

Walkern Road

Stevenage

Hertfordshire

SG1 3QP

22nd December 2020

REVENUE

4,804,560

5,105,693

Cost of sales

(2,833,273

)

(3,471,985

)

GROSS PROFIT

1,971,287

1,633,708

Administrative expenses

(1,925,359

)

(2,306,692

)

OPERATING PROFIT/(LOSS)

45,928

(672,984

)

Interest payable and similar expenses

(25,548

)

(24,699

)

PROFIT/(LOSS) BEFORE TAXATION

5

20,380

(697,683

)

Tax on profit/(loss)

6

3,806

10,477

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

24,186

(687,206

)

Profit/(loss) attributable to:

Owners of the parent

24,186

(687,206

)

PROFIT/(LOSS) FOR THE YEAR

24,186

(687,206

)

OTHER COMPREHENSIVE INCOME

Foreign exchange translations on

subsidiary accounts

(99,911

)

178,238

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(99,911

)

178,238

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(75,725

)

(508,968

)

Total comprehensive income attributable to:

Owners of the parent

(75,725

)

(508,968

)

FIXED ASSETS

Intangible assets

8

-

19,162

Property, plant and equipment

9

9,243

26,747

Investments

10

-

-

9,243

45,909

CURRENT ASSETS

Inventories

1,363,426

1,354,465

Debtors

11

796,765

834,960

Cash at bank

218,492

138,516

2,378,683

2,327,941

CREDITORS

Amounts falling due within one year

12

(1,028,899

)

(939,098

)

NET CURRENT ASSETS

1,349,784

1,388,843

TOTAL ASSETS LESS CURRENT LIABILITIES

1,359,027

1,434,752

CAPITAL AND RESERVES

Called up share capital

17

47,189

47,189

Share premium

209,173

209,173

Retained earnings

1,102,665

1,178,390

SHAREHOLDERS' FUNDS

1,359,027

1,434,752

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 22nd December 2020 and were signed on its behalf by:

R S F Lytton Cobbold - Director

FIXED ASSETS

Intangible assets

8

-

-

Property, plant and equipment

9

-

-

Investments

10

1,883,903

1,883,903

1,883,903

1,883,903

CURRENT ASSETS

Debtors

11

23,131

23,131

CREDITORS

Amounts falling due within one year

12

(146,536

)

(117,031

)

NET CURRENT LIABILITIES

(123,405

)

(93,900

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,760,498

1,790,003

CREDITORS

Amounts falling due after more than one year

13

(1,281,424

)

(1,332,882

)

NET ASSETS

479,074

457,121

CAPITAL AND RESERVES

Called up share capital

17

47,189

47,189

Share premium

209,173

209,173

Retained earnings

222,712

200,759

SHAREHOLDERS' FUNDS

479,074

457,121

Company's profit/(loss) for the financial year

21,953

(95,968

)

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 22nd December 2020 and were signed on its behalf by:

R S F Lytton Cobbold - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st January 2018

47,189

1,687,358

209,173

1,943,720

Changes in equity

Total comprehensive income

-

(508,968

)

-

(508,968

)

Balance at 31st December 2018

47,189

1,178,390

209,173

1,434,752

Changes in equity

Total comprehensive income

-

(75,725

)

-

(75,725

)

Balance at 31st December 2019

47,189

1,102,665

209,173

1,359,027

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st January 2018

47,189

296,727

209,173

553,089

Changes in equity

Total comprehensive income

-

(95,968

)

-

(95,968

)

Balance at 31st December 2018

47,189

200,759

209,173

457,121

Changes in equity

Total comprehensive income

-

21,953

-

21,953

Balance at 31st December 2019

47,189

222,712

209,173

479,074

1.	STATUTORY INFORMATION

Digital View Group 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 General Information page.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparation

These financial statements are prepared on a going concern basis, under the historical cost convention.

Basis of consolidation

The Group financial statements consolidate the financial statements of Digital View Group Limited and all its subsidiary undertakings drawn up to 31 December each year. No profit and loss account is presented for Digital View Group Limited as permitted by section 408 of the Companies Act 2006

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, which are described in note 3, management is required to make judgements estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

- Useful Economic Life of Tangible and Intangible Assets

The annual depreciation and amortisation charges for tangible and intangible fixed assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets

Turnover

Turnover represents the total invoice value, excluding value added tax, trade discounts and all other taxes of sales made during the year.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs for both specific hardware and software projects are capitalised on the balance sheet and amortised over the period of the project to which they relate limited to a maximum of 3 years. Only costs that meet the requirements of FRS 102 are capitalised.

The carrying values of all intangible assets are reviewed for impairment at least annually.

Property, plant and equipment

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

Plant and machinery etc

-

33% on cost, 30% on cost and 20% on cost

Investments

In the parent company financial statements investments in subsidiaries, joint ventures and associates are accounted for at the lower of cost and net realisable value.

Inventories

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Tax

Tax for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred tax 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the 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.

The presentation currency of the group is pound Sterling. The functional currencies of the group members are as below:

Digital View Group Limited

Pound Sterling

Digital View HK

Hong Kong Dollars

Digital View Inc

US Dollars

Exchange gains and losses arising on translation of these subsidiaries have been recognised through the statement of other comprehensive income.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the income statement 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 the income statement in the period to which they relate.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 30 (2018 - 38 ) .

5.	PROFIT/(LOSS) BEFORE TAXATION

The profit (2018 - loss) is stated after charging:

2019

2018

£

£

Depreciation - owned assets

20,880

37,292

Development costs amortisation

18,543

104,562

Foreign exchange differences

87,611

76,915

6.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2019

2018

£

£

Current tax:

Foreign taxes paid

6,249

26,230

Deferred tax

(16,726

)

(26,259

)

Tax on loss

(10,477

)

(29

)

7.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

8.	INTANGIBLE FIXED ASSETS

Group

Other

intangible

assets

£

Cost

At 1st January 2019

1,509,140

Exchange differences

(48,682

)

At 31st December 2019

1,460,458

Amortisation

At 1st January 2019

1,489,978

Charge for year

18,543

Exchange differences

(48,063

)

At 31st December 2019

1,460,458

Net book value

At 31st December 2019

-

At 31st December 2018

19,162

9.	PROPERTY, PLANT AND EQUIPMENT

Group

Plant and

machinery

etc

£

Cost

At 1st January 2019

299,898

Additions

4,247

Disposals

(22,360

)

Exchange differences

(10,378

)

At 31st December 2019

271,407

Depreciation

At 1st January 2019

273,151

Charge for year

20,880

Eliminated on disposal

(22,360

)

Exchange differences

(9,507

)

At 31st December 2019

262,164

Net book value

At 31st December 2019

9,243

At 31st December 2018

26,747

10.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakin

£

Cost

At 1st January 2019

and 31st December 2019

1,883,903

Net book value

At 31st December 2019

1,883,903

At 31st December 2018

1,883,903

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

Digital View Limited

Registered office: 705-708, 7/F Texwood Plaza 6 How Ming St.

Nature of business: Trading Company

%

Class of shares:

holding

Ordinary Shares

100.00

Digital View Incorporated

Registered office: 18440 Technology Drive Morgan Hill

Nature of business: Trading Company

%

Class of shares:

holding

Ordinary Shares

100.00

The above subsidiaries are included in the consolidated financial statements.

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2019

2018

2019

2018

£

£

£

£

Trade debtors

238,806

291,139

-

-

Amounts owed by connected companies

432,456

425,578

-

-

Other debtors

125,503

118,243

23,131

23,131

796,765

834,960

23,131

23,131

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2019

2018

2019

2018

£

£

£

£

Bank loans and overdrafts

434,712

388,003

-

-

Trade creditors

381,286

363,982

-

-

Amounts owed to connected companies

-

45,290

103,905

90,580

Other creditors

212,901

141,823

42,631

26,451

1,028,899

939,098

146,536

117,031