Speedcom Telecommunications Limited - Limited company accounts 20.1

REGISTERED NUMBER: 05867317 (England and Wales)

REPORT OF THE DIRECTOR AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2020

FOR

SPEEDCOM TELECOMMUNICATIONS LIMITED

Page

Company Information

1

Report of the Director

2

Statement of Comprehensive Income

3

Statement of Financial Position

4

Statement of Changes in Equity

6

Notes to the Financial Statements

7

DIRECTOR:

W N Samarasekara

REGISTERED OFFICE:

1st & 2nd Floor

80 Islington High Street

London

London

N1 8EQ

REGISTERED NUMBER:

05867317 (England and Wales)

ACCOUNTANTS:

Upton Neenan Lees

Chartered Accountants

21-23 Croydon Road

Caterham

Surrey

CR3 6PA

The director presents his report with the financial statements of the company for the year ended 31 January 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the operation of mobile telephone shops.

REVIEW OF BUSINESS

The profits are down mainly due to the Franchisor(O2) making significant changes to the commercials I believe even though there is significant drop in the near term the new model should give more future opportunities to grow profits including the launch of 5G imminent and Apple phone new launches to 5G roll out. Therefore I remain confident the business will grow in profits and customer base in the next 5 years.

DIRECTOR

W N Samarasekara held office during the whole of the period from 1 February 2019 to the date of this report.

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:

W N Samarasekara - Director

29 December 2020

REVENUE

8,614,212

9,347,784

Cost of sales

(5,984,497

)

(6,426,514

)

GROSS PROFIT

2,629,715

2,921,270

Administrative expenses

(2,484,462

)

(2,554,242

)

OPERATING PROFIT

4

145,253

367,028

Interest receivable and similar income

136

24,011

145,389

391,039

Interest payable and similar expenses

5

68,218

57,239

PROFIT BEFORE TAXATION

213,607

448,278

Tax on profit

(36,586

)

(82,305

)

PROFIT FOR THE FINANCIAL YEAR

177,021

365,973

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

177,021

365,973

FIXED ASSETS

Intangible assets

7

28,666

34,666

Property, plant and equipment

8

298,639

154,195

327,305

188,861

CURRENT ASSETS

Inventories

284,073

419,043

Debtors

9

3,724,191

3,542,486

Cash at bank

164,089

807,201

4,172,353

4,768,730

CREDITORS

Amounts falling due within one year

10

(1,556,990

)

(2,024,978

)

NET CURRENT ASSETS

2,615,363

2,743,752

TOTAL ASSETS LESS CURRENT LIABILITIES

2,942,668

2,932,613

CREDITORS

Amounts falling due after more than one year

11

(140,816

)

(190,768

)

NET ASSETS

2,801,852

2,741,845

CAPITAL AND RESERVES

Called up share capital

1

1

Share premium

99

99

Retained earnings

2,801,752

2,741,745

SHAREHOLDERS' FUNDS

2,801,852

2,741,845

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2020 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 director and authorised for issue on 29 December 2020 and were signed by:

W N Samarasekara - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 February 2018

1

2,552,323

99

2,552,423

Changes in equity

Dividends

-

(176,551

)

-

(176,551

)

Total comprehensive income

-

365,973

-

365,973

Balance at 31 January 2019

1

2,741,745

99

2,741,845

Changes in equity

Dividends

-

(117,014

)

-

(117,014

)

Total comprehensive income

-

177,021

-

177,021

Balance at 31 January 2020

1

2,801,752

99

2,801,852

1.	STATUTORY INFORMATION

Speedcom Telecommunications 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.

Assets that are deemed to of a long term, ie in existence for a period longer than 12 months from the reporting date have been discounted to their fair value through the income statement except where the loans capital value has been maintained by virtue of a right to interest allocated to it.

Turnover

Revenue is measured at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, excluding discounts, rebates value added tax and sales taxes.

Goodwill

Goodwill arises on business acquisitions and represents the excess of cost of the acquisition over the company's interest in the net identifiable assets, liabilities and contingent liabilities of the acquired business.

Goodwill is measured at cost less accumulated amortisation and impairment losses. Goodwill is amortised on a straight line bases over its useful life, which is estimated to be 5 years.

Intangible assets

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

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

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

Land and buildings

-

Over the term of the lease

Plant and machinery etc

-

20% on reducing balance

Stocks

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

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all 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.

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.

Judgements and key sources of estimation uncertainty

The director has made key assumptions in the determination of the fair value of certain financial assets in respect to loans provided to related companies. The valuation method utilised was discounted cash flows with an interest rate of 4%.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2019 - 74 ).

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.1.20

31.1.19

£

£

Depreciation - owned assets

30,839

37,987

Patents and licences amortisation

6,000

3,667

Fees payable to the company's auditor for the audit of the company's financial statements'

-

7,280

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.1.20

31.1.19

£

£

Bank interest

-

26

Bank loan interest

3,889

5,931

Fair value adjustment in resect to interest free loans

(72,107

)

(63,196

)

(68,218

)

(57,239

)

Interest payable represents borrowing charges and the resulting charge/credits in relation to recognising financial assets at their fair value in accordance with FRS102.

6.

DIVIDENDS

31.1.20

31.1.19

£

£

Ordinary shares of 0.01 each

Final

117,014

176,551

7.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 February 2019

and 31 January 2020

289,853

40,000

329,853

AMORTISATION

At 1 February 2019

289,853

5,334

295,187

Charge for year

-

6,000

6,000

At 31 January 2020

289,853

11,334

301,187

NET BOOK VALUE

At 31 January 2020

-

28,666

28,666

At 31 January 2019

-

34,666

34,666

8.	PROPERTY, PLANT AND EQUIPMENT

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 February 2019

508,394

35,762

544,156

Additions

175,283

-

175,283

At 31 January 2020

683,677

35,762

719,439

DEPRECIATION

At 1 February 2019

368,029

21,932

389,961

Charge for year

28,073

2,766

30,839

At 31 January 2020

396,102

24,698

420,800

NET BOOK VALUE

At 31 January 2020

287,575

11,064

298,639

At 31 January 2019

140,365

13,830

154,195

9.

DEBTORS

31.1.20

31.1.19

£

£

Amounts falling due within one year:

Trade debtors

402,157

873,025

Other debtors

830,880

517,414

1,233,037

1,390,439

Amounts falling due after more than one year:

Amounts owed by participating interests

2,491,154

2,152,047

Aggregate amounts

3,724,191

3,542,486

Debtors relating to amounts owed from companies under common control (see note 15) were deemed to be long term debtors are disclosed as so.

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.20

31.1.19

£

£

Bank loans and overdrafts (see note 12)

28,873

37,516

Trade creditors

1,014,237

1,270,704

Taxation and social security

271,062

454,993

Other creditors

242,818

261,765

1,556,990

2,024,978

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.1.20

31.1.19

£

£

Bank loans (see note 12)

24,096

52,968

Amounts owed to participating interests

116,720

137,800

140,816

190,768

12.

LOANS

Bank loans are secured by a debenture over all company assets of the company.

13.	LEASING AGREEMENTS

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating lease, as follows

31.1.20

31.1.19

£

£

Lease commitments

1,511,325

1,489,781

14.	RELATED PARTY DISCLOSURES

Included in other debtors are loans made to the following companies (all registered in England and Wales), all of which are under common control:

Family Care Private Company Limited: £1,546,487 (2019: £1,243,714)

Selsey Care Company Limited: £125,977 (2019: £121,132)

Your Choice Living Company: £38,133 (2019: £36,666)

Speedcom Holdings Limited: £780,557 (2019: £750,535)

The above represent the deemed fair value of the assets discounted at an interest rate of 4%.