Universal Smart Cards Limited Filleted accounts for Companies House (small and micro)

UNIVERSAL SMART CARDS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 04278501

UNIVERSAL SMART CARDS LIMITED

FILLETED UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 December 2019

UNIVERSAL SMART CARDS LIMITED

BALANCE SHEET

31 December 2019

	2019		2018
Note	£	£	£	£

Fixed assets

Tangible assets	5	70,788	72,241
Investments	6	6,515	6,448
		--------	--------
		77,303	78,689

Current assets

Stocks		712,983	632,495
Debtors	7	1,434,325	1,386,951
Cash at bank and in hand		587,229	648,167
		------------	------------
		2,734,537	2,667,613

Creditors: amounts falling due within one year	8	( 1,844,020)		( 1,645,467)
		------------		------------
Net current assets			890,517		1,022,146
			---------		------------
Total assets less current liabilities			967,820		1,100,835

Creditors: amounts falling due after more than one year	9		( 44,800)		( 80,118)

Provisions

Taxation including deferred tax	( 12,890)	( 13,086)
	---------	------------
Net assets	910,130	1,007,631
	---------	------------

Capital and reserves

Called up share capital	10	100	100
Profit and loss account		910,030	1,007,531
		---------	------------
Shareholders funds		910,130	1,007,631
		---------	------------

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 Section 1A of 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 profit and loss account has not been delivered.

For the year ending 31 December 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 .

UNIVERSAL SMART CARDS LIMITED

BALANCE SHEET (continued)

31 December 2019

These financial statements were approved by the board of directors and authorised for issue on 30 December 2020 , and are signed on behalf of the board by:

M W Smith

Director

Company registration number: 04278501

UNIVERSAL SMART CARDS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2019

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 9 Devonshire Business Park, 4 Chester Road, Borehamwood, Hertfordshire, WD6 1NA.

2. Statement of compliance

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

Employee benefit trusts

The company has established trusts for the benefit of employees and certain of their dependents. Monies held in these trusts are held by independent trustees and managed at their discretion.

Where the company retains future economic benefit from, and has de facto control of, the assets and liabilities of the trust they are accounted for as assets and liabilities of the company until the earlier date that an allocation of trust funds to employees in respect of past services is declared and the date that assets of the trust vest in identified individuals.

Where monies held in a trust are determined by the company on the basis of employee's past services to the business and the company can obtain no future economic benefit from those monies, such monies, whether in the trust or accrued for by the company, are charged to the profit and loss account in the period to which they relate.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing the financial statements. The impact of COVID-19 has been considered when performing the going concern assessment. Given the limited impact on business operations and mitigating steps taken by management, the going concern basis of accounting remains appropriate, as stated above.

Fixed asset investments

Fixed asset investments are stated at cost less provision for impairment.

Consolidation

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Revenue recognition

Turnover represents the amounts derived from the provision of goods and services and is stated net of discounts and Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses are recognised as recoverable.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, 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 the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and 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 equity, 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 equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity 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 & Machinery	-	20% straight line
Fixtures & Fittings	-	10% straight line
Computer Equipment	-	33% straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Investments in associates

Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses.

Impairment of fixed assets

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. For the purposes of impairment testing, 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 largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are valued at the lower of cost and net realisable value based on a First-in First-out basis, after making due allowance for obsolete and slow moving items.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Financial instruments

Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. Financial assets comprise of debtors and cash. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. Basic financial liabilities, including trade and other payables and bank loans that are classified as debt, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities comprise of creditors. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year of less. If not, then they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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.

Share-based payments

Equity-settled share-based payment transactions are measured at fair value at the date of grant. The fair value is expensed on a straight-line basis over the vesting period, with a corresponding increase in equity. This is based upon the company's estimate of the shares or share options that will eventually vest which takes into account all vesting conditions and non-market performance conditions, with adjustments being made where new information indicates the number of shares or share options expected to vest differs from previous estimates. Fair value is determined using an appropriate pricing model. All market conditions and non-vesting conditions are taken into account when estimating the fair value of the shares or share options. As long as all other vesting conditions are satisfied, no adjustment is made irrespective of whether market or non-vesting conditions are met. Where the terms of an equity-settled transaction are modified, an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the fair value of the transaction, as measured at the date of modification. Where an equity-settled transaction is cancelled or settled, it is treated as if it had vested on the date of cancellation or settlement, and any expense not yet recognised in profit or loss is expensed immediately. Cash-settled share-based payment transactions are measured at the fair value of the liability. Until the liability is settled, the fair value of the liability is re-measured at each reporting date and at the date of settlement, with any changes in fair value recognised in profit or loss for the period.

Employee benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Distributions to equity holders

Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 32 (2018: 30 ).

5. Tangible assets

	Plant and machinery	Fixtures and fittings	Equipment	Total
	£	£	£	£
Cost
At 1 January 2019	183,196	100,782	73,050	357,028
Additions	20,619	3,369	2,533	26,521
	---------	---------	--------	---------
At 31 December 2019	203,815	104,151	75,583	383,549
	---------	---------	--------	---------
Depreciation
At 1 January 2019	165,896	52,804	66,087	284,787
Charge for the year	11,227	10,299	6,448	27,974
	---------	---------	--------	---------
At 31 December 2019	177,123	63,103	72,535	312,761
	---------	---------	--------	---------
Carrying amount
At 31 December 2019	26,692	41,048	3,048	70,788
	---------	---------	--------	---------
At 31 December 2018	17,300	47,978	6,963	72,241
	---------	---------	--------	---------

6. Investments

	Shares in group undertakings	Shares in participating interests	Other investments other than loans	Total
	£	£	£	£
Cost
At 1 January 2019	68	500	588,000	588,568
Additions	–	67	–	67
	----	----	---------	---------
At 31 December 2019	68	567	588,000	588,635
	----	----	---------	---------
Impairment
At 1 January 2019 and 31 December 2019	–	–	582,120	582,120
	----	----	---------	---------

Carrying amount
At 31 December 2019	68	567	5,880	6,515
	----	----	---------	---------
At 31 December 2018	68	500	5,880	6,448
	----	----	---------	---------

Included in other investments is monies held by an Employee Benefit Trust at a net value of £3,200 (2018:£3,200). This investment is not available to the company.

Included in other investments is £2,680 which are annuity contracts purchased from the directors, these are shown at cost less any impairment losses.

7. Debtors

	2019	2018
	£	£
Trade debtors	1,061,956	1,005,372
Amounts owed by group undertakings and undertakings in which the company has a participating interest	285,096	266,012
Other debtors	87,273	115,567
	------------	------------
	1,434,325	1,386,951
	------------	------------

Debtors include monies held by an Employee Benefit Trust totalling £4,403 (2018: £4,403). These monies are not available to the company.

8. Creditors: amounts falling due within one year

	2019	2018
	£	£
Trade creditors	1,383,204	1,280,424
Corporation tax	49,519	71,862
Social security and other taxes	104,373	34,931
Other loans	35,318	34,880
Other creditors	271,606	223,370
	------------	------------
	1,844,020	1,645,467
	------------	------------

Obligations under other loans of £35,318 (2018: £34,880) are secured by a fixed and floating charge over the assets of the company.

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

	2019	2018
	£	£
Other creditors	44,800	80,118
	--------	--------

Obligations under other creditors of £44,800 (2018: £80,118) are secured by a fixed and floating charge over the assets of the company.

10. Called up share capital

Issued, called up and fully paid

	2019		2018
	No.	£	No.	£
Ordinary shares of £ 1 each	100	100	100	100
	----	----	----	----

Options have been granted in 2014 to certain employees, to subscribe for ordinary shares in the company under the terms of an Enterprise Management Incentive Scheme. A summary of the principal terms and conditions of all options that existed during the year is as follows: Options granted on 10 December 2014 were £80,840 (2017: £181,890) at the year end

11. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2019	2018
	£	£
Not later than 1 year	107,604	108,943
Later than 1 year and not later than 5 years	53,465	130,287
	---------	---------
	161,069	239,230
	---------	---------

12. Events after the end of the reporting period

The COVID-19 global pandemic is considered to be a non-adjusting event for financial reporting purposes. These financial statements do not include any adjustments to assets or liabilities to reflect the potential impact of the pandemic on the company's future performance or underlying asset position.