The Word Telecom Limited - Limited company accounts 20.1

THE WORD TELECOM LIMITED - Company Information

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REGISTERED NUMBER: 02096347 (England and Wales)

The Word Telecom Limited

Report of the Director and

Unaudited Financial Statements

for the year ended

30 September 2020

Page

Company Information

Report of the Director

Chartered Accountants' Report

Income Statement

Statement of Financial Position

Notes to the Financial Statements

DIRECTOR:

A N Matthewson

SECRETARY:

D R S Matthewson

REGISTERED OFFICE:

Link House

Britton Gardens

Bristol

BS15 1TF

REGISTERED NUMBER:

02096347 (England and Wales)

ACCOUNTANTS:

Haines Watts Rostrons

Chartered Accountants

Yare House

62-64 Thorpe Road

Norwich

Norfolk

NR1 1RY

The director presents his report with the financial statements of the company for the year ended 30 September 2020.

DIRECTORS

A N Matthewson has held office during the whole of the period from 1 October 2019 to the date of this report.

Other changes in directors holding office are as follows:

M S Tuff - resigned 31 October 2019

The company ceased to trade on 30 September 2020.

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:

A N Matthewson - Director

21 January 2021

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of The Word Telecom Limited for the year ended 30 September 2020 which comprise the Income Statement, Statement of Financial Position 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 the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the director of The Word Telecom Limited in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of The Word Telecom Limited and state those matters that we have agreed to state to the director of The Word Telecom Limited in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Word Telecom Limited and its director for our work or for this report.

It is your duty to ensure that The Word Telecom 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 The Word Telecom Limited. You consider that The Word Telecom 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 The Word Telecom 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.

Haines Watts Rostrons

Chartered Accountants

Yare House

62-64 Thorpe Road

Norwich

Norfolk

NR1 1RY

21 January 2021

REVENUE

1,023,623

2,486,590

Cost of sales

730,907

1,419,251

GROSS PROFIT

292,716

1,067,339

Administrative expenses

113,023

774,610

OPERATING PROFIT

179,693

292,729

Interest receivable and similar income

280

1,365

179,973

294,094

Interest payable and similar expenses

1,106

2,212

PROFIT BEFORE TAXATION

178,867

291,882

Tax on profit

33,878

56,694

PROFIT FOR THE FINANCIAL YEAR

144,989

235,188

FIXED ASSETS

Property, plant and equipment

38,785

CURRENT ASSETS

Inventories

37,804

Debtors

56,878

1,314,963

Cash at bank and in hand

224,436

56,878

1,577,203

CREDITORS

Amounts falling due within one year

(33,878

)

(587,095

)

NET CURRENT ASSETS

23,000

990,108

TOTAL ASSETS LESS CURRENT LIABILITIES

23,000

1,028,893

CREDITORS

Amounts falling due after more than one
year

(23,440

)

NET ASSETS

23,000

1,005,453

CAPITAL AND RESERVES

Called up share capital

100

Share premium

3,000

Capital redemption reserve

19,900

Retained earnings

982,453

SHAREHOLDERS' FUNDS

23,000

1,005,453

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 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 21 January 2021 and were signed by:

A N Matthewson - Director

1.	STATUTORY INFORMATION

The Word Telecom 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 parent companies within the group.

Revenue

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for goods supplied and services rendered net of discounts, rebates, value added tax and other sales taxes.

Revenue from the sale of goods is recognised when significant risks and rewards of ownership of the goods have substantially transferred to the buyer.

Revenue from services is recognised over the period when the service is provided and when the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity.

Property, plant and equipment

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

Fixtures and equipment

25% on cost

Motor vehicles

25% on cost

Computer equipment

25% on cost

At the date of the statement of financial position, the company reviews the carrying value of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Inventories

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

Cost is measured on a standard cost basis and includes purchase price, import duties and other costs incurred in bringing the inventories to their current location and condition.

Taxation

Taxation represents tax currently payable on the taxable profits for the period.

The company's liability for current tax is calculated using tax rates that have been enacted, or substantively enacted by the end of the reporting period.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the date of the statement of financial position. Unrelieved tax losses and other deferred tax assets are only 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter.

The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability.

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. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Employee benefits

Short-term employee benefits are recognised as an expense in the period in which they are incurred.

Termination benefits are recognised only when the company is demonstrably committed to terminate the employment of an employee or a group of employees before their normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, when it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated.

Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Financial instruments

Short-term debtors are measured at transaction price, less any impairment. The impairment loss is measured as the difference between an asset's carrying value and the best estimate of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Short-term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2019 - 12 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

2020

2019

Depreciation - owned assets

11,709

5.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

and

Motor

Computer

equipment

vehicles

equipment

Totals

COST

At 1 October 2019

24,238

50,557

12,106

86,901

Disposals

(24,238

)

(50,557

)

(12,106

)

(86,901

)

At 30 September 2020

DEPRECIATION

At 1 October 2019

19,288

20,199

8,629

48,116

Eliminated on disposal

(19,288

)

(20,199

)

(8,629

)

(48,116

)

At 30 September 2020

NET BOOK VALUE

At 30 September 2020

At 30 September 2019

4,950

30,358

3,477

38,785

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

Trade debtors

135,969

Amounts owed by group undertakings

56,878

400,456

Other debtors

778,538

56,878

1,314,963

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

Hire purchase contracts

4,881

Trade creditors

171,676

Taxation and social security

33,878

110,153

Other creditors

300,385

33,878

587,095

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

Hire purchase contracts

23,440

9.	OTHER FINANCIAL COMMITMENTS

The company had total commitments under non-cancellable operating leases over the remaining life of those leases of £nil (2019 - £21,379)

10.	RELATED PARTY DISCLOSURES

On 1 October 2019 the assets, liabilities and trade of The Word Telecom Limited transferred to iPinnacle Limited at net book value.

11.	ULTIMATE CONTROLLING PARTY

The controlling party is iPinnacle Ltd.