Wise Technology Group Holdings Limited - Limited company accounts 20.1
Wise Technology Group Holdings Limited - Limited company accounts 20.1
| REGISTERED NUMBER: 07243673 (England and Wales) |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 | to | 3 |
| Report of the Directors | 4 | to | 5 |
| Report of the Independent Auditors | 6 | to | 8 |
| Consolidated Income Statement | 9 |
| Consolidated Other Comprehensive Income | 10 |
| Consolidated Statement of Financial Position | 11 |
| Company Statement of Financial Position | 12 |
| Consolidated Statement of Changes in Equity | 13 |
| Company Statement of Changes in Equity | 14 |
| Consolidated Statement of Cash Flows | 15 |
| Notes to the Consolidated Statement of Cash Flows | 16 | to | 17 |
| Notes to the Consolidated Financial Statements | 18 | to | 30 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: | Timothy Godson FCA |
| AUDITORS: |
| 4 Henley Way |
| Doddington Road |
| Lincoln |
| Lincolnshire |
| LN6 3QR |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| The directors present their strategic report of the company and the group for the year ended 31 March 2020. |
| REVIEW OF BUSINESS |
| The results for the year and financial position of the group are as shown in the annexed financial statements. |
| Group turnover has increased by 5.03% from £11,386,776 in 2019 to £11,959,149 in 2020. |
| Administrative and interest expenses for the group have increased by 15.6% going from £7,434,175 in 2019 to £8,598,251 in 2020 primarily due to the increase in wages. This reflects increased commissions and bonuses paid, and pay rises in line with National Minimum Wage. |
| Overall group profit before tax has decreased from £3,238,225 in 2019 to £2,312,025 in 2020. |
| The group's operations and assets are well diversified and as such the levels of operational and other risks are considered by the directors to be acceptable. The group does not have any material exposure to any high risk market or geographical areas. |
| The business has adapted quickly and well to the COVID pandemic with minimal cost increases. Most colleagues work from home with only those who are unable, for whatever reason, to work from home working safely in the office whilst in compliance of guidelines that meet or exceed those set by government. Clients have been converted to remote training and remote go lives where possible and requested by the end client with a small percentage of projects postponed and a smaller number of projects cancelled. Sales activity from new and existing clients has been positive with revenue increases seen. |
| The Robotics Division have implemented their first solution which gone well and set to roll out the second. Enquires have been received all of which have a long lead to sale timescale and require significant effort to deal with. Currently this enquiry process is being reviewed to ensure it is monetised. |
| Position at the statement of financial position date |
| The directors consider the group to be in a solid financial position at the statement of financial position date, with accumulated distributable reserves of approximately £8,640,000. |
| Management remains mindful of the competitive environment in which the group operates and the need to maintain close control over the group's working capital and financial position. |
| Borrowings and Risk Management |
| The group's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the group operations. The group's approach to managing other risks applicable to the financial instruments minimised the risk to a level that the directors consider acceptable. |
| Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. |
| Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The group is affected by a number of factors, the principal ones of which are: |
| - The group is exposed to the risk of negative developments in financial markets and the sectors in which it operates, either directly or through the impact on the group's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, restrictions in the availability of credit, impact on demand from customers, problems in the supplier base, increases in financing costs or in the cost of utilities. Such developments might increase operating costs, reduce revenues, lower asset values or result in the businesses being unable to meet in full its strategic objectives. |
| - The group operates in a competitive market, and failure to compete effectively in terms of price, product specification and quality can have an adverse effect on demand and / or margins. |
| The group mitigates risk in several ways: |
| - The group has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There are established policies and procedures for the setting of corporate strategies; financial planning and budgeting; for information and reporting systems; for systems of operational and financial internal control; for assessment of risk; and for monitoring operations and performance. |
| - Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible, whilst maintaining long term working relationships, innovation and good lines of communication. |
| - The group operates a recruitment and selection process to ensure employees are experienced and competent in their work. The workforce is trained to be alert, responsive to customer needs, and to operate in line with the group's corporate objectives. |
| FUTURE DEVELOPMENTS |
| The group's strategy is to continue organic growth using the existing business model. |
| ON BEHALF OF THE BOARD: |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 March 2020. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of writing and selling computer software systems. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 March 2020. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report. |
| POLITICAL DONATIONS AND EXPENDITURE |
| The donation costs totalled £4,944 (2019: £3,440), they are not political donations. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, 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). 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. |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED |
| Opinion |
| We have audited the financial statements of Wise Technology Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2020 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, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 31 March 2020 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 Group Strategic Report and 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED |
| 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have 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 Group Strategic Report or 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. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED |
| 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. |
| for and on behalf of |
| 4 Henley Way |
| Doddington Road |
| Lincoln |
| Lincolnshire |
| LN6 3QR |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| CONSOLIDATED INCOME STATEMENT |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| TURNOVER | 11,959,149 | 11,386,776 |
| Cost of sales | 1,244,178 | 694,997 |
| GROSS PROFIT | 10,714,971 | 10,691,779 |
| Administrative expenses | 8,598,251 | 7,434,175 |
| 2,116,720 | 3,257,604 |
| Other operating income | 239,393 | 7,630 |
| OPERATING PROFIT | 4 | 2,356,113 | 3,265,234 |
| Interest receivable and similar income | 721 | 4,934 |
| 2,356,834 | 3,270,168 |
| Interest payable and similar expenses | 5 | 44,809 | 31,943 |
| PROFIT BEFORE TAXATION | 2,312,025 | 3,238,225 |
| Tax on profit | 6 | 458,835 | 395,073 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 1,853,190 | 2,843,152 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| CONSOLIDATED OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 1,853,190 | 2,843,152 |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,853,190 |
2,843,152 |
| Total comprehensive income attributable to: |
| Owners of the parent | 1,853,190 | 2,843,152 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
| 31 MARCH 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 | 4,622,209 | 4,040,372 |
| Investments | 10 | - | - |
| 4,622,209 | 4,040,372 |
| CURRENT ASSETS |
| Debtors | 11 | 7,125,339 | 4,029,608 |
| Cash at bank and in hand | 3,289,911 | 4,525,377 |
| 10,415,250 | 8,554,985 |
| CREDITORS |
| Amounts falling due within one year | 12 | 4,991,302 | 4,176,209 |
| NET CURRENT ASSETS | 5,423,948 | 4,378,776 |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 10,046,157 | 8,419,148 |
| CREDITORS |
| Amounts falling due after more than one year | 13 | (1,194,784 | ) | (1,479,671 | ) |
| PROVISIONS FOR LIABILITIES | 17 | (203,003 | ) | (144,297 | ) |
| NET ASSETS | 8,648,370 | 6,795,180 |
| CAPITAL AND RESERVES |
| Called up share capital | 18 | 100 | 100 |
| Retained earnings | 19 | 8,648,270 | 6,795,080 |
| SHAREHOLDERS' FUNDS | 8,648,370 | 6,795,180 |
| The financial statements were approved by the Board of Directors and authorised for issue on 23 March 2021 and were signed on its behalf by: |
| D G Hallam - Director |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| COMPANY STATEMENT OF FINANCIAL POSITION |
| 31 MARCH 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 |
| Investments | 10 |
| CURRENT ASSETS |
| Debtors | 11 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 12 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 13 | ( |
) | ( |
) |
| PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 18 |
| Retained earnings | 3,694,747 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 40,587 | 1,091,097 |
| The financial statements were approved the Board of Directors and authorised for issue on |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 April 2018 | 100 | 4,237,631 | 4,237,731 |
| Changes in equity |
| Dividends | - | (285,703 | ) | (285,703 | ) |
| Total comprehensive income | - | 2,843,152 | 2,843,152 |
| Balance at 31 March 2019 | 100 | 6,795,080 | 6,795,180 |
| Changes in equity |
| Total comprehensive income | - | 1,853,190 | 1,853,190 |
| Balance at 31 March 2020 | 100 | 8,648,270 | 8,648,370 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 April 2018 | 2,848,865 |
| Changes in equity |
| Dividends | - | ( |
) | (285,703 | ) |
| Total comprehensive income | - | 1,091,097 |
| Balance at 31 March 2019 | 3,654,259 |
| Changes in equity |
| Total comprehensive income | - | 40,587 |
| Balance at 31 March 2020 | 3,694,846 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 112,200 | 3,886,111 |
| Interest paid | (42,634 | ) | (26,984 | ) |
| Interest element of hire purchase payments paid |
(2,175 |
) |
(4,959 |
) |
| Government grants | 216,306 | 10,000 |
| Tax paid | (332,798 | ) | (58,024 | ) |
| Net cash from operating activities | (49,101 | ) | 3,806,144 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (755,980 | ) | (1,236,759 | ) |
| Interest received | 721 | 4,934 |
| Net cash from investing activities | (755,259 | ) | (1,231,825 | ) |
| Cash flows from financing activities |
| New loans in year | - | 959,000 |
| Loan repayments in year | (273,255 | ) | (196,409 | ) |
| Capital repayments in year | (33,483 | ) | (30,745 | ) |
| Amount withdrawn by directors | (124,368 | ) | (1,780 | ) |
| Amounts advanced by subsidiary | - | 2,798 |
| Equity dividends paid | - | (285,703 | ) |
| Net cash from financing activities | (431,106 | ) | 447,161 |
| (Decrease)/increase in cash and cash equivalents | (1,235,466 | ) | 3,021,480 |
| Cash and cash equivalents at beginning of year |
2 |
4,525,377 |
1,503,897 |
| Cash and cash equivalents at end of year | 2 | 3,289,911 | 4,525,377 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2020 | 2019 |
| £ | £ |
| Profit before taxation | 2,312,025 | 3,238,225 |
| Depreciation charges | 174,143 | 144,535 |
| Government grants | (216,306 | ) | (10,000 | ) |
| Finance costs | 44,809 | 31,943 |
| Finance income | (721 | ) | (4,934 | ) |
| 2,313,950 | 3,399,769 |
| Increase in trade and other debtors | (2,938,464 | ) | (236,827 | ) |
| Increase in trade and other creditors | 736,714 | 723,169 |
| Cash generated from operations | 112,200 | 3,886,111 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 31 March 2020 |
| 31.3.20 | 1.4.19 |
| £ | £ |
| Cash and cash equivalents | 3,289,911 | 4,525,377 |
| Year ended 31 March 2019 |
| 31.3.19 | 1.4.18 |
| £ | £ |
| Cash and cash equivalents | 4,525,377 | 1,503,897 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.4.19 | Cash flow | At 31.3.20 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 4,525,377 | (1,235,466 | ) | 3,289,911 |
| 4,525,377 | (1,235,466 | ) | 3,289,911 |
| Debt |
| Finance leases | (43,407 | ) | 33,483 | (9,924 | ) |
| Debts falling due within 1 year | (273,254 | ) | (1,708 | ) | (274,962 | ) |
| Debts falling due after 1 year | (1,469,747 | ) | 274,963 | (1,194,784 | ) |
| (1,786,408 | ) | 306,738 | (1,479,670 | ) |
| Total | 2,738,969 | (928,728 | ) | 1,810,241 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 1. | STATUTORY INFORMATION |
| Wise Technology Group Holdings Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Basis of consolidation |
| The group financial statements consolidate the financial statements of Evolution Business Software Limited and all its subsidiary undertakings drawn up to 31 March each year. |
| A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the Group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity it accounts for that entity as a subsidiary. |
| Any subsidiary undertakings or associates sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively. |
| All intra-Group transactions, balances, income and expenses are eliminated on consolidation. Adjustments are made to eliminate the profit or loss arising on transactions with associates to the extent of the Group’s interest in the entity. |
| The parent company has taken advantage of section 408 of the Companies Act 2006 and has not included its own Income Statement in these financial statements. |
| 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. |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Significant judgements and estimates |
| In the application of the group's accounting policies, 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 and are covered within the accounting policies: |
| (i) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic 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 the physical condition of the assets. See note 10 for the carrying amount of the property plant and equipment, and accounting policy note for the usual economic lives of each class of assets. |
| (ii) The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, ageing profile of debtors and historical experience. See note 12 for the net carrying amount of the debtors and associated impairment provision. |
| Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Software licence fee income is recognised at key stages during the process of the delivery of the product. Support and maintenance income is deferred at the date of invoicing and released to the statement of income and retained earnings over the duration of the maintenance contract. The balance of software licence fee and maintenance income not released to the statement of income and retained earnings is carried in the statement of financial position as deferred income. |
| Tangible fixed assets |
| Freehold property | - |
| Improvements to property | - |
| Plant and machinery | - |
| Motor vehicles | - |
| Robots | - |
| Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
| Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute 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. |
| 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 the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement. |
| Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares 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. |
| Trade creditors 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 or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
| Taxation |
| Taxation 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 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. |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| 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. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate. |
| 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. |
| Going concern |
| Following the impact of Covid-19, these accounts have been prepared on a going concern basis, on the understanding that the directors and shareholders will continue to financially support the company during this uncertain period. |
| 3. | EMPLOYEES AND DIRECTORS |
| 2020 | 2019 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2020 | 2019 |
| Sales, administration and management |
| The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2019 - NIL). |
| 2020 | 2019 |
| £ | £ |
| Directors' remuneration |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 4. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2020 | 2019 |
| £ | £ |
| Depreciation - owned assets |
| Auditors' remuneration |
| Foreign exchange differences | ( |
) |
| Rent |
| 5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2020 | 2019 |
| £ | £ |
| Bank loan interest |
| HMRC interest |
| Hire purchase interest |
| 6. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2020 | 2019 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Adjustment re previous years | (16,022 | ) | (106,691 | ) |
| Total current tax |
| Deferred tax |
| Tax on profit |
| UK corporation tax was charged at 19%) in 2019. |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 6. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2020 | 2019 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2019 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | ( |
) | ( |
) |
| Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
| Deferred tax | 58,706 | 69,255 |
| R&D enhanced deduction | - | (133,271 | ) |
| Total tax charge | 458,835 | 395,073 |
| 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. | DIVIDENDS |
| 2020 | 2019 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 9. | TANGIBLE FIXED ASSETS |
| Group |
| Improvements |
| Freehold | to | Plant and |
| property | property | machinery |
| £ | £ | £ |
| COST |
| At 1 April 2019 | 4,013,619 | 801,997 |
| Additions | 402,065 | 77,298 |
| At 31 March 2020 | 4,415,684 | 879,295 |
| DEPRECIATION |
| At 1 April 2019 | 303,081 | 615,018 |
| Charge for year | 82,624 | 54,502 |
| At 31 March 2020 | 385,705 | 669,520 |
| NET BOOK VALUE |
| At 31 March 2020 | 4,029,979 | 122,463 | 209,775 |
| At 31 March 2019 | 3,710,538 | 186,979 |
| Motor |
| vehicles | Robots | Totals |
| £ | £ | £ |
| COST |
| At 1 April 2019 | 5,076,795 |
| Additions | 755,980 |
| At 31 March 2020 | 5,832,775 |
| DEPRECIATION |
| At 1 April 2019 | 1,036,423 |
| Charge for year | 174,143 |
| At 31 March 2020 | 1,210,566 |
| NET BOOK VALUE |
| At 31 March 2020 | 45,861 | 214,131 | 4,622,209 |
| At 31 March 2019 | 4,040,372 |
| Included within Tangible fixed assets are £83,685 of assets held under hire purchase (2019: £97,285). |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 9. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Freehold | Plant and |
| property | machinery | Totals |
| £ | £ | £ |
| COST |
| At 1 April 2019 | 2,820,022 | 258,633 | 3,078,655 |
| Additions | - | 2,430 | 2,430 |
| At 31 March 2020 | 2,820,022 | 261,063 | 3,081,085 |
| DEPRECIATION |
| At 1 April 2019 | 300,734 | 229,120 | 529,854 |
| Charge for year | 55,979 | 15,971 | 71,950 |
| At 31 March 2020 | 356,713 | 245,091 | 601,804 |
| NET BOOK VALUE |
| At 31 March 2020 | 2,463,309 | 15,972 | 2,479,281 |
| At 31 March 2019 | 2,519,288 | 29,513 | 2,548,801 |
| 10. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 April 2019 |
| and 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 10. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: Newton Court, Saxilby Enterprise Park, Skellingthorpe Road, Saxilby, Lincoln, Lincolnshire, LN1 2LR |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2020 | 2019 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| 11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Trade debtors | 3,246,643 | 2,876,782 |
| Other debtors | 3,115,918 | 1,117,177 |
| Directors' current accounts | 118,692 | - | 118,692 | - |
| Tax | 38,575 | - |
| Prepayments and accrued income | 605,511 | 35,649 |
| 7,125,339 | 4,029,608 |
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 14) | 274,962 | 273,254 |
| Hire purchase contracts (see note 15) | 9,924 | 33,483 |
| Trade creditors | 1,205,759 | 465,861 |
| Amounts owed to group undertakings | - | - |
| Taxation | 134,773 | 28,867 |
| Other taxes and social security | 734,446 | 439,511 |
| Other creditors | 99,707 | 106,749 |
| Directors' current accounts | 395 | 6,071 | - | 4,572 |
| Accruals and deferred income | 2,531,336 | 2,822,413 |
| 4,991,302 | 4,176,209 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Bank loans (see note 14) | 1,194,784 | 1,469,747 |
| Hire purchase contracts (see note 15) | - | 9,924 |
| 1,194,784 | 1,479,671 |
| 14. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank loans | 274,962 | 273,254 |
| Amounts falling due between one and two | years: |
| Bank loans - 1-2 years | 240,626 | 277,963 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | 954,158 | 1,062,510 |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans more than 5 years by instalments | - | 129,274 | - | 129,274 |
| 15. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2020 | 2019 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 9,924 | 33,483 |
| Between one and five years | - | 9,924 |
| 9,924 | 43,407 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 16. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Bank loans | 1,469,746 | 1,743,001 |
| Hire purchase contracts | 9,924 | 43,407 | - | - |
| 1,479,670 | 1,786,408 |
| The loans are secured on the freehold property of the company. |
| 17. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Deferred tax |
| Accelerated capital allowances | 203,003 | 144,297 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2019 | 144,297 |
| Provided during year | 58,706 |
| Balance at 31 March 2020 | 203,003 |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2019 |
| Provided during year |
| Balance at 31 March 2020 |
| 18. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2020 | 2019 |
| value: | £ | £ |
| Ordinary | £1 | 100 | 100 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 19. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 April 2019 | 6,795,080 |
| Profit for the year | 1,853,190 |
| At 31 March 2020 | 8,648,270 |
| Retained earnings |
| Includes all current and prior period retained profits and losses less dividends paid. All amounts are distributable. |
| 20. | PENSION COMMITMENTS |
| The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. |
| The pension costs charge represents amounts payable to the fund for the year and amounted to £129,467 (2019: £119,704). |
| At the statement of financial reporting date contributions outstanding were £74,381 (2019: £72,035). |
| 21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to a director subsisted during the years ended 31 March 2020 and 31 March 2019: |
| 2020 | 2019 |
| £ | £ |
| D G Hallam |
| Balance outstanding at start of year | (4,572 | ) | (4,572 | ) |
| Amounts advanced | 123,264 | - |
| Amounts repaid | - | - |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | 118,692 | (4,572 | ) |
| 22. | RELATED PARTY DISCLOSURES |
| Key management personnel of the entity or its parent (in the aggregate) |
| 2020 | 2019 |
| £ | £ |
| Amount due from related party | 118,297 | - |
| Amount due to related party | - | 6,071 |
| WISE TECHNOLOGY GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 07243673) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2020 |
| 22. | RELATED PARTY DISCLOSURES - continued |
| Other related parties |
| 2020 | 2019 |
| £ | £ |
| Purchases | - | 15,719 |
| Amount due from related party | 2,817,195 | 32,892 |
| During the year, a total of key management personnel compensation of £ 584,807 was paid. |
| 23. | ULTIMATE CONTROLLING PARTY |
| The company is under the control of the directors. |