Contact IT Solutions Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06948650 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 July 2020

for

Contact IT Solutions Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

M Townsend

REGISTERED OFFICE:

4b Invincible Road Industrial Estate

Farnborough

GU14 7QU

REGISTERED NUMBER:

06948650 (England and Wales)

ACCOUNTANTS:

Ledger Sparks Limited

Airport House

Suite 43-45

Purley Way

Croydon

CR0 0XZ

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

5,147

7,806

5,147

7,806

CURRENT ASSETS

Stocks

60,003

87,083

Debtors

6

69,764

67,490

Cash at bank

63,884

2,123

193,651

156,696

CREDITORS

Amounts falling due within one year

7

(143,950

)

(120,379

)

NET CURRENT ASSETS

49,701

36,317

TOTAL ASSETS LESS CURRENT LIABILITIES

54,848

44,123

CREDITORS

Amounts falling due after more than one year

8

(53,542

)

-

PROVISIONS FOR LIABILITIES

10

(978

)

(1,483

)

NET ASSETS

328

42,640

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

11

228

42,540

328

42,640

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the director and authorised for issue on 30 April 2021 and were signed by:

M Townsend - Director

1.	STATUTORY INFORMATION

Contact IT Solutions 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.

The presentation currency of the financial statements is the Pound Sterling (£).

The principal activity of the company continued to be that of the provision of computer cabling and accessories, as well as computer cabling installations.

2.	ACCOUNTING POLICIES

ACCOUNTING CONVENTION

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.

TURNOVER

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

INTANGIBLE FIXED ASSETS - GOODWILL

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years .

TANGIBLE FIXED ASSETS

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment 25% Reducing balance

Motor vehicles 25% Straight line

STOCKS

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties, loan to related parties and investments in non-puttable ordinary shares.

TAXATION

The tax expense represents the sum of the tax currently payable and deferred tax.

CURRENT TAX

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

DEFERRED TAX

Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date.

LEASES

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

GOING CONCERN

At the time of approving the financial statements , the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of comprehensive income in the year that the Company becomes aware of the obligation and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in Balance sheet.

PENSION

Defined contribution pension plan

The company operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2019 - 6 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 August 2019

and 31 July 2020

2,000

AMORTISATION

At 1 August 2019

and 31 July 2020

2,000

NET BOOK VALUE

At 31 July 2020

-

At 31 July 2019

-

5.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 August 2019

21,546

22,120

43,666

Additions

1,490

-

1,490

Disposals

(2,700

)

(22,120

)

(24,820

)

At 31 July 2020

20,336

-

20,336

DEPRECIATION

At 1 August 2019

13,740

22,120

35,860

Charge for year

1,674

-

1,674

Eliminated on disposal

(225

)

(22,120

)

(22,345

)

At 31 July 2020

15,189

-

15,189

NET BOOK VALUE

At 31 July 2020

5,147

-

5,147

At 31 July 2019

7,806

-

7,806

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

53,188

44,867

Other debtors

4,453

9,207

Corporation tax repayable

8,711

8,711

Prepayments and accrued income

3,412

4,705

69,764

67,490

The director considers the carrying value of trade and other receivables approximate to their fair values

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

6,250

-

Credit card

28,769

22,637

Corporation tax

12,350

8,711

Social security and other tax

3,510

3,246

VAT

38,011

11,858

Other creditors

1,057

-

Trade Creditors

49,807

71,548

Wages and salaries control

556

-

Directors' current accounts

538

640

Accruals and deferred income

3,102

1,739

143,950

120,379

The directors consider the carrying amounts of current liabilities approximate to their fair values.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans - 2-5 years

53,542

-

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020

2019

£

£

Within one year

499

2,996

Between one and five years

-

499

499

3,495

10.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Deferred tax

978

1,483

Deferred

tax

£

Balance at 1 August 2019

1,483

Credit to Statement of Income and Retained Earnings during year

(505

)

Balance at 31 July 2020

978

11.

RESERVES

Profit and loss reserve

The Profit and loss account comprises all current and prior period retained profit and losses after deducting any distributions made to the company's shareholders. This is a distributable reserve.

12.	PENSION COMMITMENTS

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. The pension costs charge represents contributions payable by the company to the fund and amounted to £1,018 (2019 - £2,903 ).

13.	RELATED PARTY DISCLOSURES

At the balance sheet date, included in other creditors are amounts payable to the director of £538 (2019 - £640).

14.	EVENT DURING THE REPORTING PERIOD

For the period ended on 31 July 2020, the Coronavirus (COVID-19) has emerged globally resulting in a significant impact on businesses worldwide. As a result some business operations have been restricted, however company continues to operate using alternative methods and remote working. The directors are unable to evaluate the overall financial impact on the business at present. Hence the financial statements do not include any adjustments that might result from the outcome of this uncertainty. The directors are continuing to monitor, assess and act with reference to the current changing environment in order to position the company to ensure its future success.