4Net Technologies Ltd - Limited company accounts 20.1
4Net Technologies Ltd - Limited company accounts 20.1
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2020 |
FOR |
4NET TECHNOLOGIES LTD |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2020 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
4NET TECHNOLOGIES LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2020 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Statutory Auditors and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2020 |
The directors present their strategic report for the year ended 30 June 2020. |
REVIEW OF BUSINESS |
The financial period to 30th June 2020 was another successful year for 4Net Technologies Ltd. |
The business continued its significant growth during the 12 months to end of June 2020, with an increase in overall revenues of 20% and in net profit before tax of 89% on the previous year. |
This growth was largely due to the continued success of the company's cloud platforms; Antenna (Government) and Agile Cloud, but also due to continued significant wins in the Emergency Services market. |
Due to the global COVID-19 pandemic beginning at the start of 2020, 4Net had to react quickly in an already fast-moving industry as national and international restrictions were brought in changing the communication needs for all types of businesses in different ways. We were able to ensure all of our key customers' needs were met during this time with as little disruption as possible. The pandemic also highlighted the need to move towards a more cloud based communications platform for most businesses during in this time, which has driven 4Net to make huge strides in this area, incorporating Microsoft Teams and Avaya ACO platforms into our portfolio, as well as making further significant investments into our own Agile Cloud and Antenna platforms. |
Once again our main vendor partner, Avaya, recognised our success by awarding us 'Avaya Growth Partner of the year 2020'. We were also listed in the 'Financial Times' Europe's Top 1000 fastest growing companies', ranking 819, and ranked number 81 in the 'Sunday Times' Tech Track 100' in recognition of our significant growth in the last 3 years. Making this another great year for 4net. |
FY21 promises continued growth with revenues forecast to grow by approximately 20% and profit growth approaching 30%, as the business continues to benefit from already contracted new Cloud and Managed Service wins and expected wins from new frameworks. Cashflow forecast remains strong. |
We relaunched our market facing brand as FourNet during the period (our legal entity remains 4net Technologies). The brand and proposition development repositions us in relation to the changing set of competitors we are now competing against. The brand strengthens our positioning as a cloud and managed services provider helping customers achieve their digital transformation and customer experience goals rather than as a telecoms provider. We have incorporated strong sector propositions for our key market sectors. |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2020 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Covid-19 has hit many companies hard during the last 12 months and still poses potential risks for many others. While 4Net have not suffered any major effects from this, the risks to us from customer investment levels being changed or delayed has been something the Senior Management Team have been aware of and taking action in order to mitigate to impact. This has resulted in changes to our product and supplier portfolios to ensure we can offer our customers a range of flexible communications platforms which suit their ever changing needs best. We have also ensured we are continuously improving our employee skillset through a mixture or recruitment and training. |
The business engages with two key suppliers in the delivery of a significant proportion of its products and services, namely AVAYA and Enghouse. Reputational and contractual risk exists in the event that either of these two key suppliers' product or service offerings fails to meet the Company's customer requirements, or through changes in their Go To Market Strategy. 4Net mitigates these risks by closely engaging with these suppliers at senior level to understand their product roadmaps and business models, and where possible help steer these and also by continually scanning the market for potential additional suppliers and partners to help improve the services we provide to our customers. 4Net portfolio reviews take place quarterly to this end. |
Loss of market competitiveness is a risk should the Company fail to keep up with the introduction of new technological advances. The Company operates and maintains Cloud infrastructure platforms that are utilised by its customers. 4Net run a continual improvement process, whereby we measure the competitiveness of our services, and in particular, our Cloud platforms against our competitors.We constantly analyse the market and engage with our customers to predict future demand; we have formally introduced a product portfolio board that meets on a quarterly basis to steer our solutions roadmap ensuring we are constantly innovating and responding to market demand. |
ON BEHALF OF THE BOARD: |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2020 |
The directors present their report with the financial statements of the company for the year ended 30 June 2020. |
DIVIDENDS |
The total distribution of dividends for the period ended 30 June 2020 will be £nil. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2019 to the date of this report. |
Other changes in directors holding office are as follows: |
CHARITABLE DONATIONS |
During the year the company made charitable donations of £2,193 (2019: £1,589), none of which were for political causes. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2020 |
AUDITORS |
The auditors, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
4NET TECHNOLOGIES LTD |
Opinion |
We have audited the financial statements of 4Net Technologies Ltd (the 'company') for the year ended 30 June 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 30 June 2020 and of its 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 company 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 company'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 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. |
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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
4NET TECHNOLOGIES LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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 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 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. |
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 |
Statutory Auditors and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2020 |
2020 | 2019 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2020 |
2020 | 2019 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
BALANCE SHEET |
30 JUNE 2020 |
2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
Investments | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2020 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 July 2018 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 June 2019 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 June 2020 |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2020 |
1. | STATUTORY INFORMATION |
4Net Technologies Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 05448638 and the company's registered office is 3 Scholar Green Road, Cobra Court, Trafford Park, Manchester, M32 0TR. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention. and in accordance with the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
The results are presented for the company as a single entity and the functional currency of the financial statements is Pound Sterling (£). |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c). |
Preparation of consolidated financial statements |
The financial statements contain information about 4Net Technologies Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, 4Net Holdings Limited, 3 Scholar Green Road, Stretford, Manchester, England, M32 0TR. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Work in progress |
The directors make judgements as to whether the final outcome on long term assignments can be assessed with reasonable certainty before profits are calculated. |
The directors also make judgements as to the amount of profit that is calculated on long term assignments such that it prudently reflects the proportion of the work carried out by the year end by recording turnover and related costs as contract activity progresses. |
Trade debtors recoverability |
Amounts recoverable on trade debtors are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. The directors make estimates as to the recoverability of these debts and provide for them accordingly. |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
For telephony installations, turnover is recognised when a right to consideration has been obtained through performance on each assignment. Consideration accrues as activity progresses by reference to the value of work performed. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets, which include work in progress, trade debtors, other debtors, amounts due from group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised. |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities, including trade creditors and other creditors, 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 payments discounted at a market rate of interest. |
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
2. | ACCOUNTING POLICIES - continued |
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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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 |
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. |
Going concern |
Based on current trading and future expectations, the directors are confident the company will continue to trade profitably in future periods and generate sufficient cash flows to meet its obligations as they fall due for payment. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2020 | 2019 |
£ | £ |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
3. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
2020 | 2019 |
£ | £ |
United Kingdom |
Europe |
4. | 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 |
Directors | 4 | 4 |
Employees | 86 | 75 |
2020 | 2019 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director is as follows: |
2020 | 2019 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2020 | 2019 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
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 | ( |
) |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower 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 | 47,941 | 9,065 |
R&D claim | (135,693 | ) | - |
Group relief | (85,377 | ) | - |
Total tax charge | 19,059 | 252,934 |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
7. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2019 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 June 2020 |
DEPRECIATION |
At 1 July 2019 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 June 2020 |
NET BOOK VALUE |
At 30 June 2020 |
At 30 June 2019 |
8. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
Additions |
At 30 June 2020 |
NET BOOK VALUE |
At 30 June 2020 |
The company purchased the 100% share capital of 4Net Technologies Managed Service Ireland Limited on 23rd December 2019. 4Net Technologies Managed Service Limited is registered in Ireland, and its principal activity is the provision of telecommunications services. |
9. | STOCKS |
2020 | 2019 |
£ | £ |
Stocks |
Work in progress |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments and accrued income |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | - | 292,000 |
Accruals and deferred income |
12. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2020 | 2019 |
£ | £ |
Within one year |
Between one and five years |
13. | PROVISIONS FOR LIABILITIES |
2020 | 2019 |
£ | £ |
Deferred tax | 110,981 | 63,040 |
Deferred |
tax |
£ |
Balance at 1 July 2019 |
Charge to Income Statement during year |
Balance at 30 June 2020 |
4NET TECHNOLOGIES LTD (REGISTERED NUMBER: 05448638) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
Ordinary | £0.00 | 5 | 1,107 | 1,107 |
15. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. During the year the company contributed £450,656 (2019: £264,645). |
Creditors include £32,141 (2019: £29,672) in respect of outstanding pension contributions at the year end. |
16. | ULTIMATE PARENT COMPANY |
4Net Holdings Limited is regarded by the directors as being the company's ultimate parent company. |
17. | RELATED PARTY DISCLOSURES |
During the year the company repaid its directors £292,000, leaving a balance on their loan accounts of £ |
nil (2019: £292,000), which amounts to £nil for each director. This is included within creditors due within one year. |
At 30 June 2020 the company was owed £2,461,789 (2019: £1,695,677) by its parent company, 4Net Holdings Ltd. The transactions in the year represent expenses paid on behalf of the parent company of £878,962 (2019: £239,949) and cash payments of £nil (2019: £250,000). Management charges of £72,160 were paid to the parent company during the year. |
During the year the company purchased an investment in Ireland. At the year end the company was owed £111,316 from 4Net Technologies Managed Service Ireland Limited. The transactions in the year represent expenses paid on behalf of the subsidiary of £111,316. |