Laptop Power (NW) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07159039 (England and Wales)

Unaudited Financial Statements

for the Year Ended 28 February 2021

for

Laptop Power (NW) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

13

DIRECTORS:

M D Roughley

A Roughley

REGISTERED OFFICE:

Unit 6

Platinum Court

Knowsley

Liverpool

Merseyside

L33 7XN

REGISTERED NUMBER:

07159039 (England and Wales)

ACCOUNTANTS:

Jonathan Ford & Co Limited

Chartered Accountants

Maxwell House

Liverpool Innovation Park

Liverpool

Merseyside

L7 9NJ

FIXED ASSETS

Intangible assets

5

27,757

-

Tangible assets

6

147,975

114,893

175,732

114,893

CURRENT ASSETS

Stocks

1,558,585

1,593,089

Debtors

7

484,325

1,472,109

Cash at bank and in hand

331,557

229,327

2,374,467

3,294,525

CREDITORS

Amounts falling due within one year

8

1,044,336

1,808,873

NET CURRENT ASSETS

1,330,131

1,485,652

TOTAL ASSETS LESS CURRENT LIABILITIES

1,505,863

1,600,545

PROVISIONS FOR LIABILITIES

21,121

11,994

NET ASSETS

1,484,742

1,588,551

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

1,484,740

1,588,549

SHAREHOLDERS' FUNDS

1,484,742

1,588,551

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28 February 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 28 February 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 14 September 2021 and were signed on its behalf by:

M D Roughley - Director

A Roughley - Director

1.	STATUTORY INFORMATION

Laptop Power (NW) 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 (£).

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements are prepared under the historical cost convention and in accordance with the Companies Act 2006.

Going concern

The company generates sufficient cash to meet its day-to-day working capital requirements. The directors' forecasts and projections show that the company should be able to operate within its current cash generation. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and continues to adopt the going concern basis in preparing the financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.

The preparation of financial statements requires the use of critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed below.

Significant judgements and estimates

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets

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.

(ii) Stock provisioning

The company sells electronic devices and is subject to changing consumer demands and technological advances. As a result it is necessary to consider the recoverability of the cost of the electronic devices, replacement parts and materials and the associated provisioning required.

When calculating the stock provision, management considers the nature and condition of the items, as well as applying assumptions around anticipated saleability or useability of those items.

(iii) Raw materials provisioning

The company purchases damaged and dysfunctional electronic devices ("salvage stock") to mine the raw materials it requires in its electronic device repair business. The company purchases the salvage stock via a bidding process and so the quantity and quality of the salvage stock does not correlate to the price paid. Furthermore, the components of salvage stock that are usable as spare parts does not correlate to the volume of salvage stock when considered across multiple batches.

When calculating the raw materials provision, there are too many devices in a batch of salvage stock to consider the condition of each item individually so management considers the average time period over which an average batch of salvage stock is deemed to be fully mined of usable parts.

(iv) Deferred tax provisioning

Deferred tax is recognised on all timing differences at the reporting date. The company's timing differences predominantly arise on the differing tax and accounting carrying values of tangible assets. Judgement is exercised by management in determining the useful economic lives and residual values of tangible assets which is relevant in calculating the value of deferred tax liabilities or assets.

(v) Impairment of debtors

The company 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, the ageing profile of debtors and historical experience.

Turnover

Turnover represents the value of goods and services provided during the year, excluding value added tax.

The company employs the income recognition policies detailed below in respect of its revenue streams.

(i) Sale of hardware

Revenue generated from hardware sales is recognised when the company receives the right to consideration. The right to consideration is received when the customer enters into a non-cancellable agreement with the company to provide the hardware.

(ii) Repair services

Revenue generated from installation services is recognised when the company receives the right to consideration. The right to consideration is received when the repairs have been carried out in full.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

The cost of the company's website is being amortised evenly over its useful life of three years.

Tangible fixed assets

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. Depreciation is calculated on a monthly basis.

Leasehold improvements

-

equal instalments over the term of the lease

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

33% on cost

The company operates out of two leasehold properties. Both leases have terms of five years.

Software provided in a bundle with associated hardware is treated as part of the tangible asset as a whole and capitalised within computer equipment.

Stocks

(i) Finished goods

Finished goods stock is stated at the lower of cost and net realisable value. Stock is recognised as an expense in the period in which the related revenue is recognised.

Finished goods stock is assessed for impairment on an annual basis. If an item is impaired, the item is reduced to net realisable value and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is recognised, the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

(ii) Salvage stock

Salvage stock is comprised of damaged electrical devices purchased in bulk in order for working components to be mined and used in the company's repair business. Upon purchase the salvage stock is included within current assets and then released to profit and loss over 12 months, being the average period of time over which the individual items within a batch of salvage stock are consumed or determined to be scrap.

The rate of consumption of salvage stock is assessed at the year end and an additional impairment charge or credit included in profit and loss.

Current tax

Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Deferred tax

Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted and that are expected to apply to the reversal of the timing difference.

Foreign currencies

The company's functional and presentational currency is pound sterling.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. Foreign currency transactions are settled on the date of the transaction.

At each statement of financial position date foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

Operating leases

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account 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.

Employee benefits

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

Financial instruments

(i) Financial assets

Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

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 profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables and bank loans 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.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 65 (2020 - 65 ) .

5.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

Additions

38,433

At 28 February 2021

38,433

AMORTISATION

Charge for year

10,676

At 28 February 2021

10,676

NET BOOK VALUE

At 28 February 2021

27,757

6.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 March 2020

70,125

59,140

330,871

201,695

661,831

Additions

49,980

632

41,633

2,025

94,270

At 28 February 2021

120,105

59,772

372,504

203,720

756,101

DEPRECIATION

At 1 March 2020

36,722

58,131

250,390

201,695

546,938

Charge for year

18,947

1,592

40,493

156

61,188

At 28 February 2021

55,669

59,723

290,883

201,851

608,126

NET BOOK VALUE

At 28 February 2021

64,436

49

81,621

1,869

147,975

At 29 February 2020

33,403

1,009

80,481

-

114,893

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.21

29.2.20

£

£

Trade debtors

410,000

397,692

Other debtors

30,064

30,064

Tax

16,792

995,288

Accruals

3,954

-

Prepayments

23,515

49,065

484,325

1,472,109

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.21

29.2.20

£

£

Trade creditors

113,186

147,481

Taxation and social security

115,264

151,215

Other creditors

815,886

1,510,177

1,044,336

1,808,873

9.	OTHER FINANCIAL COMMITMENTS

The company is committed to pay £258.010 (2020 - £131,674) under non-cancellable operating leases. Of this total, the amount due within one year of the balance sheet date is £77,584 (2020 - £54,090).

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the year, the company's directors loaned £1,978,702 (2020 - £2,886,906) to the company and the company repaid £2,691,968 (2020 - £1,956,301). The amount owed to (2020 - to) the directors at the year end amounted to £785,980 (2020 - £1,499,246). The loans from the directors are unsecured, interest free, repayable on demand and no guarantees have been given by the company.

11.	ULTIMATE CONTROLLING PARTY

The company is not controlled by any one individual.

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Laptop Power (NW) Limited for the year ended 28 February 2021 which comprise the Income Statement, Balance Sheet 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 Board of Directors of Laptop Power (NW) Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Laptop Power (NW) Limited and state those matters that we have agreed to state to the Board of Directors of Laptop Power (NW) Limited, as a body, 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 Laptop Power (NW) Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Laptop Power (NW) 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 loss of Laptop Power (NW) Limited. You consider that Laptop Power (NW) 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 Laptop Power (NW) 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.

Jonathan Ford & Co Limited

Chartered Accountants

Maxwell House

Liverpool Innovation Park

Liverpool

Merseyside

L7 9NJ

Date: .............................................