Corporate Mobile Recycling Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04591053 (England and Wales)

CORPORATE MOBILE RECYCLING LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD

1ST APRIL 2020 TO 31ST JANUARY 2021

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

M. Harrison

S Nolan

R. Rudolf

S D Philp

SECRETARY:

M. Harrison

REGISTERED OFFICE:

3 Long Yard,

Holborn,

London

WC1N 3LS

REGISTERED NUMBER:

04591053 (England and Wales)

AUDITORS:

Cobbin Floyd Ltd

t/as Findlay Wetherfield Scott & Co

Chartered Accountants and Statutory Auditors

137, Station Road,

Chingford,

London

E4 6AG

BANKERS:

Barclays Bank plc.,

54 Lombard Street,

London,

EC3P 3AH

The directors present their strategic report for the period 1st April 2020 to 31st January 2021.

ON BEHALF OF THE BOARD:

M. Harrison - Secretary

22nd October 2021

The directors present their report with the financial statements of the company for the period 1st April 2020 to 31st January 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of the wholesale of second hand mobile telephones and accessories.

DIVIDENDS

No dividends will be distributed for the period ended 31st January 2021.

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st April 2020 to the date of this report.

M. Harrison

S Nolan

R. Rudolf

Other changes in directors holding office are as follows:

S D Philp was appointed as a director after 31st January 2021 but prior to the date of this report.

O. Tagg and H. Tuffnail ceased to be directors after 31st January 2021 but prior to the date of this report.

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.

AUDITORS

The auditors, Cobbin Floyd Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M. Harrison - Secretary

22nd October 2021

Opinion

We have audited the financial statements of Corporate Mobile Recycling Limited (the 'company') for the period ended 31st January 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31st January 2021 and of its loss for the period 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

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 three, 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We assessed the risks of material misstatement in respect of fraud.

Based on the results of our risk assessment we designed our audit procedures to identify any areas of non-compliance.

Enquiries were made and sufficient audit evidence was obtained in order to verify all material items on the balance sheet.

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.

S. Cobbin (Senior Statutory Auditor)

for and on behalf of Cobbin Floyd Ltd

t/as Findlay Wetherfield Scott & Co

Chartered Accountants and Statutory Auditors

137, Station Road,

Chingford,

London

E4 6AG

22nd October 2021

TURNOVER

3

20,321,406

25,114,061

Raw materials and consumables

17,051,807

20,345,983

Staff costs

4

739,827

1,097,738

Depreciation

2,852

8,030

Other operating expenses

2,793,920

2,902,831

3,536,599

4,008,599

OPERATING (LOSS)/PROFIT

5

(267,000

)

759,479

Interest payable and similar expenses

6

26,220

35,338

(LOSS)/PROFIT BEFORE TAXATION

(293,220

)

724,141

Tax on (loss)/profit

7

(3,030

)

137,530

(LOSS)/PROFIT FOR THE FINANCIAL PERIOD

(290,190

)

586,611

(LOSS)/PROFIT FOR THE PERIOD

(290,190

)

586,611

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

(290,190

)

586,611

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

5,502

2,970

Investments

10

60,380

60,380

65,882

63,350

CURRENT ASSETS

Stocks

11

3,665,253

5,853,127

Debtors

12

880,653

1,017,998

Cash at bank

3,312,608

867,491

7,858,514

7,738,616

CREDITORS

Amounts falling due within one year

13

3,676,670

3,264,050

NET CURRENT ASSETS

4,181,844

4,474,566

TOTAL ASSETS LESS CURRENT LIABILITIES

4,247,726

4,537,916

CAPITAL AND RESERVES

Called up share capital

14

10,000

10,000

Retained earnings

15

4,237,726

4,527,916

SHAREHOLDERS' FUNDS

4,247,726

4,537,916

The financial statements were approved by the Board of Directors and authorised for issue on 22nd October 2021 and were signed on its behalf by:

M. Harrison - Director

S Nolan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2019

10,000

3,941,305

3,951,305

Changes in equity

Total comprehensive income

-

586,611

586,611

Balance at 31st March 2020

10,000

4,527,916

4,537,916

Changes in equity

Total comprehensive income

-

(290,190

)

(290,190

)

Balance at 31st January 2021

10,000

4,237,726

4,247,726

Cash flows from operating activities

Cash generated from operations

1

2,476,721

(3,018,704

)

Interest paid

(26,220

)

(35,338

)

Tax paid

-

(134,500

)

Net cash from operating activities

2,450,501

(3,188,542

)

Cash flows from investing activities

Purchase of tangible fixed assets

(5,384

)

(1,942

)

Net cash from investing activities

(5,384

)

(1,942

)

Cash flows from financing activities

Share issue

-

10,000

Net cash from financing activities

-

10,000

Increase/(decrease) in cash and cash equivalents

2,445,117

(3,180,484

)

Cash and cash equivalents at beginning of period

2

867,491

4,047,975

Cash and cash equivalents at end of period

2

3,312,608

867,491

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.4.20

to

Year Ended

31.1.21

31.3.20

£

£

(Loss)/profit before taxation

(293,220

)

724,141

Depreciation charges

2,852

8,030

Finance costs

26,220

35,338

(264,148

)

767,509

Decrease/(increase) in stocks

2,187,874

(6,029,235

)

Decrease/(increase) in trade and other debtors

137,345

(1,017,998

)

Increase in trade and other creditors

415,650

3,261,020

Cash generated from operations

2,476,721

(3,018,704

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31st January 2021

31.1.21

1.4.20

£

£

Cash and cash equivalents

3,312,608

867,491

Year ended 31st March 2020

31.3.20

1.4.19

£

£

Cash and cash equivalents

867,491

4,047,975

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.20

Cash flow

At 31.1.21

£

£

£

Net cash

Cash at bank and in hand

867,491

2,445,117

3,312,608

867,491

2,445,117

3,312,608

Total

867,491

2,445,117

3,312,608

1.	STATUTORY INFORMATION

Corporate Mobile Recycling Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amounts paid in connection with the acquisition of businesses in 2003 and 2010, are being amortised evenly over their estimated useful lives of ten years each.

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.

Tangible fixed assets

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

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Computer equipment

-

33% on cost

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.

Taxation

Taxation for the period 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 period 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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.

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.

3.

TURNOVER

The turnover and loss (2020 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

Period

1.4.20

to

Year Ended

31.1.21

31.3.20

£

£

United Kingdom

20,321,406

25,114,061

20,321,406

25,114,061

4.	EMPLOYEES AND DIRECTORS

Period

1.4.20

to

Year Ended

31.1.21

31.3.20

£

£

Wages and salaries

610,887

918,003

Social security costs

61,201

89,744

Other pension costs

67,739

89,991

739,827

1,097,738

The average number of employees during the period was as follows:

Period

1.4.20

to

Year Ended

31.1.21

31.3.20

36

35

Period

1.4.20

to

Year Ended

31.1.21

31.3.20

£

£

Directors' remuneration

156,667

138,000

Directors' pension contributions to money purchase schemes

60,000

72,000

5.	OPERATING (LOSS)/PROFIT

The operating loss (2020 - operating profit) is stated after charging:

Period

1.4.20

to

Year Ended

31.1.21

31.3.20

£

£

Depreciation - owned assets

2,852

3,633

Goodwill amortisation

-

4,397

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.4.20

to

Year Ended

31.1.21

31.3.20

£

£

Other interest

26,220

35,338

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the period was as follows:

Period

1.4.20

to

Year Ended

31.1.21

31.3.20

£

£

Current tax:

UK corporation tax

(3,030

)

137,530

Tax on (loss)/profit

(3,030

)

137,530

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

Cost

At 1st April 2020

and 31st January 2021

43,953

Amortisation

At 1st April 2020

and 31st January 2021

43,953

Net book value

At 31st January 2021

-

At 31st March 2020

-

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

Cost

At 1st April 2020

5,367

63,375

83,040

151,782

Additions

-

-

5,384

5,384

At 31st January 2021

5,367

63,375

88,424

157,166

Depreciation

At 1st April 2020

5,367

62,128

81,317

148,812

Charge for period

-

994

1,858

2,852

At 31st January 2021

5,367

63,122

83,175

151,664

Net book value

At 31st January 2021

-

253

5,249

5,502

At 31st March 2020

-

1,247

1,723

2,970

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

Cost

At 1st April 2020

and 31st January 2021

60,380

Net book value

At 31st January 2021

60,380

At 31st March 2020

60,380

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Retrofone Limited

Registered office:

Nature of business: Dormant company

%

Class of shares:

holding

Ordinary

100.00

2021

2020

£

£

Aggregate capital and reserves

90

90

Corporate Mobile Recycling Limited acquired the whole of the ordinary issued share capital of Retrofone Limited on 12th March 2010. Retrofone Limited distributed all of its retained profits to the parent company and is being treated as being dormant throughout the whole of the year under review.

Corporate Mobile Recycling Espana S.L.

Registered office:

Nature of business: Sale of second hand mobile telephones

%

Class of shares:

holding

Ordinary

100.00

2021

2020

£

£

Aggregate capital and reserves

153,796

129,513

Profit for the period/year

34,090

19,699

Corporate Mobile Recycling Limited acquired 75.02% of the ordinary issued share capital of Corporate Mobile Recycling Espana S.L. on 1st April 2010. The company acquired the remaining shares on 14th May 2015 and now owns 100% of the ordinary issued share capital of Corporate Mobile Recycling Espana S.L

Sarl AS 24 Communications - Fonebank

Registered office:

Nature of business: Sale of second hand mobile telephones

%

Class of shares:

holding

Ordinary

100.00

2021

31/1/20

£

£

Aggregate capital and reserves

(26,645

)

131,207

Profit for the period

128,040

85,195

Corporate Mobile Recycling Limited acquired the whole of the ordinary issued share capital of Sarl AS 24 Communications - Fonebank on 9th May 2014.

11.

STOCKS

2021

2020

£

£

Stocks

3,665,253

5,853,127