PowerFleet Systems Ltd - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 04001259 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

POWERFLEET SYSTEMS LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

Ms L Joyce

REGISTERED OFFICE:

10 St. Ann Street

Salisbury

Wiltshire

SP1 2DN

REGISTERED NUMBER:

04001259 (England and Wales)

SENIOR STATUTORY AUDITOR:

Susan Sullivan FCA

AUDITORS:

Rothmans Audit LLP

Avebury House

St Peter Street

Winchester

Hampshire

SO23 8BN

BANKERS:

Barclays Bank Plc

2-6 High Street

Salisbury

Wiltshire

SP1 2NP

CURRENT ASSETS

Stocks

25,486

7,756

Debtors

4

50,149

54,545

Cash at bank and in hand

331,237

314,326

406,872

376,627

CREDITORS

Amounts falling due within one year

5

1,918,012

1,788,714

NET CURRENT LIABILITIES

(1,511,140

)

(1,412,087

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,511,140

)

(1,412,087

)

CREDITORS

Amounts falling due after more than one year

6

14,677

-

NET LIABILITIES

(1,525,817

)

(1,412,087

)

CAPITAL AND RESERVES

Called up share capital

176

176

Retained earnings

(1,525,993

)

(1,412,263

)

SHAREHOLDERS' FUNDS

(1,525,817

)

(1,412,087

)

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 director and authorised for issue on 14 March 2023 and were signed by:

Ms L Joyce - Director

1.	STATUTORY INFORMATION

PowerFleet Systems Ltd 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.	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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgments, 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 revision and future periods where the revision affects both the current and future periods.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable for the provision of

vehicle tracking system sales.

Revenue is recognised upon delivery and acceptance of the goods by the customer at which time the significant risks and rewards of ownership of the goods have transferred to the customer.

Revenue is recognised on systems leased to customers in accordance with the terms and conditions attached to the leasing agreement. The risks and rewards associated with the leasing of equipment pass to the customer in accordance with the terms of the lease agreement.

Stocks

The company holds stock of components and consumables. Certain components are subject to technological obsolescence and in these circumstances these items have been valued by the directors at the lower of cost or net realisable value.

Parts and components are issued to production on a first in first out basis.

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.

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

The financial statements have been prepared on a going concern basis, which assumes that the company will continue in existence for the foreseeable future.

The parent company has declared its intention to continue to support the company for the foreseeable future and will not require repayment of its loans within a period of 12 months following the date of signing these accounts, unless its cash flow permits such a payment to be made without impacting upon its ability to continue to trade.

The directors' consider that in preparing the financial statements they have taken into account all information that could reasonably be expected to be available. On this basis they consider that it is appropriate to prepare the financial statements on a going concern basis.

Debtors

Debtors do not carry and interest and are stated at their nominal value. Appropriate allowances for estimated irrecoverable amounts are recognised in the Profit and Loss account when there is objective evidence that the asset is impaired.

Creditors

Creditors are not interest bearing and are stated at their nominal value.

Cash and cash equivalents

These comprise cash at bank and other short term highly liquid deposits.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2020 - 8 ) .

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade debtors

32,382

40,658

Other debtors

17,767

13,887

50,149

54,545

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade creditors

(2,869

)

4,274

Amounts owed to group undertakings

1,875,580

1,743,981

Taxation and social security

4,994

20,858

Other creditors

40,307

19,601

1,918,012

1,788,714

6.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

£

£

Other creditors

14,677

-

7.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Susan Sullivan FCA (Senior Statutory Auditor)

for and on behalf of Rothmans Audit LLP

8.	RELATED PARTY DISCLOSURES

Interest was charged on loans to Powerfleet Systems Ltd of £45,956 (2020 - £48,486) by other group undertakings.

9.	ULTIMATE PARENT COMPANY