Velmex Computer Systems Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 02729319 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 July 2022

for

Velmex Computer Systems Limited

Page

Company Information

1

Chartered Accountants' Report

2

Statement of Financial Position

3

Notes to the Financial Statements

5

DIRECTORS:

M Keeley

R Keeley

L Keeley

M Keeley

D Judge

SECRETARY:

M Keeley

REGISTERED OFFICE:

Unit 8

Mole Business Park

Randalls Road

Leatherhead

Surrey

KT22 7BA

REGISTERED NUMBER:

02729319 (England and Wales)

ACCOUNTANTS:

PB Partners LLP

Endeavour House

78 Stafford Road

Wallington

Surrey

SM6 9AY

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 Statement of Financial Position. 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 Velmex Computer Systems Limited for the year ended 31 July 2022 which comprise the Income Statement, Statement of Financial Position 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 Velmex Computer Systems Limited, as a body, in accordance with the terms of our engagement letter dated 1 March 2010. Our work has been undertaken solely to prepare for your approval the financial statements of Velmex Computer Systems Limited and state those matters that we have agreed to state to the Board of Directors of Velmex Computer Systems 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 Velmex Computer Systems Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Velmex Computer Systems 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 profit of Velmex Computer Systems Limited. You consider that Velmex Computer Systems 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 Velmex Computer Systems 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.

PB Partners LLP

Endeavour House

78 Stafford Road

Wallington

Surrey

SM6 9AY

26 April 2023

FIXED ASSETS

Tangible assets

4

6,329

8,193

6,329

8,193

CURRENT ASSETS

Stocks

900,489

1,060,908

Debtors

5

1,978,846

1,931,869

Cash at bank

97,670

52,197

2,977,005

3,044,974

CREDITORS

Amounts falling due within one year

6

2,172,157

2,259,134

NET CURRENT ASSETS

804,848

785,840

TOTAL ASSETS LESS CURRENT LIABILITIES

811,177

794,033

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Retained earnings

810,177

793,033

SHAREHOLDERS' FUNDS

811,177

794,033

811,177

794,033

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2022 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 26 April 2023 and were signed on its behalf by:

M Keeley - Director

1.	STATUTORY INFORMATION

Velmex Computer Systems 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.	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.

Turnover

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

Tangible fixed assets

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

Plant and machinery

-

25% per annum on reducing balance

Motor vehicles

-

25% per annum on reducing balance

Computer equipment

-

25% per annum on reducing balance

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 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

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 statement of financial position 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 contributes to personal pension plans and a stakeholder scheme for employees. The assets of the scheme are held separately from those of the company in independently administered funds. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits represents contributions payable by the company to the schemes.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2021 - 16 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 1 August 2021

and 31 July 2022

9,000

17,125

11,669

37,794

DEPRECIATION

At 1 August 2021

7,088

12,985

9,528

29,601

Charge for year

435

942

487

1,864

At 31 July 2022

7,523

13,927

10,015

31,465

NET BOOK VALUE

At 31 July 2022

1,477

3,198

1,654

6,329

At 31 July 2021

1,912

4,140

2,141

8,193

5.

DEBTORS

2022

2021

£

£

Amounts falling due within one year:

Trade debtors

1,737,294

1,561,393

Amounts owed by related undertakings

84,858

48,964

Other debtors

-

181,096

Directors' current accounts

69,584

-

Prepayments and accrued income

42,110

95,416

1,933,846

1,886,869

2022

2021

£

£

Amounts falling due after more than one year:

Other debtors

45,000

45,000

Aggregate amounts

1,978,846

1,931,869

The directors' loans were repaid within 9 months of the year-end.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

1,585,956

1,760,032

Amounts owed to related undertakings

3,395

21,058

Corporation tax

78,942

63,193

Social security and other taxes

47,234

199,150

Other creditors

406,769

17,661

Directors' current accounts

3,663

4,079

Accruals and deferred income

46,198

193,961

2,172,157

2,259,134

7.	LEASING AGREEMENTS

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

2022

2021

£

£

Within one year

160,000

160,000

Between one and five years

640,000

640,000

In more than five years

1,120,000

1,120,000

1,920,000

1,920,000

8.	RELATED PARTY DISCLOSURES

M Keeley, L Keeley and D Judge, who are directors of the company, are also directors of Big Print Plan Limited. M Keeley is also a director of Velmex Technical Services Limited.

The company acts as an agent for Big Print Plan Limited. During the year ended 31 July 2022 the company made sales of £5,743 (2021: £38,577) on behalf of Big Print Plan Limited. The company also made sales directly to Big Print Plan Limited of £287,286 (2021: £132,899).

During the year the company charged management fees of £2,000 (2021: £6,000) to Big Print Plan Limited and £nil (2021 : £nil) to Velmex Technical Services Ltd. The company also recharged expenses of £55,626 (2021 : £232,171) to Velmex Technical Services Limited, and was charged a management fee of £nil (2021 :£nil).

At the balance sheet date, the amounts outstanding were as follows:

2022

2021

Due from

Due to

Due from

Due to

£

£

£

£

Big Print Plan Limited

84,858

-

-

21,058

Velmex Technical Services Ltd

-

3,395

48,964

-

84,858

3,395

48,964

21,058

9.	ULTIMATE CONTROLLING PARTY

The company is controlled by the directors.

10.	COMMITMENTS AND CONTINGENT LIABILITIES

HSBC Bank Plc holds a debenture dated 11 May 2005 securing the company's indebtedness to the bank by a fixed and floating charge over the company's assets.

HSBC Invoice Finance (UK) Limited holds a fixed charge on non vesting debts and a floating charge dated 18 April 2012 securing all monies due to the company.

There are also personal guarantees given by Mr R Keeley, Mr M Keeley, Mrs M Keeley and Mrs L Keeley for £125,000 securing the company's invoice financing facility with the bank, and for £650,000 with Canon to support the company's credit limit.

Other than the above, the company had no capital commitments or contingent liabilities at the balance sheet date.