Setfords Technology Ltd - Limited company accounts 23.1

REGISTERED NUMBER: 07715931 (England and Wales)

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE PERIOD 1 AUGUST 2021 TO 31 OCTOBER 2022

FOR

SETFORDS TECHNOLOGY LTD

Page

Company Information

1

Report of the Directors

2

Chartered Accountants' Report

3

Income Statement

4

Balance Sheet

5

Statement of Changes in Equity

7

Notes to the Financial Statements

8

DIRECTORS:

M P Matthews

D M Matthews

M Crowhurst

D C Setford

REGISTERED OFFICE:

Northavon House

Pows Orchard

Midsomer Norton

Radstock

BA3 2HY

REGISTERED NUMBER:

07715931 (England and Wales)

ACCOUNTANTS:

Burnside

Chartered Accountants

and Statutory Auditor

61 Queen Square

Bristol

BS1 4JZ

The directors present their report with the financial statements of the company for the period 1 August 2021 to 31 October 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of the sale and hire of water treatment systems.

REVIEW OF BUSINESS

The company was acquired by Northavon Water Solutions Ltd on 16 February 2022 and became part of the group headed by Northavon Holdings Limited.

The company extended its accounting reference date to 31 October 2022 to fall in line with that group.

DIRECTORS

D C Setford has held office during the whole of the period from 1 August 2021 to the date of this report.

Other changes in directors holding office are as follows:

M P Matthews - appointed 16 February 2022

D M Matthews - appointed 16 February 2022

M Crowhurst - appointed 16 February 2022

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

M P Matthews - Director

27 March 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Setfords Technology Ltd for the period ended 31 October 2022 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity 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 Setfords Technology Ltd, 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 Setfords Technology Ltd and state those matters that we have agreed to state to the Board of Directors of Setfords Technology Ltd, 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 Setfords Technology Ltd and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Setfords Technology Ltd 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 Setfords Technology Ltd. You consider that Setfords Technology Ltd is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or a review of the financial statements of Setfords Technology Ltd. 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.

Burnside

Chartered Accountants

61 Queen Square

Bristol

BS1 4JZ

27 March 2023

TURNOVER

3,313,726

587,148

Cost of sales

3,122,959

445,234

GROSS PROFIT

190,767

141,914

Administrative expenses

248,312

41,913

OPERATING (LOSS)/PROFIT

4

(57,545

)

100,001

Interest receivable and similar income

25

294

(57,520

)

100,295

Interest payable and similar expenses

-

415

(LOSS)/PROFIT BEFORE TAXATION

(57,520

)

99,880

Tax on (loss)/profit

5

(8,752

)

16,548

(LOSS)/PROFIT FOR THE FINANCIAL PERIOD

(48,768

)

83,332

FIXED ASSETS

Tangible assets

6

11,576

12,197

CURRENT ASSETS

Debtors

7

594,242

125,607

Cash at bank

192,908

20,910

787,150

146,517

CREDITORS

Amounts falling due within one year

8

836,269

147,664

NET CURRENT LIABILITIES

(49,119

)

(1,147

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(37,543

)

11,050

PROVISIONS FOR LIABILITIES

9

175

-

NET (LIABILITIES)/ASSETS

(37,718

)

11,050

CAPITAL AND RESERVES

Called up share capital

10

100

100

Retained earnings

(37,818

)

10,950

SHAREHOLDERS' FUNDS

(37,718

)

11,050

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

The members have not required the company to obtain an audit of its financial statements for the period ended 31 October 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 in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 27 March 2023 and were signed on its behalf by:

M P Matthews - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2020

100

7,618

7,718

Changes in equity

Dividends

-

(80,000

)

(80,000

)

Total comprehensive income

-

83,332

83,332

Balance at 31 July 2021

100

10,950

11,050

Changes in equity

Total comprehensive income

-

(48,768

)

(48,768

)

Balance at 31 October 2022

100

(37,818

)

(37,718

)

1.	STATUTORY INFORMATION

Setfords Technology 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.

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 each asset over its estimated useful life.

Plant and machinery

-

20% on cost

Fixtures and fittings

-

25% on reducing balance

Computer equipment

-

33% on cost

Financial instruments

Financial assets and liabilities are recognised in the balance sheet when the company becomes party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and are measured on initial recognition at transaction price. Debtors and creditors are subsequent measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of any direct issue costs.

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.

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.

Going concern

The directors have considered the company's ability to continue as a going concern for at least 12 months from the date of signing the financial statements and have concluded that they consider the company a going concern.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 2 (2021 - 2 ) .

4.	OPERATING (LOSS)/PROFIT

The operating loss (2021 - operating profit) is stated after charging:

Period

1.8.21

to

Year Ended

31.10.22

31.7.21

£

£

Depreciation - owned assets

4,261

1,687

5.

TAXATION

Analysis of the tax (credit)/charge

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

Period

1.8.21

to

Year Ended

31.10.22

31.7.21

£

£

Current tax:

UK corporation tax

(8,927

)

16,548

Deferred tax

175

-

Tax on (loss)/profit

(8,752

)

16,548

UK corporation tax has been charged at 19% (2021 - 19%).

6.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 August 2021

14,065

848

4,667

19,580

Additions

3,640

-

-

3,640

At 31 October 2022

17,705

848

4,667

23,220

DEPRECIATION

At 1 August 2021

3,216

315

3,852

7,383

Charge for period

3,580

167

514

4,261

At 31 October 2022

6,796

482

4,366

11,644

NET BOOK VALUE

At 31 October 2022

10,909

366

301

11,576

At 31 July 2021

10,849

533

815

12,197

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

441,716

122,250

Amounts owed by group undertakings

142,704

-

Other debtors

-

3,357

Directors' current accounts

895

-

Corporation tax

8,927

-

594,242

125,607

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

432,868

35,705

Corporation tax

-

16,548

Social security and other taxes

-

16,935

VAT

251,889

-

Other creditors

145,512

78,476

Accruals and deferred income

6,000

-

836,269

147,664

9.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

Accelerated capital allowances

2,199

-

Tax losses carried forward

(2,024

)

-

175

-

Deferred

tax

£

Charge to Income Statement during period

175

Balance at 31 October 2022

175

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

100

Ordinary

£1.00

100

100

11.	RELATED PARTY DISCLOSURES

The company was previously under the control of D C Setford. On 16 February 2022, the entire issued share capital was acquired by Northavon Water Solutions Ltd, which became the company's parent undertaking. Since this date the ultimate parent undertaking has been Northavon Holdings Limited. The ultimate controlling parties are M P Matthews and D M Matthews.

During the period the parent undertaking charged £66,439 for management services. At 31 October 2022 this company was owed £142,704 by its parent.

During the period, the company has made sales to another company controlled by the directors, M P Matthews and D M Matthews, amounting to £2,315,582 and was charged for management services of £145,512. At 31 October 2022 this company was owed £427,043 and owed £145,512 to the other company.