ACCOUNTS - Final Accounts

COMMITMENTS UNDER OPERATING LEASES

At 31 October 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

ONTRACK INTERNATIONAL LTD - Company Information

Caseware UK (AP4) 2022.0.179 2022.0.179 2022-10-312022-10-31falsetrue2021-11-01false1918 02558621 2021-11-01 2022-10-31 02558621 2020-05-01 2021-10-31 02558621 2022-10-31 02558621 2021-10-31 02558621 c:CompanySecretary1 2021-11-01 2022-10-31 02558621 c:Director1 2021-11-01 2022-10-31 02558621 c:Director2 2021-11-01 2022-10-31 02558621 c:Director2 2022-10-31 02558621 c:Director3 2021-11-01 2022-10-31 02558621 c:RegisteredOffice 2021-11-01 2022-10-31 02558621 c:Agent1 2021-11-01 2022-10-31 02558621 d:Buildings d:ShortLeaseholdAssets 2021-11-01 2022-10-31 02558621 d:Buildings d:ShortLeaseholdAssets 2022-10-31 02558621 d:Buildings d:ShortLeaseholdAssets 2021-10-31 02558621 d:FurnitureFittings 2021-11-01 2022-10-31 02558621 d:FurnitureFittings 2022-10-31 02558621 d:FurnitureFittings 2021-10-31 02558621 d:FurnitureFittings d:OwnedOrFreeholdAssets 2021-11-01 2022-10-31 02558621 d:OwnedOrFreeholdAssets 2021-11-01 2022-10-31 02558621 d:CurrentFinancialInstruments 2022-10-31 02558621 d:CurrentFinancialInstruments 2021-10-31 02558621 d:CurrentFinancialInstruments d:WithinOneYear 2022-10-31 02558621 d:CurrentFinancialInstruments d:WithinOneYear 2021-10-31 02558621 d:ShareCapital 2022-10-31 02558621 d:ShareCapital 2021-10-31 02558621 d:SharePremium 2022-10-31 02558621 d:SharePremium 2021-10-31 02558621 d:CapitalRedemptionReserve 2022-10-31 02558621 d:CapitalRedemptionReserve 2021-10-31 02558621 d:RetainedEarningsAccumulatedLosses 2021-11-01 2022-10-31 02558621 d:RetainedEarningsAccumulatedLosses 2022-10-31 02558621 d:RetainedEarningsAccumulatedLosses 2020-05-01 2021-10-31 02558621 d:RetainedEarningsAccumulatedLosses 2021-10-31 02558621 d:RetainedEarningsAccumulatedLosses 2020-05-01 02558621 c:OrdinaryShareClass1 2021-11-01 2022-10-31 02558621 c:OrdinaryShareClass1 2022-10-31 02558621 c:OrdinaryShareClass1 2021-10-31 02558621 c:FRS102 2021-11-01 2022-10-31 02558621 c:Audited 2021-11-01 2022-10-31 02558621 c:FullAccounts 2021-11-01 2022-10-31 02558621 c:PrivateLimitedCompanyLtd 2021-11-01 2022-10-31 02558621 d:JointVenture1 2021-11-01 2022-10-31 02558621 d:JointVenture1 2022-10-31 02558621 d:JointVenture1 2021-10-31 02558621 d:Subsidiary1 2021-11-01 2022-10-31 02558621 d:Subsidiary1 1 2021-11-01 2022-10-31 02558621 d:WithinOneYear 2022-10-31 02558621 d:WithinOneYear 2021-10-31 02558621 d:BetweenOneFiveYears 2022-10-31 02558621 d:BetweenOneFiveYears 2021-10-31 02558621 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-10-31 02558621 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2021-10-31 02558621 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2022-10-31 02558621 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2021-10-31 02558621 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2022-10-31 02558621 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2021-10-31 02558621 2 2021-11-01 2022-10-31 02558621 6 2021-11-01 2022-10-31 02558621 d:JointVenture1 2021-11-01 2022-10-31 02558621 d:JointVenture1 1 2021-11-01 2022-10-31 02558621 d:AcceleratedTaxDepreciationDeferredTax 2022-10-31 02558621 d:AcceleratedTaxDepreciationDeferredTax 2021-10-31 02558621 d:TaxLossesCarry-forwardsDeferredTax 2022-10-31 02558621 d:TaxLossesCarry-forwardsDeferredTax 2021-10-31 02558621 d:RetirementBenefitObligationsDeferredTax 2022-10-31 02558621 d:RetirementBenefitObligationsDeferredTax 2021-10-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 02558621

ONTRACK INTERNATIONAL LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

ONTRACK INTERNATIONAL LIMITED

COMPANY INFORMATION

Directors	P E Bailey
	R H Bailey (deceased 27 February 2023)
	K D Johnson


Company Secretary	R H Bailey (deceased 27 February 2023)


Registered number	02558621


Registered office	Suite 2
	The Stables
	Cannons Mill Lane
	Bishop's Stortford
	Hertfordshire
	CM23 2BN


Independent Auditors	Price Bailey LLP
	Chartered Accountants & Statutory Auditors
	Causeway House
	1 Dane Street
	Bishop's Stortford
	Hertfordshire
	CM23 3BT


Bankers	National Westminster Bank plc
	Royston
	Hertfordshire
	SG8 9AA

ONTRACK INTERNATIONAL LIMITED

CONTENTS

	Page
Directors' Report	1 - 2
Independent Auditors' Report	3 - 6
Statement of Income and Retained Earnings	7
Statement of Financial Position	8
Notes to the Financial Statements	9 - 17

ONTRACK INTERNATIONAL LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 OCTOBER 2022

The Directors present their report and the financial statements for the year ended 31 October 2022.

Principal activity

The Company's principal activity is management consultancy activities.

Directors

The Directors who served during the year were:

P E Bailey

R H Bailey (deceased 27 February 2023)

K D Johnson

Other Information

The Company has indemnified, by means of Directors' and Officers' liability insurance, one or more Directors of the Company against liability in respect of proceedings brought by third parties, subject to conditions set out in section 234 of the Companies Act 2006. Such qualifying third party indemnity provision was in force as at the date of approving the Directors' Report.

Directors' responsibilities statement

The Directors are responsible for preparing the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments 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 to 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.

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 1

ONTRACK INTERNATIONAL LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

Auditors

Under section 487(2) of the Companies Act 2006, Price Bailey LLP will be deemed to have been re-appointed as Auditors 28 days after these financial statements were sent to Members or 28 days after the latest date prescribed for filing the accounts with the Registrar, whichever is earlier.

Small companies note

In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 27 July 2023 and signed on its behalf.

K D Johnson

Director

Page 2

ONTRACK INTERNATIONAL LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ONTRACK INTERNATIONAL LIMITED

Opinion

We have audited the financial statements of OnTrack International Limited (the 'Company') for the year ended 31 October 2022, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, 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 31 October 2022 and of its profit for the year 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Page 3

ONTRACK INTERNATIONAL LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ONTRACK INTERNATIONAL LIMITED (CONTINUED)

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Directors' Report has 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 Directors' Report.

We have nothing to report in respect of the following matters in relation to which 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; or

∙the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 1, 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 is 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.

Page 4

ONTRACK INTERNATIONAL LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ONTRACK INTERNATIONAL LIMITED (CONTINUED)

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 an Auditors' Report 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 gained an understanding of the legal and regulatory framework applicable to the Company and the sector in which it operates and considered the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. This included those regulations directly related to the financial statements, including financial reporting and tax legislation and sector regulations including GDPR, employment law and health and safety.
The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:
• We reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out testing of journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions to identify large or unusual transactions.
• We reviewed key authorisation procedures and decision making processes for any unusual or one-off transactions.
• We have made enquiries of the management team regarding laws and regulations applicable to the company and obtained the report details of any breaches where applicable in order to assess the impact upon the company.
• We have reviewed our work throughout the audit file for evidence of non-compliance.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' Report.

Page 5

ONTRACK INTERNATIONAL LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ONTRACK INTERNATIONAL LIMITED (CONTINUED)

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 an Auditors' Report 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.

Tom Meeks FCCA (Senior Statutory Auditor)

for and on behalf of

Price Bailey LLP

Chartered Accountants

Statutory Auditors

Causeway House

1 Dane Street

Bishop's Stortford

Hertfordshire

CM23 3BT

27 July 2023

Page 6

ONTRACK INTERNATIONAL LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 OCTOBER 2022

	31 October 2022	18 Months ended 31 October 2021
	£	£


Turnover	2,403,605	2,684,548
Cost of sales	(1,268,339)	(1,461,405)
Gross profit	1,135,266	1,223,143
Administrative expenses	(1,100,370)	(1,211,448)
Other operating income	2,649	72,096
Operating profit	37,545	83,791
Interest receivable and similar income	501	210
Interest payable and similar expenses	-	(23)
Profit before tax	38,046	83,978
Tax on profit	279	(26,086)
Profit after tax	38,325	57,892



Retained earnings at the beginning of the year	412,895	491,938
	412,895	491,938
Profit for the year	38,325	57,892
Dividends declared and paid	(91,292)	(136,935)
Retained earnings at the end of the year	359,928	412,895

The notes on pages 9 to 17 form part of these financial statements.

Page 7

ONTRACK INTERNATIONAL LIMITED

REGISTERED NUMBER: 02558621

STATEMENT OF FINANCIAL POSITION

AS AT 31 OCTOBER 2022

		2022		2021
Note		£		£

Fixed assets
Tangible assets	5		24,834		27,137
Investments	6		100		100
			24,934		27,237
Current assets
Debtors: amounts falling due within one year	7	553,773		603,696
Cash at bank and in hand	8	606,803		337,123
		1,160,576		940,819
Creditors: amounts falling due within one year	9	(723,442)		(453,021)
Net current assets			437,134		487,798
Total assets less current liabilities			462,068		515,035

Net assets			462,068		515,035

Capital and reserves
Called up share capital	11	104	104
Share premium account		102,034	102,034
Capital redemption reserve		2	2
Profit and loss account		359,928	412,895
		462,068	515,035

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the Board and were signed on its behalf by:

K D Johnson

Director

Date: 27 July 2023

The notes on pages 9 to 17 form part of these financial statements.

Page 8

ONTRACK INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

1.	GENERAL INFORMATION

The Company is a private company limited by shares and is incorporated in England and Wales. The address of its Registered Office is Suite 2, The Stables, Cannons Mill Lane, Bishop's Stortford, Hertfordshire, CM23 2BN.

2.ACCOUNTING POLICIES

2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. (FRS 102).

The following principal accounting policies have been applied:

2.2

EXEMPTION FROM PREPARING CONSOLIDATED FINANCIAL STATEMENTS

The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.

2.3

GOING CONCERN

The financial statements have been prepared on the going concern basis. In assessing the appropriateness of the going concern basis, the Directors have taken account of all relevant information covering a period of at least twelve months from the date of approval of the financial statements. The Directors consider it appropriate to continue to use the going concern assumption on the basis that the Company will have sufficient resources to enable it to meet its liabilities as they fall due.

2.4

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is Pounds Sterling.

Transactions and balances

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

At each period end 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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 9

ONTRACK INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

2.ACCOUNTING POLICIES (CONTINUED)

2.5

REVENUE

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.6

OPERATING LEASES: THE COMPANY AS LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

2.7

GOVERNMENT GRANTS

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

2.8

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

2.9

PENSIONS

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 10

ONTRACK INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

2.ACCOUNTING POLICIES (CONTINUED)

2.10

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.11

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

				Short term leasehold property	-	on the straight line basis over useful life
				Fixtures & fittings	-	on the straight line basis over useful life

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.12

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 11

ONTRACK INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

2.ACCOUNTING POLICIES (CONTINUED)

2.13

ASSOCIATES AND JOINT VENTURES

Associates and Joint Ventures are held at cost less impairment.

2.14

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.15

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.16

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.17

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

2.18

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

EMPLOYEES

The average monthly number of employees, including directors, during the year was 19 (2021 - 18).

4.	DIVIDENDS
		2022	18 Months ended 2021
		£	£

	Dividends paid on equity capital	91,292	136,935
		91,292	136,935

Page 12

ONTRACK INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

5.	TANGIBLE FIXED ASSETS

	Short term leasehold property improvements	Fixtures, fittings and equipment	Total
	£	£	£
Cost or valuation
At 1 November 2021	24,839	157,530	182,369
Additions	-	6,527	6,527
Disposals	-	(103,451)	(103,451)
At 31 October 2022	24,839	60,606	85,445
Depreciation
At 1 November 2021	12,807	142,425	155,232
Charge for the year on owned assets	905	7,722	8,627
Disposals	-	(103,248)	(103,248)
At 31 October 2022	13,712	46,899	60,611
Net book value
At 31 October 2022	11,127	13,707	24,834
At 31 October 2021	12,032	15,105	27,137

Page 13

ONTRACK INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

6.	FIXED ASSET INVESTMENTS

	Investments in subsidiary companies	Investment in joint ventures	Total
	£	£	£
Cost or valuation
At 1 November 2021	50	50	100
At 31 October 2022	50	50	100

SUBSIDIARY UNDERTAKING
The following was a subsidiary undertaking of the Company:
Name	Registered office	Principal activity	Class of shares	Holding

OnTrack International Inc

USA

Management consultancy activities

Ordinary

100%

JOINT VENTURE
The following was a joint venture of the Company:
Name	Registered office	Principal activity	Holding

GCOTI Ltd

Other information technology and computer service activities

50%

Page 14

ONTRACK INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

DEBTORS

					2022	2021
					£	£


Trade debtors	458,549	171,046
Amounts owed by group undertakings	-	184
Amounts owed by joint ventures and associated undertakings	20,000	176,477
Other debtors	10,406	8,156
Prepayments and accrued income	59,447	245,154
Deferred taxation	5,371	2,679
	553,773	603,696

Amounts owed by joint ventures and associated undertakings include a provision for doubtful debts of £156,477.

8.	CASH AND CASH EQUIVALENTS
		2022	2021
		£	£

Cash at bank and in hand	606,803	337,123
	606,803	337,123

9.	CREDITORS: Amounts falling due within one year
		2022	2021
		£	£

Trade creditors	126,676	58,089
Amounts owed to group undertakings	145,946	-
Corporation tax	-	17,622
Other taxation and social security	84,395	50,513
Other creditors	23,794	18,827
Accruals and deferred income	342,631	307,970
	723,442	453,021

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ONTRACK INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

10.	DEFERRED TAXATION

		2022
		£

	At beginning of year	2,679
	Charged to profit or loss	2,692
	At end of year	5,371

The deferred tax asset is made up as follows:
	2022	2021
	£	£

Accelerated capital allowances	(2,760)	(2,092)
Tax losses carried forward	4,896	3,721
Other timing differences	3,235	1,050
	5,371	2,679

11.	SHARE CAPITAL
		2022	2021
		£	£

Allotted, called up and fully paid

10,374 (2021 - 10,374) Ordinary shares of £0.01 each	104	104

12.	PENSION COMMITMENTS

The Company operates a defined contribution pension scheme. Contributions for the year amounted to
£32,878 (2021 - £44,474). At the reporting date the Company owed £12,944 (2021 - £5,528).

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ONTRACK INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

Land and Buildings
Not later than 1 year	33,700	33,700
Later than 1 year and not later than 5 years	-	33,700
	33,700	67,400

					2022	2021
					£	£

Other assets
Not later than 1 year	42,379	36,175
Later than 1 year and not later than 5 years	26,063	22,615
	68,442	58,790

14.

RELATED PARTY TRANSACTIONS

During the period the Company paid business premises rentals of £37,088 (2021 - £50,550), to OnTrack International Limited SSAS Retirement Benefit Scheme, a scheme of which P E and R H Bailey are beneficiaries. At the period end, the Company owed £Nil (2021 - £Nil)
During the period the Company paid dividends totalling £91,292 (2021 - £136,935), to P E Bailey, R H Bailey and K D Johnson, the Directors of the Company.
At 1 November 2021, the Company was owed £176,577 by GCOTI Limited, with which the Company is in a joint venture agreement. During the year, the Company recharged £Nil, rendered charges of £Nil and made advances of £Nil leaving a balance of £176,577 owed to OnTrack International Limited from GCOTI Limited at the year end.
The Company has taken advantage of the exemption from the requirement to disclose transactions with wholly owned group companies.

15.	CONTROLLING PARTY

The ultimate controlling parties are P E Bailey and the administrators of the estate of R H Bailey.

Page 17