Microcare Systems Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 03204267 (England and Wales)

MICROCARE SYSTEMS LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

R C Maclellan

H R Maclellan

R F Mooney

SECRETARY:

R C Maclellan

REGISTERED OFFICE:

The Exchange

5 Bank Street

Bury

Lancashire

BL9 0DN

REGISTERED NUMBER:

03204267 (England and Wales)

ACCOUNTANTS:

DTE Business Advisers Limited

Chartered Accountants

The Exchange

5 Bank Street

Bury

BL9 0DN

FIXED ASSETS

Intangible assets

4

21,915

12,815

Property, plant and equipment

5

12,214

15,928

34,129

28,743

CURRENT ASSETS

Inventories

21,541

23,852

Debtors

6

1,020,509

745,915

Cash at bank and in hand

16,927

38,428

1,058,977

808,195

CREDITORS

Amounts falling due within one year

7

(366,245

)

(351,733

)

NET CURRENT ASSETS

692,732

456,462

TOTAL ASSETS LESS CURRENT LIABILITIES

726,861

485,205

CREDITORS

Amounts falling due after more than one year

8

(1,199,232

)

(1,208,919

)

NET LIABILITIES

(472,371

)

(723,714

)

CAPITAL AND RESERVES

Called up share capital

720,100

720,100

Retained earnings

(1,192,471

)

(1,443,814

)

SHAREHOLDERS' FUNDS

(472,371

)

(723,714

)

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 29 September 2023 and were signed on its behalf by:

H R Maclellan - Director

1.	STATUTORY INFORMATION

Microcare Systems Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 03204267 and registered office address is The Exchange, 5 Bank Street, Bury, BL9 0DN.

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.

At the year end the company has reported a profit before tax but has net liabilities of £472,371 (2021: £723,714). The company continues to have the support of its principal financier who have confirmed that repayment of the loan amounting to £1,166,026 (2021: £1,166,026) will not be sought until the liquidity of the company permits. Given the results for the current and prior period, the directors believe that the company is well placed to manage any risks and therefore continues to adopt a going concern basis of accounting in preparing these financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Estimating the useful economic life of an asset and the anticipated residual value are considered key in estimate calculating an appropriate depreciation charge.

In categorising leases as finance or operating leases, the directors make judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee.

Making judgement based on historical experience on the level of provision required for impairment of inventories.

Revenue

Revenue comprises the aggregate of the fair value of the sale of goods and services provided, net of value-added tax, rebates and discounts.

Sale of goods are recognised when the company has delivered products to the customer, the customer has accepted the products and collectability of the related receivables is fairly stated.

Service revenues are recognised over the term of the agreement. The unrecognised revenue is shown within creditors in the statement of financial position as deferred maintenance.

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.

Computer software is being amortised on a 25% reducing balance basis.

Property, plant and equipment

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

Plant and machinery etc

-

25% on reducing balance and 25% on cost

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102.

During the prior year the company has benefitted from the Government Coronavirus Job Retention Scheme ('Furlough'). Furlough income has been recognised in "other income" in the same period as the related wage costs.

The company has not directly benefitted from any other forms of government assistance.

Inventories

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is derived from actual purchase price.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans from banks.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the income statement on a straight-line basis over the period of the lease.

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 the income statement in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2021 - 9 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 January 2022

15,320

Additions

16,405

At 31 December 2022

31,725

AMORTISATION

At 1 January 2022

2,505

Charge for year

7,305

At 31 December 2022

9,810

NET BOOK VALUE

At 31 December 2022

21,915

At 31 December 2021

12,815

5.	PROPERTY, PLANT AND EQUIPMENT

Plant and

machinery

etc

£

COST

At 1 January 2022

534,646

Additions

332

Disposals

(32,019

)

At 31 December 2022

502,959

DEPRECIATION

At 1 January 2022

518,718

Charge for year

4,045

Eliminated on disposal

(32,018

)

At 31 December 2022

490,745

NET BOOK VALUE

At 31 December 2022

12,214

At 31 December 2021

15,928

6.

DEBTORS

2022

2021

£

£

Amounts falling due within one year:

Trade debtors

17,131

30,155

Amounts owed by group undertakings

834,808

529,336

Other debtors

92,621

73,574

944,560

633,065

Amounts falling due after more than one year:

Other debtors

75,949

112,850

Aggregate amounts

1,020,509

745,915

The amounts owed by group undertakings are unsecured, interest free and repayable on demand.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

9,687

7,108

Trade creditors

87,946

103,474

Taxation and social security

84,693

108,019

Other creditors

183,919

133,132

366,245

351,733

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

33,206

42,893

Other creditors

1,166,026

1,166,026

1,199,232

1,208,919

Amounts falling due in more than five years:

Repayable by instalments

Other loans

1,166,026

1,166,026

9.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Other loans

1,166,026

1,166,026

Other loans are secured by debenture on the assets of the company.

10.	ULTIMATE CONTROLLING PARTY

The ultimate parent undertaking and controlling party is Vernon Finance Limited, a company incorporated in British Virgin Islands.