Labtech Software Ltd - Limited company accounts 11.7

REGISTERED NUMBER: 06517178 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 28 February 2015

for

Labtech Software Ltd

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Profit and Loss Account

5

Balance Sheet

6

Notes to the Financial Statements

7

DIRECTORS:

J Walker

M Nachtrab

A Bellini

D Bellini

SECRETARY:

J Walker

REGISTERED OFFICE:

10c Peckingham Street

Halesowen

West Midlands

B63 3AW

REGISTERED NUMBER:

06517178 (England and Wales)

AUDITORS:

Michael Dufty Partnership Ltd

The Counting House

56-61 Charlotte Street

St Paul's Square

Birmingham

West Midlands

B3 1PX

The directors present their report with the financial statements of the company for the year ended 28 February 2015.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 March 2014 to the date of this report.

J Walker

M Nachtrab

Other changes in directors holding office are as follows:

A Bellini and D Bellini were appointed as directors after 28 February 2015 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors 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 United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

-	make judgements 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

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken

as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

The auditors, Michael Dufty Partnership Ltd, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating

to small companies.

ON BEHALF OF THE BOARD:

M Nachtrab - Director

27 November 2015

We have audited the financial statements of Labtech Software Ltd for the year ended 28 February 2015 on pages five to

ten. The financial reporting framework that has been applied in their preparation is applicable law and the Financial

Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting

Practice applicable to Smaller Entities).

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 a Report of the Auditors 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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and

have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by

the directors; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Report of the Directors to identify material inconsistencies with the audited financial

statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent

with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 28 February 2015 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Report of the Directors for the financial year for which the financial

statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where 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' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Robert MacLaren (Senior Statutory Auditor)

for and on behalf of Michael Dufty Partnership Ltd

The Counting House

56-61 Charlotte Street

St Paul's Square

Birmingham

West Midlands

B3 1PX

27 November 2015

TURNOVER

1,959,006

1,671,088

Cost of sales

708,055

1,371,506

GROSS PROFIT

1,250,951

299,582

Administrative expenses

530,650

124,608

OPERATING PROFIT and

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

2

720,301

174,974

Tax on profit on ordinary activities

3

173,511

34,995

PROFIT FOR THE FINANCIAL YEAR

546,790

139,979

FIXED ASSETS

Tangible assets

4

113,918

-

CURRENT ASSETS

Debtors

5

711,571

327,253

Cash at bank

580,596

170,122

1,292,167

497,375

CREDITORS

Amounts falling due within one year

6

539,472

254,543

NET CURRENT ASSETS

752,695

242,832

TOTAL ASSETS LESS CURRENT LIABILITIES

866,613

242,832

CREDITORS

Amounts falling due after more than one year

7

(67,175

)

-

PROVISIONS FOR LIABILITIES

9

(9,816

)

-

NET ASSETS

789,622

242,832

CAPITAL AND RESERVES

Called up share capital

10

100

100

Profit and loss account

11

789,522

242,732

SHAREHOLDERS' FUNDS

789,622

242,832

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements were approved by the Board of Directors on 27 November 2015 and were signed on its behalf by:

M Nachtrab - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax.

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 etc

-

at varying rates on cost

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

2.	OPERATING PROFIT

The operating profit is stated after charging:

28.2.15

28.2.14

£

£

Depreciation - owned assets

7,923

-

Foreign exchange differences

33,183

12,373

Directors' remuneration and other benefits etc

8,555

-

3.

TAXATION

Analysis of the tax charge

The tax charge on the profit on ordinary activities for the year was as follows:

28.2.15

28.2.14

£

£

Current tax:

UK corporation tax

163,695

34,995

Deferred tax

9,816

-

Tax on profit on ordinary activities

173,511

34,995

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

Additions

121,841

At 28 February 2015

121,841

DEPRECIATION

Charge for year

7,923

At 28 February 2015

7,923

NET BOOK VALUE

At 28 February 2015

113,918

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.15

28.2.14

£

£

Trade debtors

355,228

325,573

Other debtors

356,343

1,680

711,571

327,253

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.15

28.2.14

£

£

Trade creditors

112,968

53,325

Taxation and social security

213,597

112,389

Other creditors

212,907

88,829

539,472

254,543

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

28.2.15

28.2.14

£

£

Other creditors

67,175

-

8.	OPERATING LEASE COMMITMENTS

The following operating lease payments are committed to be paid within one year:

28.2.15

28.2.14

£

£

Expiring:

Between one and five years

208,632

-

9.	PROVISIONS FOR LIABILITIES

28.2.15

28.2.14

£

£

Deferred tax

9,816

-

Deferred

tax

£

Provided during year

9,816

Balance at 28 February 2015

9,816

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

28.2.15

28.2.14

value:

£

£

100

Ordinary

1

100

100

11.

RESERVES

Profit

and loss

account

£

At 1 March 2014

242,732

Profit for the year

546,790

At 28 February 2015

789,522

12.	ULTIMATE PARENT COMPANY

Labtech LLC (incorporated in USA ) is regarded by the directors as being the company's ultimate parent

company.

13.	CAPITAL COMMITMENTS

28.2.15

28.2.14

£

£

Contracted but not provided for in the

financial statements

154,902

-

14.	RELATED PARTY DISCLOSURES

Labtech LLC

Parent company

During the year the company paid £660025 (2014 £ 1348470) to Labtech LLC for operational expense

recharges.

28.2.15

28.2.14

£

£

Amount due to related party at the balance sheet date

-

125,312

Connectwise.com Inc

During the year the company bought goods and services for £22273 & charged £104133 for overhead recovery

to Connectwise.com Inc. Mr A Bellini and Mr D Bellini the directors of Connectwise.com Inc were appointed as

directors of the company on the 14th July 2015.

28.2.15

28.2.14

£

£

Amount due from related party at the balance sheet date

86,276

-