Linx International Group Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 02057133 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

LINX INTERNATIONAL GROUP LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

P J G Dickinson

J M Williams

SECRETARY:

Mitie Company Secretarial Services Limited

REGISTERED OFFICE:

Level 12, The Shard

London Bridge Street

London

SE1 9SG

REGISTERED NUMBER:

02057133 (England and Wales)

ACCOUNTANTS:

C B Heslop & Company Limited

Chartered Accountants

1 High Street

Thatcham

Berks

RG19 3JG

FIXED ASSETS

Tangible assets

4

3,690

10,408

Investments

5

1,842,715

1,620,868

1,846,405

1,631,276

CURRENT ASSETS

Debtors

6

293,834

370,149

Cash at bank

63,121

284,681

356,955

654,830

CREDITORS

Amounts falling due within one year

7

802,280

722,193

NET CURRENT LIABILITIES

(445,325

)

(67,363

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,401,080

1,563,913

PROVISIONS FOR LIABILITIES

9

-

1,620

NET ASSETS

1,401,080

1,562,293

CAPITAL AND RESERVES

Called up share capital

10

6,000

6,000

Capital redemption reserve

11

2,000

2,000

Retained earnings

11

1,393,080

1,554,293

SHAREHOLDERS' FUNDS

1,401,080

1,562,293

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 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 7 December 2023 and were signed on its behalf by:

J M Williams - Director

1.	STATUTORY INFORMATION

Linx International Group 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.

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 time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for no less than 12 months from the date of approval of the company's financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Preparation of consolidated financial statements

The financial statements contain information about Linx International Group Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

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.

Motor vehicles

-

20% on reducing balance

Office equipment

-

20% on reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost, less any provision for impairment where this is considered appropriate.

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 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 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

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 operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Interest receivable

Interest earned is credited to profit or loss in the period it becomes receivable by the company.

Other operating income

Income not considered to be part of the company's turnover is included as other operating income and is credited to profit or loss once the company becomes contractually entitled to receive it.

Financial instruments

Financial assets and financial liabilities are recognised on the company's balance sheet when the company becomes a party to the contractual commitment and until the commitment is appropriately discharged.

Financial assets comprise cash and cash equivalents, trade and other receivables. Financial liabilities comprise trade and other payables. These are classified in the financial statements under appropriate headings.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2022 - 3 ) .

4.	TANGIBLE FIXED ASSETS

Motor

Office

vehicles

equipment

Totals

£

£

£

COST

At 1 April 2022

12,450

172,184

184,634

Additions

-

2,107

2,107

Disposals

(12,450

)

-

(12,450

)

At 31 March 2023

-

174,291

174,291

DEPRECIATION

At 1 April 2022

7,350

166,876

174,226

Charge for year

850

3,725

4,575

Eliminated on disposal

(8,200

)

-

(8,200

)

At 31 March 2023

-

170,601

170,601

NET BOOK VALUE

At 31 March 2023

-

3,690

3,690

At 31 March 2022

5,100

5,308

10,408

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2022

1,620,868

Additions

420,225

Disposals

(999

)

At 31 March 2023

2,040,094

PROVISIONS

Impairments

197,379

At 31 March 2023

197,379

NET BOOK VALUE

At 31 March 2023

1,842,715

At 31 March 2022

1,620,868

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Perpetuity Training Limited

Registered office: Level 12, The Shard, London Bridge Street, London SE1 9SG.

Nature of business: Training

%

Class of shares:

holding

Ordinary

100.00

31.3.23

31.3.22

£

£

Aggregate capital and reserves

1,494

(43,622

)

Profit for the year

45,116

11,021

ARC Training International Limited

Registered office: Level 12, The Shard, London Bridge Street, London, SE1 9SG

Nature of business: Training

%

Class of shares:

holding

Ordinary

100.00

31.3.23

31.3.22

£

£

Aggregate capital and reserves

63,756

73,716

Loss for the year

(9,960

)

(43,558

)

Tavcom Limited

Registered office: Level 12, The Shard, London Bridge Street, London, SE1 9SG.

Nature of business: Training

%

Class of shares:

holding

Ordinary A

100.00

31.3.23

31.3.22

£

£

Aggregate capital and reserves

668,528

777,235

(Loss)/profit for the year

(107,708

)

63,719

During the year the company acquired the remaining shareholdings that it did not previously own in both Perpetuity Training Limited and Tavcom Limited.

The company sold its investment in Guard Linx Limited to Tavcom Limited at cost.

The net book value of the shares in group undertakings at the balance sheet date is as follows:

Perpetuity Training Limited - Cost

£895,094

ARC Training International Limited - Cost less impairment

£52,621

Tavcom Limited - Cost

£895,000

Total at 31st March 2023

£1,842,715

The investment in ARC Training International Limited, previously carried at cost of £250,000 has been subject to impairment of £197,379 to reduce the carrying value to £52,621.

After appropriate impairment review, the directors consider that no further impairment is required given the operating performance of the subsidiaries since the balance sheet date.

6.

DEBTORS

31.3.23

31.3.22

£

£

Amounts falling due within one year:

Trade debtors

38,936

56,402

Amounts owed by group undertakings

251,125

312,218

Other debtors

1,250

1,529

291,311

370,149

Amounts falling due after more than one year:

Other debtors

2,523

-

Aggregate amounts

293,834

370,149

Other debtors falling due after more than one year, includes an amount of £2,523 (2022- £nil) in respect of a deferred tax asset.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Trade creditors

1,743

1,594

Amounts owed to group undertakings

144,821

17,154

Taxation and social security

31,042

33,565

Other creditors

624,674

669,880

802,280

722,193

Other creditors includes:

An amount of £5,100 (2022 - £8,752) in respect of accrued expenses and deferred income.

An amount of £616,448 (2022 - £657,648) owed to D J Gill the controlling party.

Taxation and social security includes corporation tax of £19,831 (2022 - £26,823).

8.	LEASING AGREEMENTS

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

31.3.23

31.3.22

£

£

Within one year

12,172

12,172

9.	PROVISIONS FOR LIABILITIES

31.3.23

31.3.22

£

£

Deferred tax

-

1,620

Deferred

tax

£

Balance at 1 April 2022

1,620

Credit to Income Statement during year

(4,143

)

Carried as deferred tax asset

2,523

Balance at 31 March 2023

-

The deferred tax provision is made in respect of possible tax liabilities arising from accelerated capital allowances.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.3.23

31.3.22

value:

£

£

6,000

Ordinary

£1

6,000

6,000

11.

RESERVES

Capital

Retained

redemption

earnings

reserve

Totals

£

£

£

At 1 April 2022

1,554,293

2,000

1,556,293

Deficit for the year

(161,213

)

(161,213

)

At 31 March 2023

1,393,080

2,000

1,395,080

The retained earnings comprises the retained profits and losses of the company, less amounts distributed to the company's shareholders.

The capital redemption reserve represents the cumulative nominal value of the company's shares repurchased and subsequently cancelled.

12.	RELATED PARTY DISCLOSURES

There were no sales or purchases arising between the company and its subsidiaries during the year, or during the previous year.

At the year end the following amounts were outstanding in respect of the following related parties:

Due to:

Tavcom Limited - £144,821 (2022 - £nil).

D J Gill - £616,448 (2022 - £657,648).

Due from:

Perpetuity Training Limited - £96,153 (2022 - £99,721).

Arc Training International Limited - £154,972 (2022 - £154,972).

Tavcom Limited - £nil (2022 - £57,525).

The company disposed of its shares in Guard Linx Limited to Tavcom Limited at book value of £999. Guard Linx Limited agreed to write off the inter company loan owed to it amounting to £17,154.

13.	POST BALANCE SHEET EVENTS

The company was acquired by Mitie Limited in April 2023.

14.	ULTIMATE CONTROLLING PARTY

At 31st March 2023 Mr D J Gill controlled the company by virtue of his controlling interest in the ordinary shares of the company.