Kit_Digital_Limited - Accounts
Kit_Digital_Limited - Accounts
Company Registration No. 04609508 (England and Wales)
For The Year Ended 31 December 2014
KIT DIGITAL LIMITED
COMPANY INFORMATION
Director
Company number
Registered office
Auditors
KIT DIGITAL LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Independent auditors' report
3 - 4
Profit and loss account
5
Statement of total recognised gains and losses
6
Balance sheet
7
Notes to the financial statements
8 - 12
KIT DIGITAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
- 1 -
The director presents the strategic report and financial statements for the year ended 31 December 2014.
Review of the business
In early February 2013, Kit Digital Limited (KDL) shares were sold to Piksel Ltd, another company in the group. The UK finance team for Piksel Ltd has taken over full responsibility for the accounting of KDL.
As part of the groups restructure it was agreed that new contracts would be serviced through Piksel Ltd rather than KDL. Following the sale of the KDL shares to Piksel Ltd a decision was taken to also transfer the trade of KDL to Piksel Ltd.
Principal risks and uncertainties
This company is servicing the existing contracts with any new contracts being serviced by its parent company. The current plan is to hive the trade and assets up to its parent company in the future which would leave this company as a dormant subsidiary. Therefore, the company currently has minimal risks and uncertainties as a dormant subsidiary.
Key performance indicators
The company has stopped reviewing its performance against KPIs as all new contracts are processed via KDL’s parent company. The performance of KDL reflects the winding up of old contracts no longer subject to KPIs.
Future developments
As highlighted above, this company is servicing the existing contracts with any new contracts being serviced by its parent company. The current plan is to hive the trade and assets up to its parent company in the future which would leave this company as a dormant subsidiary.
On behalf of the board
Director
21 December 2015
KIT DIGITAL LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
- 2 -
The director presents his report and financial statements for the year ended 31 December 2014.
Principal activities
Results and dividends
The results for the year are set out on page 5.
The directors do not recommend payment of a dividend. The company reported a profit of £1,167 which has been transferred to reserves
Director
The following director has held office since 1 January 2014:
Auditors
The auditors, Garbutt & Elliott Audit Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 of disclosure to auditors
On behalf of the board
Director
KIT DIGITAL LIMITED
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF
KIT DIGITAL LIMITED
- 3 -
We have audited the financial statements of Kit Digital Limited for the year ended 31 December 2014 set out on pages 5 to 12. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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.
Respective responsibilities of director and auditors
As explained more fully in the Director's Responsibilities Statement set out on page 2, the director is 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 director; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report 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
-
give a true and fair view of the state of the company's affairs as at 31 December 2014 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
KIT DIGITAL LIMITED
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF
KIT DIGITAL LIMITED
- 4 -
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.
for and on behalf of Garbutt & Elliott Audit Limited
Chartered Accountants
Statutory Auditor
KIT DIGITAL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2014
- 5 -
2014
2013
Notes
£
£
Turnover
2
-
Administrative expenses
(1,333 )
(145,974 )
Operating loss
3
(1,333 )
(120,061 )
Exceptional item
-
345,278
(Loss)/profit on ordinary activities before interest
(1,333 )
Interest payable and similar charges
4
-
(5 )
(Loss)/profit on ordinary activities before taxation
(1,333 )
Tax on (loss)/profit on ordinary activities
5
(18,768 )
Profit for the year
10
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KIT DIGITAL LIMITED
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 DECEMBER 2014
- 6 -
2014
2013
Notes
£
£
Profit for the financial year
Prior year adjustment
-
Total gains and losses recognised since last financial statements
KIT DIGITAL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2014
- 7 -
2014
2013
Notes
£
£
£
£
Current assets
Debtors
7
Cash at bank and in hand
Creditors: amounts falling due within one year
8
(6,475,680 )
(6,503,162 )
Total assets less current liabilities
(5,711,403 )
(5,712,570 )
Capital and reserves
Called up share capital
9
Profit and loss account
10
(5,712,653 )
(5,713,820 )
Shareholders' funds
11
(5,711,403 )
(5,712,570 )
Approved by the Board and authorised for issue on 21 December 2015
Director
Company Registration No. 04609508
KIT DIGITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
- 8 -
1
Accounting policies
1.1
Accounting convention
In preparing the financial statements the directors have considered the going concern basis of the company given the position of the balance sheet at the year end.
Given that the major creditor is group debt and that the immediate parent company has given its support to enable the company to continue for the foreseeable future, the directors consider it appropriate to prepare the financial statements on a going concern basis.
The company has taken advantage of the exemption in Financial Reporting Standard No 1 (Revised 1996) from the requirement to produce a cash flow statement on the grounds that it is a subsidiary undertaking where 90 percent or more of the voting rights are controlled within the group.
1.2
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).
1.3
Turnover
1.4
Tangible fixed assets and depreciation
Fixtures, fittings and equipment
1.5
Leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.6
Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
2
Turnover
The total turnover of the company for the year has been derived from its principal activity wholly undertaken outside of the United Kingdom.
KIT DIGITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 9 -
3
Operating loss
2014
2013
£
£
Operating loss is stated after charging:
Operating lease rentals
-
8,599
and after crediting:
Profit on foreign exchange transactions
(135 )
(7,956 )
The exceptional item relates to a bad debt expense of £nil (2013 - £345,278) arising from trading activities and the write off of intercompany debts following the group restructure.
The audit fee has been covered by Piksel Limited, the immediate parent company.
Auditors' remuneration
Fees payable to the company's auditor for the audit of the company's annual accounts
-
Accountancy
100
1,050
Taxation services
-
1,775
100
8,225
4
Interest payable
2014
2013
£
£
Other interest
-
KIT DIGITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 10 -
5
Taxation
2014
2013
£
£
U.K. corporation tax
-
Adjustment for prior years
(2,500 )
-
(2,500)
2,500
Foreign corporation tax
Foreign corporation tax
-
16,268
Total current tax
(2,500 )
Factors affecting the tax charge for the year
(Loss)/profit on ordinary activities before taxation
(1,333 )
(Loss)/profit on ordinary activities before taxation multiplied by standard rate of UK corporation tax of 20.00% (2013 - 20.00%)
(267 )
Effects of:
Non deductible expenses
-
Capital allowances
(937)
(1,143)
Adjustments to previous periods
(2,500 )
-
Other tax adjustments
1,204
(26,531)
(2,233)
(26,274)
Current tax charge for the year
(2,500 )
The company has estimated losses of £ 3,400,000 (2013 - £ 3,400,000) available for carry forward against future trading profits.
6
Tangible fixed assets
Fixtures, fittings and equipment
£
Cost
At 1 January 2014 & at 31 December 2014
Depreciation
At 1 January 2014 & at 31 December 2014
Net book value
At 31 December 2014
-
At 31 December 2013
-
KIT DIGITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 11 -
7
Debtors
2014
2013
£
£
Amounts owed by parent and fellow subsidiary undertakings
Other debtors
8
Creditors: amounts falling due within one year
2014
2013
£
£
Trade creditors
Amounts owed to parent and fellow subsidiary undertakings
Corporation tax
-
Accruals and deferred income
9
Share capital
2014
2013
£
£
Allotted, called up and fully paid
10
Statement of movements on profit and loss account
Profit
and loss
account
and loss
account
£
Balance at 1 January 2014
(5,713,820 )
Profit for the year
Balance at 31 December 2014
(5,712,653 )
KIT DIGITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 12 -
11
Reconciliation of movements in shareholders' funds
2014
2013
£
£
Profit for the financial year
Opening shareholders' funds
(5,712,570 )
(5,919,014 )
Closing shareholders' funds
(5,711,403 )
(5,712,570 )
12
Employees
Number of employees
There were no employees during the year apart from the director.
13
Control
The company's parent is Piksel Limited, a company incorporated in England & Wales
14
Related party relationships and transactions
The company has taken advantage of the exemption available in FRS 8 "Related party disclosures" whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.