Triage Services Limited - Limited company accounts 23.2

REGISTERED NUMBER: 03459830 (England and Wales)

Triage Services Limited

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 March 2023

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Directors' Responsibilities Statement

5

Independent Auditors' Report

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

D S Jhaveri

J R Croyden

REGISTERED OFFICE:

Unit 4 Kennet House

Langley Quay

Waterside Drive

Slough

Berkshire

SL3 6EY

REGISTERED NUMBER:

03459830 (England and Wales)

INDEPENDENT AUDITORS:

SKS Baker Watkin Audit

Middlesex House

Rutherford Close

Stevenage

Hertfordshire

SG12EF

The directors present their strategic report, on the audited financial statements of Triage Services Limited for the period ended 31 March 2023.

PRINCIPAL ACTIVITIES

The principal activity of the company continued to be that of IT repair services, refurbishment and niche hardware sales.

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS

The company profit and loss accounts is set out on page 8.

The company has established a reputable and compelling brand in its core marketplace. The price decline of technology can lead to replacement being more economically viable than repair. Consequently, certain market sectors are shrinking putting pressure on organic growth and margins. However, the company has aligned itself with market sectors that are growing, and increasing digitalization of everyday processes and interaction continues to present further opportunities for sustainable, profitable growth.

The company continues to improve its order to cash cycle time. This enables the company to continue paying suppliers to agreed, if not better, terms.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's financial instruments comprise of debtors, bank balances, creditors. The purpose of these instruments are to finance the company's operations.

Due to the nature of the financial instruments used there is no exposure to price risk. The company's approach to managing other risks is applicable to the financial instruments covered below.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and regular monitoring of the amounts outstanding.

In respect to bank balances the liquidity risk is managed by the monitoring of cash balances to ensure that sufficient funds are available to meet the company's commitments.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

KEY PERFORMANCE INDICATORS

The company considers its key performance indicators (KPIs) to be turnover, operating profit and profit before tax.

Turnover for the period was £1,722,125 (2022: £2,396,436) 28% down from previous year as a result of reduced volumes from existing customers. This is a cycle and the forecast for the coming years is much better. With the economies not growing in UK the customers are expected to stretch the usage of existing IT assets which will help the repair business.

Operating loss for the year was £494,556 (2022 loss: £138,548). There was a one-time cost (£334,957) increase due to the restructuring of the core business operations and personnel and in conjunction with this the amount owed by Triage Holdings Limited (£4,447,610) has also been fully provided for this year. Loss after taxation was £4,922,287 (2022 loss: £129,471). With this restructuring done in this year, with the revised new lower cost base the management is confident and has forecasted for a profitable business growth in the following years.

ON BEHALF OF THE BOARD:

D S Jhaveri - Director

24 May 2024

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

DIVIDENDS

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

DIRECTORS

The directors who have held office during the period from 1 April 2022 to the date of this report are as follows:

P Yallop - resigned 29 June 2022

S Sharma - resigned 29 June 2022

D S Jhaveri - appointed 16 January 2023

T Gunn - appointed 29 June 2022

J R Croyden was appointed as a director after 31 March 2023 but prior to the date of this report.

T Gunn ceased to be a director after 31 March 2023 but prior to the date of this report.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

RESEARCH AND DEVELOPMENT

Triage Services Limited have made successful R&D claims in previous years. However, there are no Research and Development cost during the period ended 31 March 2023.

CHANGES IN PRESENTATION OF FINANCIAL STATEMENTS

In accordance with section 414C(11) of the Companies Act 2006 the company has chosen to set out information relating to the risk management of its financial instruments in the Strategic Report rather than the Directors' Report.

AUDITOR

SKS Baker Watkin Audit were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

STATEMENT OF DISCLOSURE TO AUDITOR

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

ON BEHALF OF THE BOARD:

D S Jhaveri - Director

24 May 2024

The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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.

Opinion

We have audited the financial statements of Triage Services Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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 101 'Reduced Disclosure Framework' (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 March 2023 and of its loss 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 UK, including the FRC'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 directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Directors' Report and the Directors' Responsibilities Statement, but does not include the financial statements and our Auditors' Report thereon.

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.

In connection with our audit of the financial statements, 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 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.

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

-	the Strategic Report and the Directors' Report have 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 Strategic Report or the Directors' Report.

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.

Responsibilities of directors

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

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:

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

-Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

-It is considered that non-compliance of Health & Safety laws and regulations may be fundamental to the operating aspects of the business.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

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.

Paul Craggs (Senior Statutory Auditor)

for and on behalf of SKS Baker Watkin Audit

Middlesex House

Rutherford Close

Stevenage

Hertfordshire

SG12EF

24 May 2024

TURNOVER

4

1,722,125

2,396,436

Cost of sales

(1,491,898

)

(1,940,174

)

GROSS PROFIT

230,227

456,262

Administrative expenses

(499,419

)

(715,507

)

(269,192

)

(259,245

)

Other operating income

5

109,593

120,697

OPERATING LOSS

(159,599

)

(138,548

)

Exceptional cost

7

(4,782,567

)

-

LOSS BEFORE TAXATION

8

(4,942,166

)

(138,548

)

Tax on loss

9

19,879

9,077

LOSS FOR THE FINANCIAL YEAR

(4,922,287

)

(129,471

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(4,922,287

)

(129,471

)

FIXED ASSETS

Intangible assets

10

3,343

12,504

Tangible assets

11

-

1,498

Investments

12

10,000

10,000

13,343

24,002

CURRENT ASSETS

Stocks

13

-

41,815

Debtors

14

930,138

5,692,224

Prepayments and accrued income

20,672

141,376

Cash at bank and in hand

161,567

135,948

1,112,377

6,011,363

CREDITORS

Amounts falling due within one year

15

(502,033

)

(482,395

)

NET CURRENT ASSETS

610,344

5,528,968

TOTAL ASSETS LESS CURRENT LIABILITIES

623,687

5,552,970

CREDITORS

Amounts falling due after more than one year

16

(350,000

)

(350,000

)

PROVISIONS FOR LIABILITIES

17

(4

)

(7,000

)

NET ASSETS

273,683

5,195,970

CAPITAL AND RESERVES

Called up share capital

18

150,000

150,000

Profit and loss reserves

123,683

5,045,970

SHAREHOLDERS' FUNDS

273,683

5,195,970

The financial statements were approved by the Board of Directors and authorised for issue on 24 May 2024 and were signed on its behalf by:

D S Jhaveri - Director

Called up

Profit

share

and loss

Total

capital

reserves

equity

£

£

£

Balance at 1 April 2021

150,000

5,175,441

5,325,441

Changes in equity

Total comprehensive income

-

(129,471

)

(129,471

)

Balance at 31 March 2022

150,000

5,045,970

5,195,970

Changes in equity

Total comprehensive income

-

(4,922,287

)

(4,922,287

)

Balance at 31 March 2023

150,000

123,683

273,683

1.	STATUTORY INFORMATION

Triage Services Limited is a private company limited by shares incorporated in England and Wales and is a wholly owned subsidiary of Triage Holding Limited ("parent company").

The registered office is Unit 4 Kennet House, Langley Quay, Waterside Drive, Slough, Berkshire, SL3 6EY.

2.	ACCOUNTING POLICIES

BASIS OF PREPARATION

These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

•

the requirements of IFRS 7 Financial Instruments: Disclosures;

•

the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;

•

the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1;

•

the requirements of IAS 7 Statement of Cash Flows;

•

the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;

•

the requirements of paragraph 74(b) of IAS 16;

•

the requirements of paragraphs 17 of IAS 24 Related Party Disclosures;

•

the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

The financial statements of the company are consolidated in the financial statements of TVS Logistics Investment UK Limited. These consolidated financial statements may be obtained from Companies House, Crown Way, Cardiff.

GOING CONCERN

In determining whether the Company's annual financial statements can be prepared on a going concern basis, the Directors have considered the Company's business activities, together with the factors likely to affect its future development, performance and position. The review also includes the financial position of the Company and the wider Group that the Company is part of, their short term and long term cash flows, liquidity position and borrowing facilities.

The key factors considered by the directors include the implications of changes to the economic environment on the Company's revenues and profits. The Company and wider Group undertakes monthly rolling forecasts and weekly projections of cash flows. This allows the Company to target performance and identify areas of focus for management.

The Directors confirm that, after due consideration they have a reasonable expectation that the Company has adequate resources to continue in business for at least 12 months from the date of signing the financial statements. Accordingly, the annual report and financial statements for the year ended 31 March 2023 have been prepared on the going concern basis.

TAXATION

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

TURNOVER

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

INTANGIBLE FIXED ASSETS - GOODWILL

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

INTANGIBLE FIXED ASSET - OTHER THAN GOODWILL

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software

Amortised over individual licence periods

TANGIBLE FIXED ASSETS

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings

10 years straight line

Plant and equipment

3 - 5 years straight line

Fixtures and fittings

3 - 5 years straight line

Computers

3 - 5 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

FIXED ASSET INVESTMENTS

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

IMPAIRMENT OF FIXED ASSETS

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

STOCKS

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

CASH AND CASH EQUIVALENT

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

FINANCIAL INSTRUMENTS

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

PROVISIONS

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

EMPLOYEE BENEFITS

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

RETIREMENT BENEFITS

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

LEASES

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

FOREIGN EXCHANGE

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

4.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023

2022

£

£

IT and hardware repairs

1,722,125

2,396,436

1,722,125

2,396,436

An analysis of turnover by geographical market is given below:

2023

2022

£

£

United Kingdom

1,721,545

2,391,860

Europe

580

4,576

1,722,125

2,396,436

5.	OTHER OPERATING INCOME

2023

2022

£

£

Other interest received

26,484

26,484

JRS grant income

-

11,096

Other income

83,109

83,117

109,593

120,697

6.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was as follows:

2023

2022

Head Office

5

7

Administration

7

9

Stores

4

6

Engineers

10

15

26

37

Their aggregate remuneration comprised:

2023

2022

£

£

Wages and salaries

610,234

955,313

Social security costs

64,572

86,069

Pension costs

25,411

39,136

700,217

1,080,518

7.	EXCEPTIONAL ITEMS

2023

2022

£

£

Exceptional cost

4,782,567

-

Exceptional costs relate to the restructuring of the core business operations and personnel. In conjunction with this the amount owed by the parent company has also been fully provided for this year.

8.	LOSS BEFORE TAXATION

The Loss before taxation is stated after charging:

2023

2022

£

£

Exchange losses

791

965

Auditor's remuneration

6,500

9,500

Auditor's remuneration (non audit: accounts and tax services)

2,500

4,225

Depreciation of owned tangible fixed assets

1,178

1,027

Amortisation of intangible assets

3,875

5,035

Cost of stocks recognised as an expense

290,782

612,229

Operating lease charges

158,568

185,606

9.

TAXATION

Analysis of tax income

2023

2022

£

£

Current tax:

Corporation tax adjust re prev

(19,879

)

-

Deferred tax - timing

difference

-

(9,077

)

Total tax income in statement of comprehensive income

(19,879

)

(9,077

)

FACTORS AFFECTING THE TAX EXPENSE

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023

2022

£

£

Loss before income tax

(4,942,166

)

(138,548

)

Loss multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

(939,012

)

(26,324

)

Effects of:

Expenses that are not deductible in determining taxable profit

(128

)

1,475

Unutilised tax losses carried forward

940,119

26,062

Adjustments in respect of prior years

(19,879

)

-

credit

Deferred tax movement

-

(9,077

)

Excess of capital allowances over depreciation

(979

)

(1,213

)

Tax income

(19,879

)

(9,077

)

10.	INTANGIBLE FIXED ASSETS

Computer

Goodwill

software

Totals

£

£

£

COST

At 1 April 2022

59,064

175,048

234,112

Disposals

-

(166,608

)

(166,608

)

At 31 March 2023

59,064

8,440

67,504

AMORTISATION

At 1 April 2022

59,064

162,544

221,608

Amortisation for year

-

3,874

3,874

Eliminated on disposal

-

(161,321

)

(161,321

)

At 31 March 2023

59,064

5,097

64,161

NET BOOK VALUE

At 31 March 2023

-

3,343

3,343

At 31 March 2022

-

12,504

12,504