Lexel Digital Limited - Period Ending 2023-10-31

Lexel Digital Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 8

Lexel Digital Limited

Company Information

Directors

Nnamdi Chineme Ugochi Chineme

Registered office

Staverton Court Staverton Cheltenham Gloucestershire GL51 0UX

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

Lexel Digital Limited

(Registration number: 12942772)
Balance Sheet as at 31 October 2023

	Note	2023 £	2022 £
Fixed assets
Tangible assets	4	74,498	3,395
Current assets
Debtors	5	238,634	44,188
Cash at bank and in hand		25,529	119,162
		264,163	163,350
Creditors: Amounts falling due within one year	6	(153,248)	(91,362)
Net current assets		110,915	71,988
Total assets less current liabilities		185,413	75,383
Creditors: Amounts falling due after more than one year	6	(62,469)	-
Deferred tax liabilities		(18,625)	(849)
Net assets		104,319	74,534
Capital and reserves
Called up share capital		100	100
Profit and loss account		104,219	74,434
Shareholders' funds		104,319	74,534

For the financial year ending 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 9 June 2024 and signed on its behalf by:
 

Nnamdi Chineme
Director

Lexel Digital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Staverton Court
Staverton
Cheltenham
Gloucestershire
GL51 0UX
United Kingdom

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Lexel Digital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Motor Vehicles	25% reducing balance basis
Office Equipment	25% reducing balance basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Lexel Digital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Lexel Digital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2023  No.	2022  No.
Average number of employees	2	2

4

Tangible assets

	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost
At 1 November 2022	4,144	-	4,144
Additions	2,974	87,697	90,671
Disposals	(524)	-	(524)
At 31 October 2023	6,594	87,697	94,291
Depreciation
At 1 November 2022	749	-	749
Charge for the year	928	18,270	19,198
Eliminated on disposal	(154)	-	(154)
At 31 October 2023	1,523	18,270	19,793
Carrying amount
At 31 October 2023	5,071	69,427	74,498
At 31 October 2022	3,395	-	3,395

Lexel Digital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

5

Debtors

	Note	2023  £	2022  £
Amounts owed by related parties	9	236,750	43,000
Other debtors	9	1,292	908
Prepayments		592	280
		238,634	44,188

6

Creditors

	Note	2023  £	2022  £
Due within one year
Loans and borrowings	7	85,350	42,406
Trade creditors		1,649	9
Amounts due to related parties	9	15,500	15,500
Other creditors		911	-
Accrued expenses		2,325	2,150
Corporation tax liability		47,513	31,297
		153,248	91,362

	Note	2023 £	2022 £
Due after one year
Loans and borrowings	7	62,469	-

7

Loans and borrowings

	Note	2023 £	2022 £
Current loans and borrowings
HP and finance lease liabilities		11,558	-
Other borrowings	9	73,792	42,406
	9	85,350	42,406

	2023 £	2022 £
Non-current loans and borrowings
HP and finance lease liabilities	62,469	-

Lexel Digital Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

8

Deferred tax

Deferred tax assets and liabilities

2023	Liability £
Capital allowances in excess of depreciation	18,625
	18,625

2022	Liability £
Capital allowances in excess of depreciation	849
	849

9

Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company.

As at 31 October 2023 the company owed the directors £73,792 (2022 - £42,406). No interest is charged on the loan and there are no set repayment terms.
 

Lexel Consulting Limited
As at 31 October 2023 the company owed Lexel Consulting Limited £15,500 (2022 - £15,500). No interest is charged on the loan and there are no set repayment terms.

Saxel Limited
As at 31 October 2023 the company was owed £206,500 (2022 - £15,500) by Saxel Limited. No interest is charged on the loan and there are no set repayment terms.

Gidi Solutions Limited
As at 31 October 2023 the company was owed £30,250 (2022 - £27,500) by Gidi Solutions Limited. No interest is charged on the loan and there are no set repayment terms.