Sero Consulting Limited - Limited company accounts 16.3

REGISTERED NUMBER: 04857920 (England and Wales)

Report of the Directors and

Unaudited Financial Statements for the Year Ended 31 December 2016

for

SERO CONSULTING LIMITED

Page

Company Information

1

Report of the Directors

2

Income Statement

4

Balance Sheet

5

Notes to the Financial Statements

7

DIRECTORS:

Mrs E Wallis

Mrs J Kay

I Wallis

SECRETARY:

Mrs E Wallis

REGISTERED OFFICE:

Sheffield Technology Parks

Cooper Buildings

Arundel Street

Sheffield

South Yorkshire

S1 2NS

REGISTERED NUMBER:

04857920 (England and Wales)

ACCOUNTANTS:

S Burgess & Co Ltd

11 Slayleigh Avenue

Sheffield

South Yorkshire

S10 3RA

The directors present their report with the financial statements of the company for the year ended 31 December 2016.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the provision of consulting

services, related to education, skills and economic development.

REVIEW OF BUSINESS

Business in the first half of Financial Year 2016 was robust, allowing the opportunity for the company to

divest itself of a second subsidiary property and some of the proceeds, as planned. Growth remained strong

in the Higher Education sector, where Sero HE had built up a reputation for its unique blend of expertise in

Learning, Research, Library and e-Resource solutions, working with universities, technology suppliers,

agencies and international partners in both Europe and the United States.

On 26th August 2016, David Kay, co-founder and Strategic Development Director of Sero, as well as

Principal Consultant for Sero HE, died suddenly and unexpectedly with major consequences for the

business. Whilst suffering the devastating impact of this untimely loss, the directors were able to stabilise the

business by communicating proactively with customers and taking timely actions to fulfil contractual

obligations. As a result, the business as a whole was able to continue, albeit revenue earning and bidding

capacity were reduced in the remaining four months of the year.

Moving into 2017, the company has consolidated around its education and skills work in the digital

technology sector, alongside a growing portfolio of digital marketing for education clients. The work of Sero

HE continues with the support of expert Associates and the opportunties for development in this area are

currently being re-assessed.

The directors remain confident that Sero's proven ability to adapt whilst maintaining a clear focus on

delivery of existing contracts will enable the company to rebuid and flourish. Already, new contracts have

been won with existing clients and the company has secured a number of new clients.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2016 to the date

of this report.

Mrs E Wallis

Mrs J Kay

I Wallis

Other changes in directors holding office are as follows:

D R Kay - resigned 26 August 2016

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

relating to small companies.

ON BEHALF OF THE BOARD:

Mrs E Wallis - Director

24 July 2017

TURNOVER

937,361

1,084,931

Cost of sales

534,208

481,394

GROSS PROFIT

403,153

603,537

Administrative expenses

413,021

610,024

(9,868

)

(6,487

)

Other operating income

3,000

1,649

OPERATING LOSS

(6,868

)

(4,838

)

Interest receivable and similar income

675

17

(6,193

)

(4,821

)

Interest payable and similar expenses

-

571

LOSS BEFORE TAXATION

4

(6,193

)

(5,392

)

Tax on loss

30

1,517

LOSS FOR THE FINANCIAL YEAR

(6,223

)

(6,909

)

FIXED ASSETS

Tangible assets

6

667

1,335

Investment property

7

-

197,500

667

198,835

CURRENT ASSETS

Debtors

8

68,602

247,929

Cash at bank and in hand

284,973

94,736

353,575

342,665

CREDITORS

Amounts falling due within one year

9

80,240

194,145

NET CURRENT ASSETS

273,335

148,520

TOTAL ASSETS LESS CURRENT LIABILITIES

274,002

347,355

PROVISIONS FOR LIABILITIES

133

267

NET ASSETS

273,869

347,088

CAPITAL AND RESERVES

Called up share capital

10

1,000

1,000

Non-distributable reserves

11

-

15,879

Retained earnings

11

272,869

330,209

SHAREHOLDERS' FUNDS

273,869

347,088

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2016 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 in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 24 July 2017 and were signed on its behalf by:

Mrs E Wallis - Director

1.	STATUTORY INFORMATION

Sero Consulting 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The significant accounting policies applied in the preparation of these financial statements are set out

below. These policies have been consistently applied to all years presented unless otherwise stated.

The company adopted FRS 102 in the current year and an explanation of how the transition to FRS

102 has affected the reported financial position and performance is given in the financial statements.

Turnover

Turnover comprises the invoiced value, under contract, of consulting services in relation to education,

skills and economic development, excluding value added tax, and, also, grant income in furtherance

of the company's objectives. Turnover is recognised in accordance with the contract or grant terms,

with contracts ongoing over the year end treated in accordance with the accounting policy set out

under the heading "work in progress".

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

33% on cost

Computer equipment

-

33% on cost

Government grants

Grants toward revenue expenditure are credited to the profit and loss account as the related

expenditure is incurred.

Investment property

Investment properties, for which fair value can be measured reliably without undue cost or effort, are

measured at fair value at each reporting date, with changes in fair value recognised in the statement of

income.

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.

Work in progress

Income on work in progress contracts is recognised by reference to the valuation of the time spent on

each contract at the year end.

Profit on work in progress contracts is recognised when the outcome of the contracts can be assessed

with reasonable certainty, and is that amount which is estimated to reflect fairly the profit arising up

to the year end. Profit on work in progress contracts is reflected in the profit and loss account as the

difference between the reported turnover, and the related costs.

Debtors and creditors due within one year

Debtors and creditors with no stated interest rate, which are due within one year, are stated at the

transaction price. Any losses arising from impairment are recognised in the statement of

comprehensive income within administrative expenses.

Impairment

At each balance sheet date, assets are reviewed to determine whether there is any indication that any

of the individual assets have suffered an impairment. If such indication exists, the recoverable amount

of the asset, or the assets cash generating unit, is estimated and compared to the carrying amount.

Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the

statement of comprehensive income.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2015 - 14 ) .

4.	LOSS BEFORE TAXATION

The loss is stated after charging/(crediting):

31.12.16

31.12.15

£

£

Depreciation - owned assets

668

1,753

Government grants

(13,579

)

(60,172

)

Exceptional item - revaluation of investment property

-

17,500

5.

DIVIDENDS

31.12.16

31.12.15

£

£

Ordinary shares of £1 each

Interim

66,996

51,984

6.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 January 2016

and 31 December 2016

7,467

36,924

44,391

DEPRECIATION

At 1 January 2016

7,467

35,589

43,056

Charge for year

-

668

668

At 31 December 2016

7,467

36,257

43,724

NET BOOK VALUE

At 31 December 2016

-

667

667

At 31 December 2015

-

1,335

1,335

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2016

197,500

Disposals

(197,500

)

At 31 December 2016

-

NET BOOK VALUE

At 31 December 2016

-

At 31 December 2015

197,500

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.16

31.12.15

£

£

Trade debtors

57,590

247,429

Other debtors

500

500

VAT

10,512

-

68,602

247,929

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.16

31.12.15

£

£

Trade creditors

65,698

135,319

Corporation tax

164

1,250

Social security and other taxes

6,727

8,313

VAT

-

36,847

Other creditors

4,736

4,473

Accruals & deferred income

2,915

7,943

80,240

194,145

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.16

31.12.15

value:

£

£

1,000

Ordinary

£1

1,000

1,000

11.

RESERVES

Retained

Non-distributable

earnings

reserves

Totals

£

£

£

At 1 January 2016

330,209

15,879

346,088

Deficit for the year

(6,223

)

(6,223

)

Dividends

(66,996

)

(66,996

)

Transfer to

realised profits

15,879

(15,879

)

-

At 31 December 2016

272,869

-

272,869

12.	FIRST YEAR ADOPTION

The company has adopted FRS 102 for the first time in the year ended 31 December 2016. The effect

of transition from the previous financial reporting framework to FRS 102 is outlined as follows:

a) Changes in accounting policies and effect on disclosures

Investment properties are recorded in the statement of income, whereas, under previous UK GAAP,

these changes were recorded in the statement of total recognised gains and losses. Deferred tax is

recognised on a timing difference plus approach, whereas previous UK GAAP required a timing

difference approach. Consequently, deferred tax has been recognised on all fair value measurements

on investment property, though no adjustment has been necessary given the sale of the property in the

year.

b) Reconciliation of equity shareholders' funds

There were no adjustments to previously reported equity shareholders' funds at the date of transition

to FRS 102.

c) Reconciliation of comparative period profit and loss

Adjustment to the previously reported profit and loss, under the previous reporting framework in the

comparative period, was the movement in investment property valuation of £17,500, which reduced

reported profits from £12,108 to a loss of £5,392, the loss reported under FRS 102.