Information Technology Rentals Limited Small abridged accounts

INFORMATION TECHNOLOGY RENTALS LIMITED - Company Information

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Statement of Consent to Prepare Abridged Financial Statements

All of the members of Information Technology Rentals Limited have consented to the preparation of the abridged statement of comprehensive income and the abridged statement of financial position for the year ending 30 April 2017 in accordance with Section 444(2A) of the Companies Act 2006.

COMPANY REGISTRATION NUMBER: 03970867

Information Technology Rentals Limited

Filleted Unaudited Abridged Financial Statements

30 April 2017

Information Technology Rentals Limited

Abridged Financial Statements

Year ended 30 April 2017

Contents	Page

Officers and professional advisers	1

Chartered certified accountants report to the board of directors on the preparation of the unaudited statutory abridged financial statements	2

Abridged statement of financial position	3

Statement of changes in equity	5

Notes to the abridged financial statements	6

Information Technology Rentals Limited

Officers and Professional Advisers

The board of directors	S Reynolds
	S Hallsworth

Company secretary	S Reynolds

Registered office	Technology House
	Halesfield 7
	Telford
	Shropshire
	TF7 4NA

Accountants	B.S.S. & Co. (Accountancy Services) Ltd
	Chartered Certified Accountants
	75 Aston Street
	Shifnal
	Shropshire
	TF11 8DU

Information Technology Rentals Limited

Chartered Certified Accountants Report to the Board of Directors on the Preparation of the Unaudited Statutory Abridged Financial Statements of Information Technology Rentals Limited

Year ended 30 April 2017

As described on the abridged statement of financial position, the directors of the company are responsible for the preparation of the abridged financial statements for the year ended 30 April 2017, which comprise the abridged statement of financial position, statement of changes in equity and the related notes. You consider that the company is exempt from an audit under the Companies Act 2006. In accordance with your instructions we have compiled these abridged financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and from information and explanations supplied to us.

B.S.S. & Co. (Accountancy Services) Ltd Chartered Certified Accountants

75 Aston Street Shifnal Shropshire TF11 8DU

9 January 2018

Information Technology Rentals Limited

Abridged Statement of Financial Position

30 April 2017

	2017		2016
Note	£	£	£

Fixed assets

Intangible assets	5	240,189	274,502
Tangible assets	6	1,927,823	1,479,591
		------------	------------
		2,168,012	1,754,093

Current assets

Debtors	1,114,230	694,928
Cash at bank and in hand	279,953	152,355
	------------	---------
	1,394,183	847,283

Creditors: amounts falling due within one year	1,205,015		608,660
	------------		---------
Net current assets		189,168	238,623
		------------	------------
Total assets less current liabilities		2,357,180	1,992,716

Creditors: amounts falling due after more than one year		639,344	608,908

Provisions

Taxation including deferred tax	56,243	86,891
	------------	------------
Net assets	1,661,593	1,296,917
	------------	------------

Capital and reserves

Called up share capital	300	300
Revaluation reserve	159,584	–
Profit and loss account	1,501,709	1,296,617
	------------	------------
Shareholders funds	1,661,593	1,296,917
	------------	------------

These abridged financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the abridged statement of comprehensive income has not been delivered.

For the year ending 30 April 2017 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 abridged financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of abridged financial statements .

Information Technology Rentals Limited

Abridged Statement of Financial Position (continued)

30 April 2017

These abridged financial statements were approved by the board of directors and authorised for issue on 9 January 2018 , and are signed on behalf of the board by:

S Reynolds
Director

Company registration number: 03970867

Information Technology Rentals Limited

Statement of Changes in Equity

Year ended 30 April 2017

			Called up share capital	Revaluation reserve	Profit and loss account	Total
Note			£	£	£	£
At 1 May 2015			300	–	1,205,731	1,206,031

Profit for the year					156,886	156,886
			----	----	------------	------------
Total comprehensive income for the year			–	–	156,886	156,886

Dividends paid and payable			–	–	( 66,000)	( 66,000)
			----	----	------------	------------
Total investments by and distributions to owners			–	–	( 66,000)	( 66,000)

At 30 April 2016			300	–	1,296,617	1,296,917

Profit for the year					271,092	271,092
Other comprehensive income for the year:
	Revaluation of tangible assets	6	–	159,584	–	159,584
			----	---------	------------	------------
Total comprehensive income for the year			–	159,584	271,092	430,676

Dividends paid and payable			–	–	( 66,000)	( 66,000)
			----	----	--------	--------
Total investments by and distributions to owners			–	–	( 66,000)	( 66,000)

			----	---------	------------	------------
At 30 April 2017			300	159,584	1,501,709	1,661,593
			----	---------	------------	------------

Information Technology Rentals Limited

Notes to the Abridged Financial Statements

Year ended 30 April 2017

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Technology House, Halesfield 7, Telford, Shropshire, TF7 4NA.

2. Statement of compliance

These abridged financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The abridged financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The abridged financial statements are prepared in sterling, which is the functional currency of the entity.

Transition to FRS 102

The entity transitioned from previous UK GAAP to FRS 102 as at 1 May 2015. Details of how FRS 102 has affected the reported financial position and financial performance is given in note 9.

Disclosure exemptions

No cash flow statement has been presented for the company.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	2% straight line
Computer equipment	-	30% straight line
Fixtures & fittings	-	20% reducing balance
Motor vehicles	-	25% reducing balance

The Directors have decided that 2% straight line depreciation on the Freehold property more accurately reflects annual reduction in value.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the abridged statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the abridged statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 64 (2016: 63 ).

5. Intangible assets

	£
Cost
At 1 May 2016 and 30 April 2017	343,128
	---------
Amortisation
At 1 May 2016	68,626
Charge for the year	34,313
	---------
At 30 April 2017	102,939
	---------
Carrying amount
At 30 April 2017	240,189
	---------
At 30 April 2016	274,502
	---------

6. Tangible assets

	£
Cost or valuation
At 1 May 2016	3,681,914
Additions	803,936
Revaluations	159,584
	------------
At 30 April 2017	4,645,434
	------------
Depreciation
At 1 May 2016	2,202,323
Charge for the year	515,288
	------------
At 30 April 2017	2,717,611
	------------
Carrying amount
At 30 April 2017	1,927,823
	------------
At 30 April 2016	1,479,591
	------------

7. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2017
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
S Reynolds	–	–	–
S Hallsworth	( 4,600)	4,600	–
	-------	-------	----
	( 4,600)	4,600	–
	-------	-------	----

	2016
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
S Reynolds	( 26,800)	26,800	–
S Hallsworth	( 29,796)	25,196	( 4,600)
	--------	--------	-------
	( 56,596)	51,996	( 4,600)
	--------	--------	-------

8. Related party transactions

During the current and previous year the company was under the control of S E Reynolds who is a director.

9. Transition to FRS 102

These are the first abridged financial statements that comply with FRS 102. The company transitioned to FRS 102 on 1 May 2015.

No transitional adjustments were required in equity or profit or loss for the year.