Cobalt Systems Limited - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 03403982 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 DECEMBER 2017

FOR

COBALT SYSTEMS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr A R Hunt

Mrs J E Thorpe

SECRETARY:

Mrs J E Thorpe

REGISTERED OFFICE:

Cobalt House

Arden Square

Electra Way

Crewe

Cheshire

CW1 6HA

REGISTERED NUMBER:

03403982 (England and Wales)

FIXED ASSETS

Intangible assets

4

117,703

132,988

Tangible assets

5

17,279

12,229

134,982

145,217

CURRENT ASSETS

Stocks

6

165,426

151,698

Debtors

7

502,932

617,335

Cash at bank and in hand

17,272

21,071

685,630

790,104

CREDITORS

Amounts falling due within one year

8

736,498

864,366

NET CURRENT LIABILITIES

(50,868

)

(74,262

)

TOTAL ASSETS LESS CURRENT LIABILITIES

84,114

70,955

CREDITORS

Amounts falling due after more than one year

9

40,000

40,000

NET ASSETS

44,114

30,955

CAPITAL AND RESERVES

Called up share capital

12

16,500

16,500

Share premium

13

6,500

6,500

Other reserves

13

1,500

1,500

Retained earnings

13

19,614

6,455

SHAREHOLDERS' FUNDS

44,114

30,955

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 December 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 December 2017 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 and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 17 May 2018 and were signed on its behalf by:

Mr A R Hunt - Director

1.	STATUTORY INFORMATION

Cobalt Systems 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.

the functional and presentation currency of the financial statements is Pounds sterling (£).

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.

First year adoption of Financial Reporting Standard 102 ( FRS 102) Section 1A

These financial statements for the year ended 30 December 2017 are the first that are prepared in

accordance with FRS 102 Section 1A. The previous financial statements were prepared in accordance

with UK GAAP, the date of transition to FRS 102 Section 1A is 31 December 2015.

These are the first financial statements the Company has prepared in accordance with Financial

Reporting Standard 102 ''The Financial Reporting Standard applicable in the UK and Republic of

Ireland'' (FRS 102) as applied to smaller entities by the adoption of Section 1A of FRS 102. The

financial statements for the year ended 30 December 2016 were prepared in accordance with

Financial Reporting Standard for Smaller Entities (effective January 2015) (FRSSE).

Some of the FRS 102 recognition, measurement, presentation and disclosure requirements and

accounting policy choices differ from the FRSSE. Consequently the directors have amended certain

accounting policies to comply with FRS 102. The directors have also taken advantage of certain

exemptions from the requirements of FRS 102 permitted by FRS 102 Chapter 35 ''Transition to FRS''.

There are no changes in the prior period on transition to FRS 102 as the directors consider them to be

immaterial to financial statements

Turnover

The turnover shown in the profit and loss account, represents the value of machines, media and

servicing sold during the period, less returns received at selling price exclusive of Value Added Tax.

Due to the length of time involved in building a machine, turnover is charged in stages when an

assessment of the contract shows that the company has gained a right to that consideration. At each

stage the final machine contract performance is assessed and if future losses are likely, the related

costs are recognised in full.

Turnover generated from the sale of media and servicing is recognised at the point at which goods are

despatched to the customer, or when services are provided.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured

at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets

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

Plant and machinery

-

Straight line over 3 years

Fixtures and fittings

-

12.5% on cost

Motor vehicles

-

Straight line over 3 years

Computer equipment

-

Straight line over 5 years and Straight line over 3 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Financial instruments

FINANCIAL ASSETS

Trade, group and other debtors

Trade, group and other debtors (including accrued income) which are receivable within one year and

which do not constitute a financing transaction are initially measured at the transaction price and

subsequently measured at amortised cost, being the transaction price less any amounts settled and

any impairment losses.

A provision for impairment of trade debtors is established where there is objective evidence that the

amounts due will not be collected according to the original terms of the contract. Impairment losses

are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present

value of the future cash flows discounted using the original effective interest rate. Subsequent

reversals of an impairment loss that objectively relate to an event occurring after the impairment loss

was recognised, are recognised immediately in profit or loss.

FINANCIAL LIABILITIES

Trade, group and other creditors

Trade, group and other creditors (including accruals) payable within one year that do not constitute a

financing transaction are initially measured at the transaction price and subsequently measured at

amortised cost, being transaction price less any amounts settled.

Derecognition of financial assets and liabilities

A financial asset is only derecognised when the contractual rights to cash flows expire or are settled, or

substantially all the risks and rewards of ownership are transferred to another party, or if some

significant risks and rewards of ownership are retained but control of the asset has transferred to

another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability

(or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled

or expires.

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.

Research and development

Where costs incurred represent pure research these costs are written off in the profit and loss account

in the period in which it is incurred.

Where new concepts and solutions arise from pure research, development costs incurred in the

manufacture of related prototypes is written off in the profit and loss account in the period in which it is

incurred.

Where machines are developed as part of specific and indentifiable projects that are anticipated to

generate economic benefit related costs are capitalised and recognised within intangible fixed assets.

Costs of developing machines include raw materials, consumables and labour. The capitalised amount

is depreciated in accordance with the company's accounting policies, being the useful economic life of

the project.

Foreign currencies

Transactions in currencies other than the functional currency (foreign currencies) are initially recorded

at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of

exchange ruling at the balance sheet date. Non-monetary assets and liabilities denominated in foreign

currencies are translated at the rate ruling at the date of the transaction or, if the asset or liability is

measured at fair value, the rate when that fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or

losses on non-monetary items recognised in other comprehensive income, when the related

translation gain or loss is also recognised in other comprehensive income

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.

Employee benefits

Employees must use their annual holiday entitlement by 30 December 2017, therefore their entitlement

is recognised in the period in which employees' services are received.

Work in progress

Work in Progress is valued on the basis of direct material and labour costs plus attributable overheads

based on a normal level of activity. Provision is made for any foreseeable losses where appropriate.

No element of profit is included in the valuation of work in progress.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 17 .

4.	INTANGIBLE FIXED ASSETS

Development

costs

£

COST

At 31 December 2016

252,343

Additions

35,184

At 30 December 2017

287,527

AMORTISATION

At 31 December 2016

119,355

Amortisation for year

50,469

At 30 December 2017

169,824

NET BOOK VALUE

At 30 December 2017

117,703

At 30 December 2016

132,988

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 31 December 2016

18,197

3,935

11,684

7,246

41,062

Additions

5,643

-

-

4,656

10,299

At 30 December 2017

23,840

3,935

11,684

11,902

51,361

DEPRECIATION

At 31 December 2016

13,892

1,645

11,684

1,612

28,833

Charge for year

2,629

492

-

2,128

5,249

At 30 December 2017

16,521

2,137

11,684

3,740

34,082

NET BOOK VALUE

At 30 December 2017

7,319

1,798

-

8,162

17,279

At 30 December 2016

4,305

2,290

-

5,634

12,229

6.

STOCKS

30/12/17

30/12/16

£

£

Stocks

107,408

124,863

Work in progress

58,018

26,835

165,426

151,698

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30/12/17

30/12/16

£

£

Trade debtors

442,412

554,906

Other debtors

27,500

27,500

Deferred tax asset

21,692

25,401

Prepayments

11,328

9,528

502,932

617,335

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30/12/17

30/12/16

£

£

Trade creditors

265,123

288,441

Net wages

90

-

Social security and other taxes

11,694

19,989

Pension fund

74,854

76,348

Invoice discounting- repayment

277,784

331,221

VAT

33,582

118,626

Other creditors

5,777

6,166

Accrued expenses

67,594

23,575

736,498

864,366

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30/12/17

30/12/16

£

£

Other creditors

40,000

40,000

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

30/12/17

30/12/16

£

£

Within one year

-

2,697

Between one and five years

312,311

320,107

In more than five years

-

55,000

312,311

377,804

11.	SECURED DEBTS

The following secured debts are included within creditors:

30/12/17

30/12/16

£

£

Invoice discounting

277,784

331,221

Invoice discounting of £277,784 (2016-331,221)is secured by fixed and floating charges over the

assets of the company.

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30/12/17

30/12/16

value:

£

£

16,500

Ordinary

£1

16,500

16,500

13.

RESERVES

Retained

Share

Other

earnings

premium

reserves

Totals

£

£

£

£

At 31 December 2016

6,455

6,500

1,500

14,455

Profit for the year

45,829

45,829

Dividends

(32,670

)

(32,670

)

At 30 December 2017

19,614

6,500

1,500

27,614

14.	RELATED PARTY DISCLOSURES

During the year, total dividends of £24,503 were paid to the directors .

The director's wife Mrs S Hunt has made a long term loan of £40,000 available to the company. The

loan incurs interest of 5% per annum.

During the year Mrs Hunt received dividends of £8,167.

The controlling party is Mr A R Hunt.

The ultimate controlling party is Mr A R Hunt.