The Word Telecom Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02096347 (England and Wales)

Report of the Directors and

Unaudited Financial Statements for the Year Ended 30 September 2018

for

THE WORD TELECOM LIMITED

Page

Company Information

1

Report of the Directors

2

Chartered Accountants' Report

3

Income Statement

4

Statement of Financial Position

5

to

6

Notes to the Financial Statements

7

to

10

DIRECTORS:

A N Matthewson

M S Tuff

SECRETARY:

D R S Matthewson

REGISTERED OFFICE:

Link House

Britton Gardens

Bristol

BS15 1TF

REGISTERED NUMBER:

02096347 (England and Wales)

ACCOUNTANTS:

Rostrons

Chartered Accountants

Yare House

62-64 Thorpe Road

Norwich

Norfolk

NR1 1RY

The directors present their report with the financial statements of the company for the year ended 30 September 2018.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2017 to the date of this

report.

A N Matthewson

M S Tuff

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:

A N Matthewson - Director

20 December 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of The Word Telecom Limited for the year ended 30 September 2018 which comprise the Income

Statement, Statement of Financial Position and the related notes from the company's accounting records and from

information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of The Word Telecom Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of The Word Telecom Limited and state those matters that we have agreed to state to the Board of Directors of The Word Telecom Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Word Telecom Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that The Word Telecom Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of The Word Telecom Limited. You consider that The Word Telecom Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of The Word Telecom Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Rostrons

Chartered Accountants

Yare House

62-64 Thorpe Road

Norwich

Norfolk

NR1 1RY

20 December 2018

REVENUE

2,402,046

2,155,223

Cost of sales

1,183,276

887,536

GROSS PROFIT

1,218,770

1,267,687

Administrative expenses

710,476

770,564

OPERATING PROFIT

4

508,294

497,123

Interest receivable and similar income

270

255

508,564

497,378

Interest payable and similar expenses

2,243

2,028

PROFIT BEFORE TAXATION

506,321

495,350

Tax on profit

97,202

98,065

PROFIT FOR THE FINANCIAL YEAR

409,119

397,285

FIXED ASSETS

Property, plant and equipment

5

48,320

53,239

CURRENT ASSETS

Inventories

20,137

28,807

Debtors

6

1,122,451

1,507,722

Cash at bank and in hand

602,137

428,668

1,744,725

1,965,197

CREDITORS

Amounts falling due within one year

7

565,299

557,080

NET CURRENT ASSETS

1,179,426

1,408,117

TOTAL ASSETS LESS CURRENT LIABILITIES

1,227,746

1,461,356

CREDITORS

Amounts falling due after more than one year

8

28,321

33,202

NET ASSETS

1,199,425

1,428,154

CAPITAL AND RESERVES

Called up share capital

100

100

Share premium

3,000

3,000

Capital redemption reserve

19,900

19,900

Retained earnings

1,176,425

1,405,154

SHAREHOLDERS' FUNDS

1,199,425

1,428,154

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 2018 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 20 December 2018 and were signed on its behalf by:

A N Matthewson - Director

1.	STATUTORY INFORMATION

The Word Telecom 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.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with parent companies within the group.

Revenue

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts

receivable for goods supplied and services rendered net of discounts, rebates, value added tax and other sales

taxes.

Revenue from the sale of goods is recognised when significant risks and rewards of ownership of the goods have

substantially transferred to the buyer.

Revenue from services is recognised over the period when the service is provided and when the amount of

revenue can be measured reliably and it is probable that future economic benefits will flow to the entity.

Property, plant and equipment

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

Short leasehold

-

over the period of the lease

Fixtures and equipment

-

25% straight line

Motor vehicles

-

25% straight line

Computer equipment

-

25% straight line

At the date of the statement of financial position, the company reviews the carrying value of its tangible fixed

assets to determine whether there is any indication that any items have suffered an impairment loss. If any

such indication exists, the recoverable amount of an 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 the asset, the company

estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Inventories

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

slow moving items.

Cost is measured on a standard cost basis and includes purchase price, import duties and other costs incurred in

bringing the inventories to their current location and condition.

Taxation

Taxation represents tax currently payable on the taxable profits for the period.

The company's liability for current tax is calculated using tax rates that have been enacted, or substantively

enacted by the end of the reporting period.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the date

of the statement of financial position. Unrelieved tax losses and other deferred tax assets are only 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in

which the liability is settled or the asset realised, based on tax rates that have been enacted or substantively

enacted by the end of the reporting period.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial

position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those

held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is

shorter.

The interest element of these obligations is charged to the income statement over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the income statement 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. The assets of the scheme are held separately

from those of the company in an independently administered fund. Contributions payable to the company's

pension scheme are charged to the income statement in the period to which they relate.

Employee benefits

Short-term employee benefits are recognised as an expense in the period in which they are incurred.

Termination benefits are recognised only when the company is demonstrably committed to terminate the

employment of an employee or a group of employees before their normal retirement date or to provide

termination benefits as a result of an offer made in order to encourage voluntary redundancy.

Financial instruments

Short-term debtors are measured at transaction price, less any impairment. The impairment loss is measured

as the difference between an asset's carrying value and the best estimate of the amount that the company

would receive for the asset if it were to be sold at the reporting date.

Short-term trade creditors are measured at the transaction price. Other financial liabilities, including bank

loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised

cost using the effective interest method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2017 - 14 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

30/9/18

30/9/17

£

£

Depreciation - owned assets

14,122

15,586

5.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Short

and

Motor

Computer

leasehold

equipment

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 October 2017

3,683

60,865

50,557

20,746

135,851

Additions

-

2,854

349

6,000

9,203

Disposals

-

(437

)

-

(1,663

)

(2,100

)

At 30 September 2018

3,683

63,282

50,906

25,083

142,954

DEPRECIATION

At 1 October 2017

2,501

58,563

6,733

14,815

82,612

Charge for year

1,055

2,065

6,820

4,182

14,122

Eliminated on disposal

-

(437

)

-

(1,663

)

(2,100

)

At 30 September 2018

3,556

60,191

13,553

17,334

94,634

NET BOOK VALUE

At 30 September 2018

127

3,091

37,353

7,749

48,320

At 30 September 2017

1,182

2,302

43,824

5,931

53,239

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30/9/18

30/9/17

£

£

Trade debtors

220,472

166,019

Amounts owed by group undertakings

-

573,267

Other debtors

901,979

768,436

1,122,451

1,507,722

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30/9/18

30/9/17

£

£

Hire purchase contracts

4,881

4,881

Trade creditors

128,584

119,698

Taxation and social security

150,259

116,439

Other creditors

281,575

316,062

565,299

557,080

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30/9/18

30/9/17

£

£

Hire purchase contracts

28,321

33,202

9.	OTHER FINANCIAL COMMITMENTS

The company had total commitments under non-cancellable operating leases over the remaining life of those

leases of £44,878 (2017 - £89,962)

10.	ULTIMATE CONTROLLING PARTY

The controlling party is iPinnacle Ltd.