CIS (UK) Limited - Period Ending 2018-11-30

CIS (UK) Limited

Annual Report and Unaudited Financial Statements
Year Ended 30 November 2018

Registration number: 08783157

CIS (UK) Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 11

CIS (UK) Limited

Company Information

Directors

Mr A Sangster Mr L Piper

Company secretary

Mr A Sangster

Registered office

Centenary House Peninsula Park Rydon Lane Exeter Devon EX2 7XE

Accountants

Francis Clark LLP Centenary House Peninsula Park Rydon Lane Exeter Devon EX2 7XE

Page 1

CIS (UK) Limited

Balance Sheet

30 November 2018

	Note	2018 £	(As restated) 2017 £
Fixed assets
Intangible assets	4	800,434	674,852
Tangible assets	5	150,127	189,146
		950,561	863,998
Current assets
Stocks	6	135,795	53,087
Debtors	7	66,213	268,669
Cash at bank and in hand		15,049	186,070
		217,057	507,826
Creditors: Amounts falling due within one year	8	(1,504,528)	(1,621,036)
Net current liabilities		(1,287,471)	(1,113,210)
Total assets less current liabilities		(336,910)	(249,212)
Creditors: Amounts falling due after more than one year	8	(11,762)	(17,644)
Provisions for liabilities		-	(19,750)
Net liabilities		(348,672)	(286,606)
Capital and reserves
Called up share capital		100	100
Profit and loss account		(348,772)	(286,706)
Total equity		(348,672)	(286,606)

The notes on pages 4 to 11 form an integral part of these financial statements.

Page 2

CIS (UK) Limited

Balance Sheet

30 November 2018

For the financial year ending 30 November 2018 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 and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 28 August 2019 and signed on its behalf by:
 

......................................... Mr A Sangster Director

Company Registration Number: 08783157

The notes on pages 4 to 11 form an integral part of these financial statements.

Page 3

CIS (UK) Limited

Notes to the Financial Statements

Year Ended 30 November 2018

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:
Centenary House
Peninsula Park
Rydon Lane
Exeter
Devon
EX2 7XE

The principal place of business is:
Plot 12
Aerohub Business Park Street
Mawgan Porth
Newquay
TR8 4JZ

These financial statements were authorised for issue by the Board on 28 August 2019.

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', including Section 1A and the Companies Act 2006.

There has been no departure from FRS 102.

Basis of preparation

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

Going concern

The financial statements have been prepared on a going concern basis. The company is dependent upon the continued support of its directors.

Page 4

CIS (UK) Limited

Notes to the Financial Statements

Year Ended 30 November 2018

Prior period adjustments

Amortisation for goodwill was omitted from the accounts last year. Goodwill should have been amortised over 10 years on a straight line basis. This has been amended via a prior period adjustment this year by £40,000 in line with the amortisation rate. This has reduced the profit and loss by £40,000 and also reduced intangible assets on the balance sheet and reserves by £40,000 for year ended 30 November 2017.

Depreciation for the development project costs was omitted from the accounts last year. Development projects should have been amortised on a 2% straight line basis. This has been amended via a prior period adjustment this year by £6,426 in line with the depreciation rate. This has reduced the profit and loss by £6,426 and also reduced the intangible assets on the balance sheet and reserves by £6,426 for year ended 30 November 2017.

Purchases were understated by £62,048 last year due to timing of invoices received. This has been amended via a prior period adjustment this year by accruing the omitted costs of £62,048 in line with the invoices received after the year end. This has reduced the profit and loss and reserves by £62,048 and increased accrued expenses within creditors due within one year on the balance sheet by £62,048 for year ended 30 November 2017.

The work in progress last year was overstated by £304,000. This has been amended via a prior period adjustment this year by reducing the closing work in progress in the profit and loss and the balance sheet by £304,000. This has reduced the profit and loss and reserves by £304,000 and increased the stock held on the balance sheet by £304,000 for year ended 30 November 2017.
 

Revenue recognition

Turnover shown in the profit and loss account represents accrued amounts charged to customers for goods and services provided during the year, including commissions and fees receivable, excluding value added tax.

Page 5

CIS (UK) Limited

Notes to the Financial Statements

Year Ended 30 November 2018

Tax

Tax is recognised in the profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation 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 tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred 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 balance sheet 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
Freehold land and buildings	2% straight line
Office and computer equipment	20% reducing balance
Motor vehicles	20% reducing balance
Plant and equipment	20% reducing balance

Intangible assets

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

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

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	10 years straight line
Development projects	2% straight line

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CIS (UK) Limited

Notes to the Financial Statements

Year Ended 30 November 2018

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

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

Assets held under hire purchase contracts 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.

Hire purchase 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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

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CIS (UK) Limited

Notes to the Financial Statements

Year Ended 30 November 2018

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 6 (2017 - 8).

4	Intangible assets

	Goodwill  £	Development projects  £	Total £
Cost or valuation
At 1 December 2017	400,000	321,278	721,278
Additions	-	174,520	174,520
At 30 November 2018	400,000	495,798	895,798
Amortisation
At 1 December 2017	40,000	6,426	46,426
Amortisation charge	40,000	8,938	48,938
At 30 November 2018	80,000	15,364	95,364
Carrying amount
At 30 November 2018	320,000	480,434	800,434
At 30 November 2017	360,000	314,852	674,852

Page 8

CIS (UK) Limited

Notes to the Financial Statements

Year Ended 30 November 2018

5	Tangible assets

	Freehold Land and Buildings £	Office and computer equipment £	Motor vehicles  £	Plant and equipment  £	Total £
Cost or valuation
At 1 December 2017	87,594	31,959	79,594	42,562	241,709
Additions	40,807	-	-	9,340	50,147
Disposals	(53,441)	-	(23,389)	-	(76,830)
At 30 November 2018	74,960	31,959	56,205	51,902	215,026
Depreciation
At 1 December 2017	-	16,035	28,015	8,513	52,563
Charge for the year	1,261	3,183	7,244	8,678	20,366
Eliminated on disposal	-	-	(8,030)	-	(8,030)
At 30 November 2018	1,261	19,218	27,229	17,191	64,899
Carrying amount
At 30 November 2018	73,699	12,741	28,976	34,711	150,127
At 30 November 2017	87,594	15,924	51,579	34,049	189,146

6

Stocks

	2018 £	(As restated) 2017 £
Work in progress	111,115	28,407
Other inventories	24,680	24,680
	135,795	53,087

7

Debtors

	2018  £	2017  £
Trade debtors	28,745	195,482
Other debtors	24,751	67,305
Prepayments	12,717	5,882
	66,213	268,669

Page 9

CIS (UK) Limited

Notes to the Financial Statements

Year Ended 30 November 2018

8

Creditors

	Note	2018  £	(As restated) 2017  £
Due within one year
Loans and borrowings	9	5,882	8,531
Trade creditors		133,150	398,377
Corporation tax		-	31,617
Social security and other taxes		4,461	18,915
Other creditors		1,324,689	1,087,875
Accrued expenses		36,346	75,721
		1,504,528	1,621,036

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	9	11,762	17,644

9	Loans and borrowings

	2018 £	2017 £
Loans and borrowings due after one year
Finance lease liabilities (secured)	11,762	17,644

	2018 £	2017 £
Current loans and borrowings
Finance lease liabilities (secured)	5,882	8,531

The finance lease liabilities are secured on the assets financed.

10	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary of £1 each	100	100	100	100

Page 10

CIS (UK) Limited

Notes to the Financial Statements

Year Ended 30 November 2018

11	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £Nil (2017 - £53,652).

12	Related party transactions

Advances to directors

2018	At 1 December 2017 £	Advances to director £	Repayments by director £	At 30 November 2018 £
Mr A Sangster
Directors Current Account	45,744	-	(45,744)	-

The maximum amount that the director's current account was overdrawn in the year was £45,744 (2017: £45,744).

Page 11