Libra Systems Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04793167 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST OCTOBER 2019

FOR

LIBRA SYSTEMS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr M I Anderson

Mr P E C Guest

Mr C J Spencer

Mr S J Scowcroft

Mr D A Rees

Mr M J Harrison

SECRETARY:

Mr M I Anderson

REGISTERED OFFICE:

Unit E

Halesfield 10

Telford

Shropshire

TF7 4QP

REGISTERED NUMBER:

04793167 (England and Wales)

AUDITORS:

Stanton Ralph & Co Limited

Chartered Accountants

Statutory Auditor

The Old Police Station

Whitburn Street

Bridgnorth

Shropshire

WV16 4QP

FIXED ASSETS

-

Intangible assets

4

-

837,545

Tangible assets

5

739,375

837,545

739,375

CURRENT ASSETS

1,276,194

Stocks

1,024,322

3,872,975

Debtors

6

3,449,779

906

Cash in hand

760

5,150,075

4,474,861

CREDITORS

4,248,119

Amounts falling due within one year

7

3,420,156

901,956

NET CURRENT ASSETS

1,054,705

1,739,501

TOTAL ASSETS LESS CURRENT LIABILITIES

1,794,080

CREDITORS

(237,737

)

Amounts falling due after more than one year

8

(137,294

)

(109,306

)

PROVISIONS FOR LIABILITIES

(109,492

)

1,392,458

NET ASSETS

1,547,294

CAPITAL AND RESERVES

90

Called up share capital

10

90

1,392,368

Retained earnings

1,547,204

1,392,458

SHAREHOLDERS' FUNDS

1,547,294

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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

The financial statements were approved and authorised for issue by the Board of Directors on 16th January 2020 and were signed on its behalf by:

Mr S J Scowcroft - Director

1.	STATUTORY INFORMATION

Libra 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.

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 financial statements are prepared in Sterling and contain information about Libra Systems Limited as an

individual company.

Financing transactions

Basic financial instruments are initially measured at transaction price unless the arrangement constitutes a

financing transaction , where the debt instrument is measured at present value of the future receipts discounted as

a market rate of interest. Intercompany loans are recorded at present value using a market rate for a similar

instrument. This has resulted in an adjustment at 31 October 2019 of £21,069 (2018: £21,069) for both interest

receivable and a corresponding capital distribution.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services services supplied,

exclusive of value added tax and trade discounts. Revenue is recognised at the point at which economic benefits

of the company's products pass to customers.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2015, has been fully

amortised in prior years.

Patent and licences

Patent costs, being the amount paid in connection with the acquisition of intellectual property rights, have been

fully amortised in prior years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery etc

-

33% on cost, 25% on cost, 20% on cost, 10% on cost and 5% on cost

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment

losses.

Assets are depreciated from the date they are brought into use.

Stocks

Stocks are valued at the lower of cost including attributable overheads, after making due allowance for obsolete

and slow moving items.

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

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the spot rate of exchange. Transactions in

foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Any

differences are taken to the profit and loss account.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. 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 the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

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.

Invoice financing

The company has entered into a sales invoice financing arrangement for certain trade debtors. Amounts due from

the customers are shown in full in trade debtors, with amounts due to the finance company in creditors due within

twelve months.

Government grants

Government grants in respect of capital expenditure are credited to a deferred income account and released to the

profit and loss account over the expected useful lives of the relevant assets to which they relate.

Group relief

The benefit of group relief is accounted for within the tax charge of the profit making undertaking. No payment

is made for group relief between group undertakings.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 46 (2018 - 47 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

and

Totals

Goodwill

licences

£

£

£

COST

At 1st November 2018

and 31st October 2019

48,917

4,500

44,417

AMORTISATION

At 1st November 2018

and 31st October 2019

48,917

4,500

44,417

NET BOOK VALUE

At 31st October 2019

-

-

-

At 31st October 2018

-

-

-

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1st November 2018

1,974,086

Additions

73,669

At 31st October 2019

2,047,755

DEPRECIATION

At 1st November 2018

1,136,541

Charge for year

171,839

At 31st October 2019

1,308,380

NET BOOK VALUE

At 31st October 2019

739,375

At 31st October 2018

837,545

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

At 1st November 2018

and 31st October 2019

672,660

DEPRECIATION

At 1st November 2018

163,048

Charge for year

67,266

At 31st October 2019

230,314

NET BOOK VALUE

At 31st October 2019

442,346

At 31st October 2018

509,612

6.

DEBTORS

31.10.19

31.10.18

£

£

Amounts falling due within one year:

Trade debtors

2,576,718

2,958,985

Other debtors

290

-

Tax

-

30,099

Prepayments

116,249

126,156

2,693,257

3,115,240

Amounts falling due after more than one year:

Amounts owed by group undertakings

756,522

757,735

Aggregate amounts

3,449,779

3,872,975

Included in trade debtors is an amount of £2,576,718 (2018: £2,958,985) against which the company has

received an advance of £643,278 (2018: £1,081,859).

The company has entered into a legal agreement with its parent undertaking which confirms that at 31st October

2019 £756,522 (2018: £757,735) of debt due is repayable more than 12 months from the balance sheet date.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.19

31.10.18

£

£

Hire purchase contracts

97,942

125,627

Trade creditors

2,022,607

2,438,692

Tax

66,193

36,306

Social security and other taxes

24,559

23,071

VAT

99,954

8,743

Other creditors

47,899

11,856

Advances against debtors

643,278

1,081,859

Accrued expenses

411,524

515,765

Deferred government grants

6,200

6,200

3,420,156

4,248,119

The company has a sales invoice financing arrangement with HSBC Invoice Finance Limited. Included within

creditors are advances against debtors and amounts owed to HSBC Invoice Finance Limited amounting to

£643,278 (2018: £1,081,859). HSBC Invoice Finance Limited holds a fixed charge over trade debtors as security

over amounts advanced.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.10.19

31.10.18

£

£

Hire purchase contracts

108,877

203,120

Deferred government grants

28,417

34,617

137,294

237,737

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.10.19

31.10.18

£

£

Hire purchase contracts

206,819

328,747

Hire purchase contracts are secured against the tangible fixed assets to which they relate.

HSBC Invoice Finance Limited holds a fixed charge over trade debtors, as security over amounts advanced and

by an unlimited composite guarantee from the company and ASG Investments Limited, its parent undertaking. A

floating charge has also been given over all of the assets of the group.

A cross guarantee exists between group companies where compensating balances are off-set against each other.

As at the company's balance sheet date there are no overdrawn bank balances.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.10.19

31.10.18

value:

£

£

90

Ordinary

£1

90

90

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mr Adrian Ralph FCA, CTA (Senior Statutory Auditor)

for and on behalf of Stanton Ralph & Co Limited

12.	CONTINGENT LIABILITIES

The company has entered into an unlimited composite guarantee with its bankers in respect of its own and its

parent company ASG Investments Limited's liabilities. At 31st October 2019 the group's total indebtedness under

this guarantee is £643,278 (2018: £1,081,859).

13.	RELATED PARTY DISCLOSURES

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 within the group.

14.	ULTIMATE CONTROLLING PARTY

The company's parent and ultimate parent company is ASG Investments Limited, a company incorporated in

England and Wales.

The ultimate controlling party is considered to be the directors of the ultimate parent company.

15.	LEASING AGREEMENTS

Minimum lease payments under operating leases are as follows:

31.10.19

31.10.18

£

£

Within one year

194,932

196,849

Between one and five years

714,797

718,691

More than five years

1,181,250

1,356,250

2,090,980

2,271,790