Exel Technology Group Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03488931 (England and Wales)

EXEL TECHNOLOGY GROUP LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

Mr R Moore

SECRETARY:

Mr R Moore

REGISTERED OFFICE:

1 Melton Way

Mansfield

Nottinghamshire

NG18 5FU

REGISTERED NUMBER:

03488931 (England and Wales)

ACCOUNTANTS:

ApC

Chartered Accountants

7 St John Street

Mansfield

Nottinghamshire

NG18 1QH

FIXED ASSETS

Intangible assets

5

459,435

626,483

Tangible assets

6

1,509,128

1,523,250

Investments

7

300

-

1,968,863

2,149,733

CURRENT ASSETS

Stocks

132,923

192,651

Debtors

8

1,973,600

199,765

Cash at bank and in hand

750

512

2,107,273

392,928

CREDITORS

Amounts falling due within one year

9

1,378,952

1,007,897

NET CURRENT ASSETS/(LIABILITIES)

728,321

(614,969

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,697,184

1,534,764

CREDITORS

Amounts falling due after more than one year

10

(1,704,502

)

(677,773

)

PROVISIONS FOR LIABILITIES

(145,898

)

(105,693

)

NET ASSETS

846,784

751,298

CAPITAL AND RESERVES

Called up share capital

12

70,150

75,900

Revaluation reserve

13

598,063

609,619

Capital redemption reserve

13

67,850

62,100

Retained earnings

13

110,721

3,679

SHAREHOLDERS' FUNDS

846,784

751,298

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 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 by the director and authorised for issue on 18 December 2020 and were signed by:

Mr R Moore - Director

1.	STATUTORY INFORMATION

Exel Technology Group 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 presentation currency of the financial statements is the Pound Sterling (£).

2.	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 the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for sale of goods and services to external customers in the ordinary nature of the business. The fair value of consideration takes into account trade discounts. Turnover is shown net of Value Added Tax.

Sale of electronic goods

Turnover is recognised when it and the associated costs can be measured reliably, future economic benefits are probable, and the risks and rewards of ownership have been transferred to the customer. Sales of electronic goods are recognised when goods are delivered and legal title has passed and the company has no continuing managerial involvement associated with ownership or effective control of the goods sold. This is generally when foods have been checked and accepted by the customer on delivery at the specified location.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2020, is being amortised evenly over its estimated useful life of four years.

Intangible assets

Software development

The company capitalises development expenditure as an intangible asset when it is able to demonstrate all of the following:

a) The technical feasibility of completing the development so the intangible asset will be available for use or sale;

b) Its intention to complete the development and to use or sell the intangible asset;

c) Its ability to use or sell the intangible asset;

d) How the intangible asset will generate probable future economic benefits;

e) The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset;

f) Its ability to measure reliably the expenditure attributable to the intangible asset during its development.

Capitalised development expenditure is initially recognised at cost and subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software development - 15% Straight line

The directors consider the useful life to be appropriate because the software isn't quickly outdated and the fact that they have hundreds of customers using the software, some of which have been using it for over 10 years.

Amortisation is revised prospectively for any significant change in useful life or residual value.

Tangible fixed assets

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

Freehold property

-

2% on cost of property only

Fixtures and fittings

-

33% straight line and 15% straight line

Computer equipment

-

33% straight line

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

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

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average cost basis.

At each reporting date, the company assesses whether stocks are impaired or if an impairment loss recognised in prior periods has been reversed. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in income statement.

Reversals of impairment loss are also recognised in income statement.

Stocks held for distribution at no or nominal consideration are measured at cost, adjusted where applicable for any loss of service potential, i.e. benefits expected from use or sale of the stock.

Financial instruments

Financial instruments 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.

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

Development expenditure is carried forward when its future recoverability can be foreseen with reasonable assurance and it is amortised in line with sales from the related product. All research and other development costs are written off as incurred.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of inception and the present value of the minimum lease payments. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the Balance Sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rents payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. The amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

Financial instruments

Financial instruments 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.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 29 (2019 - 28 ) .

5.	INTANGIBLE FIXED ASSETS

Development

Goodwill

costs

Totals

£

£

£

COST

At 1 April 2019

-

3,802,844

3,802,844

Additions

8,352

143,826

152,178

At 31 March 2020

8,352

3,946,670

3,955,022

AMORTISATION

At 1 April 2019

-

3,176,361

3,176,361

Amortisation for year

1,566

317,660

319,226

At 31 March 2020

1,566

3,494,021

3,495,587

NET BOOK VALUE

At 31 March 2020

6,786

452,649

459,435

At 31 March 2019

-

626,483

626,483

6.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

Computer

property

fittings

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 April 2019

1,394,000

188,795

104,016

1,686,811

Additions

-

1,153

60,765

61,918

At 31 March 2020

1,394,000

189,948

164,781

1,748,729

DEPRECIATION

At 1 April 2019

9,293

106,148

48,120

163,561

Charge for year

29,045

19,326

27,669

76,040

At 31 March 2020

38,338

125,474

75,789

239,601

NET BOOK VALUE

At 31 March 2020

1,355,662

64,474

88,992

1,509,128

At 31 March 2019

1,384,707

82,647

55,896

1,523,250

Cost or valuation at 31 March 2020 is represented by:

Fixtures

Freehold

and

Computer

property

fittings

equipment

Totals

£

£

£

£

Valuation in 2016

470,027

-

-

470,027

Valuation in 2018

180,524

-

-

180,524

Cost

743,449

189,948

164,781

1,098,178

1,394,000

189,948

164,781

1,748,729

If freehold property had not been revalued it would have been included at the following historical cost:

2020

2019

£

£

Cost

743,449

743,449

Aggregate depreciation

65,364

65,364

Value of land in freehold land and buildings

689,408

689,408

Freehold property with a carrying value of £1,394,000 was revalued as at 7 November 2018 by Spencer Birch, Chartered Surveyors, on an existing use open market value basis, in accordance with the guidance notes of the Royal Institute of Chartered Surveyors. Messrs Spencer Birch are not connected with the company. The valuation was based on recent market transactions on an arms length basis for similar properties.

7.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

300

At 31 March 2020

300

NET BOOK VALUE

At 31 March 2020

300

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

77,747

32,014

Amounts owed by related parties

1,705,147

-

Other debtors

190,706

167,751

1,973,600

199,765

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

444,939

115,458

Hire purchase contracts

13,679

-

Trade creditors

400,909

440,911

Taxation and social security

183,217

216,049

Other creditors

336,208

235,479

1,378,952

1,007,897

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans

1,429,920

367,424

Hire purchase contracts

55,439

-

Other creditors

219,143

310,349

1,704,502

677,773

11.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank overdrafts

246,624

63,227

Bank loans

1,628,235

419,655

Other loans

183,204

295,424

2,058,063

778,306

The bank loans and overdrafts are secured by an unlimited debenture over the assets of the company. In addition, the directors have provided personal guarantees in respect of the bank loans.

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

Value:

£

£

5,750

Ordinary

£1

5,750

11,500

44,397

A Ordinary

£1

44,397

45,990

20,000

B Ordinary

£1

20,000

-

1

C Ordinary

£1

1

18,400

1

D Ordinary

£1

1

-

1

E Ordinary

£1

1

1

Nil

F Ordinary

£1

-

1

Nil

G Ordinary

£1

-

1

Nil

H Ordinary

£1

-

1

Nil

I Ordinary

£1

-

1

Nil

J Ordinary

£1

-

1

Nil

K Ordinary

£1

-

1

Nil

L Ordinary

£1

-

1

Nil

M Ordinary

£1

-

1

Nil

N Ordinary

£1

-

1

70,150

75,900

During the year the company purchased 5,750 of its own Ordinary shares for £50,000. In 2019 the company also purchased 5,750 of its own Ordinary shares for £50,000.

13.

RESERVES

Capital

Retained

Revaluation

redemption

earnings

reserve

reserve

Totals

£

£

£

£

At 1 April 2019

3,679

609,619

62,100

675,398

Profit for the year

196,542

-

-

196,542

Dividends

(39,500

)

-

-

(39,500

)

Purchase of own shares

(50,000

)

-

5,750

(44,250

)

Movement in deferred tax

-

(11,556

)

-

(11,556

)

At 31 March 2020

110,721

598,063

67,850

776,634

14.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2020 and 31 March 2019:

2020

2019

£

£

Mr R Moore

Balance outstanding at start of year

17,527

64,245

Amounts advanced

-

17,527

Amounts repaid

(17,527

)

(64,245

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

17,527

Interest of £Nil (2019: £272) was charged by Mr R Moore on credit balances during the year.

15.	RELATED PARTY DISCLOSURES

During the year key management remuneration was £8,940 (2019: £11,726).

Included within other creditors is £171,079 (2019: £263,799) due to related parties.

During the year, the company made loans to other related parties of £1,705,147 (2019: £Nil).

At the balance sheet date, £1,705,147 (2019: £Nil) was outstanding in respect of these transactions.

The company issued dividends during the year of £39,500 (2019: £212,148).