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

REGISTERED NUMBER: 04793167 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST OCTOBER 2020

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

-

739,375

Tangible assets

5

594,532

739,375

594,532

CURRENT ASSETS

1,024,322

Stocks

903,007

3,449,779

Debtors

6

2,750,718

760

Cash at bank and in hand

76,812

4,474,861

3,730,537

CREDITORS

3,420,156

Amounts falling due within one year

7

2,113,670

1,054,705

NET CURRENT ASSETS

1,616,867

1,794,080

TOTAL ASSETS LESS CURRENT LIABILITIES

2,211,399

CREDITORS

(137,294

)

Amounts falling due after more than one year

8

(611,026

)

(109,492

)

PROVISIONS FOR LIABILITIES

(88,319

)

1,547,294

NET ASSETS

1,512,054

CAPITAL AND RESERVES

90

Called up share capital

10

90

1,547,204

Retained earnings

1,511,964

1,547,294

SHAREHOLDERS' FUNDS

1,512,054

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 and authorised for issue on 18th January 2021 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.

Going Concern

The Coronavirus pandemic and the UK Government's lockdowns of the country in 2020 and 2021 have restricted most companies' operations and ability to generate cash. The unprecedented situation has created uncertainty for all businesses and for the economy as a whole.

The company continued to provide its services during these lockdowns albeit at reduced volumes to those normally achieved. The directors have assessed in detail the impact this situation has had on its operations, revenue streams, profitability and cash flows and have implemented operational changes in order to cope with both the current position and that expected in the short to medium term. The resulting updated forecasts were supplied to the company's bankers as part of the requirements for the additional loan facility detailed in note 8.

The directors have further revised the detailed forecasts prior to the signing of the 2020 accounts to reflect its most recent activities. Based upon those updated forecasts and the company's existing bank facilities in place at the date of approval of the accounts the directors have assessed that the company has adequate funding and resources to continue as a going concern for the foreseeable future.

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 2020 of £18,504 (2019: £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 42 (2019 - 46 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

and

Totals

Goodwill

licences

£

£

£

COST

At 1st November 2019

and 31st October 2020

48,917

4,500

44,417

AMORTISATION

At 1st November 2019

and 31st October 2020

48,917

4,500

44,417

NET BOOK VALUE

At 31st October 2020

-

-

-

At 31st October 2019

-

-

-

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1st November 2019

2,047,755

Additions

32,851

Disposals

(73,875

)

At 31st October 2020

2,006,731

DEPRECIATION

At 1st November 2019

1,308,380

Charge for year

147,262

Eliminated on disposal

(43,443

)

At 31st October 2020

1,412,199

NET BOOK VALUE

At 31st October 2020

594,532

At 31st October 2019

739,375

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

Plant and

machinery

etc

£

COST

At 1st November 2019

672,660

Disposals

(4,932

)

Transfer to ownership

(329,728

)

At 31st October 2020

338,000

DEPRECIATION

At 1st November 2019

230,314

Charge for year

66,773

Transfer to ownership

(181,603

)

At 31st October 2020

115,484

NET BOOK VALUE

At 31st October 2020

222,516

At 31st October 2019

442,346

6.

DEBTORS

31.10.20

31.10.19

£

£

Amounts falling due within one year:

Trade debtors

1,883,264

2,576,718

Other debtors

1,304

290

Prepayments

109,628

116,249

1,994,196

2,693,257

Amounts falling due after more than one year:

Amounts owed by group undertakings

756,522

756,522

Aggregate amounts

2,750,718

3,449,779

Included in trade debtors is an amount of £1,883,264 (2019: £2,576,718) against which the company has received an advance of £Nil (2019: £643,278).

The company has entered into a legal agreement with its parent undertaking which confirms that at 31st October 2020 £756,522 (2019: £756,522) of debt due is repayable more than 12 months from the balance sheet date.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.20

31.10.19

£

£

Bank loans and overdrafts

54,742

-

Hire purchase contracts

65,326

97,942

Trade creditors

1,525,227

2,022,607

Tax

20,789

66,193

Social security and other taxes

24,202

24,559

VAT

69,346

99,954

Other creditors

13,411

47,899

Advances against debtors

-

643,278

Accrued expenses

334,427

411,524

Deferred government grants

6,200

6,200

2,113,670

3,420,156

On 10th June 2020, the company received a loan of £600,000 under the Coronavirus Business Loan Scheme. The loan is repayable, by instalments, over 6 years. No repayments are required, or interest charged, in the first 12 months. For the remainder of the period, interest will be charged at 3.99% above base rate.

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 £Nil (2019: £643,278). 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

31.10.20

31.10.19

£

£

Bank loans - 2-5 years

479,987

-

Bank loans more 5 yr by instal

65,271

-

Hire purchase contracts

43,551

108,877

Deferred government grants

22,217

28,417

611,026

137,294

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

65,271

-

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.10.20

31.10.19

£

£

Bank loans

600,000

-

Hire purchase contracts

108,877

206,819

708,877

206,819

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

31.10.20

31.10.19

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 2020 the group's total indebtedness under this guarantee is £Nil (2019: £643,278).

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:

31.10.20

31.10.19

£

£

Within one year

192,964

194,932

Between one and five years

710,479

714,797

More than five years

1,006,250

1,181,250

1,909,693

2,090,980