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

REGISTERED NUMBER: 01741340 (England and Wales)

VERTICAL SYSTEMS LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2020

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

P.L. Healey

P S Bentley

Mrs N. Dilworth

C. North

REGISTERED OFFICE:

14 Hemmells

Laindon

Basildon

Essex

SS15 6ED

REGISTERED NUMBER:

01741340 (England and Wales)

INDEPENDENT AUDITORS:

Bland Baker

Chartered Accountants and

Registered Auditor

21 Lodge Lane

Grays

Essex

RM17 5RY

FIXED ASSETS

Tangible assets

4

161,173

182,596

Investments

5

100,000

100,000

Investment property

6

302,940

302,940

564,113

585,536

CURRENT ASSETS

Stocks

7

1,500

1,500

Debtors

8

990,694

1,076,744

Cash at bank and in hand

191,018

146,087

1,183,212

1,224,331

CREDITORS

Amounts falling due within one year

9

447,376

615,678

NET CURRENT ASSETS

735,836

608,653

TOTAL ASSETS LESS CURRENT LIABILITIES

1,299,949

1,194,189

CREDITORS

Amounts falling due after more than one year

10

4,249

9,711

NET ASSETS

1,295,700

1,184,478

CAPITAL AND RESERVES

Called up share capital

20,001

20,001

Share premium

443,999

443,999

Retained earnings

831,700

720,478

SHAREHOLDERS' FUNDS

1,295,700

1,184,478

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 April 2021 and were signed on its behalf by:

P.L. Healey - Director

1.	STATUTORY INFORMATION

Vertical 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is charged so as to allocate the cost of assets less their residual value over their

estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property

2%

Plant and machinery

20%

Motor vehicles

25%

Fixtures and fittings

33%

Computer equipment

33%

Server

20%

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, 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 Statement of Income and Retained Earnings, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 35 (2019 - 39 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 May 2019

189,665

764,474

954,139

Additions

-

7,864

7,864

At 30 April 2020

189,665

772,338

962,003

DEPRECIATION

At 1 May 2019

66,760

704,783

771,543

Charge for year

3,786

25,501

29,287

At 30 April 2020

70,546

730,284

800,830

NET BOOK VALUE

At 30 April 2020

119,119

42,054

161,173

At 30 April 2019

122,905

59,691

182,596

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

Plant and

machinery

etc

£

COST

At 1 May 2019

and 30 April 2020

18,000

DEPRECIATION

At 1 May 2019

1,200

Charge for year

3,600

At 30 April 2020

4,800

NET BOOK VALUE

At 30 April 2020

13,200

At 30 April 2019

16,800

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 May 2019

and 30 April 2020

100,000

NET BOOK VALUE

At 30 April 2020

100,000

At 30 April 2019

100,000

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 May 2019

and 30 April 2020

302,940

NET BOOK VALUE

At 30 April 2020

302,940

At 30 April 2019

302,940

The 2020 valuation was made by the directors, on an open market value for existing use basis.

7.

STOCKS

2020

2019

£

£

Finished goods

1,500

1,500

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

300,019

271,990

Amounts owed by group undertakings

369,284

692,396

Other debtors

321,391

112,358

990,694

1,076,744

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Hire purchase contracts (see note 11)

5,463

5,204

Trade creditors

58,958

89,599

Amounts owed to group undertakings

206,253

336,603

Taxation and social security

108,562

135,894

Other creditors

68,140

48,378

447,376

615,678

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Hire purchase contracts (see note 11)

4,249

9,711

11.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2020

2019

£

£

Gross obligations repayable:

Within one year

5,946

5,204

Between one and five years

4,460

9,711

10,406

14,915

Finance charges repayable:

Within one year

483

-

Between one and five years

211

-

694

-

Net obligations repayable:

Within one year

5,463

5,204

Between one and five years

4,249

9,711

9,712

14,915

The hire purchase liability is secured over the related asset.

12.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Hire purchase contracts

9,712

14,915

The hire purchase creditor is secured on the asset obtained under the agreement.

13.	DEFERRED TAX

£

Balance at 1 May 2019

(7,948

)

Depreciation in advance of

capital allowances

(600

)

Balance at 30 April 2020

(8,548

)

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

The Report of the Auditors was unqualified.

D M Baker (Senior Statutory Auditor)

for and on behalf of Bland Baker

15.	PENSION COMMITMENTS

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. The pension cost charge represents contributions payable by the Company to the fund and amounted to £36,016 (2019 - £28,260).Contributions totalling £7,013 (2019 - £3,640) were payable to the fund at the balance sheet date.

16.	RELATED PARTY DISCLOSURES

As the Company is a wholly owned subsidiary of Notsallow 134 Limited the Company has taken advantage of the exemption in FRS102 disclosure 33.1A and has therefore not disclosed transactions or balances with other wholly-owned subsidiaries which form part of the group headed by Vertical Group Limited. The consolidated financial statements, within which this company is included, can be obtained from 14 Hemmells, Laindon, Essex, SS15 6ED.

Transactions with companies not wholly owned by the group are as follows:

The Company made sales of £10,008 (2019: £160) to MI Telecom Limited, a fellow subsidiary of Notsallow 134 Limited. As at 30 April 2020 the Company owed £28,148 (2019: £23,756) to MI Telecom Limited.

The Company made sales of £24,454 (2019: £487) to Holiday Elite Limited, a fellow subsidiary of Notsallow 134 Limited. As at 30 April 2020 the Company was owed £3,436 (2019: £4,515) by Holiday Elite Limited.

As at 30 April 2020 the Company owed Villas for Travel Limited, a fellow associate of Notsallow 134 Limited, £46,464 (2019: £47,377).

As at 30 April 2020 the amount of £4,856 (2019: £4,289) was owed from the company to the directors.

17.	ULTIMATE CONTROLLING PARTY

The ultimate parent undertaking of this company as at the period ended 30 April 2020 was Vertical Group Limited which is incorporated in England and registered in England and Wales.

The immediate parent undertaking and controlling party is Notsallow 134 Limited which is incorporated and registered in England and Wales. The largest and smallest group of undertakings which include this company and for which consolidated accounts have been drawn up is that headed by Vertical Group Limited. The address where these accounts can be found is also the registered address of the parent company: 14 Hemmells, Laindon, Basildon, Essex, SS15 6ED.

The ultimate controlling party is P L Healey.