ECCTIS Limited - Period Ending 2020-06-30

ECCTIS Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 8

ECCTIS Limited

Company Information

Directors

C Bai-Yun P Norris M J Cartwright

Company secretary

J N Williams

Registered office

Suffolk House Suffolk Road Cheltenham GL50 2ED

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

ECCTIS Limited

(Registration number: 02405026)
Balance Sheet as at 30 June 2020

	Note	30 June 2020  £	31 December 2018  £
Fixed assets
Tangible assets	4	243,068	234,369
Current assets
Debtors	5	437,925	422,926
Cash at bank and in hand		5,060,069	4,406,316
		5,497,994	4,829,242
Creditors: Amounts falling due within one year	6	(2,644,401)	(3,029,026)
Net current assets		2,853,593	1,800,216
Total assets less current liabilities		3,096,661	2,034,585
Deferred tax liabilities		(14,070)	(3,892)
Net assets		3,082,591	2,030,693
Capital and reserves
Called up share capital	7	700	700
Capital redemption reserve		300	300
Profit and loss account		3,081,591	2,029,693
Total equity		3,082,591	2,030,693

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 14 January 2020 and signed on its behalf by:
 

.........................................

C Bai-Yun
Director

ECCTIS Limited

Notes to the Financial Statements for the Period from 1 January 2019 to 30 June 2020

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:
Suffolk House
Suffolk Road
Cheltenham
GL50 2ED

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

Basis of preparation

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

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, that include the continued impact of COVID-19 and availability and use of government support should it be necessary, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity and
specific criteria have been met for each of the company's activities.

ECCTIS Limited

Notes to the Financial Statements for the Period from 1 January 2019 to 30 June 2020

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating to revenue and are recognised in income over the period in which the related costs are recognised.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current 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 temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. 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 statement of financial position 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
Computers	33.3% straight line
Other equipment	25% straight line
Leasehold improvements	Over the life of the lease

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

ECCTIS Limited

Notes to the Financial Statements for the Period from 1 January 2019 to 30 June 2020

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

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.

Financial Instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
 

Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
 

ECCTIS Limited

Notes to the Financial Statements for the Period from 1 January 2019 to 30 June 2020

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets:
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Financial assets:
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was as follows:

	1 January 2019 to 30 June 2020  No.	Year ended 31 December 2018  No.
Average number of employees	87	78

ECCTIS Limited

Notes to the Financial Statements for the Period from 1 January 2019 to 30 June 2020

4

Tangible assets

	Leasehold improvements £	Furniture, fittings and equipment  £	Total £
Cost
At 1 January 2019	248,430	335,824	584,254
Additions	2,911	80,999	83,910
At 30 June 2020	251,341	416,823	668,164
Depreciation
At 1 January 2019	49,686	300,199	349,885
Charge for the year	37,639	37,572	75,211
At 30 June 2020	87,325	337,771	425,096
Carrying amount
At 30 June 2020	164,016	79,052	243,068
At 31 December 2018	198,744	35,625	234,369

5

Debtors

	30 June 2020  £	31 December 2018  £
Trade debtors	233,898	331,159
Other debtors	138,222	44,843
Prepayments	65,805	46,924
	437,925	422,926

ECCTIS Limited

Notes to the Financial Statements for the Period from 1 January 2019 to 30 June 2020

6

Creditors

	30 June 2020  £	31 December 2018  £
Due within one year
Trade creditors	29,299	31,963
Amounts due to related parties	170,000	470,625
Social security and other taxes	534,377	321,167
Outstanding defined contribution pension costs	-	18,015
Other creditors	59	6,514
Accrued expenses	195,214	396,895
Corporation tax liability	388,536	377,436
Deferred income	1,326,916	1,406,411
	2,644,401	3,029,026

7

Share capital

Allotted, called up and fully paid shares

	30 June 2020		31 December 2018
	No.	£	No.	£
Ordinary shares of £1 each	700	700	700	700

8

Parent and ultimate parent undertaking

The company's immediate parent is GRS (Holdings) Limited, incorporated in England and Wales.

 The ultimate controlling party is C Bai-Yun.

9

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 14 January 2020 was Scott Lawrence, who signed for and on behalf of Hazlewoods LLP.