Exel Technology Group Limited - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 03488931 (England and Wales)

EXEL TECHNOLOGY GROUP LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2017

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr R Moore

Mr C Knight

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

1,239,306

1,603,561

Tangible assets

6

1,205,762

1,231,092

2,445,068

2,834,653

CURRENT ASSETS

Stocks

118,737

154,738

Debtors

7

463,964

509,731

Cash at bank and in hand

1,848

2,778

584,549

667,247

CREDITORS

Amounts falling due within one year

8

1,468,447

1,489,245

NET CURRENT LIABILITIES

(883,898

)

(821,998

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,561,170

2,012,655

CREDITORS

Amounts falling due after more than one year

9

(837,240

)

(1,026,535

)

PROVISIONS FOR LIABILITIES

(63,306

)

(62,643

)

NET ASSETS

660,624

923,477

CAPITAL AND RESERVES

Called up share capital

11

101,200

106,950

Revaluation reserve

12

399,232

414,749

Capital redemption reserve

12

36,800

31,050

Retained earnings

12

123,392

370,728

SHAREHOLDERS' FUNDS

660,624

923,477

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 of Part 15 of the Companies Act 2006 relating to small companies.

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

The financial statements were approved by the Board of Directors on 18 October 2017 and were signed on its behalf 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 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.

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 measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

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

foods 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.

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.

Land and buildings

-

2% on cost of property only

Plant and machinery etc

-

33% straight line, 25% straight line and 15% straight line

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 profit or loss.

Reversals of impairment loss are also recognised in profit or loss.

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.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 31 (2016 - 35 ) .

5.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 April 2016

and 31 March 2017

3,686,185

AMORTISATION

At 1 April 2016

2,082,624

Charge for year

364,255

At 31 March 2017

2,446,879

NET BOOK VALUE

At 31 March 2017

1,239,306

At 31 March 2016

1,603,561

6.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 April 2016

1,210,000

184,794

1,394,794

Additions

-

4,799

4,799

Disposals

-

(14,361

)

(14,361

)

At 31 March 2017

1,210,000

175,232

1,385,232

DEPRECIATION

At 1 April 2016

-

163,702

163,702

Charge for year

17,933

10,568

28,501

Eliminated on disposal

-

(12,733

)

(12,733

)

At 31 March 2017

17,933

161,537

179,470

NET BOOK VALUE

At 31 March 2017

1,192,067

13,695

1,205,762

At 31 March 2016

1,210,000

21,092

1,231,092

Cost or valuation at 31 March 2017 is represented by:

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Valuation in 2016

470,027

-

470,027

Cost

739,973

175,232

915,205

1,210,000

175,232

1,385,232

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

2017

2016

£

£

Cost

739,973

739,973

Aggregate depreciation

50,565

35,765

Value of land in freehold land and buildings

689,408

704,208

Freehold property with a carrying value of £1,210,000 was revalued as at 31 March 2016 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.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

59,103

91,698

Other debtors

404,861

418,033

463,964

509,731

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

232,475

335,654

Trade creditors

553,048

502,614

Amounts owed to related parties

7,000

12,000

Taxation and social security

191,639

136,753

Other creditors

484,285

502,224

1,468,447

1,489,245

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Bank loans

495,557

584,001

Other creditors

341,683

442,534

837,240

1,026,535

10.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank overdrafts

118,733

196,250

Bank loans

609,299

723,405

Other loans

511,888

605,559

1,239,920

1,525,214

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.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

23,000

Ordinary

£1

23,000

28,750

45,995

A Ordinary

£1

45,995

45,995

6,900

B Ordinary

£1

6,900

6,900

18,400

C Ordinary

£1

18,400

18,400

6,900

D Ordinary

£1

6,900

6,900

1

E Ordinary

£1

1

1

1

F Ordinary

£1

1

1

1

G Ordinary

£1

1

1

1

H Ordinary

£1

1

1

1

I Ordinary

£1

1

1

101,200

106,950

During the year the company purchased 5,750 of its own ordinary share capital for £50,000

12.

RESERVES

Capital

Retained

Revaluation

redemption

earnings

reserve

reserve

Totals

£

£

£

£

At 1 April 2016

370,728

414,749

31,050

816,527

Deficit for the year

(39,277

)

-

-

(39,277

)

Dividends

(175,992

)

-

-

(175,992

)

Purchase of own shares

(50,000

)

-

5,750

(44,250

)

Movement in valuation

-

2,416

-

2,416

Transfer between reserves

17,933

(17,933

)

-

-

At 31 March 2017

123,392

399,232

36,800

559,424

13.	RELATED PARTY DISCLOSURES

During the year the company paid key management a total of £18,037.

Included within other debtors is an overdrawn director's loan account in respect of Mr R Moore amounting to

£26,124 (2016: £20,095) which was also the maximum amount outstanding during the period. Interest of £272

(2016: £Nil) was charged by Mr R Moore on credit balances during the year.

Included within other creditors is £43,602 (2016: £33,269) due to Mr C Knight, a director of the company. Interest

of £3,243 (2016: £563) was charged in respect of this loan during the year.

Included within other creditors is £91,000 (2016: £82,375) due to Mr H Moore, the father of Mr R Moore.

Included within other loans is £180,054 (2016: £174,155) owed to Westminster Holdings Limited Executive

Pension Scheme, of which Mr R Moore and Mr C Knight are members.

14.	ULTIMATE CONTROLLING PARTY

Mr R Moore is deemed to be the ultimate controlling party by virtue of his majority voting rights.