Company Registration No. 02498901 (England and Wales)
SIRSI LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
Sobell Rhodes LLP
Unit 501 Centennial Park
Centennial Avenue
Elstree
Borehamwood
WD6 3FG
SIRSI LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
SIRSI LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
277,717
358,683
Investments
4
72,778
72,778
350,495
431,461
Current assets
Debtors
5
1,924,982
1,986,790
Cash at bank and in hand
1,117,914
1,049,384
3,042,896
3,036,174
Creditors: amounts falling due within one year
6
(3,781,822)
(3,484,253)
Net current liabilities
(738,926)
(448,079)
Total assets less current liabilities
(388,431)
(16,618)
Provisions for liabilities
(4,880)
(4,880)
Net liabilities
(393,311)
(21,498)
Capital and reserves
Called up share capital
8
670
670
Profit and loss reserves
(393,981)
(22,168)
Total equity
(393,311)
(21,498)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 12 December 2020 and are signed on its behalf by:
J K Martin
W Davison Jr
Director
Director
Company Registration No. 02498901
SIRSI LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
1
Accounting policies
Company information
Sirsi Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Sirsidynix, First Floor, Axis 6, Rhodes Way, Watford, Hertfordshire, United Kingdom, WD24 4YW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Going concern
The company made a loss for the financial year of £
true
248,571
and has net
liabilities
of £
270,069.
COVID-19 had
not started having an impact in UK at 31 December 2019. The ongoing pandemic and related lockdowns and restrictions have resulted in minimal
impact on the business
operations during 2020
.
There has been no need to
furlough staff
and reduce staff numbers.
The directors regularly review cash flow forecasts to determine whether the company has sufficient cash reserves to enable it to meet its liabilities as they fall due.
The directors have
a reasonable expectation that the
company
has adequate resources to continue in operational existence for
a period of not less than one year from the date of approval of these financial statements
.
As a result t
he
directors
consider it appropriate to
adopt the going concern basis of accounting in preparing the
se financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
SIRSI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 3 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation 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:
Leasehold land and buildings
over the life of lease
Office equipment
3 to 5 years
Fixtures and fittings
7 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
SIRSI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
SIRSI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
36
32
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2019
109,661
799,196
908,857
Additions
-
115,315
115,315
Disposals
-
(9,410)
(9,410)
At 31 December 2019
109,661
905,101
1,014,762
Depreciation and impairment
At 1 January 2019
31,796
518,378
550,174
Depreciation charged in the year
18,752
177,529
196,281
Eliminated in respect of disposals
-
(9,410)
(9,410)
At 31 December 2019
50,548
686,497
737,045
Carrying amount
At 31 December 2019
59,113
218,604
277,717
At 31 December 2018
77,865
280,818
358,683
SIRSI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
4
Fixed asset investments
2019
2018
£
£
Shares in group undertakings and participating interests
72,778
72,778
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2019 & 31 December 2019
72,778
Carrying amount
At 31 December 2019
72,778
At 31 December 2018
72,778
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
928,571
1,172,991
Amounts owed by group undertakings
477,392
598,143
Other debtors
36,084
37,005
Prepayments and accrued income
482,935
178,651
1,924,982
1,986,790
6
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
92,822
6,893
Amounts owed to group undertakings
751,586
323,800
Taxation and social security
229,390
135,809
Deferred income
2,516,618
2,845,680
Other creditors
33,447
125,120
Accruals
157,959
46,951
3,781,822
3,484,253
SIRSI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
7
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
85,173
81,316
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £85,173 (2018: £81,316).
Contributions totalling nil (2018: nil) were payable to the scheme at the end of the year are included in creditors.
8
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
670 Ordinary shares of £1 each
670
670
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Selwyn Arnold.
The auditor was Sobell Rhodes LLP.
10
Financial commitments, guarantees and contingent liabilities
The total amount of financial commitments not included in the balance sheet is £478,914 (2018: £540,052).
11
Parent company
The ultimate parent undertaking is SD Intermediate Inc, a company incorporated in the USA. SD Intermediate Inc is the parent undertaking of the smallest and largest group of undertakings to consolidate these financial statements but does not make those accounts publicly available.
The company's immediate parent is Sirsi Corporation , incorporated in USA
SIRSI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
12
Prior period adjustment
The company has restated the prior year profit and loss account in respect of the accounting treatment of staff commission recognised in of £30,608. As a result of this adjustment the loss for the year ended 31 December 2018 as previously reported of £112,940 is restated to £143,548.
In addition the company has adjusted its opening profit and loss reserves at 1 January 2018 by £171,565 in respect of commission recognised for earlier periods. Therefore the profit and loss reserve as previously reported of £292,945 is restated to £121,380.
The cumulative affect of these adjustments is to reduce debtors due within one year at 31 December 2018 as previously reported of £2,188,963 by £202,173 resulting in restated balance of £1,986,790. There the closing profit and loss reserves at 31 December 2018 as previously reported of £180,005 (credit) is restated to £22,168 (debit)
At 31 December 2018 the net assets as previously report of
£180,675
is restated
to £21,498 net liabilities
.
Changes to the balance sheet
As previously reported
Adjustment at 1 Jan 2018
Adjustment at 31 Dec 2018
As restated at 31 Dec 2018
£
£
£
£
Current assets
Debtors due within one year
2,188,963
(171,565)
(30,608)
1,986,790
Net assets
180,675
(171,565)
(30,608)
(21,498)
Capital and reserves
Profit and loss
180,005
(171,565)
(30,608)
(22,168)
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 December 2018
£
£
£
Loss for the financial period
(112,940)
(30,608)
(143,548)