Company Registration No. 03276354 (England and Wales)
LEVER TECHNOLOGY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
LEVER TECHNOLOGY GROUP LIMITED
COMPANY INFORMATION
Directors
Mr I J Lever
Mr A Lever
Secretary
J Stewart
Company number
03276354
Registered office
Pikes Head Lodge
Cattle Lane
Aberford
Leeds
West Yorkshire
LS25 3BH
Auditor
Haigh Accountants Limited
Grange Cottage
Fulham Lane
Womersley
Doncaster
DN6 9BW
Bankers
Barclays Bank UK plc
93/95 Main Street
Garforth
Leeds
West Yorkshire
United Kingdom
LS25 1AF
LEVER TECHNOLOGY GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
LEVER TECHNOLOGY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2021
- 1 -
The directors present the strategic report for the year ended 31 March 2021.
Fair review of the business
In March 2021 the company exited from its lease on the expensive and superfluous office space at Woodhead House, and is now able to operate with substantially-reduced costs with no significant downside.
During 2021 the Company operated well with its reduced administration function, which structure had become redundant due to the reduction in on-premises training courses and through the increasing use of new software.
As of 24 March 2021, LEVER Technology Group PLC de-registered as a Public Limited Company and re-registered as a Private Limited Company. Our new company name is LEVER Technology Group Ltd and our articles of association have been updated accordingly. Deregistration will enable the company to eliminate from April 2022 the additional year-end financial auditing function that is required for a PLC company, and this will both reduce our accounting costs and lighten our administration.
After 21 months which have seen our industry challenged heavily by COVID-19 restrictions, with many customers putting projects on hold; our pre-booked work has now been completed and new contracts are being won from existing and new customers. We anticipate a steady increase in sales throughout 2022 as we strengthen our propositions to include a collective package of services and benefits for existing and new customers, together with an enhanced wireless network support offering.
With the new Wi-Fi 6 and Wi-Fi 6E technologies now available to customers, and with 5G cellular network operators seeking to offload data to Wi-Fi networks, we anticipate an increase in Wi-Fi network projects during 2022 and subsequent years. These networks need to be engineered differently from previous Wi-Fi networks, and our market leadership should stand us in good stead.
Principal risks and uncertainties
Competitive Risk
The Company's revenues are spread across many market sectors, and as such, the company has little exposure to upturn or downturn in any single market or industry.
The company's exposure to new competitors remains stable, as most IT companies now claim to offer wireless network services and solutions. In fact the company is set to capitalise on strengths which it has so far under-employed, which will increasingly distinguish the company from its competitors, and strengthen its competitive position.
Exposure to credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets.
LEVER TECHNOLOGY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 2 -
Future Developments
The Company intends to establish a new, dedicated sales function, to sell strongly our existing and new propositions to the very wide and mostly untouched potential customer base in the UK.
In addition, the Company will promote its expertise following the market-leading work that we have recently conducted in the design of city-wide outdoor wireless network infrastructures.
Additional new technologies, in particular LoRaWAN and loT more broadly, present further new opportunities for the Company.
The Company is also now more able to promote its outsourced wireless network management services, simultaneously providing customers with enhanced IT services and enabling them to reduce their operating costs.
We are optimistic for the outlook for business in 2022.
Mr I J Lever
Director
28 March 2022
LEVER TECHNOLOGY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2021.
Principal activities
The principal activity of the company continued to be that of the provision of information technology and communication sector training courses, consultancy services and wireless network solutions.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr I J Lever
Mr A Lever
Auditor
Haigh Accountants Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LEVER TECHNOLOGY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
Mr I J Lever
Director
28 March 2022
LEVER TECHNOLOGY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEVER TECHNOLOGY GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of Lever Technology Group Limited (the 'company') for the year ended 31 March 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 March 2021 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LEVER TECHNOLOGY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEVER TECHNOLOGY GROUP LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors
either
intend
to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities including fraud.
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.
By focusing on material amounts and disclosures and using a risk-based approach, we have a reasonable chance of detecting material misstatements due to irregularities including fraud. However, due to the sampling method of testing, as allowed by auditing standards, we cannot guarantee that, if such irregularities, including fraud are present within the company's financial system, our audit will detect all of them.
Robust internal controls operated by the company can increase the detection of such irregularities, but this is not always present in small to medium sized companies that are often owner managed.
LEVER TECHNOLOGY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEVER TECHNOLOGY GROUP LIMITED
- 7 -
Our approach was as follows:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK. We communicated the identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
Audit procedures performed by the engagement team to detect irregularities, including fraud from instances of non-compliance with laws and regulations included:
-
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations. As one of the two directors is involved in the day-to-day running of the business, they can exert close oversite of the management team and finance department.
However, the primary responsibility for the prevention and detection of fraud still rests with both those charged with governance of the entity and the management team.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Mrs W M Haigh (Senior Statutory Auditor)
For and on behalf of Haigh Accountants Limited
30 March 2022
Chartered Certified Accountants
Statutory Auditor
Grange Cottage
Fulham Lane
Womersley
Doncaster
DN6 9BW
LEVER TECHNOLOGY GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2021
- 8 -
Year
Period
ended
ended
31 March
31 March
2021
2020
Notes
£
£
Turnover
3
217,314
433,010
Cost of sales
(35,866)
(102,304)
Gross profit
181,448
330,706
Administrative expenses
(195,375)
(408,971)
Other operating income
38,629
10,000
Operating profit/(loss)
4
24,702
(68,265)
Interest receivable and similar income
7
8
59
Interest payable and similar expenses
8
(833)
Profit/(loss) before taxation
23,877
(68,206)
Tax on profit/(loss)
9
16,667
12,548
Profit/(loss) for the financial year
40,544
(55,658)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LEVER TECHNOLOGY GROUP LIMITED
BALANCE SHEET
AS AT
31 MARCH 2021
31 March 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,354
5,737
Investments
11
4
4
2,358
5,741
Current assets
Debtors
13
75,516
31,403
Cash at bank and in hand
109,450
27,760
184,966
59,163
Creditors: amounts falling due within one year
14
(96,321)
(58,003)
Net current assets
88,645
1,160
Total assets less current liabilities
91,003
6,901
Creditors: amounts falling due after more than one year
15
(43,333)
Provisions for liabilities
Deferred tax liability
17
225
(225)
-
Net assets
47,445
6,901
Capital and reserves
Called up share capital
19
12,500
12,500
Profit and loss reserves
34,945
(5,599)
Total equity
47,445
6,901
The financial statements were approved by the board of directors and authorised for issue on 28 March 2022 and are signed on its behalf by:
Mr I J Lever
Director
Company Registration No. 03276354
LEVER TECHNOLOGY GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2018
12,500
50,059
62,559
Period ended 31 March 2020:
Loss and total comprehensive income for the period
-
(55,658)
(55,658)
Balance at 31 March 2020
12,500
(5,599)
6,901
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
40,544
40,544
Balance at 31 March 2021
12,500
34,945
47,445
LEVER TECHNOLOGY GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
54,257
(76,092)
Interest paid
(833)
Net cash inflow/(outflow) from operating activities
53,424
(76,092)
Investing activities
Purchase of tangible fixed assets
(973)
(1,016)
Loans made
(20,769)
Interest received
8
59
Net cash used in investing activities
(21,734)
(957)
Financing activities
Proceeds of new bank loans
50,000
Net cash generated from/(used in) financing activities
50,000
-
Net increase/(decrease) in cash and cash equivalents
81,690
(77,049)
Cash and cash equivalents at beginning of year
27,760
104,809
Cash and cash equivalents at end of year
109,450
27,760
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
- 12 -
1
Accounting policies
Company information
Lever Technology Group Limited is a
public
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Pikes Head Lodge, Cattle Lane, Aberford, Leeds, West Yorkshire, LS25 3BH.
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.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
true
|
|
The directors have prepared forecasts covering the period up to 31 December 2022, taking account of trading performance of the Company up to 30 November 2021, expected future trading conditions and anticipated growth.
Whilst the ability of Management to prepare reliable forecasts is impacted by the impact of the COVID-19 Pandemic, and shortages of semiconductor components for IT equipment, they have used the experienced gained during 2021 to consider the key variables including the level of sales, the availability of key supplies and the impact on the timing of cashflows.
|
Based on Management's assessment, the Company expects to be able to meet its liabilities as they fall due for at least 12 months from the date of approving the financial statements. The Directors continue to adopt the going concern basis of accounting in preparing the financial statements, but nonetheless recognise that the full magnitude the COVID-19 pandemic will have on the Company's financial condition, liquidity, and future results of operations is yet to be established.
1.3
Reporting period
Last year the company changed its reporting date to 31 March which is the same reporting date as its two subsidiary companies. Therefore the prior period is an eighteen month reporting period which is not entirely comparable with the current year's figures.
1.4
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.
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.
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 13 -
Revenue from contracts for the provision of 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
.
1.5
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:
Fixtures and fittings
20% reducing balance
Computers
25% reducing balance
Motor vehicles
25% straight line
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
.
1.6
Fixed asset investments
Interests in subsidiaries 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.
1.7
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).
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
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
current account positive balances
.
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 14 -
1.9
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.
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.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.10
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 16 -
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
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
s
asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
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.
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 17 -
2
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 amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Operating lease commitments
The company has entered into commercial leases as a lessee to obtain the use of property, plant and equipment. The classification of such leases as operating or finance leases requires the company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires the recognition of an asset and liability in the balance sheet.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Deferred income
The carrying value of deferred income is sensitive to changes in the estimated stage of completion of contracts and to the extent that the outcome on the contract can be measured reliably.
Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and are amended when necessary to reflect current estimated. No such amendments were deemed necessary during the year ended 31 March 2021.
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by geographical market
UK
177,516
258,702
Europe
-
27,515
USA
39,798
127,484
Rest of the world
-
19,309
217,314
433,010
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
3
Turnover and other revenue
(Continued)
- 18 -
2021
2020
£
£
Other significant revenue
Interest income
8
59
Grants received
38,629
10,000
4
Operating profit/(loss)
2021
2020
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Government grants
(38,629)
(10,000)
Fees payable to the company's auditor for the audit of the company's financial statements
3,600
4,500
Depreciation of owned tangible fixed assets
3,845
6,661
Loss on disposal of tangible fixed assets
511
6,447
Operating lease charges
27,218
39,573
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Administrative
-
1
Sales and production
2
2
Total
2
3
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
104,737
245,892
Social security costs
8,028
25,709
Pension costs
260
112,765
271,861
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 19 -
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
70,000
149,999
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
8
59
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
8
59
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
833
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
5,014
Adjustments in respect of prior periods
(31,756)
Total current tax
(26,742)
Deferred tax
Origination and reversal of timing differences
10,075
(12,548)
Total tax credit
(16,667)
(12,548)
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
9
Taxation
(Continued)
- 20 -
The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit/(loss) before taxation
23,877
(68,206)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
4,537
(12,959)
Tax effect of expenses that are not deductible in determining taxable profit
417
86
Effect of change in corporation tax rate
325
Research and development tax credit
(31,756)
R&D enhanced deduction for prior year
(31,477)
Losses surrended for R&D Tax Credit
41,612
Taxation credit for the year
(16,667)
(12,548)
Changes to the UK corporation tax rates were substantively enacted as part of Finance Act 2020 (published on 11 March 2020, with royal assent received on 22 July 2020). This included a retraction of the planned reduction to the main rate to keep it at 19% from 1 April 2020. On 3 March 2021, the Government announced that with effect from 1 April 2023 the main rate of UK corporation tax will increase to 25%. This was substantively enacted on the 24
th
May 2021 when the Finance Bill 2021 had its third reading. As the proposal to increase the UK corporation tax rate had not been substantively enacted at the balance sheet date, its effects have not been reflected in the preparation of these financial statements. An estimate of the immediate financial impact cannot readily be made due to uncertainty over the timing of the reversal of temporary differences; it is however likely that the overall effect of the change will be to increase the company’s future tax charge.
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 21 -
10
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2020
87
16,304
12,708
29,099
Additions
973
973
Disposals
(5,573)
(5,573)
At 31 March 2021
87
11,704
12,708
24,499
Depreciation and impairment
At 1 April 2020
83
13,518
9,761
23,362
Depreciation charged in the year
1
900
2,944
3,845
Eliminated in respect of disposals
(5,062)
(5,062)
At 31 March 2021
84
9,356
12,705
22,145
Carrying amount
At 31 March 2021
3
2,348
3
2,354
At 31 March 2020
4
2,786
2,947
5,737
11
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
12
4
4
12
Subsidiaries
Details of the company's subsidiaries at 31 March 2021 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Lever Technology Solutions Ltd
Pikes Head Lodge, Cattle Lane, Aberford, Leeds, West Yorkshire, LS25 3BH
Dormant Company
Ordinary
100.00
Lever Tehnology Training Ltd
Pikes Head Lodge, Cattle Lane, Aberford, Leeds, West Yorkshire, LS25 3BH
Dormant Company
Ordinary
100.00
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 22 -
13
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
4,120
6,821
Corporation tax recoverable
31,756
Other debtors
20,769
10,000
Prepayments and accrued income
18,871
4,732
75,516
21,553
Deferred tax asset (note 17)
9,850
75,516
31,403
14
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans
16
6,667
Trade creditors
4,771
7,987
Corporation tax
5,014
Other taxation and social security
55,615
12,932
Deferred income
7,413
15,540
Other creditors
3,454
13,444
Accruals and deferred income
13,387
8,100
96,321
58,003
15
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Bank loans and overdrafts
16
43,333
Amounts included above which fall due after five years are as follows:
Payable by instalments
3,333
-
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 23 -
16
Loans and overdrafts
2021
2020
£
£
Bank loans
50,000
Payable within one year
6,667
Payable after one year
43,333
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2021
2020
2021
2020
Balances:
£
£
£
£
Accelerated capital allowances
225
-
-
(818)
Tax losses
-
-
-
10,668
225
-
-
9,850
2021
Movements in the year:
£
Asset at 1 April 2020
(9,850)
Charge to profit or loss
10,075
Liability at 31 March 2021
225
18
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
-
260
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.
19
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary (Only 25p per share has been paid) of £1 each
50,000
50,000
12,500
12,500
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
19
Share capital
(Continued)
- 24 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
26,835
21
Events after the reporting date
Equity dividends totalling £21,000 have been declared after the balance sheet date.
22
Related party transactions
At the end of the period a director owed the company £20,769 (2020 the company owed a director £10,089 ).
23
Cash generated from/(absorbed by) operations
2021
2020
£
£
Profit/(loss) for the year after tax
40,544
(55,658)
Adjustments for:
Taxation credited
(16,667)
(12,548)
Finance costs
833
Investment income
(8)
(59)
Loss on disposal of tangible fixed assets
511
6,447
Depreciation and impairment of tangible fixed assets
3,845
6,661
Movements in working capital:
(Increase)/decrease in debtors
(1,438)
11,649
Increase/(decrease) in creditors
34,764
(29,260)
Decrease in deferred income
(8,127)
(3,324)
Cash generated from/(absorbed by) operations
54,257
(76,092)
LEVER TECHNOLOGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 25 -
24
Analysis of changes in net funds
1 April 2020
Cash flows
31 March 2021
£
£
£
Cash at bank and in hand
27,760
81,690
109,450
Borrowings excluding overdrafts
-
(50,000)
(50,000)
27,760
31,690
59,450
2021-03-31
2020-04-01
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