AI Networks Limited
Unaudited Financial Statements
For Filing with Registrar
For the period ended 30 September 2019
Company Registration No. 07276603 (England and Wales)
AI Networks Limited
Company Information
Directors
M Boost
T Creswick
(Appointed 31 July 2019)
Company number
07276603
Registered office
Devonshire House
60 Goswell Road
London
EC1M 7AD
Accountants
Moore Kingston Smith LLP
Devonshire House
60 Goswell Road
London
EC1M 7AD
Business address
16 Dufferin Street
London
United Kingdom
EC1Y 8PD
AI Networks Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
AI Networks Limited
Balance Sheet
As at 30 September 2019
Page 1
2019
2018
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
7,167
35,500
Tangible assets
4
174,604
547,356
Investments
5
1
1
181,772
582,857
Current assets
Stock
-
2,947
Debtors
6
264,713
163,856
Cash at bank and in hand
74,863
29,996
339,576
196,799
Creditors: amounts falling due within one year
7
(515,514)
(826,772)
Net current liabilities
(175,938)
(629,973)
Total assets less current liabilities
5,834
(47,116)
Creditors: amounts falling due after more than one year
8
-
(287,300)
Provisions for liabilities
(31,010)
-
Net liabilities
(25,176)
(334,416)
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
(25,276)
(334,516)
Total equity
(25,176)
(334,416)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial period ended 30 September 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476
.
AI Networks Limited
Balance Sheet (Continued)
As at 30 September 2019
Page 2
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 30 September 2020 and are signed on its behalf by:
T Creswick
Director
Company Registration No. 07276603
AI Networks Limited
Notes to the Financial Statements
For the period ended 30 September 2019
Page 3
1
Accounting policies
Company information
AI Networks Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Devonshire House, 60 Goswell Road, London, EC1M 7AD.
1.1
Accounting convention
These financial statements have been prepared in accordance with section 1A of 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 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 pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Reporting period
The company's reporting period has been extended to 30 September 2019 to align the year end with its parent entity. Therefore comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
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.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.
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
33% straight line
Domain name
20% straight line
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.
AI Networks Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2019
1
Accounting policies
(Continued)
Page 4
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 improvements
Over the term of the lease
Plant and equipment
10% straight line
Fixtures and fittings
10% straight line
Computer equipment
20% - 33% 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, 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
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.
AI Networks Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2019
1
Accounting policies
(Continued)
Page 5
1.8
Stock
Stock are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.
Stock held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. 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 losses are also recognised in profit or loss.
1.9
Cash at bank and in hand
Cash at bank and in hand
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.
1.10
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.
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.
AI Networks Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2019
1
Accounting policies
(Continued)
Page 6
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.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
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.
AI Networks Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2019
1
Accounting policies
(Continued)
Page 7
1.13
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.
1.14
Leases
Rentals 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.
1.15
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 are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was 2 (2018 - 2).
3
Intangible fixed assets
Domain name
£
Cost
At 1 May 2018
100,640
Disposals
(640)
At 30 September 2019
100,000
Amortisation and impairment
At 1 May 2018
65,140
Amortisation charged for the period
28,333
Disposals
(640)
At 30 September 2019
92,833
Carrying amount
At 30 September 2019
7,167
At 30 April 2018
35,500
AI Networks Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2019
Page 8
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2018
149,581
1,147,755
1,297,336
Additions
-
190,687
190,687
Disposals
(149,581)
(1,097,253)
(1,246,834)
At 30 September 2019
-
241,189
241,189
Depreciation and impairment
At 1 May 2018
79,962
670,018
749,980
Depreciation charged in the period
14,958
142,672
157,630
Eliminated in respect of disposals
(94,920)
(746,105)
(841,025)
At 30 September 2019
-
66,585
66,585
Carrying amount
At 30 September 2019
-
174,604
174,604
At 30 April 2018
69,619
477,737
547,356
5
Fixed asset investments
2019
2018
as restated
£
£
Investments
1
1
AI Networks Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2019
5
Fixed asset investments
(Continued)
Page 9
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 May 2018 & 30 September 2019
1
Carrying amount
At 30 September 2019
1
At 30 April 2018
1
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
135,576
35,372
Amounts due from group undertakings
2,630
6,123
Other debtors
126,507
122,361
264,713
163,856
7
Creditors: amounts falling due within one year
2019
2018
as restated
£
£
Trade creditors
80,399
56,423
Amounts due to group undertakings
142,379
341,236
Corporation tax
35,662
-
Other taxation and social security
10,659
3,475
Other creditors
246,415
425,638
515,514
826,772
AI Networks Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2019
Page 10
8
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
-
287,300
9
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary of £1 each
100
100
100
100
10
Related party transactions
During the year
the company
paid for
IT communication and solution
services totaling £
1,773,567
to
Serverchoice
Limited, a company of which
M Boost
is also a director.
AI Networks also invoiced Serverchoice Limited a total of £1,082,077 for connectivity services provided.
At the year end there was £
134 due to Serverchoice
Limited.
During the year
the company
paid for
cyber security
services totaling £
11,290
to
Bulletproof Cyber
Limited, a company of which
M Boost
is also a director.
AI Networks also invoiced Bulletproof Cyber Limited a total of £12,278 for connectivity services provided.
At the year end there was £
1,388
outstanding
from Bulletproof Cyber
Limited.
During the year
the company
paid for
cloud platform
services totaling £
83,133
to
Civo
Limited, a company of which
M Boost
is also a director. At the year end there was £
11,380 due to Civo
Limited
.
During the year
the company
paid for
telecommunication
services totaling £
30,317
to
LLU Communications
Limited, a company of which
M Boost
is also a director. At the year end there was £
2,041 outstanding from LLU Communications
Limited
.
11
Parent company
The ultimate controlling party is T Creswick by virtue of his ownership of the majority of the issued share
capital
of the parent entity, Vorboss Limited
.
AI Networks Limited
Notes to the Financial Statements (Continued)
For the period ended 30 September 2019
Page 11
12
Prior period adjustment
Changes to the balance sheet
At 30 April 2018
As previously reported
Adjustment
As restated
£
£
£
Fixed assets
Investments
-
1
1
Creditors due within one year
Other creditors
(823,296)
(1)
(823,297)
Net assets
(334,416)
-
(334,416)
In the prior year, the investment of £1 in LLU Communications Limited, a joint venture, was incorrectly excluded from the accounts. LLU Communications Limited was incorporated on 27 June 2017, registered in England and Wales.
2019-09-30
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false
30 September 2020
CCH Software
CCH Accounts Production 2020.100
No description of principal activity
M Boost
T Creswick
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