AI Networks Limited
Unaudited Financial Statements
For Filing with Registrar
For the year ended 30 September 2020
Company Registration No. 07276603 (England and Wales)
AI Networks Limited
Company Information
Directors
T Creswick
N Robbins-Cherry
(Appointed 27 November 2020)
Secretary
Octopus Company Secretarial Services Limited
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
5 Appold Street
London
EC2A 2AG
AI Networks Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
AI Networks Limited
Balance Sheet
As at 30 September 2020
Page 1
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
-
7,167
Tangible assets
4
93,609
174,604
Investments
5
1
1
93,610
181,772
Current assets
Debtors
6
528,974
264,713
Cash at bank and in hand
97,692
74,863
626,666
339,576
Creditors: amounts falling due within one year
7
(479,470)
(515,514)
Net current assets/(liabilities)
147,196
(175,938)
Total assets less current liabilities
240,806
5,834
Provisions for liabilities
(17,786)
(31,010)
Net assets/(liabilities)
223,020
(25,176)
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
222,920
(25,276)
Total equity
223,020
(25,176)
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 year ended 30 September 2020 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 year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
AI Networks Limited
Balance Sheet (Continued)
As at 30 September 2020
Page 2
The financial statements were approved by the board of directors and authorised for issue on 25 May 2021 and are signed on its behalf by:
T Creswick
Director
Company Registration No. 07276603
AI Networks Limited
Notes to the Financial Statements
For the year ended 30 September 2020
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
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.
1.3
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:
Domain name
20% straight line
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:
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
.
AI Networks Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2020
1
Accounting policies
(Continued)
Page 4
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.
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
.
1.6
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.
1.7
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.
1.8
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.
AI Networks Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2020
1
Accounting policies
(Continued)
Page 5
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 direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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.
AI Networks Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2020
1
Accounting policies
(Continued)
Page 6
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.
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.
1.12
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.
1.13
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 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 year was 0
(2019 - 2).
AI Networks Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2020
Page 7
3
Intangible fixed assets
Domain name
£
Cost
At 1 October 2019 and 30 September 2020
100,000
Amortisation and impairment
At 1 October 2019
92,833
Amortisation charged for the year
7,167
At 30 September 2020
100,000
Carrying amount
At 30 September 2020
-
At 30 September 2019
7,167
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 October 2019
241,189
Disposals
(40,000)
At 30 September 2020
201,189
Depreciation and impairment
At 1 October 2019
66,585
Depreciation charged in the year
40,995
At 30 September 2020
107,580
Carrying amount
At 30 September 2020
93,609
At 30 September 2019
174,604
5
Fixed asset investments
2020
2019
£
£
Investments
1
1
AI Networks Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2020
5
Fixed asset investments
(Continued)
Page 8
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 October 2019 & 30 September 2020
1
Carrying amount
At 30 September 2020
1
At 30 September 2019
1
6
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
138,766
135,576
Amounts due from group undertakings
305,099
2,630
Other debtors
85,109
126,507
528,974
264,713
7
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
32,237
80,399
Amounts due to group undertakings
67,557
142,379
Corporation tax
109,319
35,662
Other taxation and social security
48,426
10,659
Other creditors
221,931
246,415
479,470
515,514
AI Networks Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2020
Page 9
8
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary of £1 each
100
100
100
100
9
Related party transactions
During the year
the company
paid for
IT communication and solution
services totaling £
125,321 (2019: £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 £207,276 (2019: £1,082,077) for connectivity services provided.
At the year end there was £
11,088 (2019: £134) due to Serverchoice
Limited.
During the year the company paid for cyber security services totaling £nil (2019: £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 £1,821 (2019: £12,278) for connectivity services provided.
At the year end there was £
nil (2019: £1,388)
outstanding
from Bulletproof Cyber
Limited.
During the year the company paid for cloud platform services totaling £nil (2019: £83,133) to Civo Limited, a company of which M Boost is also a director. AI Networks also invoiced Civo Limited a total of £394 (2019: £nil) for connectivity services provided.
At the year end there was £
270 due from Civo
Limited
(2019: £11,380 due to Civo Limited).
During the year
the company
paid for
telecommunication
services totaling £
7,993 (2019: £30,317)
to
LLU Communications
Limited, a company of which
M Boost
is also a director. At the year end there was £
1,475 due to LLU Communications
Limited
(2019: £2,041 outstanding from LLU Communications Limited).
10
Parent company
The company's immediate parent undertaking is Vorboss Limited.
The ultimate parent undertaking is Fern Trading Limited, a company incorporated in the UK. Fern Trading Limited is the smallest and largest group of undertakings to consolidate these financial statements. Copies of the Fern Trading Limited's consolidated financial statements can be obtained from the Company Secretary, 6th Floor, 33 Holborn, London, EC1N 2HT.