Company registration number:
ITS Technology Group Limited
for the Year Ended 31 December 2019
ITS Technology Group Limited
Contents
Company Information |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
ITS Technology Group Limited
Company Information
Directors |
Mr D A S Baythorpe Mr K D Gaskell Mr I Shervell Mr S K McLachlan Mr C S Kameen |
Registered office |
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Auditors |
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ITS Technology Group Limited
(Registration number: 08786229)
Balance Sheet as at 31 December 2019
Note |
2019 |
2018 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
- |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets/(liabilities) |
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( |
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Total assets less current liabilities |
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( |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Profit and loss account |
( |
( |
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Shareholders' deficit |
( |
( |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
.........................................
Director
ITS Technology Group Limited
Statement of Changes in Equity for the Year Ended 31 December 2019
Share capital |
Share premium |
Profit and loss account |
Total |
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At 1 January 2019 |
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( |
( |
Loss for the year |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
New share capital subscribed |
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- |
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At 31 December 2019 |
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( |
( |
Share capital |
Share premium |
Profit and loss account |
Total |
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At 1 January 2018 |
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( |
( |
Loss for the year |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
New share capital subscribed |
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- |
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At 31 December 2018 |
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( |
( |
ITS Technology Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2019
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention. The financial statements are prepared in sterling, which is the functional currency of the entity.
Group accounts not prepared
Going concern
The financial statements have been prepared on a going concern basis the validity of which depends on future profitable trading, the support of the directors, and certain other long term creditors disclosed in note 8. Should the company be unable to continue trading, adjustments would be necessary to reduce the value of assets to their recoverable amount, to provide for further liabilities which might arise and to reclassify fixed assets as current assets. Further details are included in note 11.
Audit report
ITS Technology Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2019
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, rebates and discounts.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is charged so as to write off the cost or valuation of assets less their residual value, over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
25% straight line/20 years |
Fixtures and fittings |
20% straight line |
Computer equipment |
20% straight line |
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made the life is presumed not to exceed 5 years.
Research and development costs
Research expenditure is written off in the period in which it is incurred.
Development costs are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
5 years |
Development costs |
5 years |
Investments
Fixed asset investments are stated at cost less provision for impairment in value.
ITS Technology Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2019
Stocks
Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Defined contribution pension obligation
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
ITS Technology Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2019
Intangible assets |
Goodwill |
Development costs |
Total |
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Cost or valuation |
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At 1 January 2019 |
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At 31 December 2019 |
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Amortisation |
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At 1 January 2019 |
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Amortisation charge |
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At 31 December 2019 |
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Carrying amount |
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At 31 December 2019 |
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- |
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At 31 December 2018 |
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Tangible assets |
Fixtures and fittings |
Plant and machinery |
Computer equipment |
Total |
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Cost or valuation |
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At 1 January 2019 |
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Additions |
- |
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At 31 December 2019 |
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Depreciation |
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At 1 January 2019 |
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Charge for the year |
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At 31 December 2019 |
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Carrying amount |
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At 31 December 2019 |
- |
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At 31 December 2018 |
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Investments |
2019 |
2018 |
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Investments in subsidiaries |
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ITS Technology Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2019
Subsidiaries |
£ |
Cost or valuation |
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At 1 January 2019 |
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Provision |
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At 1 January 2019 |
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Carrying amount |
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At 31 December 2019 |
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At 31 December 2018 |
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Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
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2019 |
2018 |
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Subsidiary undertakings |
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Elm House Farm
England and Wales |
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Elm House Farm
England and Wales |
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Elm House Farm
England and Wales |
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Elm House Farm
England and Wales |
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ITS Technology Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2019
Debtors |
2019 |
2018 |
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Trade debtors |
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Prepayments and accrued income |
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Other debtors |
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- |
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Creditors |
Creditors: amounts falling due within one year
2019 |
2018 |
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Due within one year |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
2019 |
2018 |
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Due after one year |
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Other creditors |
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2019 |
2018 |
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Due after more than five years |
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After more than five years not by instalments |
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- |
Creditors include a loan facility agreement which is secured by a debenture over all assets of the company totalling £9,991,240 ( 2018 - £1,939,752 ) .
Reserves |
Share premium account - This reserve records the amount above the normal nominal value for shares sold.
Profit and loss account - This reserve records retained earnings and accumulated losses.
ITS Technology Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2019
Related party transactions |
Included in creditors due after more than one year as at 31 December 2019 is £9,991,240 due to Aviva Investors Infrastructure Income No.6B Limited, the majority shareholder of the ultimate parent company ITS (Holdco) Ltd, and interest payable during the year at 9% was £37,018.
Going concern |
During 2019 ITS Technology Group Limited (ITS) secured a signifcant investment from Aviva Investors, the global asset management business of Aviva Plc, to fund and accelerate the company's full fibre roll out plan. The need for fibre in the UK is now at the forefront of the political agenda and ITS has a team, the capability and now the financial means to realise this market opportunity. The Aviva facility provides ITS with capital investment to fund the network build and working capital to cover financial losses whilst ITS grows and matures as a business. ITS is in the early stages of its development and the directors are satisfied with the progress to date, notwithstanding current year losses before tax totalling £5,093,201 sustained and net liabilities as at 31 December 2019 of £7,960,603 ( 2018 £3,526,864) . The directors have received written notification from Aviva that the facility agreement, of which £9,991,840 had been utilised as at 31 December 2019, enables the company to meet its obligations for at least 12 months from the date these financial statements are signed. On this basis the directors have concluded that the company will be able to meet its liabilities as they fall due for the foreseeable future and hence it is appropriate to continue to adopt the going concern basis in the preparation of these financial statements.
Non adjusting events after the financial period |
Since the company's year-end, the country and indeed the rest of the world has been affected by the Covid-19 pandemic. The directors have taken steps to deal with the financial impact of this and whilst there is uncertainty around the length of time the Covid-19 pandemic will last and the full economic impact on the economy, the directors believe that from the measures that it has taken it is appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements.