REGISTERED NUMBER:
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REPORT OF THE DIRECTORS AND |
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UNAUDITED FINANCIAL STATEMENTS |
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FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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HIGHLAND NETWORK LIMITED |
REGISTERED NUMBER:
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REPORT OF THE DIRECTORS AND |
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UNAUDITED FINANCIAL STATEMENTS |
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FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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FOR |
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HIGHLAND NETWORK LIMITED |
HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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Company Information | 1 |
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Report of the Directors | 2 |
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Statement of Comprehensive Income | 4 |
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Balance Sheet | 5 |
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Statement of Changes in Equity | 7 |
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Notes to the Financial Statements | 8 |
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HIGHLAND NETWORK LIMITED |
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COMPANY INFORMATION |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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30 - 34 North Street |
Hailsham |
East Sussex |
BN27 1DW |
HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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The directors present their report with the financial statements of the company for the period 1 April 2021 to 30 November 2021. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of a business to business communications service provider supporting a partner channel and thousands of end-user customers with a wide range of progressive and transformational connectivity and telecommunications products and services. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report. |
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Other changes in directors holding office are as follows: |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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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. |
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HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
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ON BEHALF OF THE BOARD: |
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HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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STATEMENT OF COMPREHENSIVE INCOME |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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Period |
1.4.21 |
to | Year Ended |
30.11.21 | 31.3.21 |
Notes | £ | £ |
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TURNOVER |
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Cost of sales | ( |
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GROSS PROFIT |
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Administrative expenses | ( |
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240,733 | 14,097 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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240,733 | 333,411 |
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Interest payable and similar expenses | ( |
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PROFIT BEFORE TAXATION |
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Tax on profit | 6 |
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PROFIT FOR THE FINANCIAL PERIOD |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD |
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HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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BALANCE SHEET |
30 NOVEMBER 2021 |
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2021 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
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Tangible assets | 8 |
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CURRENT ASSETS |
Stocks |
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Debtors | 9 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 10 | ( |
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NET CURRENT ASSETS/(LIABILITIES) |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
11 |
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PROVISIONS FOR LIABILITIES | 13 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 14 |
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Share premium |
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Other reserves |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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BALANCE SHEET - continued |
30 NOVEMBER 2021 |
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The financial statements were approved by the Board of Directors and authorised for issue on
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HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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Called up |
share | Retained | Share | Other | Total |
capital | earnings | premium | reserves | equity |
£ | £ | £ | £ | £ |
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Balance at 1 April 2020 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 March 2021 |
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Changes in equity |
Issue of share capital |
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Total comprehensive income | - |
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Revaluation | - | - | - | (49,500 | ) | (49,500 | ) |
Transfer | - | 165,750 | - | (165,750 | ) | - |
Balance at 30 November 2021 |
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HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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1. | STATUTORY INFORMATION |
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Highland Network Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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Goodwill |
Positive purchased goodwill arising on acquisitions is capitalised, classified as an asset on the Balance Sheet and amortised over its useful economic life of 4 - 10 years. Goodwill is reviewed annually by the directors for any impairment. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Telecoms subscriptions are being amortised evenly over their estimated useful life of ten years. |
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IP addresses are being amortised evenly over their estimated useful life of twenty years. |
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Customer databases are being amortised evenly over their estimated useful life of ten years. |
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Website development is being amortised evenly over its estimated useful life of ten years. |
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Tangible fixed assets |
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Communicator & Horizon | - |
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Fixtures and fittings | - |
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Network Assets | - |
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Computer equipment | - |
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Government grants |
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. |
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Grants of a revenue nature are recognised in "other income" within profit or loss in the same period as the related expenditure. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties. |
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Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. |
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Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
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Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an 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. |
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Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
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No significant judgements have had to be made by management in preparing these financial statements. |
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There were no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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4. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the period was
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5. | OPERATING PROFIT |
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The operating profit is stated after charging: |
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Period |
1.4.21 |
to | Year Ended |
30.11.21 | 31.3.21 |
£ | £ |
Depreciation - owned assets |
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Telecoms subscriptions amortisation |
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IP & Customer databases amortisation |
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Website development amortisation |
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6. | TAXATION |
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Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the period was as follows: |
Period |
1.4.21 |
to | Year Ended |
30.11.21 | 31.3.21 |
£ | £ |
Current tax: |
UK corporation tax | ( |
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Prior year tas adjustment | (3,886 | ) | - |
Total current tax | ( |
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Deferred tax |
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Tax on profit | ( |
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HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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7. | INTANGIBLE FIXED ASSETS |
IP & |
Telecoms | Customer | Website |
Goodwill | subscriptions | databases | development | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2021 |
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Additions |
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Impairments | - | - | - | (4,832 | ) | (4,832 | ) |
At 30 November 2021 |
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AMORTISATION |
At 1 April 2021 |
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Amortisation for period |
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Charge written back | - | - | - | (282 | ) | (282 | ) |
Impairments |
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At 30 November 2021 |
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NET BOOK VALUE |
At 30 November 2021 |
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At 31 March 2021 |
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Included in the carrying amount of IP Addresses held at 30 November 2021 was £nil (Mar-21: £52,347) in respect of the assets held under finance leases. The amortisation charge for the year was £nil (Mar-21: £2,949) in respect of these assets. |
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All finance and hire purchase leases were repaid during the year. |
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8. | TANGIBLE FIXED ASSETS |
Fixtures |
Communicator | and | Network | Computer |
& Horizon | fittings | Assets | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2021 |
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Additions |
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At 30 November 2021 |
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DEPRECIATION |
At 1 April 2021 |
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Charge for period |
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Charge written back | - | - | - | (9,992 | ) | (9,992 | ) |
Impairments |
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At 30 November 2021 |
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NET BOOK VALUE |
At 30 November 2021 |
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At 31 March 2021 |
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HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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8. | TANGIBLE FIXED ASSETS - continued |
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Included in the carrying amount of Network Assets held at 30 November 2021 was £nil (Mar-21: £29,051) in respect of assets held under finance and hire purchase leases. The depreciation charge for the year was £nil (Mar-21: £3,486) in respect of these assets. |
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Included in the carrying amount of Computer Equipment held at 30 November 2021 was £nil (Mar-21: £28,496) in respect of assets held under finance and hire purchase leases. The depreciation charge for the year was £nil (Mar-21: £11,118) in respect of these assets. |
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All finance and hire purchase leases were repaid during the year. |
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9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2021 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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Other debtors includes amounts owed by D M Siegel a former director of the company £45,216 (Mar-21: £226,833). |
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10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2021 |
£ | £ |
Hire purchase contracts |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2021 | 2021 |
£ | £ |
Hire purchase contracts |
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12. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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2021 | 2021 |
£ | £ |
Other loans |
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Hire purchase contracts | - | 40,801 |
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The Bank of Scotland holds a bond and floating charge over the whole assets of the company. |
HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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13. | PROVISIONS FOR LIABILITIES |
2021 | 2021 |
£ | £ |
Deferred tax | 102,393 | 85,118 |
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Deferred |
tax |
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Balance at 1 April 2021 |
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Charge to Income Statement during period |
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Balance at 30 November 2021 |
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14. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2021 |
value: | £ | £ |
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Ordinary | £0.00 | 1 | 2 | 2 |
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375 Ordinary shares of £0.001 each were allotted as fully paid
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15. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
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The following advances and credits to a director subsisted during the period ended 30 November 2021 and the year ended 31 March 2021: |
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2021 | 2021 |
£ | £ |
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Balance outstanding at start of period |
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Amounts advanced |
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Amounts repaid | ( |
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Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period |
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16. | RELATED PARTY DISCLOSURES |
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The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
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17. | CONTROLLING PARTY |
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The immediate parent undertaking is H N T Bidco Ltd. The ultimate parent undertaking is Shoreham TopCo Limited, a company registered in Jersey. |
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The company is under the control of Shoreham TopCo Limited. |
HIGHLAND NETWORK LIMITED (REGISTERED NUMBER: SC154414) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2021 TO 30 NOVEMBER 2021 |
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18. | SHARE-BASED PAYMENT TRANSACTIONS |
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125 £0.001 Enterprise Management Incentive (EMI) share options each were granted to participating employees on 21 May 2015. The exercise price is £442 per option share and the options are constituted by the share option agreement. Three employees participate in the EMI share scheme, with each employee obtaining options of over 5 % of the company's shareholding. |
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The EMI option scheme is an equity-settled share-based payment transaction. As required by Section 26 of the accounting standard FRS102 an assessment of the fair value of the EMI options was carried out by the |
directors. Following the fair value assessment it was determined that an adjustment to the value of £215,250 |
was required to be provided at 31st March 2021. |
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The EMI share options were exercised on 7 April 2021 at a value of £165,750. |