Digital Energy Technologies Limited
Unaudited Financial Statements
For Filing with Registrar
For the period ended 31 December 2018
Company Registration No. 06848949 (England and Wales)
Digital Energy Technologies Limited
Company Information
Directors
Mr. A Kazlauskas
Mr. V Grinius
Secretary
Mr. A Kazlauskas
Company number
06848949
Registered office
4 Victoria Square
St Albans
Hertfordshire
AL1 3TF
Accountants
Kingston Smith LLP
4 Victoria Square
St Albans
Hertfordshire
AL1 3TF
Business address
4 Victoria Square
St Albans
Hertfordshire
AL1 3TF
Digital Energy Technologies Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
Digital Energy Technologies Limited
Balance Sheet
As at 31 December 2018
Page 1
2018
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
3
275,505
-
Tangible assets
4
68,092
75,182
Investments
5
4,161
4,161
347,758
79,343
Current assets
Debtors
7
259,043
551,549
Cash at bank and in hand
70,686
-
329,729
551,549
Creditors: amounts falling due within one year
8
(378,655)
(443,110)
Net current (liabilities)/assets
(48,926)
108,439
Total assets less current liabilities
298,832
187,782
Creditors: amounts falling due after more than one year
9
(20,118)
(44,420)
Provisions for liabilities
(11,576)
(12,781)
Net assets
267,138
130,581
Capital and reserves
Called up share capital
10
1,100
1,100
Profit and loss reserves
11
266,038
129,481
Total equity
267,138
130,581
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 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
Digital Energy Technologies Limited
Balance Sheet (Continued)
As at 31 December 2018
Page 2
The financial statements were approved by the board of directors and authorised for issue on 14 April 2019 and are signed on its behalf by:
Mr. A Kazlauskas
Mr. V Grinius
Director
Director
Company Registration No. 06848949
Digital Energy Technologies Limited
Notes to the Financial Statements
For the period ended 31 December 2018
Page 3
1
Accounting policies
Company information
Digital Energy Technologies Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
4 Victoria Square, St Albans, Hertfordshire, AL1 3TF.
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 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.
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group
.
Digital Energy Technologies Limited
and
the
group headed by it, qualify as small as set out in section 383 of
the Act and the group is not ineligible as set out in section 384 of the Act.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable
for
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 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. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Digital Energy Technologies Limited
Notes to the Financial Statements (Continued)
For the period ended 31 December 2018
1
Accounting policies
(Continued)
Page 4
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:
IP addresses
10 years straight line
Amortisation commences in the year after acquisition.
There are five Regional Internet Registries (“RIRs”) which have regional responsibility for the distribution of all internet number resources worldwide, including, in the case of the Digital Energy Technologies Limited and its subsidiaries (“The Group”), Internet Protocol (“IP”) addresses. The Group, through individual companies, has membership of all five RIRs. The Group’s operating model involves applying for and receiving allocations of IP addresses from the RIRs, which are then monetised by leasing the IP addresses to the Group’s significant and growing global customer base.
At 31 December 2018, the Group has accumulated a pool of some 444,000 “IPv4” IP addresses. The costs of membership to the RIRs, which are calculated by reference to the number of IP addresses issued, are expensed over the years of membership. These IP addresses are a scarce resource and have significant enduring value that is not fully recognised as an asset in the balance sheet. IP addresses can be sold and currently trade at values ranging from US$17 to US$25 each. At the lowest of these values, the total value of IP addresses owned by companies controlled by the Company at 31 December 2018 was US$7.5m.
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:
Computer equipment
3 years 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
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at
fair value with changes in fair value recognised in other comprehensive income
.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised
in other comprehensive income to the extent that it reverses a revaluation gain of the same asset. If an impairment loss exceeds the accumulated revaluation increases in respect of that asset, the excess shall be recognised in profit and 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.
Digital Energy Technologies Limited
Notes to the Financial Statements (Continued)
For the period ended 31 December 2018
1
Accounting policies
(Continued)
Page 5
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.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
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 and cash equivalents
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.
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.
Digital Energy Technologies Limited
Notes to the Financial Statements (Continued)
For the period ended 31 December 2018
1
Accounting policies
(Continued)
Page 6
Classification of 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.
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 cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Digital Energy Technologies Limited
Notes to the Financial Statements (Continued)
For the period ended 31 December 2018
1
Accounting policies
(Continued)
Page 7
1.12
Computer leasing costs
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
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the
average monthly rate, deemed to be the rate
ruling at the date of the transaction. All differences are taken to profit and loss account.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was 9 (March 2018: 8)
3
Intangible fixed assets
IP addresses
£
Cost
At 1 April 2018
-
Additions
275,505
At 31 December 2018
275,505
Amortisation and impairment
At 1 April 2018 and 31 December 2018
-
Carrying amount
At 31 December 2018
275,505
At 31 March 2018
-
Digital Energy Technologies Limited
Notes to the Financial Statements (Continued)
For the period ended 31 December 2018
Page 8
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2018
97,368
Additions
16,646
At 31 December 2018
114,014
Depreciation and impairment
At 1 April 2018
22,186
Depreciation charged in the period
23,736
At 31 December 2018
45,922
Carrying amount
At 31 December 2018
68,092
At 31 March 2018
75,182
5
Fixed asset investments
2018
2018
£
£
Investments
4,161
4,161
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 April 2018 & 31 December 2018
4,161
Carrying amount
At 31 December 2018
4,161
At 31 March 2018
4,161
Digital Energy Technologies Limited
Notes to the Financial Statements (Continued)
For the period ended 31 December 2018
Page 9
6
Subsidiaries
Details of the company's subsidiaries at 31 December 2018 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Delta Centric LLC
U.S.A.
IT and Web Hosting Services
Ordinary
100.00
DET Africa (Pty) LTD.
South Africa
IT and Web Hosting Services
Ordinary
100.00
Digital Energy Technologies Chile SpA
Chile
IT and Web Hosting Services
Ordinary
100.00
Netstack Limited
Mauritius
IT and Web Hosting Services
Ordinary
0
100.00
UAB Source Bridge
Lithuania
IT and Web Hosting Services
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Delta Centric LLC
15,809
34,515
DET Africa (Pty) LTD.
36,557
21,514
Digital Energy Technologies Chile SpA
(38,570)
(86,916)
Netstack Limited
(11,032)
(33,115)
UAB Source Bridge
25,664
724
The latest published financial statements of Delta Centric LLC were prepared to 31 December 2018.
The latest published financial statements of Netstack Limited were prepared to 31 December 2017.
The latest published financial statements of Digital Energy Technologies Chile SpA were prepared to 31 December 2017.
The latest published financial statements of DET Africa (Pty) LTD were prepared to 31 December 2017.
The latest published financial statements of UAB Source Bridge were prepared to 31 December 2017.
Digital Energy Technologies Limited
Notes to the Financial Statements (Continued)
For the period ended 31 December 2018
Page 10
7
Debtors
2018
2018
Amounts falling due within one year:
£
£
Trade debtors
-
1,330
Corporation tax recoverable
132,795
200,952
Amounts due from group undertakings
66,218
285,375
Other debtors
60,030
63,892
259,043
551,549
8
Creditors: amounts falling due within one year
2018
2018
£
£
Bank loans and overdrafts
25,000
47,835
Trade creditors
78,101
96,094
Amounts due to group undertakings
8,562
633
Other taxation and social security
3,244
4,904
Other creditors
263,748
293,644
378,655
443,110
9
Creditors: amounts falling due after more than one year
2018
2018
£
£
Bank loans and overdrafts
16,667
35,417
Other creditors
3,451
9,003
20,118
44,420
10
Called up share capital
2018
2018
£
£
Ordinary share capital
Issued and fully paid
97,900 Ordinary class A shares of 1p each
979
1,001
9,900 Ordinary class B shares of 1p each
99
99
2,200 Ordimary class C shares of 1p each
22
-
1,100
1,100
Digital Energy Technologies Limited
Notes to the Financial Statements (Continued)
For the period ended 31 December 2018
Page 11
11
Profit and loss reserves
2018
2018
£
£
At the beginning of the period
129,481
52,712
Profit for the period
136,557
76,769
At the end of the period
266,038
129,481
12
Related party transactions
At the period end Digital Energy Technologies Limited had amounts of £1,042 (31 March 2018: £1,042) due to a director of the company. This amount is interest free and has no fixed repayment date.
At the period end Digital Energy Technologies Limited had amounts of £1,042 (31 March 2018: £1,042) due to another director of the company. This amount is interest free and has no fixed repayment date.
At the period end Digital Energy Technologies Limited had amounts of £19,466 (31 March 2018: £11,856) due from a member of key management personnel. This amount is interest free and has no fixed repayment date.
The company has taken the exemption available under FRS 102 Section 1A whereby it has not disclosed transactions with any wholly owned subsidiary undertaking in the group.
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14 April 2019
Mr. A Kazlauskas
Mr. V Grinius
Mr. A Kazlauskas
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