Company Registration No. 08100373 (England and Wales)
LIKEWIZE REPAIR LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
LB GROUP
Swift House
Ground Floor
18 Hoffmanns Way
Chelmsford
Essex
UK
CM1 1GU
LIKEWIZE REPAIR LIMITED
COMPANY INFORMATION
Directors
Mr O Murphy
Mr S Murphy
Mr J A Negro
Mr D E Parkinson
(Appointed 30 June 2023)
Mr A J Morris
(Appointed 1 September 2023)
Company number
08100373
Registered office
Unit 2, Crewe Logistics Park
Jack Mills Way
Shavington
Crewe
Cheshire
CW2 5XF
Auditor
LB Group Limited (Chelmsford)
Swift House
Ground Floor
18 Hoffmanns Way
Chelmsford
Essex
UK
CM1 1GU
LIKEWIZE REPAIR LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
LIKEWIZE REPAIR LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present the strategic report for the year ended 31 December 2022.
Review of the business
The Company’s principal activities is that of onsite and remote "we come to you" smartphone and tablet repairs. There have not been any significant changes in the Company’s principal activities in the year.
Principal risks and uncertainties
Management continually monitors the key risks facing the Company together with assessing the controls used for managing these risks. The board of Directors formally reviews and documents the principal risks facing the business at least annually.
The principal risks and uncertainties facing the Company are as follows:
Competitor pressure
The market in which the Company operates is competitive and could result in the loss of sales to competitors. Fortunately the Company’s business is broadly based with strong client relationships. Any threat to the Company’s stability through the loss of capacity is mitigated by long term relationships.The Company also manages this risk by providing quality products and excellent customer service.
Economic downturn
As with most businesses there is a risk of an economic downturn adversely affecting performance and profitability. Any risks are monitored through our close working relationships with our main partners and associations.
Liquidity risk
The Company's cash requirements are managed centrally at a Group level to maximise liquid resources to meet the operating needs of its business. The Company has no external borrowing.
Inflation risk
The Company closely manages costs in relation to the business, inflationary increases are mitigated through ongoing negotiations with suppliers. The Company’s income pricing structures are reviewed to ensure they remain aligned to the inflation rate environment, providing further mitigation.
Interest rate risk
The Company operations are subject to the risk of interest rate fluctuations only as it affects interest earning assets.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Debtor balances are monitored on an on-going basis and provision is made for doubtful debts where necessary.
Key performance indicators
The company is continuing to expand its business lines and generating more revenue. The statement of financial position shows the Company’s net liabilities at the year-end have increased from £1,460,776 in 2021 to £4,220,877 in 2022.
Mr D E Parkinson
Director
21 February 2024
LIKEWIZE REPAIR LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company continued to be that of onsite and remote "we come to you" smartphone and tablet repairs.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr O Murphy
Mr S Murphy
Mr J A Negro
Mr P M Adams
(Resigned 30 June 2023)
Mr G P O'Keeffe
(Resigned 1 September 2023)
Mr D E Parkinson
(Appointed 30 June 2023)
Mr A J Morris
(Appointed 1 September 2023)
Auditor
The auditor, LB Group Limited (Chelmsford), is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr D E Parkinson
Director
21 February 2024
LIKEWIZE REPAIR LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
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). 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:
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.
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.
LIKEWIZE REPAIR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LIKEWIZE REPAIR LIMITED
- 4 -
Opinion
We have audited the financial statements of Likewize Repair Limited (the 'company') for the year ended 31 December 2022 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LIKEWIZE REPAIR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF LIKEWIZE REPAIR LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the mobile phone and tablet repair sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
LIKEWIZE REPAIR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF LIKEWIZE REPAIR LIMITED
- 6 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Michael Warman
Senior Statutory Auditor
For and on behalf of LB Group Limited (Chelmsford)
27 February 2024
Chartered Accountants
Statutory Auditor
Swift House
Ground Floor
18 Hoffmanns Way
Chelmsford
Essex
UK
CM1 1GU
LIKEWIZE REPAIR LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
18,994,002
16,076,317
Cost of sales
(18,551,469)
(14,423,750)
Gross profit
442,533
1,652,567
Distribution costs
(273,908)
(187,207)
Administrative expenses
(2,646,491)
(2,270,084)
Other operating income
347,239
284,628
Operating loss
4
(2,130,627)
(520,096)
Interest payable and similar expenses
9
(534,068)
(253,806)
Amounts written off investments
8
(131,296)
Loss before taxation
(2,795,991)
(773,902)
Tax on loss
10
Loss for the financial year
(2,795,991)
(773,902)
The income statement has been prepared on the basis that all operations are continuing operations.
LIKEWIZE REPAIR LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
£
£
Loss for the year
(2,795,991)
(773,902)
Other comprehensive income
-
-
Total comprehensive income for the year
(2,795,991)
(773,902)
LIKEWIZE REPAIR LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
11
39,548
62,788
Tangible assets
12
1,666,986
1,502,579
1,706,534
1,565,367
Current assets
Stocks
14
1,838,506
1,268,278
Debtors
15
1,370,655
2,237,334
Cash at bank and in hand
89,506
46,042
3,298,667
3,551,654
Creditors: amounts falling due within one year
16
(3,532,722)
(2,505,708)
Net current (liabilities)/assets
(234,055)
1,045,946
Total assets less current liabilities
1,472,479
2,611,313
Creditors: amounts falling due after more than one year
17
(5,693,356)
(4,072,089)
Net liabilities
(4,220,877)
(1,460,776)
Capital and reserves
Called up share capital
20
5,600
5,600
Share premium account
49,320
49,320
Equity reserve
21
894,244
858,354
Profit and loss reserves
(5,170,041)
(2,374,050)
Total equity
(4,220,877)
(1,460,776)
The financial statements were approved by the board of directors and authorised for issue on 21 February 2024 and are signed on its behalf by:
Mr D E Parkinson
Director
Company Registration No. 08100373
LIKEWIZE REPAIR LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Share capital
Share premium account
Equity reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2021
5,600
49,320
762,492
(1,600,148)
(782,736)
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
-
(773,902)
(773,902)
Other movements
-
-
95,862
-
95,862
Balance at 31 December 2021
5,600
49,320
858,354
(2,374,050)
(1,460,776)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(2,795,991)
(2,795,991)
Other movements
-
-
35,890
-
35,890
Balance at 31 December 2022
5,600
49,320
894,244
(5,170,041)
(4,220,877)
LIKEWIZE REPAIR LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,586,101
949,198
Interest paid
(534,068)
(253,805)
Net cash inflow from operating activities
1,052,033
695,393
Investing activities
Purchase of intangible assets
(7,941)
(57,881)
Proceeds from disposal of intangibles
935
Purchase of tangible fixed assets
(199,900)
(463,052)
Proceeds from disposal of tangible fixed assets
13,206
Net cash used in investing activities
(193,700)
(520,933)
Financing activities
Repayment of loans
(131,296)
Payment of finance leases obligations
(683,573)
(476,268)
Net cash used in financing activities
(814,869)
(476,268)
Net increase/(decrease) in cash and cash equivalents
43,464
(301,808)
Cash and cash equivalents at beginning of year
46,042
347,850
Cash and cash equivalents at end of year
89,506
46,042
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
1
Accounting policies
Company information
Likewize Repair Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, Crewe Logistics Park, Jack Mills Way, Shavington, Crewe, Cheshire, CW2 5XF.
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.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
At the reporting date the company had total net liabilities. However, the company has received a firm commitment of financial support from its intermediate parent company, Likewize Corp. The parent company has committed to meet the company's obligations as they fall due for payments in the normal course of business. Hence the directors have concluded that they have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from sign off of these financial statements. Consequently the financial statements have been prepared on a going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received 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.
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 where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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:
Trademarks
10% straight line
Domain Names
10% - 33% 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.
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
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:
Land and buildings Leasehold
20% straight line
Fixtures, fittings & equipment
33% straight line and 20% straight line
Computer equipment
33% straight line
Motor vehicles
20% 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
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.
1.7
Stocks
Stocks 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 stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks 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.
1.8
Cash and cash equivalents
Cash and cash equivalents 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.
1.9
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 statement of financial position 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.
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 payments 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. Amounts 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.
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leases asset are consumed.
1.14
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 in the period are included in profit or loss.
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Inventories impairments and provisions
Inventories are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete inventories. Calculation of these estimates require judgments to be made, which include forecasting consumer demand, competitive and economic environment and inventory loss trends. This is reviewed by the management on a regular basis.
Useful lives of property, plant and equipment
Management reviews the useful lives of property, plant and equipment on a regular basis. Any changes in estimates may affect the carrying amounts of the respective property, plant and equipment with a corresponding effect on the related charge.
3
Turnover
2022
2021
£
£
Turnover analysed by class of business
Repairs and services of mobile phones
18,994,002
16,076,317
The company does not disclose its turnover by geographic location as the directors consider that it would be seriously prejudicial to the business.
4
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(14,479)
774
Depreciation of owned tangible fixed assets
353,251
289,061
Depreciation of tangible fixed assets held under finance leases
439,619
375,291
(Profit)/loss on disposal of tangible fixed assets
(8,580)
8,786
Amortisation of intangible assets
30,246
24,292
(Profit)/loss on disposal of intangible assets
-
3,748
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,950
19,950
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
182
132
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
5,099,868
3,950,489
Social security costs
381,290
301,546
Pension costs
146,939
109,401
5,628,097
4,361,436
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
243,237
256,981
Company pension contributions to defined contribution schemes
2,640
2,632
245,877
259,613
Remuneration disclosed above include the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
191,250
148,750
Company pension contributions to defined contribution schemes
26,012
19,309
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
8
Amounts written off investments
2022
2021
£
£
Amounts written off related party balances
(131,296)
-
9
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
495,189
194,145
Other finance costs:
Interest on finance leases and hire purchase contracts
38,879
59,661
534,068
253,806
10
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Loss before taxation
(2,795,991)
(773,902)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(531,238)
(147,041)
Unutilised tax losses carried forward
(56,544)
7,368
Permanent differences
587,782
139,673
Taxation charge for the year
-
-
No deferred tax asset in relation to the estimated accumulated trade losses of £7,009,171 (2021: £5,799,413) has been recognised in the year, based on the uncertain projected future profits of the company.
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
11
Intangible fixed assets
Trademarks
Domain Names
Total
£
£
£
Cost
At 1 January 2022
1,870
88,731
90,601
Additions - internally developed
7,941
7,941
Disposals
(1,700)
(1,700)
At 31 December 2022
170
96,672
96,842
Amortisation and impairment
At 1 January 2022
927
26,886
27,813
Amortisation charged for the year
4
30,242
30,246
Disposals
(765)
(765)
At 31 December 2022
166
57,128
57,294
Carrying amount
At 31 December 2022
4
39,544
39,548
At 31 December 2021
943
61,845
62,788
12
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2022
105,588
118,300
116,020
3,084,185
3,424,093
Additions
22,553
141,299
36,048
762,003
961,903
Disposals
(19,516)
(32,217)
(51,733)
Transfers
(5,236)
5,236
At 31 December 2022
128,141
234,847
125,087
3,846,188
4,334,263
Depreciation and impairment
At 1 January 2022
18,303
37,293
63,732
1,802,186
1,921,514
Depreciation charged in the year
27,091
73,179
39,202
653,398
792,870
Eliminated in respect of disposals
(16,276)
(30,831)
(47,107)
Transfers
(1,164)
1,164
At 31 December 2022
45,394
93,032
73,267
2,455,584
2,667,277
Carrying amount
At 31 December 2022
82,747
141,815
51,820
1,390,604
1,666,986
At 31 December 2021
87,285
81,007
52,288
1,281,999
1,502,579
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
12
Tangible fixed assets
(Continued)
- 20 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2022
2021
£
£
Motor vehicles
802,375
479,999
13
Financial instruments
2022
2021
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,233,161
1,545,596
Carrying amount of financial liabilities
Measured at amortised cost
8,906,815
6,337,251
14
Stocks
2022
2021
£
£
Finished goods and goods for resale
1,838,506
1,268,278
15
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
389,171
95,016
Amounts owed by group undertakings
384,484
1,194,073
Other debtors
136,336
Prepayments and accrued income
460,664
948,245
1,370,655
2,237,334
The intermediate parent company, being Likewize Corp, a company incorporated in the United States of America, has agreed to provide continuing financial support to the company and guarantee those inter-company balances due to the company from other group companies.
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
16
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Obligations under finance leases
18
296,569
480,094
Trade creditors
2,049,019
1,353,189
Taxation and social security
319,263
240,546
Other creditors
742,854
37,022
Accruals and deferred income
125,017
394,857
3,532,722
2,505,708
Amounts owed to group undertaking are interest free and have no fixed repayment date.
17
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Obligations under finance leases
18
453,263
191,308
Amounts owed to group undertakings
5,240,093
3,880,781
5,693,356
4,072,089
During the 2022 year, the company received additional loan from related parties of £899,991 increasing the total loan to £5,835,576 (2021: £4,630,896) . This amount is not payable until August 2025 and therefore has been discounted to its carrying amount of £5,240,093 (2021: £3,880,781) at the market rate of interest for a similar debt instrument.
18
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
296,569
480,094
In two to five years
453,263
191,308
749,832
671,402
Finance lease payments represent rentals payable by the company for certain items of the motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The lease term varies between 3-4 years . All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
19
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
146,939
109,401
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 20p each
28,000
28,000
5,600
5,600
Each share is entitled to one vote in any circumstances, entitled to pari passu to dividend payments and entitled pari passu to participate in a distribution arising from a winding up of the company.
21
Equity reserve
The Equity reserve represents the adjustment to net present value of the long term loan received from related parties during the year.
22
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
60,000
60,000
Between two and five years
120,000
60,000
180,000
120,000
23
Ultimate controlling party
The immediate parent as at the year end is WDC Limited, a registered company in Bermuda (company number 39718).
The directors consider BCP Brightstar L.P. to be the ultimate controlling party, an entity created in the United States of America (entity number 3598024).
The smallest group into which accounts of Likewize Repair Limited (formerly Revive A Phone Limited) is consolidated is Likewize Corp, a company incorporated in the United States of America (company number 2796374). The registered office of the company is at Corporation Trust Center 1209 Orange St, Wilmington, New Castle, DE 19801, USA.
LIKEWIZE REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
24
Cash generated from operations
2022
2021
£
£
Loss for the year after tax
(2,795,991)
(773,902)
Adjustments for:
Finance costs
534,068
253,806
(Gain)/loss on disposal of tangible fixed assets
(8,580)
8,786
(Gain)/loss on disposal of intangible assets
-
3,748
Amortisation and impairment of intangible assets
30,246
24,292
Depreciation and impairment of tangible fixed assets
792,870
664,352
Other gains and losses
131,296
-
Fair value adjustment
35,890
95,862
Movements in working capital:
Increase in stocks
(570,228)
(355,837)
Decrease/(increase) in debtors
866,679
(883,323)
Increase in creditors
2,569,851
1,911,414
Cash generated from operations
1,586,101
949,198
25
Analysis of changes in net debt
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
46,042
43,464
89,506
Obligations under finance leases
(671,402)
(78,430)
(749,832)
(625,360)
(34,966)
(660,326)
2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.300Mr O MurphyMr S MurphyMr J A NegroMr P M AdamsMr G P O'KeeffeMr D E ParkinsonMr A J Morrisfalse081003732022-01-012022-12-3108100373bus:Director12022-01-012022-12-3108100373bus:Director22022-01-012022-12-3108100373bus:Director32022-01-012022-12-3108100373bus:Director62022-01-012022-12-3108100373bus:Director72022-01-012022-12-3108100373bus:Director42022-01-012022-12-3108100373bus:Director52022-01-012022-12-3108100373bus:RegisteredOffice2022-01-012022-12-31081003732022-12-31081003732021-01-012021-12-3108100373core:RetainedEarningsAccumulatedLosses2021-01-012021-12-3108100373core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3108100373core:OtherResidualIntangibleAssets2022-12-3108100373core:OtherResidualIntangibleAssets2021-12-3108100373core:PatentsTrademarksLicencesConcessionsSimilar2022-12-3108100373core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-3108100373core:PatentsTrademarksLicencesConcessionsSimilar2021-12-3108100373core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2021-12-31081003732021-12-3108100373core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3108100373core:FurnitureFittings2022-12-3108100373core:ComputerEquipment2022-12-3108100373core:MotorVehicles2022-12-3108100373core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-3108100373core:FurnitureFittings2021-12-3108100373core:ComputerEquipment2021-12-3108100373core:MotorVehicles2021-12-3108100373core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3108100373core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3108100373core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3108100373core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3108100373core:CurrentFinancialInstruments2022-12-3108100373core:CurrentFinancialInstruments2021-12-3108100373core:Non-currentFinancialInstruments2022-12-3108100373core:Non-currentFinancialInstruments2021-12-3108100373core:ShareCapital2022-12-3108100373core:ShareCapital2021-12-3108100373core:SharePremium2022-12-3108100373core:SharePremium2021-12-3108100373core:OtherReservesSubtotal2022-12-3108100373core:OtherReservesSubtotal2021-12-3108100373core:RetainedEarningsAccumulatedLosses2022-12-3108100373core:RetainedEarningsAccumulatedLosses2021-12-3108100373core:ShareCapital2020-12-3108100373core:SharePremium2020-12-3108100373core:OtherReservesSubtotal2020-12-3108100373core:RetainedEarningsAccumulatedLosses2020-12-31081003732020-12-310810037312021-01-012021-12-31081003732021-12-3108100373core:IntangibleAssetsOtherThanGoodwill2022-01-012022-12-3108100373core:PatentsTrademarksLicencesConcessionsSimilar2022-01-012022-12-3108100373core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-01-012022-12-3108100373core:LandBuildingscore:LongLeaseholdAssets2022-01-012022-12-3108100373core:FurnitureFittings2022-01-012022-12-3108100373core:ComputerEquipment2022-01-012022-12-3108100373core:MotorVehicles2022-01-012022-12-3108100373core:UKTax2022-01-012022-12-3108100373core:UKTax2021-01-012021-12-310810037312022-01-012022-12-3108100373core:PatentsTrademarksLicencesConcessionsSimilar2021-12-3108100373core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2021-12-3108100373core:PatentsTrademarksLicencesConcessionsSimilarcore:InternallyGeneratedIntangibleAssets2022-01-012022-12-3108100373core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:InternallyGeneratedIntangibleAssets2022-01-012022-12-3108100373core:InternallyGeneratedIntangibleAssets2022-01-012022-12-3108100373core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-3108100373core:FurnitureFittings2021-12-3108100373core:ComputerEquipment2021-12-3108100373core:MotorVehicles2021-12-3108100373core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-01-012022-12-3108100373core:WithinOneYear2022-12-3108100373core:WithinOneYear2021-12-3108100373core:BetweenTwoFiveYears2022-12-3108100373core:BetweenTwoFiveYears2021-12-3108100373bus:PrivateLimitedCompanyLtd2022-01-012022-12-3108100373bus:FRS1022022-01-012022-12-3108100373bus:Audited2022-01-012022-12-3108100373bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP