Poptel Limited Annual Report and Financial Statements

 

We have been requested to supply the Annual Report and Financial Statements which appear below.

 

The information relates the last full trading year to 31st May 1999 of Soft Solution Limited, the predecessor company of Poptel Limited. Poptel Limited started trading on 1st December 1999 and so has not yet completed a full year of trading. All staff, commercial activities, assets and liabilities were transferred from Soft Solution Limited to Poptel Limited.

 

Prior to commencement of trading Poptel Limited raised £1.5 million from investors and has raised another £1.0 million subsequently. As a consequence the Annual Report and Financial Statements below are of historical interest only.

 

Malcolm Corbett

Director, Corporate Affairs

Poptel Limited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOFT SOLUTION LIMITED

(A Company Limited by Guarantee)

 

 

FINANCIAL STATEMENTS

 

FOR THE

 

YEAR ENDED 31 MAY 1999

 

 

COMPANY NO: 1942215

 

SOFT SOLUTION LIMITED

 

 

DIRECTORS

Shaun Fensom

Malcolm Corbett

Kenneth Holder

Dominic Search

Lucy Brotherston

SECRETARY

Lucy Brotherston

 

 

 

 

 

 

AUDITORS

Gotham Erskine

Chartered Accountants

52‑58 Tabernacle Street

London EC2A 4NJ

 

 

 

 

 

 

BANKERS

The Royal Bank of Scotland plc

London Holborn Branch

London WC1V 6PQ

 

 

 

 

 

 

SOLICITORS

Malcolm Lynch & Co.

Vassalli House

20 Central Road

Leeds

LS1 6DE

 

 

 

 

 

 

REGISTERED OFFICE

Rutherford House

Manchester Science Park

Pencroft Way

Manchester

M15 6GG

 

SOFT SOLUTION LIMITED

 

REPORT OF THE DIRECTORS

 

The directors present herewith their report, together with the audited financial statements of the Company for the year ended 31 May 1999.

 

PRINCIPAL ACTIVITIES AND REVIEW OF OPERATIONS The Company's principal activity during the year was the supply of 'On‑Line' computer communication and information services, and related consultancy. The directors consider that the trading results for the year were satisfactory.

 

DIRECTORS

The directors of the Company during the year were as follows: .

Shaun Fensom                                                  Lucy Brotherston

Malcolm Corbett                                  Dominic Search (Appt June 99)

Kenneth Holder (Appt June 99)

 

The Company is limited by guarantee and has no share capital, hence there are no directors' interests to disclose.

 

 

AUDITORS A resolution to re‑appoint Gotham Erskine as auditors will be put to the members at the Annual General Meeting.

 

 

 

PREPARATION OF THE REPORT

This report has been prepared in accordance with the provisions of Part VII of the Companies Act 1985 relating to small companies.

 

By Order of the Board

Dated: 30th June 2000

Lucy Brotherston‑Secretary

 

 

 

SOFT SOLUTION LIMITED

 

PROFIT AND LOSS ACCOUNT

FOR THE

YEAR ENDED 31 MAY 1999

 

 

 

 

 

 

 

 

 

 

Notes

1999

 

1998

 

 

 

£

£

£

£

TURNOVER

Ab, C

 

 

 

 

Inside UK

 

 

700,276

 

632,955

Ouside UK

 

 

74,208

 

86,907

 

 

 

774,484

 

719,862

 

 

 

 

 

 

Cost of sales

 

 

(248,898)

 

(230,098)

 

 

 

 

 

 

GROSS PROFIT

 

 

525,586

 

489,764

 

 

 

 

 

 

ADMINISTRATIVE EXPENSES

 

 

 

 

 

Staff costs

D

405,137

 

332,339

 

Depreciation

Ac, F

42,981

 

46,437

 

Other operating charges

C

198,719

 

155,065

 

 

 

 

(646,837)

 

(533,841)

 

 

 

(121,251)

 

(44,077)

 

 

 

 

 

 

Other operating income

 

 

9,355

 

14,185

Deferred Grant flowback

L

 

24,653

 

26,367

 

 

 

 

 

 

(LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION

 

 

(87,243)

 

(3,525)

Tax on ordinary activities

E

 

114

 

(1,010)

 

 

 

 

 

 

(LOSS ON ORDINARY ACTIVITIES AFTER TAXATION

 

 

(87,129)

 

(4,535)

 

 

 

 

 

 

Profit & loss account brought forward

 

 

18,630

 

23,165

Profit & loss account carried  forward

 

 

(68,499)

 

18,630

 

 

 

The notes on pages 5 to 8 form an integral part of these accounts.

SOFT SOLUTION LIMITED

 

BALANCE SHEET

AS AT

31 MAY 1999

 

 

 

 

 

 

 

 

 

 

Notes

1999

 

1998

 

 

 

£

£

£

£

FIXED ASSETS

 

 

 

 

 

Tangible Assets

F

 

136,566

 

156,154

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stock and work in progress

G

2,000

 

2,000

 

Debtors and prepayments

H

99,074

 

123,651

 

Cash in hand and at bank

 

30,445

 

72,846

 

 

 

131,519

 

198,497

 

 

 

 

 

 

 

CREDITORS FALLING DUE WITHIN ONE YEAR

I

(200,472)

 

(181,200)

 

 

 

 

 

 

 

NET CURRENT (LIABILITIES) / ASSETS

 

 

(68,953)

 

17,297

TOTAL ASSETS LES CURRENT LIABILITIES

 

 

67,613

 

173,451

 

 

 

 

 

 

CREDITORS FALLING DUE AFTER ONE YEAR

 

 

 

 

 

Deferred taxation

J

2,368

 

2,482

 

Secured creditors:

 

 

 

 

 

Long term loan creditors

K

23,729

 

17,671

 

Deferred grants

L

110,015

 

134,668

 

 

 

 

(136,112)

 

(154,821)

NET (LIABILITIES) / ASSETS

 

 

(68, 499)

 

18,630

 

 

 

 

 

 

CAPITAL AND RESERVES

 

 

 

 

 

Share Capital

N

 

 

 

 

Profit and loss account

 

 

 

 

 

At start of year

 

18,630

 

23,165

 

(Loss) for year

 

(87,129)

 

(4,535)

 

 

 

 

(68,499)

 

18,630

 

 

 

 

 

 

 

 

The financial statements have been prepared under the historical cost

convention and in accordance with the provisions of Part VII of the

Companies Act 1985 relating to small companies and the Financial

Reporting Standard for Smaller Entities (effective March 1999).

 

The financial statements were approved by the Board of Directors and

signed on their behalf on 30 June 2000 by:

 

 

Lucy Brotherston ‑ Director            Dominic Search – Director

 

 

The notes on pages 5 to 8 form an integral part of these accounts

 

 

 

 

 

 

 

 

 

SOFT SOLUTION LIMITED

 

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 1999

 

 

A. ACCOUNTING POLICIES

(a)   Accounting conventions

The financial statements have been prepared under the historical cost convention, and in accordance with the Companies Act 1985, the Financial Reporting Standard for Smaller Entities (effective March 1999) and with applicable accounting standards.

(b)   Turnover

Turnover represents invoiced sales net of value added tax and includes work in progress at the year end.

(c)   Depreciation

Depreciation is provided on all fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life as follows: Equipment ‑ 25% p.a. on reducing balance, as adjusted to reflect post year end disposals.

(d)   Stocks

Stocks are stated at the lower of cost and net realisable value.

(e)   Debtors

Debtors include, as accrued income, invoices rendered after the year end based on on‑line services used before the year end.

(f)   Deferred taxation

Deferred taxation has been provided on short term timing differences. See note J.

(g)   Cash Flow Statement

A cashflow statement has not been prepared as the Company is a small company as defined by the s247 of the Companies Act 1985.

(h)   Capital grants

Capital based grants are carried forward as deferred income and credited to the income and expenditure account over the life of the related assets. See note L and M.

(i)   Pension

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.

 

B. DIRECTORS RESPONSIBILITIES

Company law requires the directors to prepare financial statements for

each financial year which 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 year. In preparing those financial statements the directors are

required to:

 

‑ Select suitable accounting policies and apply them consistently;

 

‑ Make judgments 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 to operate.

 

The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial state of the Company and to enable them to ensure that the financial statements comply with the Companies Act 1985. 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.

 

 

 

 

 

 

 

SOFT SOLUTION LIMITED

 

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE

YEAR ENDED 31 MAY 1999

 

C. TURNOVER AND OPERATING RESULT

The turnover and loss are wholly attributable to the Company's main

`           activity, and are stated after charging/(crediting):            1999         1998

£            £

Auditors' remuneration    ‑ Audit fee                        3,500        3,300

                          ‑ Other services                   2,166        1,050

Loan interest                                                 3,581         713

Depreciation                                                 42,981      46,437

Deferred grant flowback                                    (24,653)    (26,367)

Bank interest received                                        (153)       (176)

Foreign exchange gain                                             ‑         (9)

 

 

D. STAFF COSTS

The average weekly number of employees during the year was 24 (1998‑21).

This includes three Directors (1998‑3).

Staff costs during the year amounted to:                         £            £

Directors' remuneration                                     60,277       64,051

Wages and salaries                                         306,535      236,357

Social security costs                                       36,204       29,615

Pension cost                                                 2,121        2,316

                                                          £405,137     £332,339

 

 

E. TAX ON ORDINARY ACTIVITIES                                        £            f

   Based on the profit for the year:

Transfer to/(from) deferred tax (note J)                        114      (1,010)

                                                               £114     £(1,010)

 

 

F. TANGIBLE FIXED ASSETS

                                                 Equipment     Operational     Total

                                                 & Fittings    Equipment

   Cost                                                  £            £            £

At 1 June 1998                                  166,946      407,606      574,552

Additions in year                                23,871            ‑       23,871

Disposals in the year                           (1,510)            ‑      (1,510)

At 31 May 1999                                  189,307      407,606      596,913

Depreciation

At 1 June 1998                                   78,724      339,674      418,398

Charge for year                                  25,998       16,983       42,981

Released in the year                            (1,032)            ‑      (1,032)

At 31 May 1999                                  103,690      356,657      460,347

Net book value 31 May 1999                        85,617       50,949     £136,566

Net book value 31 May 1998                        88,222       67,932     £156,154

 

 

 

 

 

 

SOFT SOLUTION LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE

YEAR ENDED 31 MAY 1999

1999        1998

G. STOCK  (Note Ad)                                                £             £

Consumables & goods for resale                             2,000         2,000

H. DEBTORS (Note Ae)                                               £             £

Trade debtors (net of provisions)                          76,682        77,028

Accrued income                                             18,315       27.,340

Grant debtor                                                    ‑         6,000

Sundry loans                                                1,110         2,598

Prepayments                                                 2,967        10,685

                                                          £99,074       123,651

I. CREDITORS FALLING DUE WITHIN ONE YEAR                           £             £

Trade creditors                                           120,280       116,529

Corporation tax                                                46            46

Other taxes & social security costs                        32,365        39,563

Short term element of loans (note K)                       27,865        14,126

Sales invoiced in advance                                  15,488             ‑

Other creditors                                             1,131         1,541

Accruals                                                    3,297         9,395

                                                         £200,472      £181,200

 

 

 

J. DEFERRED TAX                                                   £             £

  Deferred tax has been provided as follows:

   Capital allowances in advance of depreciation

Balance brought forward                                  2,482        1,472

Provision transferred in year (note E)                   (114)        1,010_

                                                        £2,368       £2,482

 

 

 

K . LONG TERM LOANS                                               £             £

  Total loans are as follows:

Industrial Common Ownership Finance Ltd                   23,729        17,671

 

 

 

Interest on the ICOF loan, which is repayable within five years, is

charged at 12.5% per annum. The loan is secured by a fixed and floating

legal charge on the assets of the Company.

 

 

 

The loans are repayable as follows:                            £             £

Repayable within one year (note I)                          7,260        14,126

Repayable between two to five years                        23,729        17,671

                                                          £30,989       £31,797

 

 

 

 

 

 

 

 

 

 

 

SOFT SOLUTION LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE

YEAR ENDED 31 MAY 1999

                                                               1999          1998

L. DEFERRED GRANTS                                              £             £

Deferred grant brought forward                           134,668       152,096

Grant received in year:

Manchester City Council                                       ‑         8,939

Flowback in year (note Ah)

Manchester City Council                                 (17,946)      (17,270)

Kirklees Metropolitan Council                            (6,707)       (9,097)

                                                       £110,015      £134,668

 

The proper use of the Manchester grant is secured by a fixed and secured legal charge over all the Company's assets.

 

 

 

 

M. LEASE COMMITMENTS

At 31 May 1999 the Company had annual commitments under non cancellable

operating leases for equipment as follows:

 

                                                          1999          1998

Expiry dates:                                               £             £

Due within one year                                       1,194         1,194

Due within two to five years                              1,776         2,970

 

 

 

 

 

N. SHARE CAPITAL

The Company is limited by guarantee and has no share capital. In the event of the Company being wound up, every member is liable to contribute not more than £1 towards the debts of the Company and the the costs of winding up.

 

 

 

 

O. PENSION CONTRIBUTIONS

The Company operates a defined pension contribution scheme. The assets

of the scheme are held separately from those of the company in an

independently administered fund. The pension charge in these accounts

represents contributions payable for the year by the company to the

fund.

 

 

 

 

P. POST BALANCE SHEET EVENT

In November 1999 the business, assets and liabilities were transferred

to Poptel Limited, a 751 subsidiary company formed for this purpose.