Company Registration No. 04157012 (England and Wales)
CONVERGING SOLUTIONS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2017
PAGES FOR FILING WITH REGISTRAR
CONVERGING SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
Mr D R Smith
Mrs L M Smith
Secretary
Mr D R Smith
Company number
04157012
Registered office
6 Waterloo Industrial Estate
Waterloo Road
Bidford on Avon
Alcester
Warwickshire
B50 4JH
Accountants
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
Lloyds Bank Plc
19 Church Green East
Redditch
West Midlands
B98 8BZ
CONVERGING SOLUTIONS LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
CONVERGING SOLUTIONS LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF CONVERGING SOLUTIONS LIMITED FOR THE YEAR ENDED 28 FEBRUARY 2017
- 1 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Converging Solutions Limited for the year ended 28 February 2017 which comprise, the Balance Sheet and the related notes from the company’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance/

This report is made solely to the Board of Directors of Converging Solutions Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Converging Solutions Limited and state those matters that we have agreed to state to the Board of Directors of Converging Solutions Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Converging Solutions Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that Converging Solutions Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Converging Solutions Limited. You consider that Converging Solutions Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Converging Solutions Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Ormerod Rutter Limited
9 August 2017
Chartered Accountants
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
CONVERGING SOLUTIONS LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2017
28 February 2017
- 2 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
4
237,493
229,069
Current assets
Stocks
78,369
154,371
Debtors
5
610,635
632,778
Cash at bank and in hand
540,164
806,690
1,229,168
1,593,839
Creditors: amounts falling due within one year
6
(609,544)
(1,039,943)
Net current assets
619,624
553,896
Total assets less current liabilities
857,117
782,965
Provisions for liabilities
(1,798)
(113)
Net assets
855,319
782,852
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
855,219
782,752
Total equity
855,319
782,852

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 year ended 28 February 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year 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.

CONVERGING SOLUTIONS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
28 FEBRUARY 2017
28 February 2017
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 9 August 2017 and are signed on its behalf by:
Mr D R Smith
Mrs L M Smith
Director
Director
Company Registration No. 04157012
CONVERGING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2017
- 4 -
1
Accounting policies
Company information

Converging Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6 Waterloo Industrial Estate, Waterloo Road, Bidford on Avon, Alcester, Warwickshire, B50 4JH.

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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

These financial statements for the year ended 28 February 2017 are the first financial statements of Converging Solutions Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 March 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable 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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional 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. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

1.3
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:

Freehold property
Nil
Improvements to property
10% on cost
Computer equipment
33% on cost
CONVERGING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
1
Accounting policies
(Continued)
- 5 -

No depreciation is provided on freehold property. This treatment may be a departure from the requirements of Companies Act 2006 concerning depreciation of fixed assets, however, the company follows a program of regular refurbishment and maintenance of its properties, which includes the reinstatement of the fabric of the buildings where necessary in order to maintain them to a high standard. Accordingly, in the opinion of the directors, any element of depreciation would be immaterial and no provision has been made, as the residual value would be in excess of cost.

1.4
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

1.5
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.

1.6
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.7
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.8
Leases

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.

CONVERGING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
1
Accounting policies
(Continued)
- 6 -
1.9
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 are included in the profit and loss account for the period.

2
Turnover and other revenue

An analysis of the company's turnover is as follows:

2017
2016
£
£
Turnover
3,552,423
2,874,239
Analysis per statutory database
3,552,423
2,874,239
Statutory database analysis does not agree to the trial balance by:
12,001
-
Other significant revenue
Interest income
351
709
Turnover analysed by geographical market
2017
2016
£
£
UK
1,497,415
1,340,964
EU
1,649,649
1,317,296
Other
417,360
215,979
3,564,424
2,874,239
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was 21 (2016 - 16).

CONVERGING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
- 7 -
4
Tangible fixed assets
Freehold property
Improvements to property
Computer equipment
Total
£
£
£
£
Cost
At 1 March 2016
228,504
380
1,447
230,331
Additions
-
-
13,361
13,361
At 28 February 2017
228,504
380
14,808
243,692
Depreciation and impairment
At 1 March 2016
-
380
882
1,262
Depreciation charged in the year
-
-
4,937
4,937
At 28 February 2017
-
380
5,819
6,199
Carrying amount
At 28 February 2017
228,504
-
8,989
237,493
At 29 February 2016
228,504
-
565
229,069
5
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
573,250
623,523
Other debtors
37,385
9,255
610,635
632,778
6
Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
225,392
168,368
Amounts due to group undertakings
223,357
806,719
Corporation tax
141,219
20,332
Other taxation and social security
13,571
35,431
Other creditors
6,005
9,093
609,544
1,039,943
CONVERGING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
- 8 -
7
Provisions for liabilities
2017
2016
£
£
Deferred tax liabilities
1,798
113
1,798
113
8
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
40 Ordinary A of £1 each
40
40
40 Ordinary B of £1 each
40
40
10 Ordinary C of £1 each
10
10
10 Ordinary D of £1 each
10
10
100
100
9
Related party transactions

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.

10
Control

Ultimate parent company

The ultimate parent company is Locol Holdings Limited, a company registered in England and Wales.

Ultimate controlling party

The ultimate controlling party is Mr D R Smith and Mrs L M Smith, by virtue of their controlling interest in the ultimate parent company.

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