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ROCC COMPUTERS LIMITED |
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REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018 |
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REGISTERED NUMBER:
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ROCC COMPUTERS LIMITED |
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REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018 |
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ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 March 2018 |
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Page |
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Company Information | 1 |
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Report of the Directors | 2 |
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Statement of Financial Position | 4 |
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Notes to the Financial Statements | 5 |
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ROCC COMPUTERS LIMITED |
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COMPANY INFORMATION |
for the year ended 31 March 2018 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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AUDITORS: |
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Statutory Auditors |
Chartered Accountants |
Preston Park House |
South Road |
Brighton |
East Sussex |
BN1 6SB |
ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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REPORT OF THE DIRECTORS |
for the year ended 31 March 2018 |
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The directors present their report with the financial statements of the company for the year ended 31 March 2018. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the sale and provision of Information |
Technology. |
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REVIEW OF BUSINESS |
ROCC had a difficult trading year with contract delays resulting in a loss for the year. Environmental factors in the |
Social Housing Market caused a diversion of funds from normal IT spend and a slowdown in our market space as a |
whole. |
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Significant progress was made in the development of the new SAAS software suite which should see orders in 2018/19. |
The new software is the most significant product enhancement for some time and there is much optimism surrounding its |
ability to meet the changing needs of the market. |
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New clients were successfully contracted in the Infrastructure business which continued to support businesses moving |
into the Cloud. |
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Senior Management changes and a positive re-structuring of the business, around bringing in new skills and releasing |
legacy skills should bring about benefits for the coming year. |
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Cash remained strong and the Board are cautiously optimistic for the future. |
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Business Threats |
The business conditions continue to look uncertain in the wider economy and the Public Sector does not appear immune |
which may affect trading during the course of the year. ROCC are well placed to withstand an economic downturn with |
both new and long term customers using business critical systems. |
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Pension Scheme |
Progress continued to be made by the company and the Trustees dealing with the Pension deficit. The actual and |
opportunity costs of running a defined benefit scheme are now inappropriate for a company of the size of ROCC and the |
company is reviewing its options to limit and reduce its liabilities in this area. |
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Financial Risk Management |
The main financial risk arising from the group's activities are credit risk, interest risk and liquidity risk. These are |
monitored by the board of directors and were not considered to be significant at the balance sheet date. |
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The group's policy in respect of credit risk, is to require appropriate credit checks on potential customers before sales are |
made. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2017 to the date of this report. |
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Other changes in directors holding office are as follows: |
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CHARITABLE AND POLITICAL DONATIONS |
Charitable donations during the year amounted to £nil (2017: £3,600). No political donations were made during the year. |
ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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REPORT OF THE DIRECTORS |
for the year ended 31 March 2018 |
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GOING CONCERN |
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company |
has adequate resources to continue in existence for the foreseeable future. The company therefore continues to adopt the |
going concern basis in preparing its financial statements. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with |
applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors |
have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting |
Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not |
approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the |
company and of the profit or loss of the company for that period. In preparing these financial statements, the directors |
are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will
continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's transactions and disclose with reasonable accuracy at any time the financial position of the company and |
enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for |
safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud |
and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act |
2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have |
taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the |
company's auditors are aware of that information. |
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AUDITORS |
The auditors, Feist Hedgethorne Limited, will be proposed for re-appointment at the forthcoming Annual General |
Meeting. |
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This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small |
companies. |
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ON BEHALF OF THE BOARD: |
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ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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STATEMENT OF FINANCIAL POSITION |
31 March 2018 |
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2018 | 2017 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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Investments | 5 |
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CURRENT ASSETS |
Stocks |
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Debtors | 6 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 7 | ( |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PENSION LIABILITY | 11 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 9 |
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Revaluation reserve |
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Retained earnings | ( |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors on
by: |
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ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 March 2018 |
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1. | STATUTORY INFORMATION |
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ROCC Computers Limited is a
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company's registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The presentation currency of the financial statements is the Pound Sterling (£), which is the functional currency |
of the Company. Monetary amounts in these financial statements are rounded to the nearest pound. |
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Preparation of consolidated financial statements |
The financial statements contain information about ROCC Computers Limited as an individual company and do |
not contain consolidated financial information as the parent of a group. The company is exempt under Section |
399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
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Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates and |
these 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 if the revision affects only that period, or in the |
period of the revision and future periods if the revision affects both current and future periods. |
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The items in the financial statements where these judgements and estimates have been made include the useful |
economic life of tangible fixed assets, the depreciation and amortisation of these assets, stock obsolescence, |
provisions and recoverability of debtors. |
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The company's key sources of estimation uncertainty include: |
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(a) Pension and other post-employment benefits |
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The cost of the defined benefit pension scheme is determined using actuarial valuations. These involve making |
assumptions about discount rates, future salary increases, mortality rates and future pension increase. Due to the |
complexity of the valuation, the underlying assumptions and the long term nature of this scheme, such estimates |
are subject to significant uncertainty. Management estimates these factors in determining the net pension |
obligation in the statement of financial position. |
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Turnover |
Turnover represents the fair value of consideration received or receivable and represents the amount receivable |
for goods supplied or services rendered. Revenue is recognised when goods are invoiced and despatched to |
customers or services are provided and is stated net of VAT and trade discounts. |
ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and |
accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating |
as intended by management. |
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Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life. |
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Freehold property | - | at varying rates on cost |
Plant and machinery | - | 20% on cost |
Fixtures and fittings | - | 10% on cost |
Computer equipment | - | at varying rates on cost |
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Impairment policy |
At each balance sheet date, the company reviews the carrying amount of its assets to determine whether there is |
any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable |
amount of an 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 asset, the Company estimates the recoverable amount of the |
cash-generating unit to which the asset belongs. |
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Financial instruments |
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 entity after deducting all of its financial liabilities. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to |
the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or |
substantively enacted by the statement of financial position date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
statement of financial position date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from |
those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that |
have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the |
timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they |
will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the |
lease. |
ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Pension costs and other post-retirement benefits |
The company operates two pension schemes for employees: |
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1. Defined contribution scheme - The assets of the scheme are held separately from those of the company in |
independently administered funds. Contributions are charged to the profit and loss account as incurred. |
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2. Defined benefit scheme - To provide benefits to past and one present employee based on employees' final |
pensionable pay. The scheme was closed to new entrants on 1 April 1991. The assets of the scheme are held |
separately from those of the company with investment portfolio managers. Contributions are determined by |
qualified actuaries using the attained age method, making allowances for projected earnings. |
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The difference between the fair value of the assets held in the company's defined benefit pension scheme and the |
scheme's liabilities measured on the actuarial basis using the projected unit method are recognised in the |
company's balance sheet as a pension asset or liability as appropriate. The carrying value of any resulting |
pension scheme asset is restricted to the extent that the group is able to recover the surplus either through |
reduced contributions in the future or through refunds from the scheme. Deferred tax is recognised with the |
principles described in the deferred tax accounting policy above. |
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Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged |
or credited to other comprehensive income, together with the return on plan assets, less amounts included in net |
interest. |
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The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit |
obligation and the fair value of plan assets. This cost is recognised in profit or loss within other finance costs as |
'interest on pension scheme'. |
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The deficit on the scheme is recognised in full and is presented on the face of the statement of financial position |
gross of the associated deferred tax asset. |
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Going concern |
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the |
company has adequate resources to continue in existence for the foreseeable future. The company therefore |
continues to adopt the going concern basis in preparing its financial statements. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2018 |
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4. | TANGIBLE FIXED ASSETS |
Fixtures, |
Freehold | Plant and | Fittings | Computer |
property | machinery | & equipment | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2017 |
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Additions |
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Reclassification | ( |
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At 31 March 2018 |
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DEPRECIATION |
At 1 April 2017 |
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Charge for year |
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Reclassification | ( |
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At 31 March 2018 |
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NET BOOK VALUE |
At 31 March 2018 |
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At 31 March 2017 |
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Cost or valuation at 31 March 2018 is represented by: |
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Fixtures, |
Freehold | Plant and | Fittings | Computer |
property | machinery | & equipment | equipment | Totals |
£ | £ | £ | £ | £ |
Valuation in 2010 | 557,366 | - | - | - | 557,366 |
Valuation in 2012 | (92,078 | ) | - | - | - | (92,078 | ) |
Valuation in 2013 | (4,138 | ) | - | - | - | (4,138 | ) |
Valuation in 2015 | 610,176 | - | - | - | 610,176 |
Cost | 626,693 | 26,490 | 61,533 | 276,289 | 991,005 |
1,698,019 | 26,490 | 61,533 | 276,289 | 2,062,331 |
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5. | FIXED ASSET INVESTMENTS |
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The company has a fixed asset investment in the share capital of Rocc Credit Limited which is held at £NIL |
value (2017: £NIL). |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade debtors |
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Other debtors |
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ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2018 |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade creditors |
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Taxation and social security |
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Other creditors |
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8. | SECURED DEBTS |
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ROCC Computers Pension Trustee Limited holds a legal mortgage on the freehold property. |
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9. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
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Ordinary | 10p | 800,101 | 800,101 |
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10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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11. | EMPLOYEE BENEFIT OBLIGATIONS |
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The group and company operate two pension schemes for employees. Details of the scheme are as follows: |
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Defined contribution scheme |
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The group operates a money purchase scheme for employees of the company. The assets of the scheme are held |
separately from those of the company in independently administered funds. |
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Defined benefit scheme |
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This pension scheme, which is in respect of past employees of the company, is to provide benefits based on |
employees' final pensionable pay. The scheme was closed to new entrants on 1 April 1991. The assets of the |
scheme are held separately from those of the parent undertaking, being invested with investment portfolio |
managers. Contributions to the scheme are determined by the company based calculations prepared by |
independently qualified actuaries, on the basis of a triennial valuation, using the attained age method in which the |
actuarial liability makes allowances for projected earnings. |
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The most recent full actuarial valuation of the scheme was performed by the Scheme Actuary as at 1 April 2015 |
and a valuation as at April 2018 is currently being undertaken. This valuation revealed a funding surplus. The |
Company agreed to pay annual contributions of 18.9% of members' adjusted pensionable salaries each year to |
meet the cost of future service accrual. Under the current recovery plan, the company is not required to make |
annual contributions to the scheme for past employees. The results of the 2015 valuation have been updated to |
31 March 2018 by a qualified independent actuary. |
ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2018 |
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11. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
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The amounts recognised in profit or loss are as follows: |
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Defined benefit |
pension plans |
2018 | 2017 |
£ | £ |
Current service cost |
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Net interest from net defined benefit
asset/liability |
60,000 |
49,000 |
Curtailment cost |
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Administration expenses |
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177,000 | 136,000 |
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Actual return on plan assets | ( |
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Changes in the present value of the defined benefit obligation are as follows: |
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Defined benefit |
pension plans |
2018 | 2017 |
£ | £ |
Opening defined benefit obligation |
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Current service cost |
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Contributions by scheme participants |
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Interest income |
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Actuarial losses/(gains) | ( |
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Benefits paid | ( |
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Changes in the fair value of scheme assets are as follows: |
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Defined benefit |
pension plans |
2018 | 2017 |
£ | £ |
Opening fair value of scheme assets |
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Administration costs | (117,000 | ) | (82,000 | ) |
Contributions by employer |
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Contributions by scheme participants |
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Interest income | 305,000 | 418,000 |
Expected return | (58,000 | ) | 390,000 |
Benefits paid | (633,000 | ) | (617,000 | ) |
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ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2018 |
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11. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
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The amounts recognised in other comprehensive income are as follows: |
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Defined benefit |
pension plans |
2018 | 2017 |
£ | £ |
Actuarial gains/(losses) |
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Actual returns on assets less interest | (58,000 | ) | 390,000 |
237,000 | (734,000 | ) |
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The major categories of scheme assets as amounts of total scheme assets are as follows: |
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Defined benefit |
pension plans |
2018 | 2017 |
£ | £ |
Cash | 52,000 | 356,000 |
Property |
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Mixed Fund | 10,506,000 | 10,857,000 |
10,949,000 | 11,452,000 |
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Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
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2018 | 2017 |
Discount rate |
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Future salary increases |
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Future pension increases |
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Retail Price Index |
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Consumer Price Index |
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Inflation linked increases in deferment |
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Increases for GMP | 1.80% | 1.90% |
Retail Price Index - post retirement | 3.10% | 3.10% |
Consumer Price Index - post retirement | 2.00% | 2.00% |
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The mortality assumptions adopted at 31 March 2018 imply the following life expectancies: |
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Expectancy in years | 2018 | 2017 |
Male aged 65 in 2018 | 20.0 | 20.6 |
Female aged 65 in 2018 | 21.9 | 22.5 |
Male at age 65, aged 45 in 2018 | 20.7 | 21.7 |
Female at age 65, aged 45 in 2018 | 22.8 | 23.7 |
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ROCC COMPUTERS LIMITED (REGISTERED NUMBER: 02691706) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2018 |
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12. | EQUITY RESERVES |
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Share capital - This represents the nominal value of shares that have been issued. |
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Retained earnings - Includes all current and prior period retained profits and losses. |
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Revaluation reserve - Includes all current and prior period revaluations on assets. |