Company Registration No. 11009144 (England and Wales)
IX WIRELESS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
IX WIRELESS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
IX WIRELESS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
958,796
418,269
Tangible assets
4
15,822,000
241,505
16,780,796
659,774
Current assets
Debtors
5
458,825
106,484
Cash at bank and in hand
8,971
583
467,796
107,067
Creditors: amounts falling due within one year
6
(25,720)
(762,172)
Net current assets/(liabilities)
442,076
(655,105)
Total assets less current liabilities
17,222,872
4,669
Provisions for liabilities
(2,558,058)
-
Net assets
14,664,814
4,669
Capital and reserves
Called up share capital
7
2,400,100
100
Share premium account
62,928
-
Revaluation reserve
12,001,104
-
Profit and loss reserves
200,682
4,569
Total equity
14,664,814
4,669
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 22 September 2020 and are signed on its behalf by:
P A Walker
Director
Company Registration No. 11009144
IX WIRELESS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 December 2018:
Balance at 1 January 2018
100
-
-
-
100
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
-
-
4,569
4,569
Balance at 31 December 2018
100
-
-
4,569
4,669
Year ended 31 December 2019:
Profit for the year
-
-
-
196,113
196,113
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
14,459,162
-
14,459,162
Tax relating to other comprehensive income
-
-
(2,458,058)
-
(2,458,058)
Total comprehensive income for the year
-
-
12,001,104
196,113
12,197,217
Issue of share capital
7
2,400,000
62,928
-
-
2,462,928
Balance at 31 December 2019
2,400,100
62,928
12,001,104
200,682
14,664,814
IX WIRELESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
1
Accounting policies
Company information
IX Wireless Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
4 Lockside Office Park, Lockside Road Riversway, Preston, Lancashire, PR2 2YS.
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 are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of network infrastructure at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The risks related to the Covid-19 pandemic have been assessed by the Board. The unprecedented events, which are still evolving, are likely to have a short to medium-term impact on the company’s financial performance, though are not easily forecasted. To date, the group has experienced little impact on revenues and due to the actions that the board are taking this is not having a detrimental impact on its financial performance. The group has sufficient financial resources, including the support of other group companies and its major shareholder. As a consequence, the director believes that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook related to the Covid-19 pandemic.
true
The director is taking all available steps to efficiently manage cash flow, to reduce costs and to plan appropriate commercial actions to take during this period of instability across the UK economy. This includes exploring all available support being made available from the UK Government.
After reviewing the company’s forecasts and projections and obtaining additional loan funding through the Governments available loan schemes, the director has a reasonable expectation that the company has adequate resources to continue operational existence for the foreseeable future. The director therefore believes that it remains appropriate to prepare the financial statements on a going concern basis.
1.3
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
.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
IX WIRELESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
1.5
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:
Development costs
Over 10 years
1.6
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:
Network infrastructure
Over 10 years
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
.
1.7
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
IX WIRELESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
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’
of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
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.
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
1
2
IX WIRELESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
3
Intangible fixed assets
Development costs
£
Cost
At 1 January 2019
418,269
Additions
590,989
At 31 December 2019
1,009,258
Amortisation and impairment
At 1 January 2019
-
Amortisation charged for the year
50,462
At 31 December 2019
50,462
Carrying amount
At 31 December 2019
958,796
At 31 December 2018
418,269
4
Tangible fixed assets
Network
infrastructure
£
Cost or valuation
At 1 January 2019
241,505
Additions
1,121,333
Revaluation
14,459,162
At 31 December 2019
15,822,000
Depreciation and impairment
At 1 January 2019
-
At 31 December 2019
-
Carrying amount
At 31 December 2019
15,822,000
At 31 December 2018
241,505
Network infrastructure costs
with a carrying amount of £1,362,838 were revalued at
the year end
by the directors
on the basis of
value in use from discounted future cashflows
.
IX WIRELESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
4
Tangible fixed assets
(Continued)
- 7 -
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2019
2018
£
£
Cost
1,362,838
241,505
Accumulated depreciation
-
-
Carrying value
1,362,838
241,505
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Corporation tax recoverable
100,000
-
Other debtors
358,825
106,484
458,825
106,484
6
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
6,397
-
Other creditors
19,323
762,172
25,720
762,172
7
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
2,400,100 (2018: 100) Ordinary Shares of £1 each
2,400,100
100
IX WIRELESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Stephen Grayson FCCA.
The auditor was UHY Hacker Young Manchester LLP.
9
Parent company
The immediate controlling party is Cohiba Communications Limited, a company incorporated in England & Wales.
The ultimate controlling party is Mr Tahir Mohsan.
10
Prior period adjustment
Reconciliation of changes in equity
1 January
31 December
2018
2018
Notes
£
£
Adjustments to prior year
Reclassification of profit and loss to fixed assets
1
-
659,774
Equity as previously reported
100
(655,105)
Equity as adjusted
100
4,669
Reconciliation of changes in (loss)/profit for the previous financial period
2018
Notes
£
Adjustments to prior year
Reclassification of profit and loss to fixed assets
1
659,774
Loss as previously reported
(655,205)
Profit as adjusted
4,569
Notes to reconciliation
Reclassification of development costs and capital items
The director has reviewed the accounting treatment of various costs incurred in the development of building the infrastructure required to deliver the company's wireless network. The decision has been made to capitalise such costs on the balance sheet. Accordingly £659,774 has been reclassified from administrative expenses to intangible and tangible fixed assets.
2019-12-31
2019-01-01
false
22 September 2020
CCH Software
CCH Accounts Production 2020.200
No description of principal activity
This audit opinion is unqualified
P A Walker
C J Baldock
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