EX-99.3 5 v421704_ex99-3.htm EXHIBIT 99.3

 

Exhibit 99.3

 

Registered number

05997790

 

Farncombe Technology Limited

 

Report and Accounts

 

31 December 2014

 

 

 

 

Farncombe Technology Limited

Statement of Directors' Responsibilities

 

The directors are responsible for preparing the report and accounts in accordance with applicable law and regulations.

 

Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) and FRS102 applicable to small entities. Under company law the directors must not approve the accounts 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 accounts, the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
prepare the accounts 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 accounts 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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Farncombe Technology Limited

Independent auditors' report

To the Board of Directors and Shareholders

 

We have audited the accompanying financial statements of Farncombe Technology Limited, which comprise the Balance Sheet as of 31 December 2014, and the related Profit and Loss Account and cash flow for the year then ended.

 

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United Kingdom; this includes the design, implementation, and maintenance of Internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error.

 

Auditors' Responsibility

Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's Internal Control. Accordingly, we express no such opinion. An audit also includes evaluationg the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

 

Opinion

In our opinion, the financial statements referred to above presents fairly, in all material respects, the financial position of Farncombe Technology Limited at 31 December 2014, and the profits of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in United Kingdom and FRS102 applicable to small entities.

 

/s/ SVP Associates Limited

 

SVP Associates Limited

Certified Accountants and Registered Auditors

First Floor, 2 Victoria Road

Harpenden

Hertfordshire AL5 4EA

29 September 2015

 

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Farncombe Technology Limited

Statement of Income

for the year ended 31 December 2014

 

   Notes   2014 
       £ 

Revenue

        2,602,187 
           
Cost of sales        (2,191,520)
           
Gross profit        410,667 
           
Administrative expenses        (872,350)
Inter-company management charge        621,902 
           
Operating profit/(loss)   3    160,219 
           
Finance costs   4    (13,453)
           
Profit/(loss) on ordinary activities before taxation        146,766 
           
Tax on profit/(loss) on ordinary activities   5    (30,416)
           
Profit/(loss) for the financial year        116,350 
           
Retained earnings at 1 January 2014        415,054 
           
Retained earnings at 31 December 2014        531,404 

 

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Farncombe Technology Limited

 

Statement of Other Comprehensive Income

for the year ended 31 December 2014

 

   2014 
   £ 
Profit/(loss) for the financial year   116,350 
      
Total recognised gains and losses related to the year   116,350 

 

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Farncombe Technology Limited

Statement of Financial Position

as at 31 December 2014

 

   Notes       2014 
Non current assets             £ 
Intangible assets   6         48,502 
Leasehold property and equipment   7         75,175 
Financial Assets   8        200 
             123,877 
              
Current assets              
Trade and other receivables   9    1,529,728     
Cash and cash equivalents        281,543     
         1,811,271     
                
Creditors: amounts falling due within one year   10    (1,361,761)    
               
Net current assets            449,510 
               
Total assets less current liabilities            573,387 
               
Provisions for liabilities   11        (10,066)
               
Net assets            563,321 
               
Equity              
Called up share capital   12        31,917 
Profit and loss account   13        531,404 
               
Shareholders' funds             563,321 

 

 

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Farncombe Technology Limited

Statement of changes in equity

as at 31 December 2014

 

   Share   Share   Retained     
   Capital   Premium   earnings   Total 
   £   £   £   £ 
                 
Balance at 1 January 2014 as previously reported   31,917    -    415,054    446,971 
                     
Prior period adjustment   -    -    -    - 
                     
Shares issued in the year   -    -    -    - 
                     
Profit for the year   -    -    116,350    116,350 
                     
Dividends   -    -    -    - 
                     
Other comprehensive income for the year   -    -    -    - 
                     
Balance as 31 December 2014   31,917    -    531,404    563,321 

 

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Farncombe Technology Limited

Statement of Cash Flows

for the year ended 31 December 2014

 

  

2014

 
   £ 
Cash flow from operating activities     
Operating profit   160,219 
Reconciliation to cash generated from operations:      
Depreciation   25,949 
Amortisation of goodwill   81,761 
Increase in debtors   (86,932)
Increase in creditors   70,308 
    251,305 
      
Investing activities     
Interest received   - 
Issue of shares for cash   - 
Purchase of intangible fixed assets   (71,960)
Proceeds from sale of tangible fixed assets   443 
    (71,517)
      
Financing activities     
Interest paid   (13,453)
Tax paid   (238)
Dividends paid   - 
    (13,691)
      
Net increase/(decrease) in cash   166,097 
Cash at bank and in hand less overdrafts at 1 January   115,446 
Cash at bank and in hand less overdrafts at 31 December   281,543 
      
Consisting of:     
Cash at bank and in hand   281,543 

 

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Farncombe Technology Limited

Notes to the Accounts

for the year ended 31 December 2014

 

1Statutory information

 

Farncombe Techonolgy Limited is a company domicled in England and Wales, registeration number 05997790. The registered office is Grove House, Lutyens Close, Chinham Court, Basingstoke, England RG24 8AG.

 

2Compliance with accounting standards

 

Basis of preparation

The accounts have been prepared in accordance with the provisions of FRS 102 applicable to small entities.

 

Turnover

Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

 

Depreciation

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

 

Plant and machinery 33% straight line & 25% reducing balance
Leasehold property over period of 5 year lease

 

Deferred taxation

Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred taxation is calculated on an un-discounted basis at the tax rates which are expected to apply in the periods when the timing differences will reverse.

 

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.

 

Leasing and hire purchase commitments

Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability.

 

The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.

 

Rentals paid under operating leases are charged to income on a straight line basis over the lease term.

 

Pensions

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

 

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Farncombe Technology Limited

Notes to the Accounts

for the year ended 31 December 2014

 

3Operating profit

 

   2014 
   £ 
This is stated after charging:     
Depreciation of owned fixed assets   25,949 
Amortisation of goodwill   81,761 
Directors' remuneration   126,107 

 

4Interest payable

 

   2014 
   £ 
Interest payable   13,453 

 

5Taxation

 

   2014 
   £ 
UK corporation tax   (3,456)
Deferred tax   33,872 
    30,416 

 

6Intangible fixed assets

Goodwill:

   £ 
     
Cost     
At 1 January 2014   255,999 
At 31 December 2014   255,999 
      
Amortisation     
At 1 January 2014   125,736 
Provided during the year   81,761 
At 31 December 2014   207,497 
      
Net book value     
At 31 December 2014   48,502 

 

Goodwill is being written off in equal annual instalments over its estimated economic life of 5 years.

 

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Farncombe Technology Limited

Notes to the Accounts

for the year ended 31 December 2014

 

7Leasehold property, Plant and Equipment

 

   Leasehold   Fixtures &     
   Property   Fittings   Total 
   £   £   £ 
Cost               
At 1 January 2014   26,516    94,909    121,425 
Additions   -    71,960    71,960 
Disposals   (26,516)   (938)   (27,454)
At 31 December 2014   -    165,931    165,931 
                
Depreciation               
At 1 January 2014   26,516    65,302    91,818 
Charge for the year   -    25,949    25,949 
On disposals   (26,516)   (495)   (27,011)
At 31 December 2014   -    90,756    90,756 
                
Net book value               
At 31 December 2014   -    75,175    75,175 

 

8Financial Assets

 

   Investments in
subsidiary
undertakings
 
   £ 
Cost     
At 1 January 2014   200 
      
At 31 December 2014   200 

 

The company holds 20% or more of the share capital of the following companies:

 

Company   Shares held      Capital and
reserves
   Profit (loss)
for the year
 
   Class   %   £   £ 
Farncombe Engineering Services Ltd  Ordinary   82.5    304,004    (50,663)

 

9Debtors

 

   2014 
   £ 
Trade receivables   599,115 
      
Amount receivable from related parties   692,271 
Deferred tax asset (see note 11)   - 
Other debtors and receivables   238,342 
    1,529,728 

 

10Creditors: amounts falling due within one year

 

   2014 
   £ 
Trade payables   303,872 
Amounts due to related parties   539,513 
Current tax liability   (3,694)
Other taxes and social security costs   205,404 
Directors loans   55,000 
Accruals and other payables   261,666 
    1,361,761 

 

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Farncombe Technology Limited

Notes to the Accounts

for the year ended 31 December 2014

 

11Provisions for liabilities
 Deferred taxation:

 

  2014 
   £ 
Timing differences and other deductions   10,066 

 

   2014 
   £ 
At 1 January   (23,806)
Deferred tax charge/credit in profit and loss account   33,872 
      
At 31 December   10,066 

 

12Share capital

 

   Nominal   2014   2014 
   value  Number   £ 
Allotted, called up and fully paid:             
Ordinary shares  £1.00 each   31,917    31,917 

 

13Profit and loss

 

   2014 
   £ 
      
At 1 January 2014   415,054 
Profit for the year   116,350 
      
At 31 December 2014   531,404 

 

14Other financial commitments

 

   2014 
   £ 
      
At the year end the company had annual commitments under non-cancellable operating leases as set out below:     
      
Operating leases which expire:     
within one year   132,131 
within two to five years   3,723 
    135,854 

 

15Average number of employees

 

   2014 
   £ 
During the year average number of employees was :   17 
    17 

 

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Farncombe Technology Limited

Notes to the Accounts

for the year ended 31 December 2014

 

   2014 
   £ 
     
Sales   2,602,187 
      
Cost of sales   (2,191,520)
      
Gross profit   410,667 
      
Administrative expenses   (872,350)
Other operating income    621,902 
Bad Debts   - 
Operating profit/(loss)   160,219 
      
Interest payable   (13,453)
      
Profit/(loss) before tax   146,766 

 

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Farncombe Technology Limited

Notes to the Accounts

for the year ended 31 December 2014

 

   2014 
   £ 
Sales     
Sales   2,602,187 
      
Cost of sales     
Wages and salaries   754,547 
Directors' salaries   126,107 
Employer's NI   97,897 
Pensions   15,082 
Consultancy fees   1,005,060 
Security specific costs   75,113 
Agency fees   - 
Equipment for client   3,425 
Expenses incurred   114,289 
Costs capitalised   - 
    2,191,520 
      
Administrative expenses     
Employee costs:     
Wages and salaries   112,368 
Staff training and welfare   716 
Travel and subsistence   61,834 
Motor expenses   4,656 
Entertaining   13,980 
    193,554 
Premises costs:     
Rent   259,177 
    259,177 
General administrative expenses:     
Telephone and fax   26,192 
Stationery and printing   5,496 
Foreign currency losses/(gains)   24,115 
Bank charges   5,557 
Insurance   45,260 
IT costs   25,470 
Depreciation   25,945 
Disposal of assets loss/(profit)   (57)
Amortisation of goodwill   81,761 
Bad debts   42,564 
Sundry expenses   2,910 
    285,213 
Legal and professional costs:     
Accountancy fees   28,327 
Advertising and PR   88,335 
Other legal and professional   17,744 
    134,406 
    872,350 
      
Other operating income     
Inter-company management charge   621,902 

 

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