Exhibit 99.1
REPORT OF THE DIRECTORS AND
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2010
FOR
CITYSYNC LIMITED
CITYSYNC LIMITED
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 January 2010
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CITYSYNC LIMITED
COMPANY INFORMATION
for the year ended 31 January 2010
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| DIRECTORS: | Mr N Bekooy |
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| Mr L J Noble |
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| Mr F Thomson |
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| SECRETARY: | Mr L J Noble |
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| REGISTERED OFFICE: | CityPark |
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| Swiftfields |
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| Welwyn Garden City |
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| Hertfordshire |
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| AL7 1LY |
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| REGISTERED NUMBER: | 03791347 (England and Wales) |
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| AUDITORS: | Raffingers Stuart |
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| Chartered Certified Accountants |
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| Registered Auditors |
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| 19-20 Bourne Court |
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| Southend Road |
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| Woodford Green |
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| Essex |
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| IG8 8HD |
Page 1
CITYSYNC LIMITED
REPORT OF THE DIRECTORS
for the year ended 31 January 2010
The directors present their report with the financial statements of the company and the group for the year ended 31 January 2010.
PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of the development of automatic number plate recognition software.
DIRECTORS
The directors shown below have held office during the whole of the period from 1 February 2009 to the date of this report.
Mr N Bekooy
Mr L J Noble
Mr F Thomson
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.
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). 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 the group and of the profit or loss of the group 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; |
- | prepare the financial statements 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 and the group’s transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
ON BEHALF OF THE BOARD:
/s/ F. Thomson
Mr F Thomson - Director
26 May 2010
Page 2
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CITYSYNC LIMITED
We have audited the financial statements of Citysync Limited for the year ended 31 January 2010 on pages four to twelve. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Statement of Directors’ Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group’s and the parent company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements.
In our opinion:
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- | the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 January 2010 and of the group’s loss for the year then ended; |
- | the group financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors’ remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to prepare the financial statements and the Report of the Directors in accordance with the small companies regime. |
/s/ T. Beeharry
Mr T Beeharry (Senior Statutory Auditor)
for and on behalf of Raffingers Stuart
Chartered Certified Accountants
Registered Auditors
19-20 Bourne Court
Southend Road
Woodford Green
Essex
IG8 8HD
27 May 2010
Page 3
CITYSYNC LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 January 2010
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| Notes |
| £ |
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TURNOVER |
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| 4,724,630 |
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Cost of sales |
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| 2,326,770 |
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GROSS PROFIT |
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| 2,397,860 |
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Administrative expenses |
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| 2,397,758 |
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OPERATING PROFIT |
| 2 |
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| 102 |
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Settlement of patent lawsuit |
| 3 |
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| (56,278 | ) |
Legal costs for patent lawsuit |
| 3 |
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| (18,759 | ) |
Patents and licences written off |
| 3 |
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| (136,387 | ) |
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| (211,424 | ) |
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Interest payable and similar charges |
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| 41,427 |
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LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION |
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| (252,749 | ) |
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Tax on loss on ordinary activities |
| 4 |
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| (21,358 | ) |
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LOSS FOR THE FINANCIAL YEAR AFTER TAXATION |
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| (231,391 | ) |
The notes form part of these financial statements
Page 4
CITYSYNC LIMITED
CONSOLIDATED BALANCE SHEET
31 January 2010
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| Notes |
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FIXED ASSETS |
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Intangible assets |
| 6 |
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| 192,332 |
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Tangible assets |
| 7 |
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| 121,924 |
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Investments |
| 8 |
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| — |
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| 314,256 |
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CURRENT ASSETS |
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Stocks |
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| 466,100 |
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Debtors |
| 9 |
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| 1,298,264 |
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Cash at bank and in hand |
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| 1,439 |
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| 1,765,803 |
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CREDITORS |
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Amounts falling due within one year |
| 10 |
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| 1,550,786 |
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NET CURRENT ASSETS |
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| 215,017 |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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| 529,273 |
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CREDITORS |
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Amounts falling due after more than one year |
| 11 |
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| 299,710 |
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NET ASSETS |
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| 229,563 |
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CAPITAL AND RESERVES |
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Called up share capital |
| 14 |
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| 15,000 |
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Profit and loss account |
| 15 |
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| 214,563 |
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SHAREHOLDERS’ FUNDS |
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| 229,563 |
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The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).
The financial statements were approved by the Board of Directors on 26 May 2010 and were signed on its behalf by:
/s/ F. Thomson
Mr F Thomson - Director
The notes form part of these financial statements
Page 5
CITYSYNC LIMITED
COMPANY BALANCE SHEET
31 January 2010
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| Notes |
| £ |
| £ |
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FIXED ASSETS |
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Intangible assets |
| 6 |
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| 192,332 |
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Tangible assets |
| 7 |
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| 120,893 |
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Investments |
| 8 |
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| 938 |
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| 314,163 |
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CURRENT ASSETS |
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Stocks |
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| 377,297 |
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Debtors |
| 9 |
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| 1,567,260 |
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Cash at bank and in hand |
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| 1,423 |
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| 1,945,980 |
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CREDITORS |
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Amounts falling due within one year |
| 10 |
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| 1,531,249 |
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NET CURRENT ASSETS |
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| 414,731 |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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| 728,894 |
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CREDITORS |
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Amounts falling due after more than one year |
| 11 |
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| 299,710 |
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NET ASSETS |
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| 429,184 |
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CAPITAL AND RESERVES |
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Called up share capital |
| 14 |
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| 15,000 |
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Profit and loss account |
| 15 |
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| 414,184 |
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SHAREHOLDERS’ FUNDS |
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| 429,184 |
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The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).
The financial statements were approved by the Board of Directors on 26 May 2010 and were signed on its behalf by:
/s/ F. Thomson
Mr F Thomson - Director
The notes form part of these financial statements
Page 6
CITYSYNC LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 January 2010
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1. | ACCOUNTING POLICIES |
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| Accounting convention |
| The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). |
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| Turnover |
| Turnover represents net invoiced sales of goods, excluding value added tax. |
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| Intangible fixed assets |
| Development costs are being written off over four years. |
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| Tangible fixed assets |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
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| Improvements to property | - over the period of the leases |
| Plant and machinery | - 25% on reducing balance |
| Fixtures and fittings | - 25% on reducing balance |
| Motor vehicles | - 25% on reducing balance |
| Computer equipment | - 25% on reducing balance |
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| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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| The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. |
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| Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
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| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group’s pension scheme are charged to the profit and loss account in the period to which they relate. |
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2. | OPERATING LOSS |
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| The operating loss is stated after charging: |
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| £ |
| Depreciation - owned assets | 29,969 |
| Depreciation - assets on hire purchase contracts | 10,466 |
| Development costs amortisation | 64,111 |
| Auditors’ remuneration | 5,000 |
| Foreign exchange differences | 22,704 |
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| Directors’ remuneration and other benefits etc | 280,800 |
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3. | EXCEPTIONAL ITEMS |
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| A provision of £56,278 has been made at the balance sheet date for settlement of a patent lawsuit in USA. A provision of £18,759 has also been made for legal costs relating to this matter. |
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| Patents and licence costs to the value of £136,387 were written off during the year. |
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Page 7 | continued… |
CITYSYNC LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2010
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4. | TAXATION |
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| Analysis of the tax credit |
| The tax credit on the loss on ordinary activities for the year was as follows: |
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| £ |
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| Current tax: |
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| UK corporation tax | (29,102 | ) |
| US tax | 7,744 |
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| Tax on loss on ordinary activities | (21,358 | ) |
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5. | LOSS OF PARENT COMPANY |
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| As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the parent company is not presented as part of these financial statements. The parent company’s loss for the financial year was £(59,602). |
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6. | INTANGIBLE FIXED ASSETS |
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| Group |
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| Patents |
| Development |
| Totals |
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| COST |
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| At 1 February 2009 |
| 117,138 |
| 425,213 |
| 542,351 |
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| Additions |
| 46,549 |
| 30,489 |
| 77,038 |
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| Disposals |
| (163,687 | ) | — |
| (163,687 | ) |
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| At 31 January 2010 |
| — |
| 455,702 |
| 455,702 |
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| AMORTISATION |
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| At 1 February 2009 |
| 27,300 |
| 199,259 |
| 226,559 |
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| Amortisation for year |
| — |
| 64,111 |
| 64,111 |
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| Eliminated on disposal |
| (27,300 | ) | — |
| (27,300 | ) |
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|
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| At 31 January 2010 |
| — |
| 263,370 |
| 263,370 |
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| NET BOOK VALUE |
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|
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| At 31 January 2010 |
| — |
| 192,332 |
| 192,332 |
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|
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| At 31 January 2009 |
| 89,838 |
| 225,954 |
| 315,792 |
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| Company |
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| Patents |
| Development |
| Totals |
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| COST |
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|
|
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| At 1 February 2009 |
| 117,138 |
| 425,213 |
| 542,351 |
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| Additions |
| 46,549 |
| 30,489 |
| 77,038 |
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| Disposals |
| (163,687 | ) | — |
| (163,687 | ) |
|
|
|
|
|
|
|
|
|
| At 31 January 2010 |
| — |
| 455,702 |
| 455,702 |
|
|
|
|
|
|
|
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|
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| AMORTISATION |
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|
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| At 1 February 2009 |
| 27,300 |
| 199,259 |
| 226,559 |
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| Amortisation for year |
| — |
| 64,111 |
| 64,111 |
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| Eliminated on disposal |
| (27,300 | ) | — |
| (27,300 | ) |
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|
|
|
|
|
|
|
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| At 31 January 2010 |
| — |
| 263,370 |
| 263,370 |
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|
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|
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| NET BOOK VALUE |
|
|
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|
|
|
|
| At 31 January 2010 |
| — |
| 192,332 |
| 192,332 |
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| ||||||||
| At 31 January 2009 |
| 89,838 |
| 225,954 |
| 315,792 |
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Page 8 | continued… |
CITYSYNC LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2010
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7. | TANGIBLE FIXED ASSETS |
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| Group |
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| Improvements |
| Plant and |
| Fixtures |
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| COST |
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|
|
| At 1 February 2009 |
| 42,864 |
| 157,657 |
| 18,862 |
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| Additions |
| 19,327 |
| — |
| 7,189 |
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|
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|
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|
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| At 31 January 2010 |
| 62,191 |
| 157,657 |
| 26,051 |
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| DEPRECIATION |
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| At 1 February 2009 |
| 22,937 |
| 113,548 |
| 15,626 |
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| Charge for year |
| 6,780 |
| 11,521 |
| 2,942 |
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|
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| At 31 January 2010 |
| 29,717 |
| 125,069 |
| 18,568 |
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| NET BOOK VALUE |
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|
|
|
| At 31 January 2010 |
| 32,474 |
| 32,588 |
| 7,483 |
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|
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|
|
|
|
| At 31 January 2009 |
| 19,927 |
| 44,109 |
| 3,236 |
|
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| Motor |
| Computer |
| Totals |
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| COST |
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|
|
|
|
|
|
| At 1 February 2009 |
| 7,093 |
| 56,768 |
| 283,244 |
|
| Additions |
| 35,884 |
| 8,045 |
| 70,445 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2010 |
| 42,977 |
| 64,813 |
| 353,689 |
|
|
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|
|
|
|
|
|
|
| DEPRECIATION |
|
|
|
|
|
|
|
| At 1 February 2009 |
| 292 |
| 38,927 |
| 191,330 |
|
| Charge for year |
| 12,243 |
| 6,949 |
| 40,435 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2010 |
| 12,535 |
| 45,876 |
| 231,765 |
|
|
|
|
|
|
|
|
|
|
| NET BOOK VALUE |
|
|
|
|
|
|
|
| At 31 January 2010 |
| 30,442 |
| 18,937 |
| 121,924 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2009 |
| 6,801 |
| 17,841 |
| 91,914 |
|
|
| |||||||
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Motor |
|
| COST |
|
|
|
|
|
|
|
| Additions |
|
|
|
|
| 35,884 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2010 |
|
|
|
|
| 35,884 |
|
|
|
|
|
|
|
|
|
|
| DEPRECIATION |
|
|
|
|
|
|
|
| Charge for year |
|
|
|
|
| 10,466 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2010 |
|
|
|
|
| 10,466 |
|
|
|
|
|
|
|
|
|
|
| NET BOOK VALUE |
|
|
|
|
|
|
|
| At 31 January 2010 |
|
|
|
|
| 25,418 |
|
|
|
|
Page 9 | continued… |
CITYSYNC LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2010
|
|
7. | TANGIBLE FIXED ASSETS - continued |
|
|
|
|
|
|
|
|
|
| Company |
|
|
|
|
|
|
|
|
|
| Improvements |
| Plant and |
| Fixtures |
|
| COST |
|
|
|
|
|
|
|
| At 1 February 2009 |
| 42,864 |
| 157,657 |
| 18,862 |
|
| Additions |
| 19,327 |
| — |
| 7,189 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2010 |
| 62,191 |
| 157,657 |
| 26,051 |
|
|
|
|
|
|
|
|
|
|
| DEPRECIATION |
|
|
|
|
|
|
|
| At 1 February 2009 |
| 22,937 |
| 113,548 |
| 15,626 |
|
| Charge for year |
| 6,780 |
| 11,521 |
| 2,942 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2010 |
| 29,717 |
| 125,069 |
| 18,568 |
|
|
|
|
|
|
|
|
|
|
| NET BOOK VALUE |
|
|
|
|
|
|
|
| At 31 January 2010 |
| 32,474 |
| 32,588 |
| 7,483 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2009 |
| 19,927 |
| 44,109 |
| 3,236 |
|
|
|
|
|
|
|
|
|
|
|
|
| Motor |
| Computer |
| Totals |
|
| COST |
|
|
|
|
|
|
|
| At 1 February 2009 |
| 7,093 |
| 56,768 |
| 283,244 |
|
| Additions |
| 35,884 |
| 6,671 |
| 69,071 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2010 |
| 42,977 |
| 63,439 |
| 352,315 |
|
|
|
|
|
|
|
|
|
|
| DEPRECIATION |
|
|
|
|
|
|
|
| At 1 February 2009 |
| 292 |
| 38,927 |
| 191,330 |
|
| Charge for year |
| 12,243 |
| 6,606 |
| 40,092 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2010 |
| 12,535 |
| 45,533 |
| 231,422 |
|
|
|
|
|
|
|
|
|
|
| NET BOOK VALUE |
|
|
|
|
|
|
|
| At 31 January 2010 |
| 30,442 |
| 17,906 |
| 120,893 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2009 |
| 6,801 |
| 17,841 |
| 91,914 |
|
|
| |||||||
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Motor |
|
| COST |
|
|
|
|
|
|
|
| Additions |
|
|
|
|
| 35,884 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2010 |
|
|
|
|
| 35,884 |
|
|
|
|
|
|
|
|
|
|
| DEPRECIATION |
|
|
|
|
|
|
|
| Charge for year |
|
|
|
|
| 10,466 |
|
|
|
|
|
|
|
|
|
|
| At 31 January 2010 |
|
|
|
|
| 10,466 |
|
|
|
|
|
|
|
|
|
|
| NET BOOK VALUE |
|
|
|
|
|
|
|
| At 31 January 2010 |
|
|
|
|
| 25,418 |
|
|
|
|
Page 10 | continued… |
CITYSYNC LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2010
|
|
8. | FIXED ASSET INVESTMENTS |
|
|
|
|
|
Company | Shares in |
| ||
|
|
|
|
|
COST |
|
|
|
|
Additions |
| 938 |
| |
|
|
|
| |
At 31 January 2010 |
| 938 |
|
|
|
|
|
| |
NET BOOK VALUE |
|
|
| |
At 31 January 2010 |
| 938 |
|
|
The group or the company’s investments at the balance sheet date in the share capital of companies include the following:
|
|
|
|
|
Subsidiary |
|
|
|
|
|
|
|
|
|
Citysync Technologies Inc |
|
|
|
|
Country of incorporation: United States of America |
|
|
|
|
Nature of business: Number plate recognition software |
|
|
|
|
| % |
|
|
|
Class of shares: | holding |
|
|
|
Common stock | 100.00 |
|
|
|
|
|
| £ |
|
Aggregate capital and reserves |
|
| (194,288 | ) |
Loss for the year |
|
| (167,393 | ) |
|
|
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
|
|
|
|
|
|
|
|
|
| Group |
|
| Company |
|
Trade debtors |
|
| 1,188,523 |
|
| 1,112,127 |
|
Amounts owed by group undertakings |
|
| — |
|
| 347,881 |
|
Other debtors |
|
| 109,741 |
|
| 107,252 |
|
|
|
|
|
|
|
|
|
|
|
| 1,298,264 |
|
| 1,567,260 |
|
|
|
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
|
|
|
|
|
|
|
|
|
| Group |
|
| Company |
|
Bank loans and overdrafts |
|
| 571,133 |
|
| 571,133 |
|
Hire purchase contracts |
|
| 4,710 |
|
| 4,710 |
|
Trade creditors |
|
| 629,974 |
|
| 617,085 |
|
Taxation and social security |
|
| 74,113 |
|
| 67,465 |
|
Other creditors |
|
| 270,856 |
|
| 270,856 |
|
|
|
|
|
|
|
|
|
|
|
| 1,550,786 |
|
| 1,531,249 |
|
|
|
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
|
|
|
|
|
|
|
| Group |
| Company |
|
|
| £ |
| £ |
|
Hire purchase contracts |
| 4,710 |
| 4,710 |
|
Other creditors |
| 295,000 |
| 295,000 |
|
|
|
|
|
|
|
|
| 299,710 |
| 299,710 |
|
|
|
|
Page 11 | continued... |
CITYSYNC LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2010
|
|
12. | OPERATING LEASE COMMITMENTS |
|
|
| The following operating lease payments are committed to be paid within one year: |
|
|
|
|
|
|
|
| Group |
| Company |
|
Expiring: |
|
|
|
|
|
Within one year |
| 1,379 |
| 1,379 |
|
Between one and five years |
| 74,054 |
| 74,054 |
|
In more than five years |
| 50,000 |
| 50,000 |
|
|
|
|
|
|
|
|
| 125,433 |
| 125,433 |
|
|
|
13. | SECURED DEBTS |
|
|
| The following secured debts are included within creditors: |
|
|
|
|
|
|
|
| Group |
| Company |
|
Hire purchase contracts |
| 9,420 |
| 9,420 |
|
|
|
14. | CALLED UP SHARE CAPITAL |
|
|
|
|
|
|
|
|
Allotted, issued and fully paid: |
|
|
|
|
|
| |
Number: | Class: | Nominal |
|
|
| £ |
|
15,000 | Ordinary | £1 |
|
|
| 15,000 |
|
|
|
15. | RESERVES |
|
|
|
|
|
Group |
|
|
|
|
|
|
| Profit |
|
|
|
|
|
|
At 1 February 2009 |
|
| 445,954 |
|
Deficit for the year |
|
| (231,391 | ) |
|
|
|
|
|
At 31 January 2010 |
|
| 214,563 |
|
|
|
|
|
|
Company |
|
|
|
|
|
|
| Profit |
|
|
|
|
|
|
At 1 February 2009 |
|
| 473,786 |
|
Deficit for the year |
|
| (59,602 | ) |
|
|
|
|
|
At 31 January 2010 |
|
| 414,184 |
|
|
|
16. | RELATED PARTY DISCLOSURES |
|
|
| The group was controlled throughout the current year by the directors, Mr N Bekooy, Mr L J Noble and Mr F Thomson, by virtue of their ownership of 60% of the issued share capital. At the balance sheet date the company owed the directors £60,000. |
|
|
| At the balance sheet date the group owed £235,000 to shareholders controlling the remaining 40% of the issued share capital. |
Page 12
CITYSYNC LIMITED
CONSOLIDATED TRADING AND PROFIT AND LOSS ACCOUNT
for the year ended 31 January 2010
|
|
|
|
|
|
|
|
|
|
| £ |
|
| £ |
|
Turnover |
|
|
|
|
|
|
|
Sales |
|
| 4,516,647 |
|
|
|
|
Export sales |
|
| 207,983 |
|
|
|
|
|
|
|
|
|
| 4,724,630 |
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
|
|
Opening stock |
|
| 174,898 |
|
|
|
|
Purchases |
|
| 2,617,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2,792,870 |
|
|
|
|
Closing stock |
|
| (466,100 | ) |
|
|
|
|
|
|
|
|
| 2,326,770 |
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
|
|
| 2,397,860 |
|
|
|
|
|
|
|
|
|
Expenditure |
|
|
|
|
|
|
|
Hire of plant and machinery |
|
| 5,251 |
|
|
|
|
Rent and rates |
|
| 43,077 |
|
|
|
|
Insurance |
|
| 43,822 |
|
|
|
|
Light and heat |
|
| 3,815 |
|
|
|
|
Repairs to property |
|
| 4,417 |
|
|
|
|
Directors’ salaries |
|
| 280,800 |
|
|
|
|
Directors’ pensions paid |
|
| 17,861 |
|
|
|
|
Wages |
|
| 869,467 |
|
|
|
|
Social security |
|
| 141,961 |
|
|
|
|
Sales promotion |
|
| 109,242 |
|
|
|
|
Telephone |
|
| 43,828 |
|
|
|
|
Post and stationery |
|
| 19,156 |
|
|
|
|
Travelling and entertainment |
|
| 202,717 |
|
|
|
|
Motor expenses |
|
| 127,472 |
|
|
|
|
Maintenance and repairs |
|
| 8,305 |
|
|
|
|
Cleaning |
|
| 955 |
|
|
|
|
Refreshments |
|
| 6,383 |
|
|
|
|
Sundry expenses |
|
| 2,380 |
|
|
|
|
Recruitment expenses |
|
| 18,966 |
|
|
|
|
Training costs |
|
| 105 |
|
|
|
|
Accountancy |
|
| 52,301 |
|
|
|
|
Legal and professional |
|
| 49,918 |
|
|
|
|
Auditors’ remuneration |
|
| 5,000 |
|
|
|
|
Subscriptions and donations |
|
| 3,439 |
|
|
|
|
Foreign exchange losses |
|
| 22,704 |
|
|
|
|
Commission paid |
|
| 59,642 |
|
|
|
|
Bad debts |
|
| 84,390 |
|
|
|
|
|
|
|
|
|
| 2,227,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 170,486 |
|
|
|
|
|
|
|
|
|
Finance costs |
|
|
|
|
|
|
|
Bank charges |
|
| 65,838 |
|
|
|
|
Bank interest |
|
| 66 |
|
|
|
|
Loan interest |
|
| 37,367 |
|
|
|
|
Hire purchase |
|
| 1,038 |
|
|
|
|
Other interest |
|
| 2,956 |
|
|
|
|
|
|
|
|
|
| 107,265 |
|
|
|
|
|
|
|
|
|
Carried forward |
|
|
|
|
| 63,221 |
|
This page does not form part of the statutory financial statements
Page 13
CITYSYNC LIMITED
CONSOLIDATED TRADING AND PROFIT AND LOSS ACCOUNT
for the year ended 31 January 2010
|
|
|
|
|
|
|
|
|
|
| £ |
|
| £ |
|
Brought forward |
|
| 63,221 |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
|
Development costs |
|
| 64,111 |
|
|
|
|
Improvements to property |
|
| 6,780 |
|
|
|
|
Plant and machinery |
|
| 11,521 |
|
|
|
|
Fixtures and fittings |
|
| 2,942 |
|
|
|
|
Motor vehicles |
|
| 12,243 |
|
|
|
|
Computer equipment |
|
| 6,949 |
|
|
|
|
|
|
|
|
|
| 104,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (41,325 | ) |
|
|
|
|
|
|
|
|
Exceptional items |
|
|
|
|
|
|
|
Settlement of patent lawsuit |
|
| 56,278 |
|
|
|
|
Legal costs for patent lawsuit |
|
| 18,759 |
|
|
|
|
Patents and licences written off |
|
| 136,387 |
|
|
|
|
|
|
|
|
|
| 211,424 |
|
|
|
|
|
|
|
|
|
NET LOSS |
|
|
|
|
| (252,749 | ) |
This page does not form part of the statutory financial statements
Page 14