Contents of the Financial Statements

for the Period Ended 30 June 2019

Profit And Loss Account

for the Period Ended 30 June 2019

Balance sheet

As at 30 June 2019

The notes form part of these financial statements

Balance sheet statements

For the year ending 30 June 2019 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

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

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen not to file a copy of the company's profit and loss account.

The notes form part of these financial statements

Notes to the Financial Statements

for the Period Ended 30 June 2019

• 1. Accounting policies

  Basis of measurement and preparation

  The financial statements are presented in British Sterling, which is also the Company’s functional currency. These financial statements have been prepared in accordance with International Financial Reporting Standards and International Accounting Standards as issued by the International Accounting Standards Board (IASB) and Interpretations (collectively IFRSs)The preparation of financial statements in compliance with adopted IFRS requires the use of certain critical accounting estimates. It also requires the management to exercise judgement in applying the Company’s accounting policies.The financial statements have been prepared on a historical cost basis.

  Tangible fixed assets depreciation policy

  Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is a charge to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis: Office equipment 25% on cost (over 48 months)IT hardware 33% on cost (over 36 months)IT software 33% on cost (over 36 months)The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate.Gains or losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.

  Intangible fixed assets amortisation policy

  Internally generated intangible assets (development costs)Expenditure on internally developed products is capitalised if it can be demonstrated that:it is technically feasible to develop the product for it to be soldadequate resources are available to complete the developmentthere is an intention to complete and sell the productthe Company is able to sell the productsale of the product will generate future economic benefits, andexpenditure on the project can be measured reliablyCapitalised development costs are amortised over the periods the Company expects to benefit from selling the products developed. Development expenditure not satisfying the above criteria and expenditure on the research phase of internal projects are recognised in the statement of profit or loss and other comprehensive income as incurred.

  Other accounting policies

  Share capitalFinancial instruments issued by the Company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Company’s ordinary shares are classified as equity instruments.Financial instrumentsThe Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The policies in respect of financial instruments transactions are explained below:Financial assetsThe company classifies all of its financial assets as loans and receivables.Loan and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on that part of the counterparty or default or significant delay in payment) that the company will unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For trade receivables, which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses in the statement of comprehensive income. On confirmation that the trade receivable will not be collected, the gross carrying value of the asset is written off against the associated provision. Financial liabilitiesThe company classifies all of its financial liabilities as liabilities at amortised cost. Financial liabilities at amortised cost including bank borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried into the statement of financial position.TaxationCurrent taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date.Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the statement of financial position differs from its tax base.Recognition of deferred tax asset is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised.Foreign currenciesTransactions entered into by the Company in a currency other than the currency of the primary economic environment in which they operate (their “functional currency”) are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit or loss, except for foreign currency borrowing qualifying as a hedge of a new investment in a foreign operation, in which case exchange differences are recognised in other comprehensive income and accumulated in the foreign exchange reserve along with the exchange differences arising on the retranslation of the foreign operation.Creditors Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. Financial Risk ManagementIn common with all other businesses, the Company is exposed to risks that arise from its use of financial instruments. This note describes the Company’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements. There have been no substantive changes in the Company’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.The principal financial instruments used by the Company, from which financial instrument risk arises, are as follows:Trade receivablesCash and cash equivalentsTrade and other payablesGeneral objectives, policies and processesThe Board has overall responsibility for the determination of the Company’s risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Company’s finance function. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Company’s competitiveness and flexibility. Further details regarding these policies are set out below:Cash in bank and short-term depositsThe Management monitors the credit ratings of counterparties regularly and at the reporting date does not expect any losses from non-performance by the counterparties. For all financial assets to which the impairment requirements have not been applied, the carrying amount represents the maximum exposure to credit loss.Foreign exchange riskForeign exchange risk arises when the Company enters into transactions denominated in a currency other that their functional currency. The Company’s policy is, where possible, to allow group entities to settle liabilities denominated in their functional currency (and have insufficient reserves of that currency to settle them), cash already denominated in that currency will, where possible, be transferred from elsewhere within the Company. Apart from these particular cash flows the Company aims to fund expenses and investments in the respective currency and to manage foreign exchange risk at a local level by matching the currency in which revenue is generated and expenses are incurred.Liquidity riskLiquidity risk arises from the Company’s management of working capital and the finance charges and principal repayments on its debt instruments. It is the risk that the Company will encounter difficulty in meeting its financial obligations as they fall due. The liquidity risk of the Company is managed centrally by the parent Company.Critical Accounting Judgements and Key Sources of Estimation UncertaintyCritical judgement in applying the company’s accounting policies.The critical judgements that the directors have made in the process of applying the company’s accounting policies that have the most significant effect in the amounts recognised in the statutory financial statements are discussed below. Assessing indicators of impairment of investment and loans due from subsidiary. In assessing whether there have been any indicators of impairment of investment and loans due from its subsidiary, the directors have considered the results of the subsidiary and the group. There have been no indicators of impairments identified during the current financial period. Segmental ReportingIFRS 8 defines operating segments as those activities of an entity about which separate financial information is available which are evaluated by the Board of Directors to assess performance and determine the allocation of resources. The Board of Directors assess the performance of the operating segment using financial information which is measured and presented a manner consistent with that in the Financial Statements. Segmental reporting will be reviewed and considered in light of the development of the Company’s business over the next reporting period.

Notes to the Financial Statements

for the Period Ended 30 June 2019

• 2. Employees

  	15 months to 30 June 2019
  Average number of employees during the period	1