YOURPARKINGSPACE_LIMITED - Accounts

The directors present their annual report and financial statements for the year ended 31 August 2020.

The principal activity of the company continued to be that of an online marketplace for drivers to search for and book parking.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Business Review

The Directors are pleased to report that, despite the on-going impact of COVID-19, performance has been strong. Total transaction value and net revenue have grown over 30% and 18.64% respectively in the year ended 31 August 2020.

The Directors are also pleased to announce that following the end of the financial year, on 11 September 2020, the business raised £5,000,000 in equity financing from Pelican Capital. The purpose of the investment is to provide funding to support the business in its next phase of growth.

Vision & Strategy

The Directors continue to pursue a sustainable, long-term strategy to position the business as the leading destination to find and book parking.

In order to achieve this goal there are a number of underlying strategies that the Directors are continuing to develop and drive.

• Inventory – there continues to be a huge focus on the supply of parking inventory. With inventory being the ‘stock’ of the business, a large part of our success comes from being able to offer customers the largest choice of available parking spaces.

• B2B Solutions – we recognise the need to create more value for our clients beyond the incremental revenue we generate for them by listing their spaces on the YourParkingSpace marketplace. A suite of B2B solutions has now been developed, with further time and investment required to improve and expand on this offering.

• People – our talented team members are the ones that deliver our strategy and ultimately drive the success of the business. Attracting and retaining the best talent in the industry will be continue to be crucial for us. The Directors have a detailed plan of further hires required to successfully execute the strategy, including several over the next 12 months.

• Electric Vehicle Charging – at present, most of our drivers use our services to park petrol and diesel vehicles. Over the next decade there will be a significant transition to electric vehicles. The Directors recognise that many of these electric vehicle drivers will expect electric charging to be available at their parking destinations. In order to safeguard the business over the long-term, having a market-leading electric vehicle charging offering for motorists will be crucial.

Key Performance Indicators

The performance of the business is closely monitored on a monthly basis, tracking key metrics relating to revenue, bookings, inventory and customer behaviour.

Total transaction value is our headline metric, tracked month-on-month and year-on-year, with all other key financial indicators closely monitored.

The attractiveness of the offering to drivers is determined by the parking space inventory available to book. Inventory statistics are maintained monthly, both the total number of available locations along with new onboarded locations, split by commercial and private space owners to ensure the B2B and peer-to-peer elements are both healthy.

Finally, driver behaviour is monitored closely. This includes quantitative metrics such as booking volumes, repeat usage and lifetime value along with qualitative information such as customer reviews of locations on YourParkingSpace and those reviews submitted on external platforms, such as TrustPilot.

Principal Risks & Uncertainties

COVID-19

With the UK having spent 13 months in varying forms of lockdown restrictions at the time of this submission, COVID-19 and the government response is a significant risk factor to the business in the foreseeable future. Restrictions on the movement of people directly impact the demand for parking.

People

There are two primary risks relating to our team members. We currently have a very talented, close-knit team and it is essential to maintain this as headcount grows, with training, regular employee briefings, and organised social team bonding events to become increasingly important. The second risk relates to ensuring our development team is appropriately resourced. The job market for developers is especially competitive, which makes recruitment and retention a key focus for the business.

Data & Information Security

As is the case for any online business, the security of our data and IT systems are essential to secure and maintain trust from customers in our service. We continue to invest in our infrastructure and monitoring services to safeguard the company against data thefts and cyber-attacks.

Inventory

Our offering is dependent on having an excellent selection of car parks and parking spaces available. The sales team continues to be a huge area of focus in order to provide motorists with the best available selection of parking spaces to book.

New Entrants

The Directors remain vigilant to the threat of new entrants into the UK market, from both overseas companies offering similar services in their home markets through to UK-based companies which may look to move into the pre-book marketplace sector.

Business Opportunities

COVID-19

Whilst a threat in the short-term, long-term the changing consumer behaviour as a result of the pandemic presents opportunities for the business. For example, the concept of pre-booking parking has been normalised whilst both consumers and landlords will demand contactless parking solutions. Landlords are also more focussed on maximising yield from their assets as rental incomes reduce or fall away, making the additional revenue they can earn by listing their sites on our platform an attractive proposition.

Parking Bill

The government’s published consultation outcome for the Parking Code Enforcement Framework lists regulatory changes which, if implemented, will have a significant impact on car park operators, particularly those with an emphasis on enforcement. If enforcement income is reduced, the importance of generating revenue from parking fees paid by motorists will take on a greater importance. YourParkingSpace is well-placed to help deliver on this requirement.

Electric Vehicle Charging

With the ban on new petrol and diesel vehicles brought forward to 2030 and the significant uptick in sales of both electric and hybrid vehicles, a rapidly growing market in the electric vehicle charging sector is emerging. This is a huge opportunity for the business on both sides of the market, assisting electric vehicle motorists in finding and paying for electric charging and also providing solutions to landlords who wish to install electric vehicle charge points.

The directors are responsible for preparing the annual report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• 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 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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 August 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

YourParkingSpace Limited is a private company limited by shares incorporated in England and Wales. The registered office is Studio 4, Import Building, 2 Clove Crescent, London, E14 2BE.

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 amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The financial statements have been prepared on a going concern basis. The company has incurred losses during the year and the directors are aware that the company's balance sheet reflects net current liabilities of £4,181,861. Whilst the company has been significantly impacted by the Coronavirus pandemic the directors note that, relative to the industry, revenue has remained strong and has recovered from the lockdown periods quickly. 

Furthermore, on 11 September 2020 the business raised £5,000,000 in equity financing from Pelican Capital. The purpose of the investment is to provide funding to support the business in it’s next phase of growth.

As part of the directors' going concern assessment the directors have considered the operating restrictions placed on the business by the on-going pandemic and the potential cash flow requirements needed to continue in operation through this period. Whilst it is not possible to determine with any accuracy the full impact of the pandemic on the company, the directors have considered the available level of liquidity and support available and consider it to be sufficient. The directors expect that the company can successfully manage its business risks to continue to trade for the foreseeable future and they consider it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Income is recognised as a management fee over the period covered by each licence provided to the end users.

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.

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:

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:

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.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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.

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.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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, 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.

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.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

The average monthly number of persons (including directors) employed by the company during the year was:

Other borrowings relates to loans received from shareholders. Loans from shareholders accrue at 4% interest per annum and have no fixed repayment date.

The company has two classes of ordinary shares which each carry no right to fixed income. Each share carries one voting right.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows: