Speech Processing Solutions UK Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 08068794 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

SPEECH PROCESSING SOLUTIONS UK LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

R Braddock

Dr A Schmitt

REGISTERED OFFICE:

7 The Courtyards

Wyncolls Road

Severalls Industrial Park

Colchester

CO4 9PE

REGISTERED NUMBER:

08068794 (England and Wales)

AUDITORS:

Calcutt Matthews WBZ Ltd

Chartered Accountants and Statutory Auditors

19 North Street

Ashford

Kent

TN24 8LF

CURRENT ASSETS

Debtors

6

486,063

461,095

Cash at bank

58,125

49,146

544,188

510,241

CREDITORS

Amounts falling due within one year

7

79,200

129,411

NET CURRENT ASSETS

464,988

380,830

TOTAL ASSETS LESS CURRENT LIABILITIES

464,988

380,830

CAPITAL AND RESERVES

Called up share capital

2

2

Share premium

199,998

199,998

Retained earnings

264,988

180,830

464,988

380,830

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 12 February 2022 and were signed on its behalf by:

R Braddock - Director

1.	STATUTORY INFORMATION

Speech Processing Solutions UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 £.

Turnover

The company acts as a sales agent for its immediate parent undertaking. Turnover represents commission comprising the administrative cost of running the company plus 2% of net sales generated for the immediate parent undertaking and is recognised on an accruals basis.

Goodwill

Goodwill represents the excess of the purchase price compared with the fair value of net assets acquired and is capitalised and written off evenly over seven years as in the opinion of the director this represents the period over which the goodwill is effective. Goodwill is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation

and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful

lives on the following bases:

Plant and machinery 7 years straight line

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its intangible and tangible

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.

Financial instruments

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 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 other debtors and amounts owed by group undertakings, are initially

measured at transaction price including transaction costs and are subsequently carried at amortised cost

using the effective interest method.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that

occurred after the initial recognition of the financial asset, the estimated future cash flows have been

affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the

present value of the estimated cash flows discounted at the asset’s original effective interest rate. The

impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire

or are settled, or when the company transfers the financial asset and substantially all the risks and rewards

of ownership to another entity, or if some significant risks and rewards of ownership are retained but

control of the asset has transferred to another party that is able to sell the asset in its entirety to an

unrelated third party.

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

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price.

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

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s contractual obligations are

discharged, cancelled, or they expire.

Equity instruments

Equity instruments issued by the company are recorded at the fair value of 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals payable under operating leases are charged to profit or loss on a straight line basis over the lease

term.

Pension costs and other post-retirement benefits

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the

year. Differences between contributions payable in the year and contributions actually paid are shown as

either accruals or prepayments.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any

unused holiday entitlement is recognised in the period in which the employee's services are received.

Going concern

These financial statements have been prepared on a going concern basis, which assumes that the company l be able to continue to trade and meet its debts as they fall due for the foreseeable future, as a minimum for a period of at least twelve months from the date of approval of these financial statements.

The company had net current assets of £463,723 at the balance sheet date but is reliant on its parent company (Speech Processing Solutions GmbH) to provide cash flow funding during the year due to the business model under which it operates. The parent company has confirmed, through a letter of support, their intention to continue to support the company for a period of at least 12 months from the date of sign off of these financial statements.

The directors have reviewed relevant information pertaining to the parent company, together with the written undertaking obtained, and after making all other reasonable enquiries, are confident that the company will be able to meet its liabilities as they fall due. Accordingly, the financial statements have been prepared on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2020 - 9 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2021

405,833

Disposals

(405,833

)

At 31 December 2021

-

AMORTISATION

At 1 January 2021

405,833

Eliminated on disposal

(405,833

)

At 31 December 2021

-

NET BOOK VALUE

At 31 December 2021

-

At 31 December 2020

-

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2021

5,142

Disposals

(5,142

)

At 31 December 2021

-

DEPRECIATION

At 1 January 2021

5,142

Eliminated on disposal

(5,142

)

At 31 December 2021

-

NET BOOK VALUE

At 31 December 2021

-

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Amounts owed by group undertakings

480,713

456,240

Other debtors

5,350

4,855

486,063

461,095

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade creditors

2,906

3,463

Taxation and social security

34,459

42,068

Other creditors

41,835

83,880

79,200

129,411

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.12.21

31.12.20

£

£

Within one year

34,769

26,246

Between one and five years

34,175

17,465

68,944

43,711

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Nick Hume FCA (Senior Statutory Auditor)

for and on behalf of Calcutt Matthews WBZ Ltd

10.	PARENT COMPANY

The company is a subsidiary of Speech Processing Solutions GmbH, which is the smallest group for which consolidated financial statements are prepared. The registered office of Speech Processing Solutions GmbH is Gutheil-Schoder-Gasse 8-12, 1100 Vienna, Austria.

11.	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 Nicholas Hume.

The auditor was Calcutt Matthews WBZ Limited.