Data Accelerator Limited - Period Ending 2017-12-31

Registration number: 07136606

Data Accelerator Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2017

Ballard Dale Syree Watson LLP
Chartered Accountants
Oakmoore Court
11c Kingswood Road
Hampton Lovett
Droitwich
Worcestershire
WR9 0QH

Data Accelerator Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 7

Data Accelerator Limited

Company Information

Directors

M P Clothier C E S Green S Corbett T Steel G D Chapman

Registered office

UGLI Campus 56 Wood Lane London W12 7SB

Accountants

Ballard Dale Syree Watson LLP Chartered Accountants Oakmoore Court 11c Kingswood Road Hampton Lovett Droitwich Worcestershire WR9 0QH

Page 1

Data Accelerator Limited

(Registration number: 07136606)
Balance Sheet as at 31 December 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	4	216,465	247,347
Current assets
Debtors	5	787,787	790,733
Cash at bank and in hand		45,842	64,436
		833,629	855,169
Creditors: Amounts falling due within one year	6	(14,097,423)	(11,176,631)
Net current liabilities		(13,263,794)	(10,321,462)
Total assets less current liabilities		(13,047,329)	(10,074,115)
Creditors: Amounts falling due after more than one year	6	(84,444)	(113,461)
Net liabilities		(13,131,773)	(10,187,576)
Capital and reserves
Called up share capital		100	100
Profit and loss account		(13,131,873)	(10,187,676)
Total equity		(13,131,773)	(10,187,576)

The notes on pages 4 to 7 form an integral part of these financial statements.

Page 2

Data Accelerator Limited

(Registration number: 07136606)
Balance Sheet as at 31 December 2017

For the financial year ending 31 December 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 21 February 2018 and signed on its behalf by:
 

......................................... M P Clothier Director

The notes on pages 4 to 7 form an integral part of these financial statements.

Page 3

Data Accelerator Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
UGLI Campus
56 Wood Lane
London
W12 7SB
England

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

The company's parent company, Data Cloud Limited, have provided in writing that it intends to continue to provide sufficient finance for the company to meet its liabilities when they fall due for a period of at least 12 months from the date of approval of these financial statements.

Having taken into account the forecast revenues and the company's ongoing operational expenditure together with the likely capital additions and likely capital repayments, the company's directors have concluded that it is appropriate that these financial statements are prepared and presented using the going concern principal due to the continued support of the parent company's investor base.

Revenue recognition

Turnover represents royalties receivable in respect of the use of the company's intellectual property.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Page 4

Data Accelerator Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	25% on cost
Computer equipment	25% on cost
Motor vehicles	25% on reducing balance

Research and development
Expenditure on research and development is written off in the year in which it is incurred.

Deferred tax
Deferred tax is recognised on all timing differences where the transactions or events give the company an obligation to pay more tax in the future, or a right to pay less tax in the future has occurred by the balance sheet date. Deferred tax assets are recognised when it is more likely than not that they will be recovered. Deferred tax is measured using rates that have been enacted or substantively enacted by the balance sheet date.

The accumulated losses have resulted in significant tax allowable losses being built up which can be offset against future trading profits. At present the directors are uncertain as to whether sufficient profits will be realised against which to offset these losses and accordingly no deferred tax asset has been recognised in the financial statements.

Foreign currency
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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Page 5

Data Accelerator Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 33 (2016 - 38).

4	Tangible assets

	Computer equipment £	Motor vehicles  £	Plant and machinery £	Total £
Cost or valuation
At 1 January 2017	110,818	193,120	14,892	318,830
Additions	33,946	-	-	33,946
At 31 December 2017	144,764	193,120	14,892	352,776
Depreciation
At 1 January 2017	35,210	28,540	7,733	71,483
Charge for the year	32,622	28,536	3,670	64,828
At 31 December 2017	67,832	57,076	11,403	136,311
Carrying amount
At 31 December 2017	76,932	136,044	3,489	216,465
At 31 December 2016	75,608	164,580	7,159	247,347

5

Debtors

	2017  £	2016  £
Other debtors	787,787	790,733
Total current trade and other debtors	787,787	790,733

A loan note of £490,000 in Data Cloud Limited, the parent of the company, is secured on the expected receipt of the Research and Development Tax Credit receivable in Data Accelerator Limited.

Page 6

Data Accelerator Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

6

Creditors

Creditors: amounts falling due within one year

	2017  £	2016  £
Due within one year
Hire purchase contracts	31,838	30,549
Trade creditors	50,369	76,189
Amounts owed to group undertakings and undertakings in which the company has a participating interest	13,446,408	10,967,825
Taxation and social security	392,554	56,036
Other creditors	176,254	46,032
	14,097,423	11,176,631
Due after one year
Hire purchase contracts	84,444	113,461

Page 7