Atlas Cloud Limited - Period Ending 2019-06-30

Registration number: 07297347

Atlas Cloud Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 June 2019

Blu Sky Chartered Accountants
Ye Olde Hundred
69 Church Way
North Shields
NE29 0AE

Atlas Cloud Limited

Contents

Company Information	1
Directors' Report	2
Accountants' Report	3
Balance Sheet	4
Notes to the Financial Statements	5

Atlas Cloud Limited

Company Information

Directors

C Morris P T Watson M Conn

Registered office

Generator Studios Trafalgar Street Newcastle Upon Tyne NE1 2LA

Accountants

Blu Sky Chartered Accountants Ye Olde Hundred 69 Church Way North Shields NE29 0AE

Page 1

Atlas Cloud Limited

Directors' Report for the Year Ended 30 June 2019

The directors present their report and the financial statements for the year ended 30 June 2019.

Directors of the company

The directors who held office during the year were as follows:

C Morris

P T Watson

M Conn (appointed 30 June 2019)

Principal activity

The principal activity of the company is provision of private hosted services

Small companies provision statement

This report has 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.

Approved by the Board on 19 August 2019 and signed on its behalf by:

.........................................
M Conn
Director

Page 2

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Atlas Cloud Limited
for the Year Ended 30 June 2019

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Atlas Cloud Limited for the year ended 30 June 2019 as set out on pages 4 to 9 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of Atlas Cloud Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Atlas Cloud Limited and state those matters that we have agreed to state to the Board of Directors of Atlas Cloud Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Atlas Cloud Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Atlas Cloud Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Atlas Cloud Limited. You consider that Atlas Cloud Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Atlas Cloud Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Blu Sky Chartered Accountants
Ye Olde Hundred
69 Church Way
North Shields
NE29 0AE

18 September 2019

Page 3

Atlas Cloud Limited

(Registration number: 07297347)
Balance Sheet as at 30 June 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	3	52,030	83,711
Current assets
Debtors	4	358,739	388,201
Cash at bank and in hand		296,961	235,339
		655,700	623,540
Creditors: Amounts falling due within one year	5	(441,599)	(291,934)
Net current assets		214,101	331,606
Total assets less current liabilities		266,131	415,317
Provisions for liabilities		(7,111)	-
Net assets		259,020	415,317
Capital and reserves
Called up share capital	6	11,748	11,747
Share premium reserve		3,192,207	3,192,207
Profit and loss account		(2,944,935)	(2,788,637)
Total equity		259,020	415,317

For the financial year ending 30 June 2019 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 provisions applicable to companies subject o the small companies’ regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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 19 August 2019 and signed on its behalf by:

.........................................

M Conn

Director

The notes on pages 5 to 9 form an integral part of these financial statements.

Page 4

Atlas Cloud Limited

Notes to the Financial Statements for the Year Ended 30 June 2019

1	General information

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

The company registered number is: 07297347

The address of its registered office is:
Generator Studios
Trafalgar Street
Newcastle Upon Tyne
NE1 2LA
Great Britain

2	Accounting policies

Statement of compliance

These financial statements were prepared in accordance with the provisions of FRS 102 Section 1A - small entities applicable in the UK and Republic of Ireland. There were no material departures from that standard.

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.

Basis of preparation

These financial statements were prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The Directors have considered the funding requirements of the Company through the preparation of detailed cash flow forecasts for the period to June 2022. Under current business plans the current cash resources will extend to the first quarter of 2020. Based on this, additional funding is expected to be required to support the Company’s operational activities from February 2020.

The Directors are currently undertaking a fundraising process which is anticipated to complete during the fourth quarter of 2019. The Directors are confident that sufficient investment will be secured to provide funding for growth and profitability, which based on forecasts will extend the cash runway of the business indefinitely.

Based on the above factors the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

Reclassification of comparative amounts

For the year ended 30th June 2018, lease of hardware has been reclassified to cost of sales from administrative expenses. This has increased cost of sales and decreased administrative expenses by £118,336.

Page 5

Atlas Cloud Limited

Notes to the Financial Statements for the Year Ended 30 June 2019

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government grants in relation to tangible fixed assets are credited to the profit and loss account over the useful lives of the related assets, whereas those in relation to expenditure are credited when the expenditure is charged to profit and loss.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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.

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	33% straight line
Furniture and fittings	33% straight line

Research and development costs

Expenditure on research is written off against profits in the year in which it is incurred. Development expenditure is capitalised and amortised over its useful life.

Page 6

Atlas Cloud Limited

Notes to the Financial Statements for the Year Ended 30 June 2019

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Leases

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

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.

Employee benefits

The cost 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.

Financial instruments

Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss.

Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit and loss.
 

Page 7

Atlas Cloud Limited

Notes to the Financial Statements for the Year Ended 30 June 2019

3	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 July 2018	396,365	396,365
Additions	42,775	42,775
At 30 June 2019	439,140	439,140
Depreciation
At 1 July 2018	312,654	312,654
Charge for the year	74,456	74,456
At 30 June 2019	387,110	387,110
Carrying amount
At 30 June 2019	52,030	52,030
At 30 June 2018	83,711	83,711

4

Debtors

	2019 £	2018 £
Trade debtors	72,183	128,816
Prepayments	150,554	103,032
Other debtors	136,002	156,353
	358,739	388,201

5

Creditors

Creditors: amounts falling due within one year

	2019 £	2018 £
Due within one year
Trade creditors	172,763	134,751
Taxation and social security	51,827	40,567
Accruals and deferred income	210,531	116,616
Other creditors	6,478	-
	441,599	291,934

Page 8

Atlas Cloud Limited

Notes to the Financial Statements for the Year Ended 30 June 2019

6	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary shares of £0.001 each	11,743,932	11,743.93	11,743,932	11,743.93
Ordinary B shares of £0.001 each	3,582	3.58	3,582	3.58
	11,747,514	11,748	11,747,514	11,748

7	Financial commitments, guarantees and contingencies

The company has future opearting lease commitments of £127,843.

8	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 24 (2018 - 18).

Page 9