Logical Glue Limited - Period Ending 2014-06-30

Registration number: 06872149

Logical Glue Limited

Unaudited Abbreviated Accounts

for the Year Ended 30 June 2014
 

Boox Limited

Logical Glue Limited
Contents

Directors' Report 1 to 2

Abbreviated Balance Sheet 3

Notes to the Abbreviated Accounts 4 to 6

Logical Glue Limited
Directors' Report for the Year Ended 30 June 2014

The directors present their report and the unaudited abbreviated accounts for the year ended 30 June 2014.

Directors of the company

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

Daniel McPherson

Colin Magee (appointed 1 November 2013)

Alex Strang

Principal activity

The principal activity of the company is a Machine Learning as a Service business helping customers make better business decisions on future outcomes. We produce predictive models with the highest accuracy, translating to increased profitability, lower customer acquisition costs and reduced risk. Model predictions for new customers are delivered in real-time, and Logical Glue’s unique IP makes the decisions easy to understand.

Review of the business

The period to 30th June 2014 was the second trading period for Logical Glue after developing the IP and predictive analytics approach and filing patents.

Key milestones in the development of the business include:
• The company developing models and running them “live” with more clients during the year.
• Completion of the development of a SaaS prototype product with assistance from the Technology Strategy Board.
• Obtaining additional funding from external investors in Q4 of 2013 and subsequently in August 2014.
• Completing the Dassault 3D Fintech challenge in Q4 of 2013
• Completing the Accenture led FinTech Innovation Lab accelerator programme in Q1 of 2014 allowing the business to engage with 12 major global banks in use cases and proof of concepts.

Product Development

During the financial year, significant resource was deployed with the assistance from the Technology Strategy Board to develop Logical Glue’s MLaaS product, marking a strategic transition in the business from consultancy led projects to software led projects. The new product was released in beta format to a number of clients following the close of the Company’s year end.

These beta projects have demonstrated the operational flexibility of the product and enhanced results that can be obtained by exploiting the patented methodologies for decision making.

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Logical Glue Limited
Directors' Report for the Year Ended 30 June 2014
......... continued

Future prospects

Our cloud based platform enables more rapid model production and deployment than incumbent technologies, it makes the process transparent, and it provides customers with the capability to generate and deploy models for themselves.

The Directors are confident of the future prospects of the business and believe that the investments made in product development will provide a platform to support significant and scalable growth.


Raising Capital
During the year, the directors agreed to exchange their loans to the business for equity and additionally accepted investment from a number of private investors. In Q4 2013, a total of 13,082 shares were issued at £50 per share as a result of these transactions.

Important post balance sheet events

In August 2014, the Company closed a fund raising round to raise £280,000 by issuing a total of 3,625 shares at £77 per share.

Small company provisions

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Approved by the Board on 27 March 2015 and signed on its behalf by:

.........................................
Daniel McPherson
Director

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Logical Glue Limited
(Registration number: 06872149)
Abbreviated Balance Sheet at 30 June 2014

		Note			30 June 2014 £			30 June 2013 £
Fixed assets
Intangible fixed assets					9,040			13,228
Tangible fixed assets					17,663			23,898
					26,703			37,126
Current assets
Debtors					50,474			4,459
Cash at bank and in hand					25,318			107,639
					75,792			112,098
Creditors: Amounts falling due within one year					(55,193)			(503,300)
Net current assets/(liabilities)					20,599			(391,202)
Net assets/(liabilities)					47,302			(354,076)
Capital and reserves
Called up share capital		3			353			222
Share premium account					653,969
Profit and loss account					(607,020)			(354,298)
Shareholders' funds/(deficit)					47,302			(354,076)

For the year ending 30 June 2014 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 in accordance with the provisions applicable to companies subject to the small companies regime .

Approved by the Board on 27 March 2015 and signed on its behalf by:

.........................................
Daniel McPherson
Director

The notes on pages 4 to 6 form an integral part of these financial statements.
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Logical Glue Limited
Notes to the Abbreviated Accounts for the Year Ended 30 June 2014
......... continued

1	Accounting policies

Basis of preparation

The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (Effective April 2008).

The accounts do not include a cash flow statement because the company, as a small reporting entity, is exempt from the requirements to prepare such a statement.

Going concern

The financial statements have been prepared on a going concern basis as the directors have confirmed that they will continue to support the company until it reaches profitability.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Amortisation

Intangible assets are stated at cost less any accumulated amortisation and any provision for impairment.

Patents are amortised over their useful lives of up to 20 years

Asset class	Amortisation method and rate
Patents	20% straight line

Depreciation

Office equipment is stated at cost less accumulated depreciation and any provisions for impairment.

Office equipment is depreciated on a straight line basis over 4-5 years

Asset class	Depreciation method and rate
Office equipment	Straight line 20%

Research and development

Research expenditure is charged to the profit and loss account in the year incurred.

Deferred tax

Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS 19. A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be sufficient taxable profits from which the future reversal of the underlying timing differences can be deducted.

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Logical Glue Limited
Notes to the Abbreviated Accounts for the Year Ended 30 June 2014
......... continued

Foreign currency

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

Hire purchase and leasing

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

2	Fixed assets

		Intangible assets £			Tangible assets £			Total £
Cost
At 1 July 2013		15,462			26,688			42,150
Additions					500			500
At 30 June 2014		15,462			27,188			42,650
Depreciation
At 1 July 2013		2,234			2,790			5,024
Charge for the year		4,188			6,735			10,923
At 30 June 2014		6,422			9,525			15,947
Net book value
At 30 June 2014		9,040			17,663			26,703
At 30 June 2013		13,228			23,898			37,126

3	Share capital

Allotted, called up and fully paid shares

	30 June 2014						30 June 2013
		No.			£			No.			£
Ordinary shares of £0.01 each		35,305			353			22,223			222

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Logical Glue Limited
Notes to the Abbreviated Accounts for the Year Ended 30 June 2014
......... continued

New shares allotted

During the year 13,082 Ordinary shares having an aggregate nominal value of £131 were allotted for an aggregate consideration of £654,100. The shares were allotted to increase the capital base of the company.

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