Virtual Recall Limited - Period Ending 2019-12-31

Registration number: 09360598

Prepared for the registrar

Virtual Recall Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2019

Virtual Recall Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 10

Virtual Recall Limited

Company Information

Directors

J G L Crittall C H J Barton D Hutchison

Registered office

7 Huxley Road Surrey Research Park Guildford Surrey GU2 7RE

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

- 1 -

Virtual Recall Limited

(Registration number: 09360598)
Balance Sheet as at 31 December 2019

	Note	2019  £	2018  £
Fixed assets
Intangible assets	3	16,500	17,600
Tangible assets	4	12,886	10,495
Investments	5	700	700
		30,086	28,795
Current assets
Debtors	6	1,091,714	703,132
Cash at bank and in hand		726,020	566,234
		1,817,734	1,269,366
Creditors: Amounts falling due within one year	7	(754,348)	(547,773)
Net current assets		1,063,386	721,593
Total assets less current liabilities		1,093,472	750,388
Deferred tax liabilities	8	(1,773)	(1,275)
Net assets		1,091,699	749,113
Capital and reserves
Called up share capital		240	240
Share premium reserve		28	28
Profit and loss account		1,091,431	748,845
Total equity		1,091,699	749,113

For the financial year ending 31 December 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 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.

The notes on pages 4 to 10 form an integral part of these financial statements.
- 2 -

Virtual Recall Limited

(Registration number: 09360598)
Balance Sheet as at 31 December 2019

Approved and authorised by the Board on 28 May 2020 and signed on its behalf by:
 

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

J G L Crittall
Director

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

C H J Barton
Director

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

D Hutchison
Director

The notes on pages 4 to 10 form an integral part of these financial statements.
- 3 -

Virtual Recall Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

1

Accounting policies

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

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's current forecasts and projections, together with the facilities available to the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. This statement is made subject to all of the potential implications of the current COVID-19 outbreak on the company’s trade, employees, customers, suppliers and the wider economy, as these are difficult to evaluate.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

No key sources of uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

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 and after eliminating sales within the company.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

- 4 -

Virtual Recall Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge 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 income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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
Computers and software development	33% of written down value
Equipment, Fixtures and fittings	25% of written down value

Goodwill

Goodwill is amortised over its useful life, estimated by the directors to be 20 years.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Positive goodwill	20 years

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.

- 5 -

Virtual Recall Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

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.

Financial instruments

Classification
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 on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.


 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

 

2

Staff numbers

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

	2019  No.	2018  No.
Average number of employees	24	21

- 6 -

Virtual Recall Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

3

Intangible assets

	Goodwill  £
Cost
At 1 January 2019	22,000
At 31 December 2019	22,000
Amortisation
At 1 January 2019	4,400
Amortisation charge	1,100
At 31 December 2019	5,500
Carrying amount
At 31 December 2019	16,500
At 31 December 2018	17,600

4

Tangible assets

	Equipment, Fixtures and fittings  £	Computers and software development  £	Total £
Cost
At 1 January 2019	2,777	23,440	26,217
Additions	3,606	2,943	6,549
At 31 December 2019	6,383	26,383	32,766
Depreciation
At 1 January 2019	1,125	14,597	15,722
Charge for the year	598	3,560	4,158
At 31 December 2019	1,723	18,157	19,880
Carrying amount
At 31 December 2019	4,660	8,226	12,886
At 31 December 2018	1,652	8,843	10,495

- 7 -

Virtual Recall Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

5

Investments

	2019 £	2018 £
Investments in subsidiaries	700	700

Subsidiaries	£
Cost
At 1 January 2019	700
At 31 December 2019	700
Carrying amount
At 31 December 2019	700
At 31 December 2018	700

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2019	2018

Subsidiary undertakings
Virtual Recall Pty Ltd	Australia	100	100%	100%
Virtual Recall Inc	USA	100	100%	100%

The principal activity of Virtual Recall Pty Ltd is the development and sale of specialist veterinary software.

The principal activity of Virtual Recall Inc is the development and sale of specialist veterinary software.

6

Debtors

	2019  £	2018  £
Trade debtors	239,590	189,408
Other debtors	817,927	476,724
Prepayments	34,197	37,000
	1,091,714	703,132

- 8 -

Virtual Recall Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

7

Creditors

Creditors: amounts falling due within one year

	Note	2019  £	2018  £
Due within one year
Loans and borrowings		54,662	63,478
Trade creditors		93,211	56,561
Social security and other taxes		134,877	91,928
Outstanding defined contribution pension costs		4,158	2,272
Other creditors		1,238	1,031
Accrued expenses		337,082	237,157
Corporation tax liability		129,120	95,346
		754,348	547,773

8

Deferred tax

Deferred tax assets and liabilities

2019	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	1,773

2018	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	1,275

9

Related party transactions

Summary of transactions with key management

As at the 31 December 2019 the company owed the directors £54,662 (2018 - £63,478). These amounts are included in loans and borrowings. There are no fixed repayment terms and no interest is charged.
 

- 9 -

Virtual Recall Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

10

Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary A Shares of £0.10 each	1,020	102.00	1,020	102.00
Ordinary B Shares of £0.10 each	1,020	102.00	1,020	102.00
Ordinary C Shares of £0.10 each	120	12.00	120	12.00
Ordinary D Shares of £0.10 each	120	12.00	120	12.00
Ordinary E Shares of £0.10 each	120	12.00	120	12.00
	2,400	240	2,400	240

- 10 -