Acquia Ltd - Limited company accounts 20.1
Acquia Ltd - Limited company accounts 20.1
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 |
FOR |
ACQUIA LTD |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
ACQUIA LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
4 Wimpole Street |
London |
W1G 9SH |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
The directors present their strategic report for the year ended 31 December 2019. |
FINANCIAL RISK MANAGEMENT |
The company has adopted risk management policies that seek to mitigate the financial risks as follows: |
Financial assets and liabilities that expose the company to financial risk consist principally of cash, amounts owed by group |
undertakings and trade creditors. The credit risk associated with the amounts due by group undertakings is considered |
minimal and the parent company has confirmed its ongoing support of Acquia Ltd. The financial instruments associated with |
cash and trade creditors are considered minimal. |
The carrying amounts of bank balances and trade creditors approximate their respective fair value due to the relatively short |
term maturing of these financial instruments. |
The Directors are of the view that the company is not exposed to any significant interest rate or inflation rate risks. |
The company does not hold any interest rate derivatives. |
KEY PERFORMANCE INDICATORS |
The Key Performance Indicators presented below reflect the way performance of the company has been measured in 2019. |
Revenue: To track the growth in the business. This is a key area of strategic focus for the Board. Revenue has increased by |
£959,084 to £13,768,343 (2018: £12,809,259). |
Profit Before Tax: To track the underlying performance of the business and to ensure sales growth translates into increased |
profits. Profit before tax has increased by 189.26% to £655,633 (2018: £226,657). |
FAIR REVIEW OF BUSINESS |
The company was formed in 2011 and its principal activities during the year continued to be sales and marketing activities |
for the parent company. |
2019 | 2018 | Change |
£'000 | £'000 | % |
Turnover | 13,768 | 12,809 | 7.49 |
Operating Profit | 656 | 227 | 189.26 |
Profit after Tax | 495 | -14 |
Profit and loss reserves | 3,858 | 3,362 | 14.73 |
Current assets as % of current liabilities | 339% | 336% | 4 |
Average number of employees | 82 | 74 | 8 |
Turnover and average employees are used to track the growth of the business. This is a key area of strategic focus for the |
Board. |
Operating profit and profit after tax are used to track the underlying performance of the business. |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Operating and Market Risk |
The company operates in a sector that is linked to the health of the wider economy. A slowdown in retail activity would |
have an impact on the company's profitability. The company is global and spreads its risk over many countries and markets. |
It is therefore limited in its exposure to any one market. |
Product Risk |
The company's continued success is dependent upon the sales of the products that it designs and manufactures. The company |
spreads its risk by selling a large range of products. New products are launched in the Spring and Autumn of each calendar |
year. |
Currency Risk |
The company transacts in several currencies, principally Great Britain Pounds, United States Dollars and Euros. It is subject |
to currency risk from movements in exchange rates which affects sales and purchases. The company monitors its exposure to |
all currencies and implements a currency buying and hedging strategy to minimise this exposure. |
Price risk |
The Company has no exposure to equity securities price risk, as it holds no listed or other equity investments other than |
investments in subsidiary companies. |
Foreign exchange risk |
The Company is exposed to foreign exchange risks in the normal course of business, principally on purchase of product for |
resale denominated in US Dollars and Euros. In order to limit the Company's risk from currency exposure, the Company's |
anticipated purchase obligations are hedged in advance. |
SUBSEQUENT DEVELOPMENTS |
There have been no changes to the business activities or risk profile of the company subsequent to the end of the reporting |
period. |
Management don't foresee any significant issues relating to coronavirus and Brexit. |
CORPORATE STRATEGY FOR 2020 |
The strategy for Acquia Ltd is set to continue and will remain a sales and marketing activity for the parent company and |
there is no change in the foreseeable future. |
ON BEHALF OF THE BOARD: |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
The directors present their report with the financial statements of the company for the year ended 31 December 2019. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of sales and marketing activities for the parent |
company specialised in technical support for the open-source web content management platform Drupal. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2019. |
DIRECTORS |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in |
accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have |
elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice |
(United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the |
financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of |
the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- select suitable accounting policies and then apply them consistently; |
- make judgements and accounting estimates that are reasonable and prudent; |
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will |
continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's |
transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to |
ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the |
assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
In the case of each director in office at the date the Directors' Report is approved: |
- so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and |
- they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant |
audit information and to establish that the company's auditors are aware of that. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act |
2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a |
director in order to make himself aware of any relevant audit information and to establish that the company's auditors are |
aware of that information. |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
AUDITORS |
The auditors, Auria Audit LLP, awill be proposed for re-appointment under section 487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACQUIA LTD |
Opinion |
We have audited the financial statements of Acquia Ltd for the year ended 31 December 2019 which comprise the Income |
Statement, the Statement of Comprehensive Income, the Statement Of Financial Position, the Statement of Changes in |
Equity, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting |
policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom |
Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland |
(United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its profit for the year then |
ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; |
and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our |
responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial |
statements section of our report. We are independent of the company in accordance with the ethical requirements that are |
relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our |
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is |
sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you |
where: |
- the directors' use of the going concern basis of accounting in the preparation of the financial statements is not |
appropriate; or |
- the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant |
doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve |
months from the date when the financial statements are authorised for issue. |
Other information |
The directors are responsible for the other information. The other information comprises the information included in the |
annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements |
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any |
form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, |
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in |
the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material |
misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material |
misstatement of the other information. If, based on the work we have performed, we conclude that there is a material |
misstatement of this other information, we are required to |
report that fact. |
We have nothing to report in this regard. |
Opinion on other matter prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of our audit: |
- the information given in the Strategic Report and the Directors' Report for the financial year for which the financial |
statements are prepared is consistent with the financial statements; and |
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACQUIA LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we |
have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, |
in our opinion: |
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches |
not visited by |
us; or |
- the financial statements are not in agreement with the accounting records and returns; or |
- certain disclosures of directors' remuneration specified by law are not made; or |
- we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for |
the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal |
control as the directors determine necessary to enable the preparation of financial statements that are free from material |
misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going |
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless |
the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Our responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material |
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance |
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a |
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually |
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of |
these financial statements. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting |
Council's website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies |
Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are |
required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not |
accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, |
for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
4 Wimpole Street |
London |
W1G 9SH |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
2019 | 2018 |
Notes | £ | £ |
TURNOVER | 3 |
Administrative expenses | ( |
) | ( |
) |
655,633 | 226,515 |
Other operating income |
OPERATING PROFIT and |
PROFIT BEFORE TAXATION |
Tax on profit | 6 | ( |
) | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
2019 | 2018 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
BALANCE SHEET |
31 DECEMBER 2019 |
2019 | 2018 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
Investments | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 12 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on on its behalf by: |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2018 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2018 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2019 |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Impairment of the investment |
Net cash from investing activities | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
469,198 |
Cash and cash equivalents at end of year | 2 | 2,023,720 | 515,378 |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2019 | 2018 |
£ | £ |
Profit before taxation |
Depreciation charges |
787,980 | 287,822 |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these |
Balance Sheet amounts: |
Year ended 31 December 2019 |
31.12.19 | 1.1.19 |
£ | £ |
Cash and cash equivalents | 2,023,720 | 515,378 |
Year ended 31 December 2018 |
31.12.18 | 1.1.18 |
£ | £ |
Cash and cash equivalents | 515,378 | 469,198 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.19 | Cash flow | At 31.12.19 |
£ | £ | £ |
Net cash |
Cash at bank | 515,378 | 1,508,342 | 2,023,720 |
515,378 | 2,023,720 |
Total | 515,378 | 1,508,342 | 2,023,720 |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
1. | STATUTORY INFORMATION |
Acquia Ltd 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. |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These policies have been consistently applied to all the years presented, unless otherwise stated. The company has |
adopted FRS 102 in these financial statements. |
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting |
estimates. It also requires management to exercise its judgement in the process of applying the company's accounting |
policies. The directors have not identified any areas which involve a higher degree of judgement or complexity, or |
areas where assumptions and estimates are significant to the financial statements. |
Preparation of consolidated financial statements |
The financial statements contain information about Acquia Ltd as an individual company and do not contain |
consolidated financial information as the parent of a group. The company is exempt under Section 401 of the |
Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary |
undertaking are included by full consolidation in the consolidated financial statements of its parent, , . |
Turnover |
Turnover is derived from recharged expenses to the parent company and is measured at the fair value of the |
consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment |
losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working |
condition for its intended use, dismantling and restoration costs and borrowing costs capitalised. |
Depreciation is provided at the following annual rates on a straight-line basis in order to write off each asset over its |
estimated useful life. |
Fixtures & Fittings - 33% on cost |
Computer Equipment - 33% on cost |
Long Leasehold - 20% on cost |
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting |
period. The effect of any change is accounted for prospectively. |
Repairs, maintenance and minor inspection costs are expensed as incurred. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid |
investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within |
borrowings in current liabilities. |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
2. | ACCOUNTING POLICIES - continued |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
Financial instruments |
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
Financial assets |
Basic financial assets, including trade and other receivables, cash at bank and investments in commercial paper, are |
initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the |
transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of |
impairment. If an asset if 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. |
If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised the |
impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying |
amount would have been had the impairment not previously been recognised. The impairment reversal is recognised |
in profit or loss. |
Financial assets are derecognised when (a) the contractual rights to the cashflows from the asset expire or are settled |
or, (b) substantially all the risks and rewards of ownership of the asset are transferred to another party or (c) control |
of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an |
unrelated third party without imposing additional restrictions. |
Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and |
preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement |
constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts |
discounted at a market rate of interest. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of |
business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or |
less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price |
and subsequently measured at amortised cost using the effective interest method. |
Offsetting |
Financial assets and liabilities are offset and 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. |
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. |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
2. | ACCOUNTING POLICIES - continued |
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. |
Foreign currencies |
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. |
The company's functional and presentation currency is the pound sterling. |
Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction |
and non-monetary items measured at fair value are measured using the exchange rate when fair value was |
determined. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension |
scheme are charged to profit or loss in the period to which they relate. |
Fixed asset investments |
Fixed asset investments are stated at cost less provision for impairment. The impairment charge reflects the historical |
rate of the share capital at the time of acquisition. |
Provisions |
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it |
is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount |
of the obligation. |
The amount recognised as a provision is the best estimate of the consideration required to settle the present |
obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. |
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is |
recognised at present value. When a provision in measured at present value the unwinding of the discount is |
recognised as a finance cost in profit or loss in the period it arises. |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
2. | ACCOUNTING POLICIES - continued |
Share capital |
Ordinary share are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or |
options are shown in equity as a deduction, net of tax, from the proceeds. |
Critical accounting judgements and estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, |
including expectations of future events that are believed to be reasonable under the circumstances. |
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 amount 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 where the revision affects only that period, or in the period |
of the revision and future periods where the revision affects both current and future periods. |
Critical judgements |
The following judgements (apart from those involving estimates) have had the most significant effect on amounts |
recognised in the financial statements. |
Taxation |
The Company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax |
authorities of the consequences of audits by the tax authorities of the respective countries in which it operates. The |
amount of such provisions is based on various factors, such as experience with previous tax audits and differing |
interpretations of tax regulations by the taxable entity and the responsible tax authority. Management estimation is |
required to determine the amount of deferred tax assets that can be recognised based upon likely timing and level of |
future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are |
contained in note 7. |
Depreciation |
The difference between the purchase price or production cost (or revalued amount) and estimated residual value of a |
fixed asset which has a limited useful economic life should be allocated on a systematic basis to each accounting |
period during the useful life of the asset. The depreciation charge for each period should be recognised as an expense |
in the profit and loss account unless it is permitted to be included in the carrying amount of another asset. |
Accruals |
The Company accounts for all costs incurred during the year, and the estimated liability for expenses incurred with |
no supporting evidence is included in the accruals balance. These are estimated using prior year experience, known |
contractual obligations and business performance during the year. The majority of the accruals balance at year end |
relates to staff based costs, including holiday pay accruals and accrued commission. |
Stock option expense |
Judgement and estimation are required in determining the fair value of shares at the date of award. The fair value is |
estimated using valuation techniques which take into account the award's term, the risk-free interest rate and the |
expected volatility of the market price of the Parent Company's shares. Judgement and estimation are also required to |
assess the number of options expected to vest. |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2019 | 2018 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2019 | 2018 |
£ | £ |
United States of America |
4. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries | 7,855,589 | 7,568,265 |
Social security costs | 999,131 | 960,682 |
Other pension costs | 237,773 | 152,369 |
9,092,493 | 8,681,316 |
The average monthly number of employees during the year was as follows: |
2019 | 2018 |
Directors and Management | 10 | 9 |
Admin and Finance | 12 | 11 |
Operational Staff | 60 | 54 |
82 | 74 |
2019 | 2018 |
£ | £ |
Directors' remuneration |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2019 | 2018 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year overprovision | 2,291 | (1 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is |
explained below: |
2019 | 2018 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2018 - |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
Deferred tax | 142 | (2,557 | ) |
differences |
the year |
Fixed asset differences | 18,300 | 8,988 |
Other permanent differences | - | (2,291 | ) |
Total tax charge | 160,507 | 240,561 |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
7. | TANGIBLE FIXED ASSETS |
Fixtures |
Long | and |
leasehold | fittings | Totals |
£ | £ | £ |
Cost |
At 1 January 2019 |
Additions |
At 31 December 2019 |
Depreciation |
At 1 January 2019 |
Charge for year |
At 31 December 2019 |
Net book value |
At 31 December 2019 |
At 31 December 2018 |
8. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
Cost or valuation |
At 1 January 2019 |
and 31 December 2019 |
Provisions |
At 1 January 2019 |
and 31 December 2019 | 933,567 |
Net book value |
At 31 December 2019 |
At 31 December 2018 |
Cost or valuation at 31 December 2019 is represented by: |
Shares in |
group |
undertakings |
£ |
Valuation in 2014 | (2,427 | ) |
Cost | 951,151 |
948,724 |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
8. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Amounts owed by group undertakings |
Other debtors |
Tax |
VAT |
Prepayments |
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are |
repayable on demand. |
Trade debtors are stated after provisions for impairment of £Nil (2018: £Nil). |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
Accrued expenses |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
11. | FINANCIAL INSTRUMENTS |
The company has the following financial instruments: |
Note | 2019 | 2018 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
- Amounts owed by group undertakings | 9 | 2,316,364 | 2,995,327 |
- Other receivables | 9 | 389,968 | 367,652 |
2,706,332 | 3,362,979 |
Financial liabilities measured at amortised cost |
- Trade creditors | 10 | 115,400 | 179,029 |
- Other payables | 10 | 90,103 | 167,627 |
205,503 | 346,656 |
12. | PROVISIONS FOR LIABILITIES |
2019 | 2018 |
£ | £ |
Deferred tax | 14,081 | 15,295 |
Deferred |
tax |
£ |
Balance at 1 January 2019 |
Provided during year | ( |
) |
Balance at 31 December 2019 |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment |
of capital. |
14. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2019 |
Profit for the year |
At 31 December 2019 |
ACQUIA LTD (REGISTERED NUMBER: 07499149) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
15. | RELATED PARTY DISCLOSURES |
All of the company's turnover is derived from sales to group companies. At 31 December, the following amounts |
were owed (to)/from related parties: |
2019 | 2018 |
£ | £ |
Acquia, Inc | 2,300,431 | 1,896,395 |
Acquia sarl | 7,566 | 435,903 |
Acquia GmbH | 7,677 | 424,785 |
Mollom BVBA | 690 | 66,083 |
Acquia Australia Pty Ltd | - | 172,161 |
Key management personnel comprises all directors of the company. Total remuneration in respect of these |
individuals is £NIL (2018: £NIL). |
Remuneration disclosed above includes the following amounts paid to the highest paid director £NIL (2018: £NIL) |
16. | ULTIMATE CONTROLLING PARTY |
The immediate and ultimate controlling party is Acquia Inc a United States of America's company registered in 53 |
State Street, 10th Floor Boston, MA 02109, United States. |
17. | SHARE-BASED PAYMENT TRANSACTIONS |
Under the terms of their employment contracts the employees of the company are entitled to participate in the share |
based payment scheme of the parent company Acquia Inc. During the year options have been granted to 26 |
employees of the company for 35,500 shares of common stock in Acquia Inc., 427,440 options were cancelled |
during the year leaving no outstanding at the year end. |