Contents of the Financial Statements

for the Period Ended 31 March 2020

Directors' report period ended 31 March 2020

The directors present their report with the financial statements of the company for the period ended 31 March 2020

Directors

The director shown below has held office during the whole of the period from
1 April 2019 to 31 March 2020

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
20 August 2020

And signed on behalf of the board by:
Name: Alan Walsh
Status: Director

Profit And Loss Account

for the Period Ended 31 March 2020

Balance sheet

As at 31 March 2020

The notes form part of these financial statements

Balance sheet statements

For the year ending 31 March 2020 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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The notes form part of these financial statements

Notes to the Financial Statements

for the Period Ended 31 March 2020

• 1. Accounting policies

  Basis of measurement and preparation

  These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

  Turnover policy

  Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:Rendering of servicesRevenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the followingconditions are satisfied:the amount of revenue can be measured reliably;it is probable that the Company will receive the consideration due under the contract;the stage of completion of the contract at the end of the reporting period can be measuredreliably; andthe costs incurred and the costs to complete the contract can be measured reliably.

  Tangible fixed assets depreciation policy

  Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that isdirectly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:Fixtures and fittings - 25%Computer equipment - 33%Other fixed assets - 33%The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.Leases in which the Company assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. All other leases are classified as operating leases.Leased assets acquired by way of finance lease are stated on initial recognition at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, including any incremental costs directly attributable to negotiating and arranging the lease.At initial recognition a finance lease liability is recognised equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. Lease payments are accounted for as described at 2.5

  Intangible fixed assets amortisation policy

  Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairmentlosses.Intangible assets are amortised from the date they are available for use. The Company reviews the amortisation period and method when events and circumstances indicate that the useful life mayhave changed since the last reporting date.All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful lives range as follows:Development expenditure - 3 yearsExpenditure on research activities is recognised in the profit and loss account as an expense as incurred. Expenditure on development activities may be capitalised if the product or process is technically and commercially feasible and the Company intends, and has the technical ability and sufficient resources, to complete development, future economic benefits are probable and if the Company can measure reliably the expenditure attributable to the intangible asset during itsdevelopment.Development activities involve design for, construction or testing of the production of new or substantially improved products or processes. The expenditure capitalised includes the cost ofmaterials, direct labour and an appropriate proportion of overheads and capitalised borrowing costs.Other development expenditure is recognised in the profit and loss account as an expense as incurred. Capitalised development expenditure is stated at cost less accumulated amortisation andless accumulated impairment losses.The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

  Other accounting policies

  Going concernIn preparing these financial statements the Directors have performed an assessment of the going concern status of the Company. This involved reviewing the Company’s forecasts and projections, including cash flow forecasts for at least 12 months from the date of signing these financial statements.In performing this assessment, the Directors have considered the current trading, cash position as of July 2020 of £2.8m existing committed revenues and funds available to the Company. Thisincluded an assessment of the uncertainty caused by the recent COVID-19 outbreak and the potential impact on the Company’s results and financial position. A base case forecast was prepared using the following assumptions;Revenue is based on committed sales, staff numbers and historic measures of utilisation and sell rates.Contingency for a reduction in utilised time due to the potential medium-term impact of COVID- 19 has been applied, which therefore reduces revenue over the whole 12-month period fromdate of approval of these financial statements.A reduction in office and operating costs costs that are under management’s controlUtilising the VAT and PAYE deferral scheme introduced by government deferring payments due between March 2020 and May 2020 which are being repaid over an 8-month period from August 2020.In addition to this, a highly unlikely but severe downside scenario due to the current COVID-19 outbreak was run with a further loss of revenue to model the impact of no further sales being madewhich have not yet been committed. In this situation if required the Directors would be able to take cost control measures wholly within the Company’s control and other mitigating actions to continue to preserve cash. These actions include closure of office space, redundancies and associated future cost savings that are under management’s control. In all scenarios the Company has sufficient headroom to be able to trade within its existing cash reserves without seeking additional funding to fund any working capital requirements as needed.On this basis the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least the next 12 months and the foreseeablefuture and therefore believe that it remains appropriate to prepare the financial statements on a going concern basis.Foreign currency translationFunctional and presentation currencyThe Company's functional and presentational currency is GBP.Transactions and balancesForeign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Nonmonetaryitems 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 ratewhen fair value was determined.Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreigncurrencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.LeasesOperating leasesRentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.Finance leasesMinimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to eachperiod during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred.Interest incomeInterest income is recognised in profit or loss using the effective interest method.Finance costsFinance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.Borrowing costsAll borrowing costs are recognised in profit or loss in the year in which they are incurred.PensionsDefined contribution pension planThe Company operates a defined contribution plan for its employees. A defined contribution plan isa pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.Share based paymentsWhere share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken intoaccount by adjusting the number of equity instruments expected to vest at each Balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value ofthe options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged toprofit or loss over the remaining vesting period.Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.Current and deferred taxationThe tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as othercomprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Companyoperates and generates income.Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; andAny deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other futuretaxable profits.DebtorsShort term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently atamortised cost using the effective interest method, less any impairment.Cash and cash equivalentsCash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.CreditorsShort term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.Provisions for liabilitiesProvisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.When payments are eventually made, they are charged to the provision carried in the Balance sheet.Financial instrumentsThe Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.Cash and cash equivalents comprise cash balances and call deposits.

Notes to the Financial Statements

for the Period Ended 31 March 2020

• 2. Employees

  	2020	2019
  Average number of employees during the period	102	94