Alliants Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06868886 (England and Wales)

ALLIANTS LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2022

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

N Daniels

T Gadsby

B P Barclay

SECRETARY:

Fryern Company Secretarial Services Limited

REGISTERED OFFICE:

Fryern House

125 Winchester Road

Chandlers Ford

Eastleigh

Hampshire

SO53 2DR

REGISTERED NUMBER:

06868886 (England and Wales)

ACCOUNTANTS:

Rothmans LLP

Chartered Accountants

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Alliants Limited for the year ended 28 February 2022 which comprise the Statement of Income and Retained Earnings, Balance Sheet and the related notes 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 within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

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

It is your duty to ensure that Alliants Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Alliants Limited. You consider that Alliants 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 financial statements of Alliants 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 financial statements.

Rothmans LLP

Chartered Accountants

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

21 October 2022

FIXED ASSETS

Intangible assets

4

484,243

-

Tangible assets

5

32,928

20,478

Investments

6

531

531

517,702

21,009

CURRENT ASSETS

Debtors

7

2,098,204

1,077,878

Cash at bank and in hand

1,286,791

140,811

3,384,995

1,218,689

CREDITORS

Amounts falling due within one year

8

1,375,598

1,223,808

NET CURRENT ASSETS/(LIABILITIES)

2,009,397

(5,119

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,527,099

15,890

CREDITORS

Amounts falling due after more than one year

9

(91,224

)

(134,481

)

PROVISIONS FOR LIABILITIES

-

(1,211

)

NET ASSETS/(LIABILITIES)

2,435,875

(119,802

)

CAPITAL AND RESERVES

Called up share capital

11

1,101

760

Share premium

12

3,210,055

12,820

Capital redemption reserve

12

120

120

Retained earnings

12

(775,401

)

(133,502

)

SHAREHOLDERS' FUNDS

2,435,875

(119,802

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28 February 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 28 February 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21 October 2022 and were signed on its behalf by:

T Gadsby - Director

1.	STATUTORY INFORMATION

Alliants Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 06868886 and registered office address is Fryern House, 125 Winchester Road, Chandlers Ford, Hampshire, SO53 2DR.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentational currency is £ Sterling.

Going concern

The company is considered to be a going concern by the directors and the accounts have therefore been prepared on the going concern basis.

Preparation of consolidated financial statements

The financial statements contain information about Alliants Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amount reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

1) Leases

A lease that does not transfer substantially all of the risks and rewards of ownership is classified as an operating lease and is therefore not included in the statement of financial position.

2) Impairment of assets

The director uses their judgement to determine if there are any indicators of impairment.

3) Research and development

The directors assess when the research phase of a project ceases and development commences.

Other key sources of estimation uncertainty;

1) Intangible assets

The directors estimate the useful life and residual value of intangible assets based on market information and their knowledge of the business, the remaining useful life of the asset and projected disposal value.

2) Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as market conditions, the remaining life of the asset and projected disposal values.

Turnover

Turnover represents net amounts invoiced during the year (excluding value added tax) adjusted for accrued and deferred income where applicable. Turnover is recognised on provision of consultancy services, software development, maintenance support contracts and the Alliants Experience software platform.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less and accumulated amortisation and any accumulated impairment losses.

Development costs are capitalised when the research phase ends and the development phase begins.

Development costs are being amortised evenly over their estimated useful life of four years.

Tangible fixed assets

All fixed assets are initially recorded at cost.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

- 33% straight line

Furniture and equipment

- 25% straight line

Computer equipment

- 50% straight line

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.

Fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Statement of Income and Retained Earnings.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Financial instruments

The company only has financial assets and liabilities of the kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and debt instruments are subsequently measured at amortised cost.

Taxation

Taxation for the period comprises current and deferred tax. Current 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 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.

Deferred tax is recognised in respect of all timing difference that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessment in period different from those in which they are recognised in the 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 asset 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 statement of financial position. 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.

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 the Statement of Income and Retained Earnings in the period to which they relate.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Grants

Grants of a revenue nature are credited to the Income Statement in the period to which they relate in accordance with the terms of the grant. Any accrued or deferred elements of the grant is included in debtors or creditors as applicable.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 48 (2021 - 42 ) .

4.	INTANGIBLE FIXED ASSETS

Development

costs

£

COST

Additions

558,934

At 28 February 2022

558,934

AMORTISATION

Amortisation for year

74,691

At 28 February 2022

74,691

NET BOOK VALUE

At 28 February 2022

484,243

5.	TANGIBLE FIXED ASSETS

Furniture

Improvements

and

Computer

to property

equipment

equipment

Totals

£

£

£

£

COST

At 1 March 2021

43,768

40,081

135,327

219,176

Additions

-

2,000

29,006

31,006

At 28 February 2022

43,768

42,081

164,333

250,182

DEPRECIATION

At 1 March 2021

43,768

32,761

122,169

198,698

Charge for year

-

4,520

14,036

18,556

At 28 February 2022

43,768

37,281

136,205

217,254

NET BOOK VALUE

At 28 February 2022

-

4,800

28,128

32,928

At 28 February 2021

-

7,320

13,158

20,478

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 March 2021

and 28 February 2022

531

NET BOOK VALUE

At 28 February 2022

531

At 28 February 2021

531

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

1,550,349

695,707

Other debtors

70,352

32,302

Corporation tax

286,660

269,135

Prepayments and accrued income

190,843

80,734

2,098,204

1,077,878

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

10,000

38,607

Other loans

30,841

28,390

Trade creditors

459,581

42,891

Amounts owed to group undertakings

64,604

156,074

Social security and other taxes

163,037

117,839

Other creditors

28,989

175,238

Directors' current accounts

-

450,580

Accruals and deferred income

618,546

214,189

1,375,598

1,223,808

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans - 1-2 years

10,000

10,000

Bank loans - 2-5 years

26,857

39,273

Other loans - 1-2 years

33,503

30,841

Other loans - 2-5 years

20,864

54,367

91,224

134,481

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2022

2021

£

£

Within one year

63,780

63,780

Between one and five years

53,150

116,930

116,930

180,710

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal value:

2022

2021

£

£

7,953,810

Ordinary

£0.0001

795

760

3,059,156

Series Seed Preferred

£0.0001

306

-

1,101

760

During the year, the company allotted 353,810 Ordinary shares on the conversion of £250,000 unsecured loan notes. The company also allotted 3,059,156 Series Seed Preferred shares for cash consideration of £3,059,156.

The Series Seed Preferred shares come with a right to a cumulative 10% annual dividend, payable solely upon a Deemed Liquidation Event. Dividend payments accrue until such an Event occurs. No accrual has been recognised in the financial statements as there are insufficient reserves. The dividend which should accrue for the year ended 28 February 2022 is £73,212.

12.

RESERVES

Capital

Retained

Share

redemption

earnings

premium

reserve

Totals

£

£

£

£

At 1 March 2021

(133,502

)

12,820

120

(120,562

)

Deficit for the year

(641,899

)

-

-

(641,899

)

Share issue

-

3,197,235

-

3,197,235

At 28 February 2022

(775,401

)

3,210,055

120

2,434,774

Retained earnings are the accumulated profits and losses to date.

The capital contribution reserve includes amounts transferred following the redemption or purchase of the company's own shares.

Share premium includes any premiums received on issue of share capital, net of any transaction costs associated with the issuing of the shares.

13.	RELATED PARTY DISCLOSURES

Alliants Technology Canada Inc. is a subsidiary of Alliants Limited.

During the year Alliants Limited made purchases totalling £372,351 (2021: £375,725) from Alliants Technology Canada Inc.

During the year Alliants Limited made sales totalling £165,741 (2021: £198,364) to Alliants Technology Canada Inc.

The amount owed to Alliants Technology Canada Inc. at the year end is £64,604 (2021: £156,074) and is included in 'Creditors: Amounts falling due within one year'.

The directors do not consider any one party to have control of the company.