LEYTON_UK_LIMITED - Accounts

The directors present the strategic report for the year ended 30 June 2022.

The performance of the company during the year has continued to be affected by the impact of Covid-19. Despite that, the company continues to operate profitably. The business is thriving in the R&D market and continues to establish expansion into new product offerings.

The company is not susceptible to any significant risks apart from improving revenue generation. The company is susceptible to regulatory changes, as they are a risk to the current business model. The company has in place, plans that will mitigate these risks as far as possible by securing large clients on a repeat business basis and adding extra services to the company's offering.

The main financial risks affecting the company are discussed below:

Credit risk

Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from invoiced sales to clients. The company is proactive in following up invoiced sales and there is a department in the firm that is engaged to follow up outstanding invoices.

Liquidity risk

The objective of the company in managing liquidity risk is to ensure it can meet its financial obligations as they fall due. The company meets it obligations through operational cash flows.

Capital risk management

The company manages its capital to ensure that the company will be able to continue as a going concern and to provide a return to the shareholders.

Foreign currency risk

Foreign currency risk refers to the risk that the value of a financial commitment or recognised asset or liability will fluctuate due to changes in foreign currency rate. The company is not exposed to foreign currency risk as all transactions are denominated in Sterling. All foreign exchange differences arise on the translation of items from the functional currency of Sterling to the presentational currency of Euros.

Profit for the year is €3,501,495 (2021 : €9,203,055), which has decreased by 62% (2021 : decrease of 49%) from that of the previous year. The decrease in profits is mainly due to a fall in revenue by 16% (2021 : decrease of 23%). Administrative expenses have decreased by 4% (2021 : decrease of 9%) from previous year. The company continues to win market share, control costs and drive efficiencies in line with expectation, supporting the continued growth of the company.

The company uses two KPI’s, namely revenue and net profit. Revenue has decreased by 16% (2021 : decrease of 23%) to €33,534,924 (2021 : €40,109,579). The net profit margin before income tax has decreased by 62% (2021 : decrease of 49%) as a result of the elements discussed in the analysis of development and performance section above.

The company continues to add more services to the portfolio in order to engage a wider client audience.

Our objectives in the next year are to:

i) Increase our expertise and efficiency in our main R&D product;

ii) Increase the number of clients we service;

iii) Increase our working capital generation by continuing to manage operational cash flows; and

iv) Continue to diversify our service offering.

This statement describes how the directors have taken account of the matters set out in section 172(1)( a) to (f) of the Companies Act 2016 when performing their duty to promote the success of the Company for the benefit of its members as a whole, and in doing so having regard (amongst other matters) to:

• the likely consequence of any decision in the long term

• the interests of the Company's employees

• the need to foster the Company's business relationships with suppliers, customers and others

• the impact of the Company's operations on the community and the environment

• the desirability of the Company maintaining a reputation for high standards of business conduct

• the need to act fairly as between members of the Company

The directors are fully aware of their duties under section 172(1) of the Companies Act 2006 to promote the success of the Company for the benefit of its members. The directors are aware of all stakeholder interests, and as such take a long-term view in reaching key decisions, and when taking decisions, the directors look to act in the interests of the stakeholders and to ensure all stakeholders and treated fairly.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 June 2022.

The principal activity of the company continued to be that of research and development tax credit consultancy services.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The results for the year are set out on page 9.

The directors do not recommend the payment of dividends from reserves at present.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through staff meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

In accordance with the company's articles, a resolution proposing that Simpson Wreford LLP be reappointed as auditor of the company will be put at a General Meeting.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of:

i) Review of the business

ii) Risk and uncertainty

iii) Analysis of development and performance

iv) Future developments

v) Key Performance Indicators

vi) Non Key Performance Indicators

vii) Additional information

Each director who held office at the date of approval of this report confirms that:

•     sauditor is unaware; and

•     the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s is aware of that information.

The company's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the company's contractual and other legal obligations.

The directors are responsible for preparing the annual report 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;

•     state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•     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.

We have audited the financial statements of Leyton UK Limited (the 'company') for the year ended 30 June 2022 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 significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 30 June 2022 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 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters 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.

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 directors' report.

We have nothing to report in respect of the following matters in relation to which 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 remuneration specified by law are not made; or

•     we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, 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 is 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 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the computer software and support sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, data protection and FCA regulation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with HMRC.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor report.

Use of our 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 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.

The income statement has been prepared on the basis that all operations are continuing operations.

Leyton UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Harmsworth House, 13-15 Bouverie Street, London, EC4Y 8DP.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in Euro, which is the presentation currency of the company. The functional currency of the company is sterling but as they report to the Parent in France the accounts are prepared in Euro. Monetary amounts in these financial statements are rounded to the nearest €.

The financial statements have been prepared under the historical cost convention, modified by the recognition of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Leyton UK Limited is a 100% subsidiary of ultimate parent Riga S.A.S and the results of Leyton UK Limited are included in the consolidated financial statements of Riga S.A.S which are available from 16 Boulevard Garibaldi, 92130 Issy-Les-Moulineaux, Paris, France

Leyton UK Limited (the "Company") was incorporated in England and Wales on 30 July 2009. The company is a 100% owned subsidiary of Thésée S.A.S. The Company's ordinary shares are not traded on a recognised stock exchange. The address of the registered office is Harmsworth House, 13-15 Bouverie Street, London EC4Y 8DP. The Company is domiciled in the United Kingdom. The address of the parent is Thésée S.A.S, 16 Boulevard Garibaldi, 92130 Issy-Les-Moulineaux, Paris, France.

The Company's financial statements for the year ended 30 June 2022, were authorised for issue by the Board of Directors on 22 November 2022.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have carefully considered the impact of Covid-19 on the company's financial position, liquidity and future performance. The company continued to trade profitably throughout the Covid-19 pandemic. Therefore, the directors believe that the company is well placed to manage its business risks successfully. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue is recognised when services have been performed and collectability of the revenue is probable. All revenue is stated net of discounts, VAT and other sales related taxes. In accordance with the ultimate parent company's prescribed revenue recognition policy, un-invoiced revenue on agreed contracts in place at the year end is included at 26% of expected total revenue. The directors confirm that this is a fair approximation of the proportion of work done on un-invoiced contracts.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Externally acquired intangibles assets are initially recognised at cost and subsequently amortised on a straight line basis over their useful economic lives.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

Interests in unlisted entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Cash and cash equivalents are basic financial assets and include cash in hand. The company currently has no loans or overdraft facilities in place.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through income statement, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is 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 income statement.

If there is a 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 income statement.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The company operates a defined contribution plan for its employees. A defined contribution plan is a 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 they fall due. Amounts not paid are shown in accruals in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Rentals payable under operating leases, including any lease incentives received, are charged to income statement on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

The presentational currency of these audited financial statements is Euro, whereas the functional currency of the company is Pound Sterling. This has been done so that the subsidiary is reporting in the same currency as its Parent company.

Assets and liabilities are translated from the functional currency of Pound Sterling to the presentational currency of Euro ruling at the balance sheet date. Transactions during the year are translated from the functional currency of Pound Sterling to the presentational currency at the average rate of exchange for the year. Exchange differences are taken to a translation reserve in the statement of financial position.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Gains and losses arising on translation are included in the income statement for the period.

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.

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

There are no additional key management personnel in excess of the directors.

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

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the profit per the income statement and the standard rate of tax as follows:

Goodwill is capitalised on the purchase of the consultancy business of Leyton UK Partners LLP. The cost is amortised on a straight line basis over 5 years, as this is the period that the directors feel that the company will benefit from the purchase.

Development cost is capitalised at cost on the internally generated system. The cost is amortised on a straight line basis over 3 years.

The directors have considered the carrying amounts of financial assets for potential impairment. The amounts stated above are at cost.

Fixed asset investments comprise of ordinary shares in Investco 2, which is not publicly traded.

The company owns 10% of the equity share capital of Investco 2 (2021 : €2,007,229). Investco 2 is incorporated in France. The address of the registered office of Investco 2 is 16 Boulevard Garibaldi, 92130 Issy-Les-Moulineaux, Paris, France.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the reporting end date the company had outstanding commitments of €179,374 (2021 €204,652).

Amounts recognised in profit or loss as an expense during the period in respect of operating lease arrangements are €902,000 (2021 : €928,352).

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the year the company entered into the following transactions with related parties:

Services of €1,320,287 (2021 : €2,122,579) were charged to the company from Thésée S.A.S. Included within trade and other receivable is a balance of €23,879,599 (2021 trade and other payable: €271,213), due from Thésée S.A.S, the parent company.

Leyton France supplied services of €1,310,260 (2021 : €1,648,011) to Leyton UK Limited during the year. Included within trade and other payables is a balance of €1,308,338 (2021 : €731,380), due to member of the group Leyton France.

Thésée Morocco supplied services of €1,705,632 (2021 : €1,221,014) to Leyton UK Limited during the year. Included within trade and other payables is a balance of €275,750 (2021 : €116,131), due to member of the group Thésée Morocco.

Leyton Belgium did not supply services to Leyton UK Limited during the year (2021 : nil). Included within trade and other payables is a balance of €15,883 (2021 €15,883), due to member of the group Leyton Belgium.

Leyton UK Limited did not supply services to Leyton USA during the year (2021 : nil). Included within trade and other receivables is a balance of €163,435 (2021 : €151,232), due from member of the group Leyton USA.

Leyton UK Limited did not supply services to Leyton Ireland during the year (2021 : nil). Included within trade and other receivables is a balance of €7,912 (2021 : €7,716), due from member of the group Leyton Ireland.

Leyton Spain supplied services of €97,546 (2021 : nil) to Leyton UK Limited during the year. Included within trade and other payables is a balance of €97,546 (2021 : nil), due to member of the group Leyton Spain.

These transactions were made on terms equivalent to those that prevail in arms length transactions.

Riga S.A.S, the ultimate parent company, acts as guarantor for the lease agreement on office space leased by the company.

Included within trade and other receivables is a balance of €2,622,439 (2021 : €2,410,141) due from Leyton UK Partners LLP. Leyton UK Limited is a designated member of Leyton UK Partners LLP.

The immediate parent company is deemed to be Thésée S.A.S, due to its shareholding in Leyton UK Limited. The ultimate parent company is Riga S.A.S. The address of the parent is Thésée S.A.S, 16 Boulevard Garibaldi, 92130 Issy-Les-Moulineaux, Paris, France.