Atlas Cloud Limited - Period Ending 2022-06-30
Atlas Cloud Limited - Period Ending 2022-06-30
Registration number:
Atlas Cloud Limited
Filleted
for the Year Ended 30 June 2022
Atlas Cloud Limited
Contents
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Company Information |
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Directors' Report |
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Statement of Financial Position |
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Notes to the Financial Statements |
Atlas Cloud Limited
Company Information
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Directors |
MP Conn PT Watson N Redwood MR Thompson AJT Lovell |
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Registered office |
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Bankers |
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Auditor |
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Atlas Cloud Limited
Directors' Report for the Year Ended 30 June 2022
The directors present their report and the financial statements for the year ended 30 June 2022.
Principal activity
The principal activity of the company is provision of hosted IT and cyber security services.
Directors of the company
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Fair review of the business
The company has invested significantly in the development of its cyber security offering and flagship XLA service, regarded as the next-generation operating model for the industry, in addition to the continued development of its existing hosting solutions and infrastructure. The business transformation process that began in FY21 is now complete, meaning that the company is fully focused on providing best of breed technologies with world class service for all solutions, to larger SME and mid-market customers.
Going concern
The financial statements have been prepared on a going concern basis.
The company has recorded a loss after tax for the year of £574,121, in line with the business plan representing the elective investment in technical expertise and development of cutting edge solutions to accelerate revenue growth, however has net current assets of £156,853 at 30 June 2022 including cash of £202,093. The company meets its day to day working capital requirements through cash generated from operations and shareholders funds, having also utilised the Government Bounce Back Loan scheme during the prior year in the amount of £50,000. Following significant investment in previous financial periods the business expects to achieve break-even during FY23, and be profitable thereafter based on the current business plan and budget.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence in that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of forecast increases in inflation and unprecedented rises in energy prices over the next year.
In the directors assessment of possible changes they have taken a prudent approach and have considered a fall in demand and potential cost savings which are reflective of their business continuity plan.
Atlas Cloud Limited
Directors' Report for the Year Ended 30 June 2022 (continued)
Although the forecasts prepared taking account of the matters above support the ability of the company to remain a going concern and to be able to trade and meet its debts as they fall due, the full impact of inflation on the landscape and the underlying trading assumptions used in forecasting are judgemental and difficult to predict and could be subject to significant variation.
However, based on the factors set out above the directors believe that there is no material uncertainty in relation to going concern and that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.
Disclosure of information to the auditor
Each director has taken 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 information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditor
Azets Audit Services Limited, trading as Azets Audit Services, were appointed auditor to the company following their acquisition of the trade of Tait Walker LLP, trading as MHA Tait Walker, on 1 May 2022.
The auditor Azets Audit Services will be deemed to be reappointed under section 487(2) of the Companies Act 2006.
Small companies' provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
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Atlas Cloud Limited
(Registration number: 07297347)
Statement of Financial Position as at 30 June 2022
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Note |
2022 |
2021 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Profit and loss account |
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Total equity |
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These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Income Statement has been taken.
Approved and authorised by the
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Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2022
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are prepared in sterling which is the functional currency of the entity.
Going concern
The financial statements have been prepared on a going concern basis.
The company has recorded a loss after tax for the year of £574,121, in line with the business plan representing the elective investment in technical expertise and development of cutting edge solutions to accelerate revenue growth, however has net current assets of £156,853 at 30 June 2022 including cash of £202,093. The company meets its day to day working capital requirements through cash generated from operations and shareholders funds, having also utilised the Government Bounce Back Loan scheme during the prior year in the amount of £50,000. Following significant investment in previous financial periods the business expects to achieve break-even during FY23, and be profitable thereafter based on the current business plan and budget.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence in that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of forecast increases in inflation and unprecedented rises in energy prices over the next year.
In the directors assessment of possible changes they have taken a prudent approach and have considered a fall in demand and potential cost savings which are reflective of their business continuity plan.
Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2022 (continued)
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2 |
Accounting policies (continued) |
Although the forecasts prepared taking account of the matters above support the ability of the company to remain a going concern and to be able to trade and meet its debts as they fall due, the full impact of inflation on the landscape and the underlying trading assumptions used in forecasting are judgemental and difficult to predict and could be subject to significant variation.
However, based on the factors set out above the directors believe that there is no material uncertainty in relation to going concern and that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for services rendered, net of discounts and Value Added Tax.
Income includes revenue derived from the provision of services for which charges are based on a fixed-fee and stepped according to the usage of the service in each accounting period. Income is recognised over the period of service once the obligations under the contracts have passed. Where amounts are billed and obligations not met, revenue is deferred.
Government grants
Government grants in relation to tangible fixed assets are credited to the profit and loss account over the useful lives of the related assets, whereas those relating to the costs incurred by the company are recognised in the income statement over the period necessary to match them with costs that they are intended to compensate. Government grants are presented separately and disclosed in Other operating income in the income statement. Other operating income in the prior year comprises the UK Government assistance provided through Coronavirus Job Retention Scheme during the Covid-19 pandemic.
Tax
The tax expense/(credit) for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge/(credit) is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2022 (continued)
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Accounting policies (continued) |
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Furniture, fixtures and equipment |
3 years straight line |
Research and development costs
Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:
• It is technically feasible to complete the intangible asset so that it will be available for use or sale;
• There is the intention to complete the intangible asset and use or sell it;
• There is the ability to use or sell the intangible asset;
• The use or sale of the intangible asset will generate probable future economic benefits;
• There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and
• The expenditure attributable to the intangible asset during its development can be measured reliably.
Expenditure that does not meet the above criteria is expensed as incurred.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Expenditure incurred on development activities including the company's software development is capitalised only where the expenditure will lead to new or substantially improved products, the products are technically and commercially feasible and the company has sufficient resources to complete development.
Subsequent expenditure on capitalised intangible assets is capitalised only where it clearly increases the economic benefits to be derived from the asset to which it relates. All other expenditure, including that incurred in order to maintain an intangible asset's current level of performance, is expensed as incurred.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Development costs |
5 years straight line |
Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2022 (continued)
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2 |
Accounting policies (continued) |
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors 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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2022 (continued)
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
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Auditor's remuneration |
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2022 |
2021 |
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Audit of the financial statements |
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Loss before tax |
Arrived at after charging/(crediting)
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2022 |
2021 |
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Depreciation expense |
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Amortisation expense |
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Taxation |
Tax charged/(credited) in the income statement
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2022 |
2021 |
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Current taxation |
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UK corporation tax - Research and development tax credit |
( |
( |
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UK corporation tax adjustment to prior periods - Research and development tax credit |
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- |
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(151,734) |
(155,845) |
There are £2,234,745 of unused tax losses (2021 - £1,968,628) and £4,869 of unused tax credits (2021 - £Nil) for which no deferred tax asset is recognised in the Statement of Financial Position.
Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2022 (continued)
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Intangible assets |
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Development costs |
Total |
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Cost or valuation |
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At 1 July 2021 |
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Additions internally developed |
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At 30 June 2022 |
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Amortisation |
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At 1 July 2021 |
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Amortisation charge |
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At 30 June 2022 |
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Carrying amount |
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At 30 June 2022 |
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At 30 June 2021 |
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Tangible assets |
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Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 1 July 2021 |
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Additions |
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At 30 June 2022 |
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Depreciation |
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At 1 July 2021 |
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Charge for the year |
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At 30 June 2022 |
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Carrying amount |
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At 30 June 2022 |
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At 30 June 2021 |
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Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2022 (continued)
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Debtors |
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2022 |
2021 |
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Trade debtors |
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Prepayments |
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Other debtors |
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Corporation tax asset |
152,032 |
155,845 |
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Creditors |
Creditors: amounts falling due within one year
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Note |
2022 |
2021 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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- |
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Creditors: amounts falling due after more than one year
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Note |
2022 |
2021 |
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Due after one year |
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Loans and borrowings |
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Loans and borrowings |
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2022 |
2021 |
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Current loans and borrowings |
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Bank borrowings |
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2022 |
2021 |
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Non-current loans and borrowings |
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Bank borrowings |
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Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2022 (continued)
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Share capital |
Allotted, called up and fully paid shares
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2022 |
2021 |
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No. |
£ |
No. |
£ |
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Ordinary shares of £0.001 each |
- |
- |
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- |
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Ordinary B shares of £0.001 each |
3,582 |
3.58 |
3,582 |
3.58 |
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Ordinary A1 shares of £0.001 each |
18,997,816 |
18,997.82 |
18,997,816 |
18,997.82 |
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Ordinary A2 shares of £0.001 each |
2,110,870 |
2,110.87 |
2,110,870 |
2,110.87 |
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Ordinary C shares of £0.001 each |
11,511,300 |
11,511.30 |
11,511,300 |
11,511.30 |
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Ordinary D shares of £0.001 each |
547,690 |
547.69 |
547,690 |
547.69 |
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All of the above classes of shares rank pari passu in respect of dividend and voting rights and on a return of capital. They have varying rights on the sale of shares.
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Financial commitments, guarantees and contingencies |
Amounts not provided for in the statement of financial position
The total amount of financial commitments not included in the statement of financial position is £
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Audit report |