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Registered number: 06968219
RED MATTER LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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RED MATTER LIMITED
Company Information
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T J Ampstead (resigned 14 July 2021)
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RED MATTER LIMITED
Registered number: 06968219
Balance sheet
As at 31 December 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 September 2021.
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N Hammerton
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The notes on pages 2 to 7 form part of these financial statements.
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RED MATTER LIMITED
Notes to the financial statements
For the Year Ended 31 December 2020
Red Matter Limited is a private company limited by shares and is incorporated in England and Wales. The registered office is No 1 Croydon, 12-16 Addiscombe Road, Croydon, CR0 0XT.
The principal activity of the company during the period was that of the development of hosted telecommunications services software.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
The accounts have been prepared by the directors under the going concern basis despite an excess of liabilities over total assets.
The directors consider this appropriate as N2JB Limited, its ultimate parent company, has confirmed that it will provide the company with whatever financial support may be necessary in order to enable Red Matter Limited to meet its liabilities and commitments as they fall due within the foreseeable future.
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the period, exclusive of Value Added Tax and trade discounts.
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 impairment losses.
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.
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 is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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RED MATTER LIMITED
Notes to the financial statements
For the Year Ended 31 December 2020
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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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:
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.
Short 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 at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash 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.
The 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.
Basic financial instruments including trade and other creditors are recognised at the transaction price.
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RED MATTER LIMITED
Notes to the financial statements
For the Year Ended 31 December 2020
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign 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. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Defined contribution pension plan
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 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.
Interest income is recognised in profit or loss using the effective interest method.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive 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 Company operates and generates income.
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The average monthly number of employees, including the directors, during the year was as follows:
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RED MATTER LIMITED
Notes to the financial statements
For the Year Ended 31 December 2020
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Charge for the year on owned assets
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RED MATTER LIMITED
Notes to the financial statements
For the Year Ended 31 December 2020
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Charge for the year on owned assets
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Amounts owed by group undertakings
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Prepayments and accrued income
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RED MATTER LIMITED
Notes to the financial statements
For the Year Ended 31 December 2020
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Related party transactions
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The company has adopted the exemption permitted by paragraph 33.1A of FRS 102 and has not disclosed transactions with other group members, which are wholly owned subsidiaries.
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The parent undertaking of the smallest group of which Red Matter Limited is a member and consolidated accounts are prepared is N2JB Limited. Its registered office is No 1 Croydon, 12-16 Addiscombe Road, Croydon, CR0 0XT.
A loan provided to the parent company is secured by a fixed and floating charge over the assets of N2JB Limited and its UK subsidiaries. The balance of this loan at 31 December 2020 was £1,248,568 (2019: £1,511,426).
The company also has a cross-guarantee to N2JB Limited in respect of other loans amounting to £1,910,144 (2019: £1,760,644).
The auditor's report on the financial statements for the year ended 31 December 2020 was unqualified.
The audit report was signed on 29 September 2021 by Andrew Burch (Senior statutory auditor) on behalf of Sayers Butterworth LLP.
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