Atlas Cloud Limited - Period Ending 2021-06-30
Atlas Cloud Limited - Period Ending 2021-06-30
Registration number:
Atlas Cloud Limited
Filleted
for the Year Ended 30 June 2021
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 A Lawson-Clark C Morris N Redwood MR Thompson |
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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 2021
The directors present their report and the financial statements for the year ended 30 June 2021.
Principal activity
The principal activity of the company is provision of private hosted services.
Directors of the company
The directors who held office during the year were as follows:
Fair review of the business
The company continues to invest in growth having added further expertise through senior hires during the year. The impact of COVID-19 continues to create challenges, but also opportunities for further growth as the global move towards secure hybrid or remote working continues to accelerate.
Having progressed the business transformation process that began in the previous financial year, the company is now in a good position to deliver on the market opportunity by providing best of breed technologies with world class service, ranging from private to hybrid to fully remote solutions, including Microsoft 365 and Azure, for larger SME and mid-market customers.
Atlas Cloud Limited
Directors' Report for the Year Ended 30 June 2021 (continued)
Going concern
The financial statements have been prepared on a going concern basis.
The company has recorded a loss before tax for the year of £767,227, in line with the business plan representing the elective investment in headcount and cost base to support growth plans, however has net current assets of £708,240 at 30 June 2021 including cash of £781,185. The company meets its day to day working capital requirements through cash generated from operations and shareholder funds, having also utilised the Government Bounce Back Loan scheme during the year in the amount of £50,000 which is reflected in creditor amounts falling due after more than one year.
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 possible future scenarios arising from the challenges of the COVID-19 pandemic.
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. Despite this the directors remain confident that the impact of COVID-19 will provide an improved market opportunity due to the accelerated move to secure remote or hybrid working across the global workforce, which the business is well placed to deliver on.
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 COVID-19 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
The auditor MHA Tait Walker will be deemed to be reappointed under section 487(2) of the Companies Act 2006.
Atlas Cloud Limited
Directors' Report for the Year Ended 30 June 2021 (continued)
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 by the
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Atlas Cloud Limited
(Registration number: 07297347)
Statement of Financial Position as at 30 June 2021
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Note |
2021 |
2020 |
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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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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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( |
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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 2021
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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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
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.
Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2021 (continued)
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2 |
Accounting policies (continued) |
Going concern
The financial statements have been prepared on a going concern basis.
The company has recorded a loss before tax for the year of £767,227, in line with the business plan representing the elective investment in headcount and cost base to support growth plans, however has net current assets of £708,240 at 30 June 2021 including cash of £781,185. The company meets its day to day working capital requirements through cash generated from operations and shareholder funds, having also utilised the Government Bounce Back Loan scheme during the year in the amount of £50,000 which is reflected in creditor amounts falling due after more than one year.
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 possible future scenarios arising from the challenges of the COVID-19 pandemic.
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. Despite this the directors remain confident that the impact of COVID-19 will provide an improved market opportunity due to the accelerated move to secure remote or hybrid working across the global workforce, which the business is well placed to deliver on.
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 COVID-19 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 year comprises the UK Government assistance provided through Coronavirus Job Retention Scheme during the Covid-19 pandemic.
Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2021 (continued)
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Accounting policies (continued) |
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.
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.
Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2021 (continued)
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Accounting policies (continued) |
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 |
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.
Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2021 (continued)
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Accounting policies (continued) |
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.
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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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2021 |
2020 |
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Audit of the financial statements |
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Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2021 (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 2020 |
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Additions internally developed |
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At 30 June 2021 |
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Amortisation |
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At 1 July 2020 |
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Amortisation charge |
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At 30 June 2021 |
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Carrying amount |
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At 30 June 2021 |
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At 30 June 2020 |
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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 2020 |
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Additions |
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Disposals |
( |
( |
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At 30 June 2021 |
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Depreciation |
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At 1 July 2020 (as restated) |
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Charge for the year |
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Eliminated on disposal |
( |
( |
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At 30 June 2021 |
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Carrying amount |
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At 30 June 2021 |
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At 30 June 2020 |
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Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2021 (continued)
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Debtors |
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2021 |
2020 |
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Trade debtors |
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Prepayments |
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Other debtors |
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Corporation tax asset |
155,845 |
133,560 |
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Creditors |
Creditors: amounts falling due within one year
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Note |
2021 |
2020 |
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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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Creditors include net obligations under finance leases which are secured of £nil (2020 - £17,573).
Creditors: amounts falling due after more than one year
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Note |
2021 |
2020 |
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Due after one year |
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Loans and borrowings |
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- |
Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2021 (continued)
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Loans and borrowings |
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2021 |
2020 |
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Current loans and borrowings |
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Bank borrowings |
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- |
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Hire purchase and finance lease liabilities |
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17,573 |
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2021 |
2020 |
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Non-current loans and borrowings |
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Bank borrowings |
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- |
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Share capital |
Allotted, called up and fully paid shares
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2021 |
2020 |
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No. |
£ |
No. |
£ |
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Ordinary shares of £0.001 each |
- |
- |
- |
- |
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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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On 28 February 2020 11,743,932 Ordinary shares were redesignated as 11,196,242 Ordinary C shares and 547,690 Ordinary D shares.
On 28 February 2020, 9,498,908 Ordinary A1 shares, 1,055,435 Ordinary A2 shares and 157,529 Ordinary C shares were issued. All classes of shares were £0.001 and attached a premium of £0.0947 per share.
On 18 June 2020, 9,498,908 Ordinary A1 shares, 1,055,435 Ordinary A2 shares and 157,529 Ordinary C shares were issued. All classes of shares were £0.001 and attached a premium of £0.0947 per share.
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.
Atlas Cloud Limited
Notes to the Financial Statements for the Year Ended 30 June 2021 (continued)
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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 £
Amounts disclosed in the statement of financial position
Included in creditors in the balance sheet are pensions contributions of £Nil (2020 - £5,648).
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Audit report |