Lynchpin Analytics Limited Filleted accounts for Companies House (small and micro)

LYNCHPIN ANALYTICS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: SC279857

Lynchpin Analytics Limited

Filleted Unaudited Financial Statements

For the year ended

31 May 2022

Lynchpin Analytics Limited

Statement of Financial Position

31 May 2022

	2022		2021
Note	£	£	£

Fixed assets

Tangible assets	5		48,273	38,944

Current assets

Debtors	6	439,840	447,227
Cash at bank and in hand		1,065,079	695,586
		------------	------------
		1,504,919	1,142,813

Creditors: amounts falling due within one year	7	296,825		248,058
		------------		------------
Net current assets			1,208,094	894,755
			------------	---------
Total assets less current liabilities			1,256,367	933,699

Creditors: amounts falling due after more than one year	8		10,023	–

Provisions	8,435	7,400
	------------	---------
Net assets	1,237,909	926,299
	------------	---------

Capital and reserves

Called up share capital	10	2,331	2,182
Share premium account		11,554	–
Capital redemption reserve		1,325	1,325
Profit and loss account		1,222,699	922,792
		------------	---------
Shareholders funds		1,237,909	926,299
		------------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 31 May 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

These financial statements were approved by the board of directors and authorised for issue on 10 February 2023 , and are signed on behalf of the board by:

A J Hood
Director

Company registration number: SC279857

Lynchpin Analytics Limited

Notes to the Financial Statements

Year ended 31 May 2022

1. General information

The company is a private company limited by shares, registered in Scotland. The address of the registered office is Suite 2, Ground Floor Orchard Brae House, 30 Queensferry Road, Edinburgh, EH4 2HS, United Kingdom.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The 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 directors have assessed the Company's ability to continue as a going concern and have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Tenants Improvements	-	2.5 years
Furniture, fittings and equipment	-	25% reducing balance and 50% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial assets, which include trade and other debtors and cash, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Basic financial liabilities, which include trade and other creditors, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. At each reporting date the company assesses whether there is objective evidence that any financial asset has been impaired. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due. The amount of the provision is recognised immediately in profit or loss.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Share-based payments

Equity-settled share-based payment transactions are measured at fair value at the date of grant. The fair value is expensed on a straight-line basis over the vesting period, with a corresponding increase in equity. This is based upon the company's estimate of the shares or share options that will eventually vest which takes into account all vesting conditions and non-market performance conditions, with adjustments being made where new information indicates the number of shares or share options expected to vest differs from previous estimates. Fair value is determined using an appropriate pricing model. All market conditions and non-vesting conditions are taken into account when estimating the fair value of the shares or share options. As long as all other vesting conditions are satisfied, no adjustment is made irrespective of whether market or non-vesting conditions are met. Where the terms of an equity-settled transaction are modified, an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the fair value of the transaction, as measured at the date of modification. Where an equity-settled transaction is cancelled or settled, it is treated as if it had vested on the date of cancellation or settlement, and any expense not yet recognised in profit or loss is expensed immediately. Cash-settled share-based payment transactions are measured at the fair value of the liability. Until the liability is settled, the fair value of the liability is re-measured at each reporting date and at the date of settlement, with any changes in fair value recognised in profit or loss for the period.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 21 (2021: 20 ).

5. Tangible assets

	Tenants Improvements	Furniture, fittings and equipment	Total
	£	£	£
Cost
At 1 June 2021	17,421	102,857	120,278
Additions	–	49,478	49,478
Disposals	–	( 28,644)	( 28,644)
Transfers	2,341	( 2,341)	–
	--------	---------	---------
At 31 May 2022	19,762	121,350	141,112
	--------	---------	---------
Depreciation
At 1 June 2021	8,012	73,322	81,334
Charge for the year	7,869	18,576	26,445
Disposals	–	( 14,940)	( 14,940)
	--------	---------	---------
At 31 May 2022	15,881	76,958	92,839
	--------	---------	---------
Carrying amount
At 31 May 2022	3,881	44,392	48,273
	--------	---------	---------
At 31 May 2021	9,409	29,535	38,944
	--------	---------	---------

6. Debtors

	2022	2021
	£	£
Trade debtors	259,618	373,446
Other debtors	180,222	73,781
	---------	---------
	439,840	447,227
	---------	---------

7. Creditors: amounts falling due within one year

	2022	2021
	£	£
Trade creditors	27,767	28,486
Corporation tax	5,765	–
Social security and other taxes	81,243	83,457
Other creditors	182,050	136,115
	---------	---------
	296,825	248,058
	---------	---------

8. Creditors: amounts falling due after more than one year

	2022	2021
	£	£
Other creditors	10,023	–
	--------	----

9. Share-based payments

Certain employees had been granted options to subscribe for shares in the company under share option schemes as follows:

The approved options outstanding, granted on 13 March 2017 and 27 February 2019 at an option price of £9.16 and £11.57 are shown below:

		Number of shares
		£
	Option exercise period March 2017 to March 2027	1,088
	Option exercise period February 2019 to February 2029	3,664
		-------
		4,752
		-------

The estimated fair value of each share option granted is as follows:

	Number	Exercise price	Fair value
		£	£
Approved	1,088	9	7
Approved	3,664	12	9

Details of the number and weighted average exercise prices (WAEP) of share options during the year are as follows:

	No. (2022)	WAEP (2022)	No. (2021)	WAEP (2021)
Outstanding at 1 June	4,752	11	4,752	11
Outstanding at 31 May	4,752	11	4,752	11

The total expense recognised in profit or loss for the year is as follows:

	2022	2021
	£	£
Equity-settled share-based payments	14,193	–

The estimated fair values were calculated by applying the Black-Scholes option pricing model. The model inputs were

Share price at grant date £9.16-£11.57

Exercise price £9.16-£11.57

Expected volatility 70%

Expected life 10 years

Risk free interest rate 1.148%-1.248%

Dividend yield 0%

10. Called up share capital

Issued, called up and fully paid

	2022		2021
	No.	£	No.	£
Ordinary shares of £ 0.10 each	23,306	2,331	21,824	2,182
	--------	-------	--------	-------

11. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2022	2021
	£	£
Not later than 1 year	48,758	105,875
Later than 1 year and not later than 5 years	33,667	82,425
	--------	---------
	82,425	188,300
	--------	---------

12. Director's advances, credits and guarantees

Included within 'Other debtors' is a loan of £95,909 (2021: £Nil) due from Mr T J T Eves (director - resigned 7 July 2022). Interest has been charged on this loan at 2% over Bank of England Base Rate per annum.