Puzzel Ltd - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 04124967 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

PUZZEL LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Frederic Laziou

Stephen John Grist

REGISTERED OFFICE:

Herschel House

58 Herschel Street

Slough

Berkshire

SL1 1PG

REGISTERED NUMBER:

04124967 (England and Wales)

AUDITORS:

Oury Clark Chartered Accountants

Statutory Auditors

Herschel House

58 Herschel Street

Slough

Berkshire

SL1 1PG

FIXED ASSETS

Intangible assets

4

1,667,578

2,223,437

Tangible assets

5

58,958

56,961

1,726,536

2,280,398

CURRENT ASSETS

Debtors

6

2,971,985

2,161,491

Cash at bank

316,035

534,984

3,288,020

2,696,475

CREDITORS

Amounts falling due within one year

7

3,084,799

2,620,246

NET CURRENT ASSETS

203,221

76,229

TOTAL ASSETS LESS CURRENT LIABILITIES

1,929,757

2,356,627

CREDITORS

Amounts falling due after more than one year

8

2,237,224

2,142,633

NET (LIABILITIES)/ASSETS

(307,467

)

213,994

CAPITAL AND RESERVES

Called up share capital

11

3,080,694

3,080,694

Retained earnings

(3,388,161

)

(2,866,700

)

SHAREHOLDERS' FUNDS

(307,467

)

213,994

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 April 2023 and were signed on its behalf by:

Stephen John Grist - Director

1.	STATUTORY INFORMATION

Puzzel Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The company's business address is 22 Tudor Street, London, EC4Y 0AY.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has obtained a letter of support from its parent company, Puzzel AS. The directors of Puzzel AS have provided a commitment to provide any financial support which may be necessary in order that the company can meet its liabilities, as they fall due, for a period in excess of 12 months and one day from the date of the audit report. As a result of this commitment the directors have continued to adopt the going concern basis in preparing these financial statements.

Related party exemption

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

There are three main revenue streams being maintenance, traffic and change revenue. Turnover is recognised monthly based on usage.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Intellectual property is being amortised evenly over its estimated useful life of 5 years.

Goodwill is being amortised evenly over its estimated useful life of 5 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

33% on cost

Financial instruments

Basic Financial Instruments as covered by Section 11 of FRS102 are measured at amortised cost. The company does not have any Other Financial Instruments as covered by Section 12 of FRS102.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Preparation of consolidated financial statements

The financial statements contain information about Puzzel Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken the option under Section 399 of the Companies Act 2006 not to prepare consolidated financial statements.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 65 (2021 - 54 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 January 2022

and 31 December 2022

1,968,536

536,758

2,505,294

AMORTISATION

At 1 January 2022

223,771

58,086

281,857

Charge for year

436,191

119,668

555,859

At 31 December 2022

659,962

177,754

837,716

NET BOOK VALUE

At 31 December 2022

1,308,574

359,004

1,667,578

At 31 December 2021

1,744,765

478,672

2,223,437

The Directors have reassessed the useful life of the intangible assets and have decided they should be amortised over 5 years as of 1 January 2022, whereas previously the useful life was assessed as 10 years.

Had the useful life remained at 10 years, the charge recognised in 2022 would have been £250,529, whereas the charge now recognised is £555,859.

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2022

148,884

Additions

36,594

Disposals

(1,393

)

At 31 December 2022

184,085

DEPRECIATION

At 1 January 2022

91,923

Charge for year

33,732

Eliminated on disposal

(528

)

At 31 December 2022

125,127

NET BOOK VALUE

At 31 December 2022

58,958

At 31 December 2021

56,961

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

as restated

£

£

Trade debtors

1,727,094

1,630,256

Amounts owed by group undertakings

841,139

-

Other debtors

403,752

531,235

2,971,985

2,161,491

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

as restated

£

£

Trade creditors

281,473

237,223

Amounts owed to group undertakings

515,577

924,878

Taxation and social security

595,909

512,823

Other creditors & accruals

1,691,840

945,322

3,084,799

2,620,246

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.22

31.12.21

as restated

£

£

Other creditors

2,237,224

2,142,633

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.12.22

31.12.21

as restated

£

£

Within one year

181,104

244,928

Between one and five years

-

1,014

181,104

245,942

10.	SECURED DEBTS

Glas Trust Corporation Limited has a fixed and floating charge with negative pledge over all the assets of the company.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.22

31.12.21

value:

£

£

3,080,694

Ordinary

£1

3,080,694

3,080,694

Ordinary shares carry full and equal rights to participate in voting in all circumstances, in dividends and in capital distributions, whether on a winding up or otherwise. The shares are not redeemable.

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Ian Phipps (Senior Statutory Auditor)

for and on behalf of Oury Clark Chartered Accountants

"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 a Report of the Auditors 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."

13.	ULTIMATE CONTROLLING PARTY

14.	DEFERRED TAX

A deferred tax asset has been recognised in respect of unrelieved tax losses, amounting to £75,506 (2021: £75,506). The recognition of the asset is appropriate because the entity is expanding their operations and has re-entered a growth phase. A period of 12 months has been assessed, being the period that can be reliably estimated, and a profit is expected.

15.	ULTIMATE PARENT COMPANY