Third Dimension Software Limited - Period Ending 2023-03-31
Third Dimension Software Limited - Period Ending 2023-03-31
Registration number:
Third Dimension Software Limited
for the Year Ended 31 March 2023
Pages for filing with Registrar
Third Dimension Software Limited
Contents
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Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Third Dimension Software Limited
Company Information
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Directors |
B W Adeline F M M Froment T P Monks M C Ward |
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Registered office |
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Registered number |
03036348 |
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Auditors |
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Third Dimension Software Limited
(Registration number: 03036348)
Balance Sheet as at 31 March 2023
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Note |
2023 |
2022 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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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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Provisions for liabilities |
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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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Capital redemption reserve |
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Share option reserve |
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- |
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Profit and loss account |
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Total equity |
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Third Dimension Software Limited
(Registration number: 03036348)
Balance Sheet as at 31 March 2023
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 Profit and Loss Account has been taken.
Approved and authorised for issue by the
.........................................
Director
Third Dimension Software Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
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Statutory information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
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Accounting policies |
Summary of significant accounting policies
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.
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.
The financial statements are prepared in pounds sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Going concern
The company’s year-end balance sheet shows significant cash and net current assets. The company’s forecasts, which take into account a best estimate of uncertainties such as the economic outlook and the ongoing impact of worldwide events, show that the company will continue to have sufficient financial resources in order to meet its liabilities for a period of at least 12 months from the date of approving these financial statements. The directors have therefore prepared the financial statements on a going concern basis.
Group accounts not prepared
Third Dimension Software Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods, software supplied, and services rendered in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when:
• The amount of revenue can be reliably measured,
• it is probable that future economic benefits will flow to the entity,
• and specific criteria have been met for each of the company's activities.
Revenue from the sale of goods and hardware is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, which is usually at the point in time when the goods are available for collection or dispatch.
Revenue from the sale of software licences is recognised straight line over the duration of the licence period, commencing from the activation date.
Revenue earned from the supply of support services and maintenance is recognised straight line on a monthly basis over the period specified in the underlying agreement, where these services are provided by an indeterminate number of acts.
Revenue earned from the rental of equipment is recognised straight line on a monthly basis over the period of the rental agreement.
Revenue earned from ad-hoc repairs, recalibrations and support work is recognised once the work has been completed.
Government grants
Government grants are recognised, using the accrual model, at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received.
Foreign currency transactions and balances
Gains and losses arising on retranslation in the period are included in the profit and loss account.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit or loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Third Dimension Software Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
The current income tax charge 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
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible fixed assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
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Leasehold improvements |
25% on reducing balance |
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Plant and machinery |
25% on reducing balance & 5% to 20% on cost |
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Office equipment |
25% on reducing balance |
Research and development costs and other intangible fixed assets
Research costs are written off to the profit or loss account in the year incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects in which case the costs are capitalised as fixed assets.
Other intangible assets which are acquired separately from a business combination are measured initially at historical cost. Intangible fixed assets are subsequently measured at cost less accumulated amortisation and impairment charges.
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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Domain name |
20 years straight line |
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Development costs |
2 to 4 years reducing balance |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits.
Third Dimension Software Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Trade debtors
Trade debtors are recognised initially at the transaction price. They are subsequently measured 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.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using a weighted average cost method.
The cost of finished goods and work in progress comprises direct materials. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the profit or loss account. Reversals of impairment losses are also recognised in the profit or loss acocunt.
Trade creditors
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised
cost and using the effective interest method if the balance is due in more than one year.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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. Those direct costs are charged to the share premium reserve where a premium arose on the related shares.
Dividends
A dividend distribution to the company’s shareholders is recognised as a liability in the reporting period in which the dividends are declared.
Third Dimension Software Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
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 an employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Employee benefits
The costs of short-term employee benefits, including the cost of any unused holiday entitlement, are recognised as an expense in the period in which the employees' services are received.
Share based payments
The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
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Judgements and key sources of estimation uncertainty |
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Useful economical lives of intangible assets and review of assets for impairment (see note 5)
The annual amortisation charge is sensitive to any changes in the estimated useful life and residual values of intangible assets. The useful economic lives and residual value is assessed on an annual basis and are amended only when evidence shows a change in the estimated economic lives or residual life. Criteria used to assess the economic life and residual value includes technological advancement, economic utilisation, condition of the asset and future investments. Note 2 explains that intangible fixed assets are reviewed for impairment. An impairment review may include an assessment of the expected sales and profits related to those assets. The estimate of future performance therefore contains uncertainty.
Third Dimension Software Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
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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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Intangible fixed assets |
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Domain name |
Development costs |
Total |
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Cost |
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At 1 April 2022 |
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Additions internally developed |
- |
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At 31 March 2023 |
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Amortisation |
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At 1 April 2022 |
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Amortisation charge |
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At 31 March 2023 |
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Carrying amount |
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At 31 March 2023 |
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At 31 March 2022 |
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Third Dimension Software Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
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Tangible fixed assets |
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Leasehold improvement |
Office equipment |
Plant and machinery |
Total |
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Cost |
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At 1 April 2022 |
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Additions |
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Disposals |
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( |
( |
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At 31 March 2023 |
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Depreciation |
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At 1 April 2022 |
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Charge for the year |
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Eliminated on disposal |
( |
( |
( |
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At 31 March 2023 |
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Carrying amount |
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At 31 March 2023 |
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At 31 March 2022 |
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Third Dimension Software Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
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Investments |
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2023 |
2022 |
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Investments in subsidiary |
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Subsidiary |
£ |
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Cost |
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At 1 April 2022 |
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At 31 March 2023 |
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Carrying amount |
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At 31 March 2023 |
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At 31 March 2022 |
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The investment represents a holding of 100% of the issued share capital of Third Dimension SARL, being 1,000 one euro shares. The subsidiary's registered address is 250 bis Boulevard Saint-Germain 75007, Paris, France.
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Debtors: amounts falling due within one year |
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2023 |
2022 |
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Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
36,660 |
50,271 |
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Prepayments |
132,006 |
135,126 |
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Corporation tax |
- |
57,473 |
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Third Dimension Software Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
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Creditors |
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2023 |
2022 |
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Amounts falling due within one year |
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Bank loans and overdrafts |
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Trade creditors |
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Amounts owed to group undertakings |
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- |
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Taxation and social security |
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Other creditors |
7,690 |
14,436 |
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Accruals and deferred income |
522,830 |
388,682 |
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2023 |
2022 |
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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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2023 |
2022 |
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Current loans and borrowings |
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Bank borrowings |
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2023 |
2022 |
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Non-current loans and borrowings |
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Bank borrowings |
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The company drew down two loans in 2021. The first loan was for £500,000, at an interest rate of 1.59%, to be repaid via 60 monthly repayments which commenced in July 2021. The second loan was for £250,000, at an interest rate of 2.28%, to be repaid via 60 monthly repayments which commenced in February 2022. Both loans are from the same lender and are secured via a charge over the company’s assets.
Third Dimension Software Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
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Deferred tax |
Movements in deferred tax in the year were as follows:
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2023 |
2022 |
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Liability at the start of the year |
197,789 |
77,792 |
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Charged / (credited) to profit and loss in the year |
13,083 |
119,997 |
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Liability at the end of the year |
210,872 |
197,789 |
The deferred tax liability represents timing differences relating to:
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2023 |
2022 |
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Accelerated allowances on tangible fixed assets |
26,242 |
27,290 |
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Accelerated allowances on intangible fixed assets, including development expenditure |
287,708 |
305,988 |
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Carried forward tax losses |
(102,594) |
(134,473) |
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Other differences |
( |
( |
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210,872 |
197,789 |
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Share capital |
Allotted, called up and fully paid shares
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2023 |
2022 |
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No. |
£ |
No. |
£ |
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126.92 |
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126.92 |
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Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
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2023 |
2022 |
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Third Dimension Software Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
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Share-based payments |
Scheme details and movements
Included within administrative expenses is a share based payments expense of £5,070 (2022: £Nil).
The movements in the number of share options during the year were as follows:
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2023 |
2022 |
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Outstanding, start of period |
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Granted during the period |
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- |
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Outstanding, end of period |
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Exercisable, end of period |
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The movements in the weighted average exercise price of share options during the year were as follows:
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2023 |
2022 |
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Outstanding, start of period |
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Granted during the period |
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- |
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Outstanding, end of period |
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Exercisable, end of period |
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Audit report |
As the profit and loss account has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
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• The auditor was