TROJAN_CONSULTANTS_LIMITE - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

Trojan Consultants Limited is a private company limited by shares incorporated in England and Wales. The registered office is 55 Baker Street, London, United Kingdom, W1U 7EU.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the available exemption under FRS 102 s33.1A not to disclose transactions between two or more members of a group where both parties to the transaction are wholly owned within the group.

At the period end the company had net current liabilities of £762,400 (2022 - £1,703,531) and net liabilities of £595,946 (2021 - £1,585,453).

In preparing the financial statements the directors have considered the loss recorded in the year as well as the current economic environment on the company's performance.

The company is dependent in the short and long term on funding provided by its parent company Astuta Ltd, which is in turn dependent on funding provided by shareholders holding a participating interest.

Astuta Limited has provided to Trojan Consultants Limited a letter of support to fund its ordinary

course of business in order to allow it to meet its obligations as they fall due.

On this basis the directors consider it appropriate to continue to prepare the financial statements on a going concern basis.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from a contract is recognised in the period in which the services are provided in

accordance with the stage of completion of the contract when all of the following conditions are satisfied:

•     the amount of revenue can be measured reliably;

•     it is probable that the company will receive the consideration due under the contract;

•     the stage of completion of the contract at the end of the reporting period can be measured reliably; and

•     the costs incurred and the costs to complete the contract can be measured reliably.

Revenue from the sale of a licence is recognised in the period that they are sold as there are no further performance obligations to the customer.

Revenue from access to services including support and maintenance is recognised on a straight line basis over the period to which the contract relates.

Revenue from services relating to managed hardware is recognised on a straight line basis over the period to which the contract relates.

In the research phase of an internal project it is not possible to demonstrate that the project will

generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred.

Intangible assets are recognised from the development phase of a project, if and only if, a certain range of specific criteria are met. An element of judgement is required in assessing these criteria (note 2).

If it is not possible to distinguish between the research phase and the development phase of an

internal project, the expenditure is treated as if it were all incurred in the research phase only.

Amortisation of a development project beings when the asset has been assessed to be useable in the manner intended by management. An element of judgement is required in making this assessment (note 2).

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.

The estimated useful lives range as follows:

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their

estimated useful lives, on a reducing balance basis and straight line method.

Depreciation is provided on the following basis:

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost 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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

•     The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

•     Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

Pensions

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 the statement of income and retained earnings when they fall due. Amounts not paid are shown as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

In preparing these financial statements, the directors have made the following judgements:

Income recognition

Determine whether income derived from access to services including support and maintenance has different performance obligations and should be recognised based on the performance obligations rather than on a straight line basis over the period to which the contract relates. The directors have concluded as there are ongoing obligations to provide future releases there is an ongoing obligation which spans the life of the contract and therefore it is appropriate to recognise the income over the life of the contract.

Income from services is recognised based on the percentage of work completed at the end of the reporting period as a percentage of the overall estimated time to complete the project. The actual time to complete the project may vary, however it is based on management’s best estimate.

Development expenditure – Initial recognition

Management exercise judgement as to whether a project is in the research or the development phase by considering if the work is the application of research findings or other knowledge to a plan or design for production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use.

If based on management’s judgement they consider a project to be in the development phase, expenditure on the project will only be capitalised as an intangible asset if all the following criteria are met, all of which require a degree of judgement:

• Whether the company has the technical feasibility to complete the project resulting in an intangible asset which will be available for internal use or sale;

• Whether it is the intention of the company to complete the project for internal use or sale;

• Whether intangible asset created from the project will generate future economic benefits;

• Whether the company has the adequate technical, financial and other resources to complete the project; and

• Whether the expenditure attributable to the project can be measured reliably during the development phase.

Development expenditure - Amortisation

Development expenditure capitalised as an intangible asset is amortised over its useful life commencing when the intangible asset is available for it to be usable in the manner intended by management.

Management consider a broad range of indicators to help make an assessment of when the amortisation period commences which include, but are not limited to the following:

• Whether the asset is ready for commercial sale or use internally;

• Whether development has ceased and the work undertaken represents on-going maintenance of the asset; and

• Whether the initial sales (known as ‘beta sales’) used to test the intangible asset in a real world environment result in the asset being used in the way management intended.

The average monthly number of persons (including directors) employed by the company during the year was:

Computer software relates to an internally generated intangible asset. Product development was

completed during December 2021 and the conditions for amortisation were met from this date.

There are no amounts included under 'creditors' which are payable or repayable other than by

instalments and fall due for payment or repayment after the end of the period of five years beginning with the day next following reporting date.

There are no amounts included under 'creditors' in respect of which any security has been given by the small entity.

Interest has been charged on amounts owed to group undertakings at 10% above the Bank of England base rate.

Included in other taxation and social security is an amount totalling £nil (2022 - £45,675) relating to PAYE and NI, for which payment has been delayed to HMRC under the Time to Pay Arrangement scheme.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows: