Bridgeworks Ltd. - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 02155954 (England and Wales)

Bridgeworks Ltd.

Directors' Report and

Financial Statements

for the Year Ended 31 December 2023

Page

Company Information

1

Directors' Report

2

to

3

Balance Sheet

4

to

5

Notes to the Financial Statements

6

to

11

DIRECTORS:

W J Eykyn FCA, FIoD

D Trossell

M W Prater BA Hons, FCA

REGISTERED OFFICE:

Unit 1, Aero Centre

Ampress Park

Lymington

Hampshire

SO41 8LW

REGISTERED NUMBER:

02155954 (England and Wales)

SOLICITORS:

Willans LLP

28 Imperial Square

Cheltenham

Gloucester

GL50 1RH

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY

Bridgeworks' patented AI technologies demonstrably accelerate the transfer of bulk data over long distance, while eliminating many data management challenges with its unique "Zero Data Touch" technology and latency mitigating algorithms . Its customers, who all demand the highest levels of standards of performance, data privacy, protection, and compliance, include global corporates, banks, governments, medical research institutions, cyber security providers and defence organisations.

Bridgeworks continues to grow and is profitable. The year 2023 was one of Market Development where the sales team spent considerable time in the USA growing market presence and brand name. The Sales for the year was reduced as we grew the market awareness of the Bridgeworks name and products. The year's sales and profit after tax was £2,104,661 and £303,602 respectively in the year to 31 December 2023. Its reputation in the market also continues to grow. Bridgeworks is increasingly acknowledged as the leader in the field of data acceleration and is endorsed by leading global technology businesses such as IBM, to whom it is a long-term OEM supplier.

Bridgeworks invests heavily in its core IP and now possesses multiple Patents for its technology across Europe, USA and China. This innovation ensures differentiation in the market. To drive brand awareness and to support future sales growth, it also continues to invest in sales and marketing. This investment is helping it to expand its international customer base and sales pipeline.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

W J Eykyn FCA, FIoD

D Trossell

M W Prater BA Hons, FCA

AUDITOR

In accordance with the company's articles, a resolution proposing that Westlake Clark Audit LLP be reappointed as auditor of the company will be put at a General Meeting.

DISCLOSURE OF INFORMATION TO AUDITORS

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.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

APPROVED BY BOARD AND SIGNED ON ITS BEHALF BY:

D Trossell - Director

29 May 2024

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FIXED ASSETS

Tangible assets

6

89,338

82,773

Investments

7

151

151

89,489

82,924

CURRENT ASSETS

Stocks

8

117,267

117,181

Debtors

9

176,627

380,456

Cash at bank

959,611

817,221

1,253,505

1,314,858

CREDITORS

Amounts falling due within one year

10

(402,883

)

(525,273

)

NET CURRENT ASSETS

850,622

789,585

TOTAL ASSETS LESS CURRENT LIABILITIES

940,111

872,509

CREDITORS

Amounts falling due after more than one year

11

(542,500

)

(778,500

)

NET ASSETS

397,611

94,009

CAPITAL AND RESERVES

Share capital

13

3,433,243

3,433,243

Retained earnings

(3,035,632

)

(3,339,234

)

SHAREHOLDERS' FUNDS

397,611

94,009

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 May 2024 and were signed on its behalf by:

D Trossell - Director

1.	GENERAL INFORMATION

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:

Unit 1, Aero Centre

Ampress Park

Lymington

Hampshire

SO41 8LW

2.	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.

3.	ACCOUNTING POLICIES

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.

The company's functional and presentational currency is pound sterling and rounded to the nearest £.

GROUP ACCOUNTS NOT PREPARED

The company is part of a small group. The company has taken advantage of the exemption provided by Section 399 of the Companies Act 2006 and has not prepared consolidated accounts. On the basis that the group of which this is a parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

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.

GOING CONCERN

The financial statements have been prepared on a going concern basis at the balance sheet date. The directors have indicated their willingness to continue to support the company for the foreseeable future.

REVENUE RECOGNITION

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax,returns, rebates and discounts and after eliminating sales within the company.

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.

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:

Asset class

Depreciation method and rate

Short leasehold land and buildings

10% straight line basis

Plant and machinery

33% straight line basis

Fixtures and fittings

10% straight line basis

Office equipment

33% straight line basis

FOREIGN CURRENCY TRANSACTIONS AND BALANCES

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

TAXATION

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, 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.

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.

RESEARCH AND DEVELOPMENT

Research and development expenditure is written off to the profit and loss account in the year in which it is incurred.

INVESTMENTS

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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.

STOCKS

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.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 profit or loss.

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.

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.

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.

SHARE BASED PAYMENTS

The company issues equity-settled share-based payments to certain employees (including directors). The signed agreements for these share options state that they may not be exercised before the occurence of a takeover, sale or admission. The share based payments have not been recognised or disclosed in the financial statements in line with FRS 102 guidance which states that where awards vest only on an exit event and the event is not deemed probable then no expense is recognised.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 19 (2022 - 18 ) .

5.	AUDITORS' REMUNERATION

2023

2022

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

3,080

6,235

All other non-audit services

1,409

2,853

6.	TANGIBLE FIXED ASSETS

Short

leasehold

Fixtures

land and

Plant and

and

Office

buildings

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 January 2023

64,174

82,187

7,866

17,256

171,483

Additions

-

34,862

1,081

12,152

48,095

At 31 December 2023

64,174

117,049

8,947

29,408

219,578

DEPRECIATION

At 1 January 2023

38,341

33,650

5,328

11,391

88,710

Charge for year

6,417

28,689

2,024

4,400

41,530

At 31 December 2023

44,758

62,339

7,352

15,791

130,240

NET BOOK VALUE

At 31 December 2023

19,416

54,710

1,595

13,617

89,338

At 31 December 2022

25,833

48,537

2,538

5,865

82,773

The company' bankers hold a debenture including a fixed charge over the leasehold property and a fixed charge over book and other debts.

7.	INVESTMENTS

Investments

in

subsidiaries

£

COST

At 1 January 2023

and 31 December 2023

151

NET BOOK VALUE

At 31 December 2023

151

At 31 December 2022

151

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Digital Interfaces Limited

Registered office: England

Nature of business: Dormant

%

Class of shares:

holding

Ordinary

100.00

Bridgeworks Inc.

Registered office: 1801 13th St Ste 300 Boulder, CO 80302 USA

Nature of business: Software licencing and development

%

Class of shares:

holding

Common

100.00

8.

STOCKS

2023

2022

£

£

Raw materials and consumables

117,267

117,181

9.

DEBTORS

2023

2022

£

£

Amounts falling due within one year:

Trade debtors

7,179

237,117

Other debtors

101,116

82,142

Prepayments and accrued income

34,332

27,197

142,627

346,456

Amounts falling due after more than one year:

Other debtors

34,000

34,000

Aggregate amounts

176,627

380,456

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Directors current accounts (see note 12)

158,000

158,000

Trade creditors

26,624

38,936

Amounts owed to group undertakings

1,018

1,018

Taxation and social security

30,940

25,286

Other creditors

403

9,186

Accruals and deferred income

185,898

292,847

402,883

525,273

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Directors current accounts (see note 12)

542,500

778,500

12.	LOANS AND BORROWINGS

An analysis of the maturity of loans and borrowings is given below:

2023

2022

£

£

Amounts falling due within one year or on demand:

Directors current accounts

158,000

158,000

Amounts falling due between one and two years:

Directors current accounts

542,500

778,500

13.	SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

139,570

Growth shares

£0.01

1,396

1,396

3,431,847

Ordinary shares

£1

3,431,847

3,431,847

3,433,243

3,433,243

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

The Auditors' Report was unqualified.

Moganarden Pillay Chelvanaigum FCCA (Senior Statutory Auditor)

for and on behalf of Westlake Clark Audit LLP

15.	FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENCIES

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £57,500 (2021 - £57,500). These amounts consist of operating lease commitments.

16.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Other transactions with directors

During the year the directors of Bridgeworks Limited were repaid £236,000 of their loans. At the balance sheet date the amount due to the directors was £700,500 (2022: £936,500). All directors' loan accounts are repayable upon demand or have a 53 week term and no interest is charged.