Logical Glue Limited - Period Ending 2015-06-30

Registration number: 06872149

Logical Glue Limited

Unaudited Abbreviated Accounts

for the Year Ended 30 June 2015
 

Logical Glue Limited
Contents

Directors' Report 1 to 2

Abbreviated Balance Sheet 3

Notes to the Abbreviated Accounts 4 to 6

Logical Glue Limited
Directors' Report for the Year Ended 30 June 2015

The directors present their report and the unaudited abbreviated accounts for the year ended 30 June 2015.

Directors of the company

The directors who held office during the year were as follows:

Daniel McPherson

Colin Magee

Alex Strang

The following directors were appointed after the year end:

Colin Gallick (appointed 1 August 2015)

Roger Lovering (appointed 1 August 2015)

Principal activity

The principal activity of the company is a Machine Learning as a Service business helping customers make better business decisions on future outcomes. We produce predictive models with the highest accuracy, translating to increased profitability, lower customer acquisition costs and reduced risk. Model predictions for new customers are delivered in real-time, and Logical Glue’s unique IP makes the decisions easy to understand.

Review of the business

Overview of the business

Logical Glue is a Machine Learning as a Service (“MLaaS”) business helping customers make better business decisions on future outcomes.

We produce predictive models with the highest accuracy, translating to increased profitability, lower customer acquisition costs and reduced risk. Model predictions for new customers are delivered in real-time, and Logical Glue’s unique IP makes the decisions easy to understand.

Review of performance
The period to 30th June 2015 was the first period of trading after completion of the prototype analytics platform with the support received from shareholders and the Technology Strategy Board. During the accounting period, the product was launched externally with a number of beta testing clients and our version 3.0 of the software was launched at in Spring 2015.

At the date of this report, the business is now licencing the software platform to our clients under long-term contracts, with the ability to both build and deploy predictive models. Additionally, we provide consultancy and training in the use of predictive analytics within their businesses.

Key milestones in the development of the business include:
• Completing the beta testing of the platform.
• Formally launching the software platform in the external market.
• Obtaining additional funding from external investors in Q3 of 2014 and subsequently in Q2 of 2015.

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Logical Glue Limited
Directors' Report for the Year Ended 30 June 2015
......... continued

Future prospects

Our cloud based platform enables more rapid model production and deployment than incumbent technologies; it makes the process transparent, and it provides customers with the capability to generate and deploy models for themselves.

The Directors are confident of the future prospects of the business and believe that the investments made in product development will provide a platform to support significant and scalable growth. This confidence is evidenced in the business increasing the number of contracted clients that provides it with a stable revenue stream that will result in it becoming break-even on a cash and profit basis at an operational level.

Raising Capital
During the year, the business raised funds from current and new investors to support the business as the contract base built to cover the operational costs and build out the product from a beta prototype to the version 3 production launch product.

In Q3 2014, a total of 3,625 shares were issued at £77.26 per share and in Q2 2015 a total of 1,207 shares were issued at £101.70 per share, raising a total of £403,000 as a result of these transactions.

Important post balance sheet events

To the date of the directors report, the Company closed a fund raising round to raise £255,000 by issuing a total of 2,500 shares at £101.70 per share.

On a proforma basis, the net assets of the Company would have been £153,600 had the fund raising been reflected in the accounts at 30th June 2015.

Small company provisions

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Approved by the Board on 30 March 2016 and signed on its behalf by:

.........................................
Daniel McPherson
Director

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Logical Glue Limited
(Registration number: 06872149)
Abbreviated Balance Sheet at 30 June 2015

		Note			2015 £			2014 £
Fixed assets
Intangible fixed assets					5,175			9,040
Tangible fixed assets					13,057			17,663
					18,232			26,703
Current assets
Debtors					138,622			50,474
Cash at bank and in hand					73,673			25,318
					212,295			75,792
Creditors: Amounts falling due within one year					(212,426)			(55,193)
Net current (liabilities)/assets					(131)			20,599
Net assets					18,101			47,302
Capital and reserves
Called up share capital		3			401			353
Share premium account					1,056,740			653,969
Shares to be issued					80,039			-
Profit and loss account					(1,119,079)			(607,020)
Shareholders' funds					18,101			47,302

For the year ending 30 June 2015 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime .

Approved by the Board on 30 March 2016 and signed on its behalf by:

.........................................
Daniel McPherson
Director

The notes on pages 4 to 6 form an integral part of these financial statements.
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Logical Glue Limited
Notes to the Abbreviated Accounts for the Year Ended 30 June 2015
......... continued

1	Accounting policies

Basis of preparation

The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (Effective April 2008).

The accounts do not include a cash flow statement because the company, as a small reporting entity, is exempt from the requirements to prepare such a statement.

Going concern

The financial statements have been prepared on a going concern basis as the directors have confirmed that they have confidence in the performance becoming profitable and the ability to raise additional capital to support the business in the interim.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Amortisation

Intangible assets are stated at cost less any accumulated amortisation and any provision for impairment.

Patents are amortised over their useful lives of up to 20 years

Asset class	Amortisation method and rate
Patents	20% straight line

Depreciation

Office equipment is stated at cost less accumulated depreciation and any provisions for impairment.

Asset class	Depreciation method and rate
Office equipment	Straight line 20%

Research and development

Research expenditure is charged to the profit and loss account in the year incurred.

Deferred tax

Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS 19. A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be sufficient taxable profits from which the future reversal of the underlying timing differences can be deducted.

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Logical Glue Limited
Notes to the Abbreviated Accounts for the Year Ended 30 June 2015
......... continued

Foreign currency

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.

Hire purchase and leasing

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

2	Fixed assets

		Intangible assets £			Tangible assets £			Total £
Cost
At 1 July 2014		15,462			27,188			42,650
Additions		-			3,440			3,440
Disposals		-			(815)			(815)
At 30 June 2015		15,462			29,813			45,275
Depreciation
At 1 July 2014		6,422			9,525			15,947
Charge for the year		3,865			7,421			11,286
Eliminated on disposals		-			(190)			(190)
At 30 June 2015		10,287			16,756			27,043
Net book value
At 30 June 2015		5,175			13,057			18,232
At 30 June 2014		9,040			17,663			26,703

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Logical Glue Limited
Notes to the Abbreviated Accounts for the Year Ended 30 June 2015
......... continued

3	Share capital

Allotted, called up and fully paid shares

	2015						2014
		No.			£			No.			£
Ordinary shares of £0.01 each		40,137			401			35,305			353

New shares allotted

During the year 4,832 Ordinary shares having an aggregate nominal value of £48 were allotted for an aggregate consideration of £402,819 .

4	Post balance sheet events

To the date of the directors report, the Company closed a fund raising round to raise £255,000 by issuing a total of 2,500 shares at £101.70 per share. On a proforma basis, the net assets of the Company would have been £153,600 had the fund raising been reflected in the accounts at 30th June 2015.

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