Logical Glue Limited - Period Ending 2016-06-30

Registration number: 06872149

Logical Glue Limited

Unaudited Abbreviated Accounts

for the Year Ended 30 June 2016
 

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 2016

The directors present their report and the unaudited abbreviated accounts for the year ended 30 June 2016.

Directors of the company

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

Daniel McPherson

Colin Magee

Alex Strang

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

LG produces 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 2016 was the first full year period of trading after launching the analytics software platform. At the end of June 2016, LG had eleven long term contracts in place with customers, numerous pilot programmes in place and had an increasing number of prospects and enquiries.

Future prospects
LG’s 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.

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 continued development of the product.

During the year the company issued 2,500 ordinary shares raising a total of £254,250

Small company provisions

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

Page 1

Logical Glue Limited
Directors' Report for the Year Ended 30 June 2016
......... continued

Approved by the Board on 20 March 2017 and signed on its behalf by:

.........................................
Colin Magee
Director

Page 2

Logical Glue Limited
(Registration number: 06872149)
Abbreviated Balance Sheet at 30 June 2016

		Note			2016 £			2015 £
Fixed assets
Intangible fixed assets					1,310			5,175
Tangible fixed assets					7,139			13,057
					8,449			18,232
Current assets
Debtors					165,004			138,622
Cash at bank and in hand					63,859			73,673
					228,863			212,295
Creditors: Amounts falling due within one year					(303,707)			(212,426)
Net current liabilities					(74,844)			(131)
Net (liabilities)/assets					(66,395)			18,101
Capital and reserves
Called up share capital		3			426			401
Share premium account					1,310,965			1,056,740
Shares to be issued					-			80,039
Profit and loss account					(1,377,786)			(1,119,079)
Shareholders' (deficit)/funds					(66,395)			18,101

For the year ending 30 June 2016 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 20 March 2017 and signed on its behalf by:

.........................................
Colin Magee
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 2016
......... 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 January 2015).

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 2016
......... 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 2015		15,462			29,813			45,275
Additions		-			1,758			1,758
At 30 June 2016		15,462			31,571			47,033
Depreciation
At 1 July 2015		10,287			16,756			27,043
Charge for the year		3,865			7,676			11,541
At 30 June 2016		14,152			24,432			38,584
Net book value
At 30 June 2016		1,310			7,139			8,449
At 30 June 2015		5,175			13,057			18,232

3	Share capital

Allotted, called up and fully paid shares

	2016						2015
		No.			£			No.			£
Ordinary shares of £0.01 each		42,637			426			40,137			401

Page 5

Logical Glue Limited
Notes to the Abbreviated Accounts for the Year Ended 30 June 2016
......... continued

New shares allotted

During the year 2,500 Ordinary shares having an aggregate nominal value of £25 were allotted for an aggregate consideration of £254,250 . The shares were alloted to provide additional working capital and allow further research and development activities .

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