Abbreviated Company Accounts - ANALYTICS SEO LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities effective April 2008.

Turnover policy
Turnover represents the value, net of value added tax and discounts, of goods or services provided to customers. Turnover on rolling monthly software subscriptions is recognised in the month it is billed. Turnover on longer term subscriptions is deferred and recognised over the life of the subscription agreement.

Tangible assets depreciation policy
All fixed assets are initially recorded at cost. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Furniture and Fixtures - 25% pa straight line
Computer Equipment - 33% pa straight line
Website & Software Development - 33% pa straight line

Other accounting policies
Deferred taxation
Deferred tax liabilities are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date. No deferred tax assets have been recognised. Deferred tax balances are not discounted.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

Financial instruments
Financial instruments are classified and accounted for according to the substance of the contractual arrangements entered into, as either financial assets, liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Going concern
During the year the Company made a loss of £2,333 (2015: £298,745) as it continued to invest in new platform features while also scaling its sales and marketing resources, bringing total accumulated losses to £987,079 (2015: £984,746).

The Company has established strong recurring revenue streams for its core search engine optimisation platform and is currently rolling out custom new features that are expected to contribute to further revenue growth. Consequently the directors believe that the going concern basis remains appropriate for the preparation of the financial statements.

The Company has entered into Enterprise Management Incentive Option Agreements with a number of its staff. At 30 September 2016 the total number of ordinary shares subject to these option agreements is 9,360 (September 2015: 7,885). Under the terms of these agreements, the options may only be exercised on a sale or listing of the business. During the year ending 30 September 2016 4,975 share options were issued and 3,500 options lapsed.

4Transactions with directors

L. O'Toole & P. Holt

The above Directors have personally provided some of the Company's working capital. At the end of the period, the amount owed by the Company to them, jointly and severally, was £227,126 (2015: £235,126). Under the terms of the original shareholder loan agreement dated 1 November 2010 (as amended on 28 March 2012, 1 August 2012, 1 July 2013 and 1 April 2014) the loan does not bear interest and has no fixed terms of repayment. The loan can be repaid in full at any time without penalty.