hedgehog lab Limited - Period Ending 2018-12-31

Registration number: 05993194

hedgehog lab Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2018

Blu Sky Chartered Accountants
Ye Olde Hundred
69
Church Way
North Shields
NE29 0AE

hedgehog lab Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	4

hedgehog lab Limited

Company Information

Directors

Mr Sarat Pediredla Mr Raymond Henry Clarke Mr Mark Forster

Registered office

Generator Studios Trafalgar Street Newcastle Upon Tyne NE1 2LA

Accountants

Blu Sky Chartered Accountants Ye Olde Hundred 69 Church Way North Shields NE29 0AE

Page 1

hedgehog lab Limited

(Registration number: 05993194)
Balance Sheet as at 31 December 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	3	59,324	68,673
Investments	4	734,729	734,729
		794,053	803,402
Current assets
Debtors	5	794,188	662,539
Cash at bank and in hand		118,014	64,608
		912,202	727,147
Creditors: Amounts falling due within one year	6	(1,432,566)	(1,507,255)
Net current liabilities		(520,364)	(780,108)
Total assets less current liabilities		273,689	23,294
Creditors: Amounts falling due after more than one year	6	(778,536)	(756,693)
Net liabilities		(504,847)	(733,399)
Capital and reserves
Called up share capital	8	115	115
Share premium reserve		199,985	199,985
Profit and loss account		(704,947)	(933,499)
Total equity		(504,847)	(733,399)

For the financial year ending 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the provisions applicable to companies subject o the small companies’ regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 8 February 2019 and signed on its behalf by:

The notes on pages 4 to 9 form an integral part of these financial statements.

Page 2

hedgehog lab Limited

(Registration number: 05993194)
Balance Sheet as at 31 December 2018

.........................................

Mr Sarat Pediredla

Director

The notes on pages 4 to 9 form an integral part of these financial statements.

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hedgehog lab Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

1	General information

The company is a private company limited by share capital, incorporated in United Kingdom.

The company registered number is: 05993194

The address of its registered office is:
Generator Studios
Trafalgar Street
Newcastle Upon Tyne
NE1 2LA

2	Accounting policies

Statement of compliance

These financial statements were prepared in accordance with the provisions of FRS 102 Section 1A - small entities applicable in the UK and Republic of Ireland. There were no material departures from that standard.

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.

Basis of preparation

These financial statements were prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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.

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.

Government grants

Government grants in relation to tangible fixed assets are credited to the profit and loss account over the useful lives of the related assets, whereas those in relation to expenditure are credited when the expenditure is charged to profit and loss.

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.

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hedgehog lab Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

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
Computer equipment	33% straight line
Office equipment	20% straight line

Research and development costs

Expenditure on research is written off against profits in the year in which it is incurred. Development expenditure is capitalised and amortised over its useful life.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. 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.

Deferred taxation

Deferred taxation is provided on the liability method to take account of timing differences between the treatment of certain items for accounts purposes and their treatment for tax purposes.

Tax deferred or accelerated is accounted for in respect of all material timing differences.

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.

Financial instruments

Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at cost.


 

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hedgehog lab Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

3	Tangible assets

	Office Equipment £	Computer Equipment £	Total £
Cost or valuation
At 1 January 2018	65,432	59,193	124,625
Additions	5,784	18,283	24,067
At 31 December 2018	71,216	77,476	148,692
Depreciation
At 1 January 2018	17,711	38,242	55,953
Charge for the year	13,625	19,790	33,415
At 31 December 2018	31,336	58,032	89,368
Carrying amount
At 31 December 2018	39,880	19,444	59,324
At 31 December 2017	47,721	20,952	68,673

4	Investments

	2018 £	2017 £
Investments in associates	734,729	734,729

Associates	£
Cost
At 1 January 2018	734,729
Provision
Carrying amount
At 31 December 2018	734,729
At 31 December 2017	734,729

Page 6

hedgehog lab Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

5

Debtors

	2018 £	2017 £
Trade debtors	413,379	303,287
Prepayments	79,876	24,112
Other debtors	300,933	335,140
	794,188	662,539

6

Creditors

Creditors: amounts falling due within one year

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	7	101,932	38,777
Trade creditors		114,163	187,273
Amounts owed to group undertakings and undertakings in which the company has a participating interest	9	703,641	703,641
Taxation and social security		215,842	407,154
Accruals and deferred income		228,311	145,849
Other creditors		68,677	24,561
		1,432,566	1,507,255

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	7	778,536	756,693

Page 7

hedgehog lab Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

7	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Bank borrowings	778,536	756,693

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	101,932	38,777

8	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
A Ordinary of £0.001 each	92,308	92.31	92,308	92.31
B Ordinary of £0.001 each	23,077	23.08	23,077	23.08
	115,385	115	115,385	115

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hedgehog lab Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

9	Related party transactions

Summary of transactions with subsidiaries

Hedgehog Lab Limited own 97% of the equity in Hedgehog Lab LLC, Hedgehog Lab Limited sold services to the subsidiary amounting to £146,857 (2017 - £73,505) and there was an amount outstanding at the year end of £514,885 owed to the subsidiary (2017 - £658,395).
 

Summary of transactions with other related parties

Sarat Pediredla owns 40% of Hedgehog Lab Limited, the company purchased services from Hedgehog Lab Software Private Limited, a company located in India and owned by Krishna Pediredla and Rani Pediredla both close family of Sarat Pediredla. Purchases totalled £636,174 (2017 - £534,475) and there was an amount outstanding at the year end of £23,583 (2017 - £58,070).
 

10	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 88 (2017 - 58).

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