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Company registration number: 11492275
Litigationware Limited
Trading as Finlegal
Unaudited filleted financial statements
30 April 2022
Litigationware Limited
Contents
Directors and other information
Accountants report
Statement of financial position
Notes to the financial statements
Litigationware Limited
Directors and other information
Directors Mr S. Shinn
Mr A. S. Harris
Mr. J. Lester
Company number 11492275
Registered office Unit 8, Acorn Business Park
Woodseats Close
Sheffield
S8 0TB
Accountants Henry Bramall & Co Limited
Unit 8, Acorn Business Park
Woodseats Close
Sheffield
S8 0TB
Bankers National Westminster Bank
Hunters Bar
669 Ecclesall Road
Sheffield
S11 8PW
Litigationware Limited
Report to the board of directors on the preparation of the
unaudited statutory financial statements of Litigationware Limited
Year ended 30 April 2022
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Litigationware Limited for the year ended 30 April 2022 which comprise the statement of financial position and related notes from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Association of Chartered Certified Accountants , we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/en/member/ professional-standards/ rules-standards/acca-rulebook.html.
This report is made solely to the board of directors of Litigationware Limited, as a body, in accordance with the terms of our engagement letter dated 14 November 2019. Our work has been undertaken solely to prepare for your approval the financial statements of Litigationware Limited and state those matters that we have agreed to state to the board of directors of Litigationware Limited as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/content/dam/ACCA_Global /Technical/fact/technical-factsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Litigationware Limited and its board of directors as a body for our work or for this report.
It is your duty to ensure that Litigationware Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Litigationware Limited. You consider that Litigationware Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Litigationware Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Henry Bramall & Co Limited
Chartered Certifiefd Accountants
Unit 8, Acorn Business Park
Woodseats Close
Sheffield
S8 0TB
12 August 2022
Litigationware Limited
Statement of financial position
30 April 2022
2022 2021
Note £ £ £ £
Fixed assets
Intangible assets 6 271,545 366,545
Tangible assets 7 12,920 2,150
_______ _______
284,465 368,695
Current assets
Debtors 8 530,368 311,497
Cash at bank and in hand 625,430 432,541
_______ _______
1,155,798 744,038
Creditors: amounts falling due
within one year 9 ( 723,394) ( 188,945)
_______ _______
Net current assets 432,404 555,093
_______ _______
Total assets less current liabilities 716,869 923,788
Creditors: amounts falling due
after more than one year 10 ( 45,276) ( 50,000)
_______ _______
Net assets 671,593 873,788
_______ _______
Capital and reserves
Called up share capital 11 167 146
Share premium account 2,270,212 1,018,452
Profit and loss account ( 1,598,786) ( 144,810)
_______ _______
Shareholders funds 671,593 873,788
_______ _______
For the year ending 30 April 2022 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 financial statements for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the income statement has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 12 August 2022 , and are signed on behalf of the board by:
Mr S. Shinn
Director
Company registration number: 11492275
Litigationware Limited
Notes to the financial statements
Year ended 30 April 2022
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 8, Acorn Business Park, Woodseats Close, Sheffield, S8 0TB.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The business continues to grow claims automation (formerly Casefunnel) recurring revenue with customers in the UK, Australia, South and North America, and Europe having exceeded forecasted revenue for the year by tripling revenues. Based on innovation the team has been able to further reduce the barriers to new law firm adoption. Given further product market fit and increasing adoption the company will increase investment in sales and marketing for the coming year, and expects to double its customer base of law firms and litigation funders who are looking to benefit from the automation of claims and settlement payments. In addition, the newly launched funding marketplace has attracted over 20 litigation funders, and over 100 law firms since launch which is a more than promising start.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
Corporation tax losses sustained and carried forward have not been valued as a deferred asset. The company is in the process of submitting a Research and Development claim which will be used to obtain a tax credit.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Software developed - 20 % straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fittings fixtures and equipment - 33 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 21 (2021: 13 ).
5. Tax on loss
Major components of tax income
2022 2021
£ £
Current tax:
Research and Development tax credit ( 219,332) ( 166,425)
_______ _______
Tax on loss ( 219,332) ( 166,425)
_______ _______
Factors affecting future tax expense
Corporation tax losses equating to £1,008,444 are carried forward and will be useable against future trading profits.
6. Intangible assets
Other intangible assets Total
£ £
Cost
At 1 May 2021 and 30 April 2022 476,931 476,931
_______ _______
Amortisation
At 1 May 2021 110,386 110,386
Charge for the year 95,000 95,000
_______ _______
At 30 April 2022 205,386 205,386
_______ _______
Carrying amount
At 30 April 2022 271,545 271,545
_______ _______
At 30 April 2021 366,545 366,545
_______ _______
7. Tangible assets
Fixtures, fittings and equipment Total
£ £
Cost
At 1 May 2021 3,233 3,233
Additions 15,438 15,438
_______ _______
At 30 April 2022 18,671 18,671
_______ _______
Depreciation
At 1 May 2021 1,083 1,083
Charge for the year 4,668 4,668
_______ _______
At 30 April 2022 5,751 5,751
_______ _______
Carrying amount
At 30 April 2022 12,920 12,920
_______ _______
At 30 April 2021 2,150 2,150
_______ _______
8. Debtors
2022 2021
£ £
Trade debtors 232,092 179,167
Other debtors 298,276 132,330
_______ _______
530,368 311,497
_______ _______
9. Creditors: amounts falling due within one year
2022 2021
£ £
Trade creditors 232,328 57,660
Social security and other taxes 32,811 115,195
Other creditors 458,255 16,090
_______ _______
723,394 188,945
_______ _______
10. Creditors: amounts falling due after more than one year
2022 2021
£ £
Other creditors 45,276 50,000
_______ _______
11. Called up share capital
Issued, called up and fully paid
2022 2021
No £ No £
shares of £ 0.0001 each 1,670,000 167 1,460,000 146
_______ _______ _______ _______
The company has issued 117,720 EMI options in respect of B ordinary shares. These have a total value of £472,820. No option has been exercised during the periods.