Company registration number 07652459 (England and Wales)
SYNTHACE LIMITED AND ITS SUBSIDIARY
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
SYNTHACE LIMITED AND ITS SUBSIDIARY
COMPANY INFORMATION
Directors
Dr S P Shiff
Mr P H Zhang
Dr M C Gershater
Dr T Burt
(Appointed 12 November 2021)
Dr G Levy-Yurista
(Appointed 24 May 2021)
Company number
07652459
Registered office
West Works
195 Wood Lane
London
W12 7FQ
Auditor
Ensors Accountants LLP
Warwick House
Ermine Business Park
Spitfire Close
Huntingdon
PE29 6XY
SYNTHACE LIMITED AND ITS SUBSIDIARY
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 30
SYNTHACE LIMITED AND ITS SUBSIDIARY
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2022
- 1 -
The directors present the strategic report for the year ended 31 January 2022.
Fair review of the business
The Group’s principal activity is as a software business developing a platform cloud technology for the management of life sciences research and development.
The Group has a Software as a Service (SaaS) licensing model and sells its products to customers performing biological research and development, with a principal focus on bioprocess development and assay development within the pharmaceutical, foodtech and agritech industries.
The Group aims to increase its Annual Recurring Revenue (ARR) by signing up new customers and expanding sales into existing customers, and to continue to broaden its offering by investing in the development of new product features and laboratory equipment integrations.
During the year, the Group continued to invest in the development of its technology and launched its life sciences R&D platform technology expanding from optimised biological protocols to full experimental life cycle management. To aid its product development and commercial activities the business developed relationships with tool providers in the liquid handling automation ecosystem.
Covid-19 continued to impact the business in several notable ways. The majority of the Group’s employees were working from home with an actual increase in productivity. The laboratory team remained on-site to support both product development and to produce high quality scientific content for marketing. The limitations on travel shifted the majority of the business's lead generation efforts to online methods with only a few physical events and conferences taking place. In parallel customers began returning to their offices and sales picked up throughout the year.
During the second fiscal quarter the Group announced the appointment of a new CEO, who had a SaaS background. This was followed by the further strengthening of the Group’s management team.
Principal risks and uncertainties
There are many factors which may materially and adversely affect the Group’s ability to achieve objectives and to successfully continue in operation, including the Group’s ability to obtain additional funding if necessary.
The Group has adopted appropriate controls and has management with skills and experience to manage these risks and enable execution of its business model.
COVID-19, while diminishing in impact, is being actively managed in response to the impact on our customers, partners, and business. The Group continues to follow Public Health England (PHE) and government guidance in implementing mitigating procedures to safeguard the wellbeing of customers, partners, and employees.
Brexit impacted the Group in multiple ways, including its ability to source materials such as laboratory supplies and also its ability to retain and attract talent. The Executive Management Team is actively managing these risks and has and is continuing to take appropriate action.
Financial risks
The Group’s principal financial instruments comprise of cash and cash equivalents, other financial assets and liabilities that arise from operating activities.
Currency risk
The Group has cash holdings in US$. Management regularly monitors the Group’s currency position and exchange rate movements and makes currency decisions as appropriate.
Key performance indicators
The directors utilise various KPI’s in order to measure the performance of the business. Lead generation and conversion to sales, ARR and renewal churn are closely monitored. These KPI’s allow the Board to assess the growth of the business in this early stage of the product life cycle. The Board also closely monitors costs and cash flow. The directors are satisfied with the performance in respect of these KPI’s.
SYNTHACE LIMITED AND ITS SUBSIDIARY
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 2 -
Dr G Levy-Yurista
Director
18 May 2022
SYNTHACE LIMITED AND ITS SUBSIDIARY
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2022
- 3 -
The directors present their annual report and financial statements for the year ended 31 January 2022.
Principal activities
The principal activity of the company and group is as a software business developing a platform cloud technology for the management of life sciences research and development.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Dr T S Fell
(Resigned 24 May 2021)
Mr R P Wiederhold
(Resigned 17 February 2022)
Dr S P Shiff
Mr P H Zhang
Dr M C Gershater
Mr W F W Liao
(Resigned 12 January 2022)
Dr J Bobanovic
(Resigned 12 January 2022)
Dr T Burt
(Appointed 12 November 2021)
Dr G Levy-Yurista
(Appointed 24 May 2021)
Auditor
In accordance with the company's articles, a resolution proposing that Ensors Accountants LLP be reappointed as auditor of the group will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
Dr G Levy-Yurista
Director
18 May 2022
SYNTHACE LIMITED AND ITS SUBSIDIARY
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2022
- 4 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SYNTHACE LIMITED AND ITS SUBSIDIARY
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SYNTHACE LIMITED AND ITS SUBSIDIARY
- 5 -
Opinion
We have audited the financial statements of Synthace Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 January 2022 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
SYNTHACE LIMITED AND ITS SUBSIDIARY
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SYNTHACE LIMITED AND ITS SUBSIDIARY
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
SYNTHACE LIMITED AND ITS SUBSIDIARY
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SYNTHACE LIMITED AND ITS SUBSIDIARY
- 7 -
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
James Francis (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP
18 May 2022
Chartered Accountants
Statutory Auditor
Warwick House
Ermine Business Park
Spitfire Close
Huntingdon
PE29 6XY
SYNTHACE LIMITED AND ITS SUBSIDIARY
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
1,343,119
648,766
Cost of sales
(942,079)
(953,761)
Gross profit/(loss)
401,040
(304,995)
Administrative expenses
(10,579,459)
(10,821,634)
Other operating income
-
33,899
Operating loss
4
(10,178,419)
(11,092,730)
Interest receivable and similar income
8
243
2,333
Interest payable and similar expenses
9
(243,507)
Loss before taxation
(10,421,683)
(11,090,397)
Tax on loss
10
1,554,713
1,589,019
Loss for the financial year
(8,866,970)
(9,501,378)
Loss for the financial year is all attributable to the owners of the parent company.
SYNTHACE LIMITED AND ITS SUBSIDIARY
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2022
- 9 -
2022
2021
£
£
Loss for the year
(8,866,970)
(9,501,378)
Other comprehensive income
-
-
Total comprehensive income for the year
(8,866,970)
(9,501,378)
Total comprehensive income for the year is all attributable to the owners of the parent company.
SYNTHACE LIMITED AND ITS SUBSIDIARY
GROUP BALANCE SHEET
AS AT
31 JANUARY 2022
31 January 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
717,206
1,072,210
Current assets
Debtors
14
2,585,056
2,104,611
Cash at bank and in hand
19,211,175
3,373,645
21,796,231
5,478,256
Creditors: amounts falling due within one year
15
(1,733,488)
(1,576,132)
Net current assets
20,062,743
3,902,124
Total assets less current liabilities
20,779,949
4,974,334
Creditors: amounts falling due after more than one year
16
(173,315)
(220,430)
Provisions for liabilities
17
(152,722)
(152,722)
Net assets
20,453,912
4,601,182
Capital and reserves
Called up share capital
20
79,373
54,578
Share premium account
58,660,433
33,863,540
Equity reserve
371,329
473,317
Profit and loss reserves
(38,657,223)
(29,790,253)
Total equity
20,453,912
4,601,182
The financial statements were approved by the board of directors and authorised for issue on 18 May 2022 and are signed on its behalf by:
18 May 2022
Dr G Levy-Yurista
Director
Company Registration No. 07652459
SYNTHACE LIMITED AND ITS SUBSIDIARY
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2022
31 January 2022
- 11 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
706,053
1,064,437
Investments
12
60
60
706,113
1,064,497
Current assets
Debtors
14
2,570,840
2,100,734
Cash at bank and in hand
19,202,813
3,303,566
21,773,653
5,404,300
Creditors: amounts falling due within one year
15
(1,830,257)
(1,585,541)
Net current assets
19,943,396
3,818,759
Total assets less current liabilities
20,649,509
4,883,256
Creditors: amounts falling due after more than one year
16
(173,315)
(220,430)
Provisions for liabilities
17
(152,722)
(152,722)
Net assets
20,323,472
4,510,104
Capital and reserves
Called up share capital
20
79,373
54,578
Share premium account
58,660,433
33,863,540
Equity reserve
371,329
473,317
Profit and loss reserves
(38,787,663)
(29,881,331)
Total equity
20,323,472
4,510,104
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £8,906,333 (2021 - £9,569,306 loss).
The financial statements were approved by the board of directors and authorised for issue on 18 May 2022 and are signed on its behalf by:
18 May 2022
Dr G Levy-Yurista
Director
Company Registration No. 07652459
SYNTHACE LIMITED AND ITS SUBSIDIARY
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2022
- 12 -
Share capital
Share premium account
Equity reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 February 2020
50,750
33,805,272
392,441
(20,288,875)
13,959,588
Period ended 31 January 2021:
Loss and total comprehensive income for the period
-
-
-
(9,501,378)
(9,501,378)
Issue of share capital
20
3,828
58,268
-
-
62,096
Other movements
18
-
-
80,876
-
80,876
Balance at 31 January 2021
54,578
33,863,540
473,317
(29,790,253)
4,601,182
Year ended 31 January 2022:
Loss and total comprehensive income for the year
-
-
-
(8,866,970)
(8,866,970)
Issue of share capital
20
24,795
24,796,893
-
-
24,821,688
Other movements
18
-
-
(101,988)
-
(101,988)
Balance at 31 January 2022
79,373
58,660,433
371,329
(38,657,223)
20,453,912
SYNTHACE LIMITED AND ITS SUBSIDIARY
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2022
- 13 -
Share capital
Share premium account
Equity reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 February 2020
50,750
33,805,272
392,441
(20,312,025)
13,936,438
Period ended 31 January 2021:
Loss and total comprehensive income for the period
-
-
-
(9,569,306)
(9,569,306)
Issue of share capital
20
3,828
58,268
-
-
62,096
Other movements
18
-
-
80,876
-
80,876
Balance at 31 January 2021
54,578
33,863,540
473,317
(29,881,331)
4,510,104
Year ended 31 January 2022:
Loss and total comprehensive income for the year
-
-
-
(8,906,332)
(8,906,332)
Issue of share capital
20
24,795
24,796,893
-
-
24,821,688
Other movements
18
-
-
(101,988)
-
(101,988)
Balance at 31 January 2022
79,373
58,660,433
371,329
(38,787,663)
20,323,472
SYNTHACE LIMITED AND ITS SUBSIDIARY
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2022
- 14 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
23
(10,184,254)
(9,704,105)
Interest paid
(243,507)
Income taxes refunded
1,537,397
1,408,655
Net cash outflow from operating activities
(8,890,364)
(8,295,450)
Investing activities
Purchase of tangible fixed assets
(100,006)
(110,711)
Proceeds on disposal of tangible fixed assets
5,969
-
Interest received
243
2,333
Net cash used in investing activities
(93,794)
(108,378)
Financing activities
Proceeds from issue of shares
24,821,688
62,096
Net cash generated from financing activities
24,821,688
62,096
Net increase/(decrease) in cash and cash equivalents
15,837,530
(8,341,732)
Cash and cash equivalents at beginning of year
3,373,645
11,715,377
Cash and cash equivalents at end of year
19,211,175
3,373,645
SYNTHACE LIMITED AND ITS SUBSIDIARY
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2022
- 15 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(10,190,790)
(9,741,398)
Interest paid
(243,507)
Income taxes refunded
1,597,317
1,419,636
Net cash outflow from operating activities
(8,836,980)
(8,321,762)
Investing activities
Purchase of tangible fixed assets
(91,673)
(110,711)
Proceeds on disposal of tangible fixed assets
5,969
Interest received
243
2,333
Net cash used in investing activities
(85,461)
(108,378)
Financing activities
Proceeds from issue of shares
24,821,688
62,096
Net cash generated from financing activities
24,821,688
62,096
Net increase/(decrease) in cash and cash equivalents
15,899,247
(8,368,044)
Cash and cash equivalents at beginning of year
3,303,566
11,671,610
Cash and cash equivalents at end of year
19,202,813
3,303,566
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
- 16 -
1
Accounting policies
Company information
Synthace Limited is a private limited company domiciled and incorporated in England and Wales. The registered office is West Works, 195 Wood Lane, London W12 7FQ.
The group consists of Synthace Limited and its subsidiary; Synthace Inc, a 100% owned subsidiary domiciled and incorporated in United States of America.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
The consolidated financial statements incorporate those of Synthace Limited and its subsidiary undertaking. Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 January 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.
The group has considered the impact of COVID19 and the impact on it’s forecasts and working capital requirements for a period of 12 months from the date of these financial statements.
Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue is recognised once evidence of a contract has been obtained and services are delivered, fees are fixed and determinable and collection is reasonably assured. Software and service subscription revenue are recognised pro-rata over the term of the contract.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
1
Accounting policies
(Continued)
- 17 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
over the life of the lease
Lab equipment
33% straight line
Fixtures and fittings
33% straight line
Computers
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.6
Fixed asset investments
In the parent company financial statements, investments in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
1
Accounting policies
(Continued)
- 18 -
1.9
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
1
Accounting policies
(Continued)
- 19 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Share-based payments
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest.
Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition. The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, the profit and loss account is charged with the fair value of goods and services received.
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
1
Accounting policies
(Continued)
- 20 -
1.16
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.17
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 21 -
3
Turnover and other revenue
2022
2021
£
£
Other significant revenue
Interest income
243
2,333
Grants received
33,899
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
883,251
468,804
Europe
66,209
8,667
Rest of the world
393,659
171,295
1,343,119
648,766
4
Operating loss
2022
2021
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
636
(64,764)
Government grants
(33,899)
Depreciation of owned tangible fixed assets
453,078
476,332
(Profit)/loss on disposal of tangible fixed assets
(4,037)
1,951
Share-based payments
(101,988)
80,876
Operating lease charges
621,991
647,816
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
16,000
15,500
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
68
76
62
71
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
6
Employees
(Continued)
- 22 -
Their aggregate remuneration comprised:
Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
5,796,483
6,132,660
5,049,627
5,580,623
Social security costs
750,731
779,057
653,893
699,748
Pension costs
500,465
527,677
486,806
527,677
7,047,679
7,439,394
6,190,326
6,808,048
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
721,679
412,073
Company pension contributions to defined contribution schemes
19,410
26,427
Compensation for loss of office
157,500
-
898,589
438,500
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 2).
During the year, the number of directors who exercised share options was 1 (2021:1).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
119,917
152,292
Compensation for loss of office
157,500
-
Company pension contributions to defined contribution schemes
5,928
15,229
The highest paid director has exercised share options during the year.
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
243
2,333
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
8
Interest receivable and similar income
(Continued)
- 23 -
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
243
2,333
9
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on convertible loan notes
243,507
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(1,575,201)
(1,591,207)
Adjustments in respect of prior periods
2,683
Total UK current tax
(1,572,518)
(1,591,207)
Foreign current tax on profits for the current period
17,805
2,188
Total current tax
(1,554,713)
(1,589,019)
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Loss before taxation
(10,421,683)
(11,090,397)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(1,980,120)
(2,107,175)
Tax effect of expenses that are not deductible in determining taxable profit
4,718
Tax effect of utilisation of tax losses not previously recognised
(10,050)
Permanent capital allowances in excess of depreciation
8,523
(28,999)
Research and development tax credit
(1,617,316)
(1,600,609)
Other permanent differences
(58,837)
Effect of overseas tax rates
59,920
10,981
Under/(over) provided in prior years
(1,019)
(3,702)
Deferred tax adjustments in respect of prior years
1,975,299
2,204,654
Taxation credit
(1,554,713)
(1,589,019)
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 24 -
11
Tangible fixed assets
Group
Leasehold improvements
Lab equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 February 2021
879,394
564,194
155,178
340,915
1,939,681
Additions
48,709
29,823
21,474
100,006
Disposals
(7,323)
(7,323)
At 31 January 2022
928,103
594,017
155,178
355,066
2,032,364
Depreciation and impairment
At 1 February 2021
250,615
301,495
96,650
218,711
867,471
Depreciation charged in the year
134,961
184,166
46,563
87,388
453,078
Eliminated in respect of disposals
(5,391)
(5,391)
At 31 January 2022
385,576
485,661
143,213
300,708
1,315,158
Carrying amount
At 31 January 2022
542,527
108,356
11,965
54,358
717,206
At 31 January 2021
628,779
262,699
58,528
122,204
1,072,210
Company
Leasehold improvements
Lab equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 February 2021
879,394
564,194
155,178
327,410
1,926,176
Additions
48,709
29,823
13,141
91,673
Disposals
(7,323)
(7,323)
At 31 January 2022
928,103
594,017
155,178
333,228
2,010,526
Depreciation and impairment
At 1 February 2021
250,615
301,495
96,650
212,979
861,739
Depreciation charged in the year
134,961
184,166
46,563
82,435
448,125
Eliminated in respect of disposals
(5,391)
(5,391)
At 31 January 2022
385,576
485,661
143,213
290,023
1,304,473
Carrying amount
At 31 January 2022
542,527
108,356
11,965
43,205
706,053
At 31 January 2021
628,779
262,699
58,528
114,431
1,064,437
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 25 -
12
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
13
60
60
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2021 and 31 January 2022
60
Carrying amount
At 31 January 2022
60
At 31 January 2021
60
13
Subsidiaries
Details of the company's subsidiaries at 31 January 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Synthace Inc
Delaware, USA
Ordinary
100.00
14
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
353,597
13,678
353,597
13,679
Corporation tax recoverable
1,617,316
1,600,000
1,617,316
1,600,000
Other debtors
134,691
127,014
125,378
123,817
Prepayments and accrued income
462,392
346,859
457,489
346,178
2,567,996
2,087,551
2,553,780
2,083,674
Amounts falling due after more than one year:
Corporation tax recoverable
17,060
17,060
17,060
17,060
Total debtors
2,585,056
2,104,611
2,570,840
2,100,734
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 26 -
15
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
£
£
£
£
Trade creditors
229,726
181,571
224,848
181,571
Other taxation and social security
149,004
217,863
149,004
217,863
Other creditors
110,970
129,690
351,211
204,718
Accruals and deferred income
1,243,788
1,047,008
1,105,194
981,389
1,733,488
1,576,132
1,830,257
1,585,541
16
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
£
£
£
£
Other creditors
173,315
220,430
173,315
220,430
17
Provisions for liabilities
Group
Company
2022
2021
2022
2021
£
£
£
£
152,722
152,722
152,722
152,722
Movements on provisions:
Group
£
At 1 February 2021 and 31 January 2022
152,722
Dilapidations provision
Company
£
At 1 February 2021 and 31 January 2022
152,722
18
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
500,465
527,677
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
18
Retirement benefit schemes
(Continued)
- 27 -
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
19
Share-based payment transactions
Group and company
Number of share options
Weighted average exercise price
2022
2021
2022
2021
Number
Number
£
£
Outstanding at 1 February 2021
9,491,955
13,337,620
0.02
0.01
Granted
7,103,973
1,618,929
0.02
0.04
Forfeited
(1,723,562)
(1,866,189)
-
-
Exercised
(2,624,944)
(3,598,405)
-
-
Outstanding at 31 January 2022
12,247,422
9,491,955
-
0.02
Exercisable at 31 January 2022
4,173,287
5,292,645
-
0.03
The options outstanding at 31 January 2022 had an exercise price ranging from £0.001 to £0.25, and a remaining contractual life between 1-10 years.
Group
Company
2022
2021
2022
2021
£
£
£
£
Expenses recognised in the year
Arising from equity settled share based payment transactions
(101,988)
80,876
(101,988)
80,876
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 28 -
20
Share capital
Group and company
2022
2021
Ordinary share capital
£
£
Issued and fully paid
15,978,628 (2021: 13,350,052) Ordinary shares of 0.1p each
15,980
13,351
Preference share capital
Issued and fully paid
7,451,313 - 2013 and 2014 Convertible Preferred Shares of 0.1p each
7,451
7,451
16,012,316 - 2017 Convertible Preferred Shares of 0.1p each
16,012
16,012
17,764,073 - 2018 Series B Preferred Shares of 0.1p each
17,764
17,764
22,165,643 (2021: 0) - 2021 Series C Preferred Shares of 0.1p each
22,166
-
63,393
41,227
Preference shares classified as equity
63,393
41,227
Total equity share capital
79,373
54,578
In the year convertible loan notes were issued and subsequently converted into equity during the year, with the creation of 5,332,403 C1 Preferred Shares each at a price of £0.94704 for aggregate consideration of £5,050,000 (excluding issue costs) and accrued interest of £228,011 converted net of withholding tax into 173,343 series C2 Preferred Shares at a gross price of £1.1838 per share.
During the year 16,659,897 Series C2 Preferred Shares were issued each at a subscription price of £1.1838 for aggregate cash consideration of £19,721,986 (excluding issue costs).
During the year 2,628,576 Ordinary shares with a nominal value of 0.1p were issued at par.
The Ordinary shares have a nominal value of £0.001 but have been priced to reflect the value of the company at different issue dates. All shares carry equal rights which are:
- One vote per share;
- Ability to participate in dividends pro rata to the shareholding;
- Upon a Deemed Liquidation Event the shares will only participate in any distribution after a distribution to the holders of Preferred shares;
The Convertible shares have a nominal value of £0.001 but have been priced to reflect the value of the company at different issue dates. All shares carry similar rights which are:
- One vote per share;
- Ability to participate in dividends pro rata to the shareholding;
- Upon a Deemed Liquidation Event the holders of Convertible shares have preference over the Ordinary shares. The 2017 Convertible Preferred shares, Series B Preferred shares and Series C Preferred shares receive initial purchase price. The 2013 and 2014 Convertible Preference shares receive both initial purchase price plus six per cent per annum calculated without compound from the date of subscription to 4 December 2018 after a distribution to the holder of Convertible shares;
- Preference shares are not redeemable.
A Deemed Liquidation Event is defined as Liquidation, a Share Sale, or an Asset Sale.
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 29 -
21
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
663,672
844,370
663,672
844,370
Between two and five years
2,603,280
2,616,132
2,603,280
2,616,132
In over five years
-
542,377
-
542,377
3,266,952
4,002,879
3,266,952
4,002,879
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management and the directors are the same.
23
Cash absorbed by group operations
2022
2021
£
£
Loss for the year after tax
(8,866,970)
(9,501,378)
Adjustments for:
Taxation credited
(1,554,713)
(1,589,019)
Finance costs
243,507
Investment income
(243)
(2,333)
(Gain)/loss on disposal of tangible fixed assets
(4,037)
1,951
Depreciation and impairment of tangible fixed assets
453,078
476,332
Equity settled share based payment expense
(101,988)
80,876
Increase in provisions
-
62,500
Movements in working capital:
(Increase)/decrease in debtors
(463,129)
509,086
Increase in creditors
110,241
257,880
Cash absorbed by operations
(10,184,254)
(9,704,105)
SYNTHACE LIMITED AND ITS SUBSIDIARY
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 30 -
24
Cash absorbed by operations - company
2022
2021
£
£
Loss for the year after tax
(8,906,332)
(9,569,306)
Adjustments for:
Taxation credited
(1,614,633)
(1,600,000)
Finance costs
243,507
Investment income
(243)
(2,333)
(Gain)/loss on disposal of tangible fixed assets
(4,037)
1,951
Depreciation and impairment of tangible fixed assets
448,125
471,718
Equity settled share based payment expense
(101,988)
80,876
Increase in provisions
-
62,500
Movements in working capital:
(Increase)/decrease in debtors
(452,790)
652,891
Increase in creditors
197,601
160,305
Cash absorbed by operations
(10,190,790)
(9,741,398)
25
Analysis of changes in net funds - group
1 February 2021
Cash flows
31 January 2022
£
£
£
Cash at bank and in hand
3,373,645
15,837,530
19,211,175
26
Analysis of changes in net funds - company
1 February 2021
Cash flows
31 January 2022
£
£
£
Cash at bank and in hand
3,303,566
15,899,247
19,202,813
2022-01-312021-02-01falseCCH SoftwareCCH Accounts Production 2022.200Dr T S FellMr R P WiederholdDr T S FellMr P H ZhangDr M C GershaterMr W F W LiaoDr J BobanovicMr R P WiederholdDr S P 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