Caseware UK (AP4) 2021.0.152 2021.0.152 2021-12-312021-12-31The principal activity of the company in the year was the development and maintenance of medical software.462021-01-01false49truetrueThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. 06517382 2021-01-01 2021-12-31 06517382 2020-01-01 2020-12-31 06517382 2021-12-31 06517382 2020-12-31 06517382 c:Director3 2021-01-01 2021-12-31 06517382 d:OfficeEquipment 2021-01-01 2021-12-31 06517382 d:OfficeEquipment 2021-12-31 06517382 d:OfficeEquipment 2020-12-31 06517382 d:OfficeEquipment d:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 06517382 d:CurrentFinancialInstruments 2021-12-31 06517382 d:CurrentFinancialInstruments 2020-12-31 06517382 d:Non-currentFinancialInstruments 2021-12-31 06517382 d:Non-currentFinancialInstruments 2020-12-31 06517382 d:CurrentFinancialInstruments d:WithinOneYear 2021-12-31 06517382 d:CurrentFinancialInstruments d:WithinOneYear 2020-12-31 06517382 d:Non-currentFinancialInstruments d:AfterOneYear 2021-12-31 06517382 d:Non-currentFinancialInstruments d:AfterOneYear 2020-12-31 06517382 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2021-12-31 06517382 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2020-12-31 06517382 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2021-12-31 06517382 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2020-12-31 06517382 d:UKTax 2021-01-01 2021-12-31 06517382 d:UKTax 2020-01-01 2020-12-31 06517382 d:ShareCapital 2021-12-31 06517382 d:ShareCapital 2020-12-31 06517382 d:SharePremium 2021-12-31 06517382 d:SharePremium 2020-12-31 06517382 d:RetainedEarningsAccumulatedLosses 2021-12-31 06517382 d:RetainedEarningsAccumulatedLosses 2020-12-31 06517382 c:OrdinaryShareClass1 2021-01-01 2021-12-31 06517382 c:OrdinaryShareClass1 2021-12-31 06517382 c:OrdinaryShareClass1 2020-12-31 06517382 c:OrdinaryShareClass2 2021-01-01 2021-12-31 06517382 c:OrdinaryShareClass2 2021-12-31 06517382 c:OrdinaryShareClass2 2020-12-31 06517382 c:OrdinaryShareClass3 2021-01-01 2021-12-31 06517382 c:OrdinaryShareClass3 2021-12-31 06517382 c:OrdinaryShareClass3 2020-12-31 06517382 c:OrdinaryShareClass4 2021-01-01 2021-12-31 06517382 c:OrdinaryShareClass4 2021-12-31 06517382 c:OrdinaryShareClass4 2020-12-31 06517382 c:FRS102 2021-01-01 2021-12-31 06517382 c:Audited 2021-01-01 2021-12-31 06517382 c:FullAccounts 2021-01-01 2021-12-31 06517382 c:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 06517382 c:SmallCompaniesRegimeForAccounts 2021-01-01 2021-12-31 06517382 2 2021-01-01 2021-12-31 06517382 6 2021-01-01 2021-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06517382









PATIENTS KNOW BEST LIMITED









AUDITED FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2021

 
PATIENTS KNOW BEST LIMITED
REGISTERED NUMBER: 06517382

BALANCE SHEET
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

FIXED ASSETS
  

Tangible assets
 5 
35,084
52,209

Investments
 6 
854
854

  
35,938
53,063

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 7 
471,023
853,728

Cash at bank and in hand
  
1,620,093
1,243,506

  
2,091,116
2,097,234

Creditors: amounts falling due within one year
 8 
(3,692,949)
(2,372,715)

NET CURRENT LIABILITIES
  
 
 
(1,601,833)
 
 
(275,481)

TOTAL ASSETS LESS CURRENT LIABILITIES
  
(1,565,895)
(222,418)

Creditors: amounts falling due after more than one year
 9 
(1,903,485)
(2,150,509)

  

NET LIABILITIES
  
(3,469,380)
(2,372,927)


CAPITAL AND RESERVES
  

Called up share capital 
 11 
744
744

Share premium account
  
7,698,981
7,698,981

Profit and loss account
  
(11,169,105)
(10,072,652)

  
(3,469,380)
(2,372,927)


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

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.





 

Page 1

 
PATIENTS KNOW BEST LIMITED
REGISTERED NUMBER: 06517382
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2021

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr I Bastow
Director

Date: 23 June 2022

The notes on pages 3 to 11 form part of these financial statements.

Page 2

 
PATIENTS KNOW BEST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1.


GENERAL INFORMATION

The Company is a private company limited by shares and incorporated in England and Wales. The address of the registered office is St John's Innovation Park, Cowley Road, Cambridge, CB4 0WS.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

GOING CONCERN

The financial statements have been prepared on a going concern basis which assumes the Company will continue trading for the foreseeable future, being a period of not less than 12 months from the date of approval of the financial statements.
In reaching their conclusion over the going concern status of the Company, the directors have prepared cash flow forecasts and performed sensitivity testing on the key inputs. They have also reviewed the pipeline of contracts as well as the continuing development work of the business.
Based on the cash flow forecasts prepared, which show a positive cash balance for a period of at least 12 months from the date of approval of the financial statements, and the availability of additional financing combined with the cash balance at the balance sheet date, the directors are satisfied that the Company will have adequate resources to meet its liabilities as they fall due.
This forecast is based on a business in which 80% of income is recurring subscription revenues obtained from customers mainly signed on long term (2 years plus) contracts, with rapid revenue growth and a 70% gross profit margin.
As per accounting conventions the company recognises revenue over the life of the contracts. For the months of January to May 2022 Patients Know Best has had recognised revenue of £2.2m and invoiced to customers £4.8m. The company’s cash balance as at 31 May 2022 was £4.6m.
The company has repaid in full the two outstanding venture debt facilities. The remaining debt of £1.5m consists of a Convertible Note provided by an existing shareholder that is designed to convert to equity no later than October 2024. If further funds are needed then options open to the directors include taking further equity funding; taking out new debt facilities to replace those being repaid in 2022 and limiting overhead expenditure.
The company has returned a small monthly profit in the months March, April and May and expects to break even for 2022.
Covid-19 has had no adverse impact on the Company, which has always had a policy of 100% of employees working from home; indeed following the pandemic the Company has greatly benefited from increased market awareness of and interest in its online solution, which enables healthcare providers to more effectively care for their patients whilst not bringing them into a clinic or hospital.

Page 3

 
PATIENTS KNOW BEST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.ACCOUNTING POLICIES (CONTINUED)

 
2.3

TURNOVER

Turnover comprises revenue recognised by the company in respect of goods and services supplies during the year, exclusive of Value Added Tax and trade discounts. 
Revenue is recognised as the fair value of the consideration received or receivable and is recognised on the date that the goods are dispatched or in line with the percentage completion of the services.

 
2.4

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office and computer equipment
-
33%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.5

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.6

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.7

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.8

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 4

 
PATIENTS KNOW BEST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.ACCOUNTING POLICIES (CONTINUED)

 
2.9

GRANT INCOME

Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.10

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.11

SHARE BASED PAYMENTS

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Statement of Comprehensive Income 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 the Profit and loss account 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.

Page 5

 
PATIENTS KNOW BEST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.ACCOUNTING POLICIES (CONTINUED)

 
2.12

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.13

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

 
2.14

TAXATION

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

 
2.15

RESEARCH AND DEVELOPMENT

Research and development expenditure is written off to the Profit and loss account in the period in which it is incurred. 


3.


EMPLOYEES

The average monthly number of employees, including directors, during the year was 49 (2020 - 46).


4.


TAXATION


2021
2020
£
£

CORPORATION TAX


Current tax on losses for the year
(290,304)
(441,743)



TAXATION ON LOSS ON ORDINARY ACTIVITIES
(290,304)
(441,743)
Page 6

 
PATIENTS KNOW BEST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
 
4.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is lower than (2020 - lower than) the standard rate of corporation tax in the UK of 19% (2020 - 19%). The differences are explained below:

2021
2020
£
£


Loss on ordinary activities before tax
(1,387,798)
(1,912,194)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
(263,682)
(363,317)

EFFECTS OF:


Fixed asset differences
(621)
-

Expenses not deductible for tax purposes
4,038
395

Additional deduction for R&D expenditure
(215,008)
(327,168)

Surrender of tax losses for R&D tax credit refund
90,094
137,092

Remeasurement of deferred tax for changes in tax rates
(330,865)
(88,591)

Movement in deferred tax not recognised
425,740
199,846

TOTAL TAX CHARGE FOR THE YEAR
(290,304)
(441,743)

Page 7

 
PATIENTS KNOW BEST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

5.


TANGIBLE FIXED ASSETS





Office and computer equipment

£



COST OR VALUATION


At 1 January 2021
158,437


Additions
14,876


Disposals
(14,641)



At 31 December 2021

158,672



DEPRECIATION


At 1 January 2021
106,228


Charge for the year on owned assets
30,129


Disposals
(12,769)



At 31 December 2021

123,588



NET BOOK VALUE



At 31 December 2021
35,084



At 31 December 2020
52,209


6.


FIXED ASSET INVESTMENTS





Investments in subsidiary company

£



COST OR VALUATION


At 1 January 2021
854



At 31 December 2021
854




In 2019 the Company set up a subsidiary based in The Netherlands. Due to Brexit the UK can no longer guarantee that it will comply with European Union data regulations such as GDPR. Therefore, the Company needed to create a trading entity within the EU in order to reassure our EU customers that the Company can deliver services to them from within the EU and under the jurisdiction of an EU regulator.

Page 8

 
PATIENTS KNOW BEST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

7.


DEBTORS

2021
2020
£
£


Trade debtors
116,767
346,738

Other debtors
290,304
444,121

Prepayments and accrued income
63,952
62,869

471,023
853,728



8.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021
2020
£
£

Other loans
1,930,924
549,842

Trade creditors
39,024
21,241

Amounts owed to group undertakings
15,494
33,756

Other taxation and social security
136,518
326,984

Other creditors
2,552
98

Accruals and deferred income
1,568,437
1,440,794

3,692,949
2,372,715


Other loans include an amount of £1,500,000 that is unsecured. It is an interest only loan and repayable after a five year period beginning in June 2017 and bears interest at a rate of 3% per annum. 
Other loans include an amount of £430,924 that is secured against the assets of the Company. It is repayable in equal monthly instalments over a three year period beginning in October 2019 and bears interest at a rate of 12% per annum. 
Included in accruals and deferred income is deferred income on contracts that have been signed and paid by customers amounting to £1,412,296 (2020: £1,249,868). This amount will be released to revenue over the next 12 months.

Page 9

 
PATIENTS KNOW BEST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

9.


CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021
2020
£
£

Other loans
1,500,000
1,957,678

Deferred income
403,485
192,831

1,903,485
2,150,509


Other loans comprise interest free unsecured convertible notes of £1,500,000. These will convert to equity in the event of a qualifying financing round. If no qualifying financing round has been completed by 25th October 2024 then the convertible notes may, at the holders discretion, be either converted to equity or repaid by the company.
Deferred income relates to contracts that have been signed and paid by customers amounting to £403,485 (2020: £192,831). This amount will be released to revenue from 1 January 2023.


10.


LOANS


Analysis of the maturity of loans is given below:


2021
2020
£
£

AMOUNTS FALLING DUE WITHIN ONE YEAR

Other loans
1,930,924
549,842

AMOUNTS FALLING DUE 1-2 YEARS

Other loans
-
1,957,678

AMOUNTS FALLING DUE 2-5 YEARS

Other loans
1,500,000
-


3,430,924
2,507,520

Page 10

 
PATIENTS KNOW BEST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

11.


SHARE CAPITAL

2021
2020
£
£
ALLOTTED, CALLED UP AND FULLY PAID



437,677 (2020 - 437,677) Ordinary shares of £0.001 each
438
438
85,660 (2020 - 85,660) Series Seed shares of £0.001 each
86
86
167,468 (2020 - 167,468) Series A shares of £0.001 each
167
167
53,160 (2020 - 53,160) Series A2 shares of £0.001 each
53
53

744

744



12.


AUDITORS' INFORMATION

The auditors' report on the financial statements for the year ended 31 December 2021 was unqualified.

The audit report was signed on 24 June 2022 by Stephen Peak (Senior Statutory Auditor) on behalf of Peters Elworthy & Moore.

 
Page 11