Company registration number 06628206 (England and Wales)
IGLOO VISION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
IGLOO VISION LIMITED
COMPANY INFORMATION
Directors
Mr P Goodwin
Mr C Yellowley
Mrs P Halliday
Mrs K Head
Mr J G Williams
Mr P Davidson
(Appointed 21 October 2022)
Secretary
Mr P Goodwin
Company number
06628206
Registered office
Unit 2 Craven Court
Craven Arms Business Park
Stokewood Road
Craven Arms
Shropshire
SY7 8PF
Auditor
Edwards
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
IGLOO VISION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 32
IGLOO VISION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Review of the business

The Igloo Vison group has built on its market leading expertise in creating and enabling shared immersive space, both via expansion of the core product within existing and new geographical markets, as well as continued technological innovation and development of the products and services the group provides.

 

The group has continued development of its core revenue products, being the installation of stand-alone immersive structures and customized and retro-fit environments. The group has also greatly increased its focus on recurring revenue streams via the supply of software licences for its ICE (Igloo Core Engine) software and associated support contracts.

 

This strategy has helped the group increase its turnover by 30% over the previous year to c.£12m, and produced an operating loss of c.£82k (2022: c.£1,064k loss) to maintain its healthy financial position and enable it to continue its longer term growth strategy.

Principal risks and uncertainties

The management of the business and execution of the group's strategy is subject to a number of inherent and variable risks.

 

Firstly there is an inherent risk associated with fast-moving technological advancements by competitors which could challenge the pricing and margins achieved, as well as potential obsolescence of technology.

 

The group manages these inherent risks by actively monitoring competitive entries to the market and ensuring we are providing market-leading technology and appropriate value-added services at a cost effective price to the market.

 

In line with the wider market, worsening general economic activity is also a risk that could potentially affect sales and group profitability. In particular, the current climate of high inflation and supply chain issues caused by the Ukraine war and the after-effects of the Covid pandemic have increased the costs the company incurs for materials, wages, travel and other costs.

 

The group manages this risk with dynamic pricing, especially on new installations, to maintain a healthy margin and is constantly monitoring the economic landscape and focusing on resource planning.

 

The group also operates in a number of geographical markets, notably the UK, USA, Canada, Australia and the Middle East. Therefore it maintains some exposure to foreign exchange risk, interest rates risk, liquidity risk, and credit risk.

 

The group manages its financial risk by constantly reviewing its levels of debt finance and related finance costs. Exchange rate risk is actively managed to ensure there is no outsized exposure to any particular currency.

Development and performance

The group continues to commit significant resources and time into its strategy to become the global leader in immersive spaces. The group is particularly focused on the development of new and innovative technological advancements, expanding its geographical sales base, and increasing recurring revenues associated with software licences and support contracts.

Key performance indicators

The directors of the group monitor the development performance and position of the group and the implementation of its strategy through analysis of key performance indicators. The main performance indicators employed by the group include turnover, gross margin, operating profit and cash flows.

IGLOO VISION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

On behalf of the board

Mrs K Head
Director
31 October 2023
IGLOO VISION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Results and dividends

The result for the year are set out on the group statement of comprehensive income.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P Goodwin
Mr D Wright
(Resigned 31 August 2022)
Mr C Yellowley
Mrs P Halliday
Mrs K Head
Mr J G Williams
Mr P Davidson
(Appointed 21 October 2022)
Auditor

Edwards were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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.

Going concern

These financial statements are prepared and approved on the going concern basis. The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

 

In assessing the going concern basis, the directors have considered the group’s business activities and its financial position. For the year ended 31 March 2023, the group reported a loss before taxation of £544,357 and a net decrease in cash and cash equivalents of £765,128. As at 31 March 2023 the group had cash reserves of £589,356, net current assets of £1,050,368 and net assets of £447,887. The directors continue to closely monitor the group's liquidity and capital adequacy and in doing so, forecasts have been produced covering a period of at least twelve months from the date that the financial statements are approved.

 

On review of the above, the directors believe that the group is able to manage its business and cash flow requirements successfully for a period of at least 12 months after the date of signing these accounts. As a result, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

IGLOO VISION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
On behalf of the board
Mrs K Head
Director
31 October 2023
IGLOO VISION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -

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:

 

 

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.

IGLOO VISION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IGLOO VISION LIMITED
- 6 -
Opinion

We have audited the financial statements of Igloo Vision Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise 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 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:

Basis for opinion

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.

Other information

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.

IGLOO VISION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IGLOO VISION LIMITED
- 7 -

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 prior year financial statements have not been subject to audit. As such, our opinion does not extend to the corresponding amounts included within these financial statements.

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:

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We obtained an understanding of the legal and regulatory frameworks within which the Company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, health & safety and ISO regulations compliance.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be in the following areas: the override of controls by management, revenue journals, inappropriate treatment of non-routine transactions and areas of estimation uncertainty specifically relating to share options and the valuation and amortisation of intangible fixed assets. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of non-routine transactions, sample testing on the posting of journals and review of accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

IGLOO VISION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IGLOO VISION LIMITED
- 8 -

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.

Use of our report

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.

Paul Tonks BSc (Econ) FCA (Senior Statutory Auditor)
For and on behalf of Edwards
31 October 2023
Chartered Accountants
Statutory Auditor
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
IGLOO VISION LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
12,056,162
9,234,613
Cost of sales
(4,594,928)
(3,830,116)
Gross profit
7,461,234
5,404,497
Administrative expenses
(7,543,314)
(6,481,688)
Other operating income
-
12,715
Operating loss
4
(82,080)
(1,064,476)
Interest receivable and similar income
471
98
Interest payable and similar expenses
8
(462,748)
(411,684)
Loss before taxation
(544,357)
(1,476,062)
Tax on loss
9
173,795
400,650
Loss for the financial year
(370,562)
(1,075,412)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

IGLOO VISION LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
1,666,900
1,590,763
Tangible assets
11
587,242
612,030
2,254,142
2,202,793
Current assets
Stocks
14
1,028,153
1,090,318
Debtors
15
4,058,202
2,487,336
Cash at bank and in hand
589,356
1,354,484
5,675,711
4,932,138
Creditors: amounts falling due within one year
16
(4,625,343)
(3,483,963)
Net current assets
1,050,368
1,448,175
Total assets less current liabilities
3,304,510
3,650,968
Creditors: amounts falling due after more than one year
17
(2,796,999)
(2,802,460)
Provisions for liabilities
Deferred tax liability
19
59,624
76,696
(59,624)
(76,696)
Net assets
447,887
771,812
Capital and reserves
Called up share capital
21
362
362
Share premium account
2,437,291
2,437,291
Equity reserve
250,000
250,000
Capital redemption reserve
29
29
Other reserves
180,573
133,448
Profit and loss reserves
(2,420,368)
(2,049,318)
Total equity
447,887
771,812

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 31 October 2023 and are signed on its behalf by:
31 October 2023
Mrs K Head
Director
Company registration number 06628206 (England and Wales)
IGLOO VISION LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
1,666,900
1,590,763
Tangible assets
11
282,677
400,513
Investments
12
127
127
1,949,704
1,991,403
Current assets
Stocks
14
231,308
269,617
Debtors
15
4,748,929
3,908,909
Cash at bank and in hand
402,490
635,620
5,382,727
4,814,146
Creditors: amounts falling due within one year
16
(3,065,185)
(2,309,483)
Net current assets
2,317,542
2,504,663
Total assets less current liabilities
4,267,246
4,496,066
Creditors: amounts falling due after more than one year
17
(2,796,999)
(2,802,460)
Provisions for liabilities
Deferred tax liability
19
59,624
76,696
(59,624)
(76,696)
Net assets
1,410,623
1,616,910
Capital and reserves
Called up share capital
21
362
362
Share premium account
2,437,291
2,437,291
Equity reserve
250,000
250,000
Capital redemption reserve
29
29
Other reserves
180,573
133,448
Profit and loss reserves
(1,457,632)
(1,204,220)
Total equity
1,410,623
1,616,910

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 £253,412 (2022 - £709,529 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

IGLOO VISION LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 31 October 2023 and are signed on its behalf by:
31 October 2023
Mrs K Head
Director
Company registration number 06628206 (England and Wales)
IGLOO VISION LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Share premium account
Equity reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
£
Balance at 1 April 2021
362
2,437,291
6,631
29
86,323
(985,625)
1,545,011
Year ended 31 March 2022:
Loss for the year
-
-
-
-
-
(1,075,412)
(1,075,412)
Other comprehensive income:
Foreign exchange difference
-
-
-
-
-
11,719
11,719
Total comprehensive income
-
-
-
-
-
(1,063,693)
(1,063,693)
Issue of convertible loan
-
-
250,000
-
-
-
250,000
Share based payments
-
-
-
-
47,125
-
47,125
Reversal of equity reserve
-
-
(6,631)
-
-
-
(6,631)
Balance at 31 March 2022
362
2,437,291
250,000
29
133,448
(2,049,318)
771,812
Year ended 31 March 2023:
Loss for the year
-
-
-
-
-
(370,562)
(370,562)
Other comprehensive income:
Foreign exchange difference
-
-
-
-
-
(488)
(488)
Total comprehensive income
-
-
-
-
-
(371,050)
(370,562)
Share based payments
-
-
-
-
47,125
-
47,125
Balance at 31 March 2023
362
2,437,291
250,000
29
180,573
(2,420,368)
447,887
IGLOO VISION LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
Share capital
Share premium account
Equity reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
£
Balance at 1 April 2021
362
2,437,291
6,631
29
86,323
(494,691)
2,035,945
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
-
-
-
(709,529)
(709,529)
Issue of convertible loan
-
-
250,000
-
-
-
250,000
Share based payments
17
-
-
-
-
47,125
-
47,125
Reversal of equity reserve
-
-
(6,631)
-
-
-
(6,631)
Balance at 31 March 2022
362
2,437,291
250,000
29
133,448
(1,204,220)
1,616,910
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
-
-
-
(253,412)
(253,412)
Share based payments
17
-
-
-
-
47,125
-
47,125
Balance at 31 March 2023
362
2,437,291
250,000
29
180,573
(1,457,632)
1,410,623
IGLOO VISION LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
1,267,267
(107,240)
Interest paid
(321,452)
(311,005)
Income taxes (paid)/refunded
(3,360)
271,704
Net cash inflow/(outflow) from operating activities
942,455
(146,541)
Investing activities
Purchase of intangible assets
(1,074,330)
(1,292,637)
Purchase of tangible fixed assets
(369,403)
(370,440)
Interest received
471
98
Net cash used in investing activities
(1,443,262)
(1,662,979)
Financing activities
New loans
100,000
2,220,000
Repayment of loans
(361,668)
(232,013)
Payment of finance leases obligations
(2,653)
(22,354)
Net cash (used in)/generated from financing activities
(264,321)
1,965,633
Net (decrease)/increase in cash and cash equivalents
(765,128)
156,113
Cash and cash equivalents at beginning of year
1,354,484
1,198,371
Cash and cash equivalents at end of year
589,356
1,354,484
IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
1
Accounting policies
Company information

Igloo Vision Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 2 Craven Court, Craven Arms Business Park, Stokewood Road, Craven Arms, Shropshire, SY7 8PF.

 

The group consists of Igloo Vision Limited and all of its subsidiaries.

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
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Igloo Vision Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 March 2023. 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

These financial statements are prepared and approved on the going concern basis. The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

 

In assessing the going concern basis, the directors have considered the group’s business activities and its financial position. For the year ended 31 March 2023, the group reported a loss before taxation of £544,357 and a net decrease in cash and cash equivalents of £765,128. As at 31 March 2023 the group had cash reserves of £589,356, net current assets of £1,050,368 and net assets of £447,887. The directors continue to closely monitor the group's liquidity and capital adequacy and in doing so, forecasts have been produced covering a period of at least twelve months from the date that the financial statements are approved.

 

On review of the above, the directors believe that the group is able to manage its business and cash flow requirements successfully for a period of at least 12 months after the date of signing these accounts. As a result, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
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 from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Development costs
4 years straight line
1.7
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.

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 term of the lease
Plant and machinery
33.33% straight line
Fixtures, fittings and equipment
20% / 33.33% straight line
Office equipment
33.33% straight line
Motor vehicles
25% 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.

1.8
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.

IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials only.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in bank only.

1.12
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 trade debtors, corporation tax recoverable, other debtors, amounts owed by group undertakings, prepayments and accrued income, 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 trade creditors, other creditors, other taxation and social security, banks loans, obligations under finance leases, other borrowings, accruals and deferred income, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs.

1.14
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.

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.

1.15
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 fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
1.18
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.

1.19
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.

1.20
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Share options

The group has granted share options. The options have been calculated using the Black-Scholes model which requires judgement in determining and assessing key assumptions and therefore results in some estimation uncertainty.

Valuation of intangible fixed assets

Intangible assets are amortised over their useful lives, taking into account, where appropriate, residual values. The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re­assessed annually. They are amended when necessary to reflect current estimates.

IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
UK
2,907,337
2,937,244
USA
5,784,106
4,150,771
Middle East
684,281
567,708
Europe
1,170,750
256,220
Asia
28,585
322,590
Australia
1,481,103
1,000,080
12,056,162
9,234,613
2023
2022
£
£
Other revenue
Interest income
471
98
Grants received
-
12,715
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
38,483
(50,071)
Government grants
-
(12,715)
Depreciation of owned tangible fixed assets
394,191
433,251
Amortisation of intangible assets
998,193
862,917
Share-based payments
47,125
47,125
Operating lease charges
493,288
471,402
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,875
-
Audit of the financial statements of the company's subsidiaries
8,750
-
21,625
-
For other services
Statutory accounts and taxation compliance services
11,750
-
IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales and marketing
18
18
12
12
Finance and administration
10
8
7
7
Production
40
40
28
29
Software
10
10
7
7
Directors
7
6
7
6
Total
85
82
61
61

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,548,268
4,087,923
3,174,819
2,914,439
Social security costs
435,377
377,410
368,121
319,435
Pension costs
164,471
148,289
99,303
92,252
5,148,116
4,613,622
3,642,243
3,326,126
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
543,460
518,591
Company pension contributions to defined contribution schemes
18,057
19,480
561,517
538,071

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2022 - 6).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
129,377
125,758
Company pension contributions to defined contribution schemes
3,967
3,933
IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
18,041
18,046
Other interest on financial liabilities
439,244
390,103
Interest on finance leases and hire purchase contracts
45
1,535
Other interest
5,418
2,000
Total finance costs
462,748
411,684
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(259,153)
(423,794)
Adjustments in respect of prior periods
102,430
-
0
Total current tax
(156,723)
(423,794)
Deferred tax
Origination and reversal of timing differences
(17,072)
23,144
Total tax credit
(173,795)
(400,650)

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:

2023
2022
£
£
Loss before taxation
(544,357)
(1,476,062)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(103,428)
(280,452)
Expenses not deductible for tax purposes
18,805
27,439
Difference between depreciation and capital allowances
11,702
(10,257)
Adjustments in respect of research and development
(288,918)
(395,521)
Losses arising in the period not utilised
80,427
165,479
Adjustments in respect of prior periods
102,430
-
Deferred tax
(17,072)
23,144
Tax adjustments in respect of subsidiaries
22,259
69,518
Taxation credit
(173,795)
(400,650)
IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 25 -

Factors affecting future tax charges

In October 2022, the UK Government announced that the proposed increase in the UK Corporation Tax rate to 25% will go ahead as planned starting 1 April 2023. As such, the deferred tax figure has been calculated at future tax rates based on the estimated timing of reversal.

There were no other factors that may affect future tax charges.

10
Intangible fixed assets
Group and company
Development costs
£
Cost
At 1 April 2022
4,223,490
Additions
1,074,330
At 31 March 2023
5,297,820
Amortisation and impairment
At 1 April 2022
2,632,727
Amortisation charged for the year
998,193
At 31 March 2023
3,630,920
Carrying amount
At 31 March 2023
1,666,900
At 31 March 2022
1,590,763
IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
11
Tangible fixed assets
Group
Leasehold improvements
Plant and machinery
Fixtures, fittings and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
190,526
2,602,014
77,300
251,858
10,821
3,132,519
Additions
-
0
276,012
7,181
86,210
-
0
369,403
Disposals
-
0
(87,004)
-
0
-
0
-
0
(87,004)
At 31 March 2023
190,526
2,791,022
84,481
338,068
10,821
3,414,918
Depreciation and impairment
At 1 April 2022
157,231
2,146,407
34,851
171,179
10,821
2,520,489
Depreciation charged in the year
15,279
311,961
12,951
54,000
-
0
394,191
Eliminated in respect of disposals
-
0
(87,004)
-
0
-
0
-
0
(87,004)
At 31 March 2023
172,510
2,371,364
47,802
225,179
10,821
2,827,676
Carrying amount
At 31 March 2023
18,016
419,658
36,679
112,889
-
0
587,242
At 31 March 2022
33,295
455,607
42,449
80,679
-
0
612,030
IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Tangible fixed assets
(Continued)
- 27 -
Company
Leasehold improvements
Plant and machinery
Fixtures, fittings and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
188,625
1,798,798
70,794
182,742
10,821
2,251,780
Additions
-
0
68,131
7,181
66,379
-
0
141,691
Disposals
-
0
(30,291)
-
0
-
0
-
0
(30,291)
At 31 March 2023
188,625
1,836,638
77,975
249,121
10,821
2,363,180
Depreciation and impairment
At 1 April 2022
156,703
1,525,287
31,803
126,653
10,821
1,851,267
Depreciation charged in the year
14,605
195,529
12,174
37,219
-
0
259,527
Eliminated in respect of disposals
-
0
(30,291)
-
0
-
0
-
0
(30,291)
At 31 March 2023
171,308
1,690,525
43,977
163,872
10,821
2,080,503
Carrying amount
At 31 March 2023
17,317
146,113
33,998
85,249
-
0
282,677
At 31 March 2022
31,922
273,511
38,991
56,089
-
0
400,513

Included within tangible fixed assets for both the group and company are hire purchase assets with a net book value of £Nil (2022: £2,934) and depreciation of £2,934 (2022: £18,607).

12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
127
127
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
127
Carrying amount
At 31 March 2023
127
At 31 March 2022
127
IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Igloo Vision USA, Co
336 West 37th Street, 5th Floor, Suite 530, New York, NY 10018, USA
Ordinary
100.00
Igloo Vision Canada Inc.
1179 King Street West, Suite 018, Toronto, Ontario, M6K 3C5, Canada
Ordinary
100.00
Igloo Vision Australia
18/327 Mansfield Street, Thornbury, Melbourne, VIC 3071, Australia
Ordinary
100.00
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
251,456
329,613
112,850
166,322
Finished goods and goods for resale
776,697
760,705
118,458
103,295
1,028,153
1,090,318
231,308
269,617
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,643,326
1,280,396
1,595,040
721,738
Corporation tax recoverable
594,669
434,586
580,518
423,794
Amounts owed by group undertakings
-
-
1,878,455
2,137,276
Other debtors
17,434
30,924
15,825
1,947
Prepayments and accrued income
802,773
741,430
679,091
624,154
4,058,202
2,487,336
4,748,929
3,908,909
IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
68,333
251,667
68,333
251,667
Obligations under finance leases
-
0
2,653
-
0
2,653
Other borrowings
18
109,663
105,548
109,663
105,548
Trade creditors
785,679
802,782
541,352
682,612
Other taxation and social security
283,423
171,644
267,767
155,295
Other creditors
120,711
40,438
84,519
38,194
Accruals and deferred income
3,257,534
2,109,231
1,993,551
1,073,514
4,625,343
3,483,963
3,065,185
2,309,483

Obligations under finance leases are secured on the assets to which they relate.

 

Bank loans and other borrowings are secured by way of fixed and floating charges over the group's and company's assets.

17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
120,833
189,167
120,833
189,167
Other borrowings
18
2,676,166
2,613,293
2,676,166
2,613,293
2,796,999
2,802,460
2,796,999
2,802,460

Bank loans and other borrowings are secured by way of fixed and floating charges over the group's and company's assets.

18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
189,166
440,834
189,166
440,834
Other borrowings
2,785,829
2,718,841
2,785,829
2,718,841
2,974,995
3,159,675
2,974,995
3,159,675
Payable within one year
177,996
357,215
177,996
357,215
Payable after one year
2,796,999
2,802,460
2,796,999
2,802,460
IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
18
Loans and overdrafts
(Continued)
- 30 -

Included in other borrowings are amounts totalling £1,900,000 (2022: £1,975,000) relating to a loan facility initially dated 17 May 2019 and subsequently amended on 7 April 2021. The loan is secured by way of fixed and floating charges over the group's and company’s assets and carries interest at 10% per annum. On the expected maturity date of 31 December 2025, the loan holder has the option to redeem the loan plus accrued interest and a redemption premium of £600,000 or exercise warrants (per a warrant instrument agreement dated 7 April 2021) entitling the warrant holder to subscribe for up to 250,000 Ordinary shares of £0.0001 each at £2 per share. The value of the warrants would be deducted from the balance to be repaid on the loan.

 

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group and company
£
£
Accelerated capital allowances
52,949
27,975
Tax losses
(323,777)
(80,904)
Capitalised R&D
375,596
141,496
Share based payments
(45,144)
(11,871)
59,624
76,696
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
76,696
76,696
Credit to profit or loss
(17,072)
(17,072)
Liability at 31 March 2023
59,624
59,624
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
165,570
137,704

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.

IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 0.01p each
1,701,500
1,701,500
170
170
Ordinary shares of 0.01p each
1,913,608
1,913,608
192
192
3,615,108
3,615,108
362
362

The rights attaching to each category of share are contained in the company's Articles of Association.

22
Related party transactions

The company has taken advantage of the exemption conferred within FRS102 section 33.1A not to disclose transactions between wholly owned members of the same group.

 

Included within other creditors are aggregated balances of £336,575 (2022: £270,917) due to directors of the company.

23
Share-based payment transactions
Group and company
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 April 2022 and 31 March 2023
566,700
566,700
1.41
1.41
Exercisable at 31 March 2023
-
-
-
-

The obligations outstanding at 31 March 2023 had an exercise price ranging from £0.20 to £2.91, and a remaining contractual life ranging from 5 to 9 years.

Group and company
Inputs were as follows:
2023
2022
Weighted average share price
1.41
1.41
Weighted average exercise price
1.41
1.41
Expected volatility
50.00
50.00
Expected life
10.00
10.00
Risk free rate
0.91
0.91

During the year, the company recognised a charge of £47,125 (2022: £47,125) which related to equity settled share based payment transactions.

IGLOO VISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
24
Operating lease commitments
Lessee

At the reporting end date the group had total outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
297,022
326,436
162,688
139,840
Between two and five years
268,428
401,736
240,609
373,270
565,450
728,172
403,297
513,110
25
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Loss for the year after tax
(370,562)
(1,075,412)
Adjustments for:
Foreign exchange (gains)/losses
(488)
11,719
Taxation credited
(173,795)
(400,650)
Finance costs
462,748
411,684
Investment income
(471)
(98)
Amortisation and impairment of intangible assets
998,193
862,917
Depreciation and impairment of tangible fixed assets
394,191
433,251
Equity settled share based payment expense
47,125
47,125
Movements in working capital:
Decrease/(increase) in stocks
62,165
(919,489)
Increase in debtors
(1,410,783)
(230,891)
Increase in creditors
1,258,944
752,604
Cash generated from/(absorbed by) operations
1,267,267
(107,240)
26
Analysis of changes in net debt - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
1,354,484
(765,128)
589,356
Borrowings excluding overdrafts
(3,159,675)
184,680
(2,974,995)
Obligations under finance leases
(2,653)
2,653
-
(1,807,844)
(577,795)
(2,385,639)
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300No description of principal activityMr D WrightMr C YellowleyMrs P HallidayMrs K HeadMr J G WilliamsMr P DavidsonMr P DavidsonMr P 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