REGISTERED NUMBER: 05702796 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
for |
Appsbroker Limited |
REGISTERED NUMBER: 05702796 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
for |
Appsbroker Limited |
Appsbroker Limited (Registered number: 05702796) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Appsbroker Limited |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
Appsbroker Limited (Registered number: 05702796) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
Appsbroker is a 'born in the Cloud' Google Partner with specific experience of working with Google products and services to solve the business problems faced by its customers across Financial Services, Media, Manufacturing and Retail sectors amongst others. |
2023 proved to be a year of two halves. Up to October 2022 Appsbroker was in line to achieve its best ever year with September 2022 being a record month for both revenue and EBIT. However, from November onwards customers appeared to slow down their spend commitments on new projects. This was particularly prevalent in the Financial Services sector. The key driver for this slowdown in activity is linked to the wider economic situation with rising interest rates and increased costs across the board. |
As a result Professional Services revenue ended the year flat vs prior year and the revenue growth seen was driven by the reselling of Google products and services. |
In this challenging second half of the year there remained some positive customer engagements particularly in the Security and Training practices - indeed the Training practice won its first million pound deal at the end of the financial year. |
The Board took the opportunity to review the company's strategy in light of the market conditions - the outcome was to focus even harder on Professional Services where Appsbroker could bring its skills at solving business problems using technology. The Board remains convinced that there is appetite in the market for competitors to the traditional Global System Integrators (GSIs). However, in the short term a right-sizing process was needed to ensure the business was in the best shape to deliver on its strategic aims. The right-sizing process began at the end of the financial year and the major changes were implemented at the beginning of May 2023. This was an exceptionally difficult time for all concerned. |
Appsbroker's operational performance is underpinned by strong internal governance and it continues to hold ISO 27001 and ISO 9001 accreditations recognising the importance of providing customers with confidence in its ability to manage Information Security and operate a robust quality management system. |
The Board is also pleased to announce that in February 2023 it earned B Corp status. As a B Corp, Appsbroker formally demonstrates and has evidenced the steps it has taken to ensure its positive effect on its team, customers, suppliers, community members, governance and the environment. |
As ever the success of the company is due to the quality of its team. In what has been a challenging year for our people they have demonstrated all the values Appsbroker represents of Pace, Care and Excellence. As a Board we are thankful for our team and for their loyalty, dedication and ability. |
RESULTS AND PERFORMANCE |
Turnover during the year was £73.5m (2022 - £46.2m) a growth of +59%. As mentioned above the Revenue growth was driven by the Google resell with both Professional Services and Managed Services broadly flat. |
Net profit before tax was £2.2m (2022 - £4.7m). The net profit performance reflects the impact of a higher cost base than required to satisfy the reduced demand for Professional Services. As mentioned above the company was on plan to achieve significant growth in Professional Services until midway through the year and this meant that the cost base, largely people given the nature of the business, was not sustainable. The plan to right-size was put in place and a formal consultation process was implemented. Whilst the full financial benefits of the process did not impact results until May 2023 low levels of profitability were achieved in Q4 driven by other operation savings and the continued focus of the sales team delivering a consistent pipeline of opportunities. |
Cash balances grew to £12.0m at the end of the year as the Finance team focused on collecting debt in a timely manner to ensure that there continued to be no reliance on external debt. |
Shareholder funds increased by 15% to £8.9m (2022 : £7.7m) showing the continued strong financial position of the business. |
Appsbroker Limited (Registered number: 05702796) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group has focussed on managing a limited number of large multinational and European centric customers. The economic impact of higher interest rates and general cost inflation can have an impact on the timing of customer projects as companies reassess their financial strategy. The Board views this as a short term risk as the need for companies to better understand their customers through data, use of AI/ML and ensuring data security will remain an on-going challenge and hence an opportunity for Appsbroker. |
Whilst there have been no examples of customer non payments Appsbroker continues to monitor the financial risks around customer payment cycles and sales pipeline to ensure that its cash flow is understood and can be modelled quickly should the situation change. |
BORROWINGS |
The company has no borrowings and has funded its growth through retained earnings. |
KEY FINANCIAL AND OTHER PERFORMANCE INDICATORS |
The group's key financial and other performance indicators during the year were as follows: |
Unit | 2023 | 2022 |
Turnover | £m | 73.5 | 46.1 |
Operating profit | £m | 2.1 | 4.7 |
Profit after tax | £m | 1.7 | 4.1 |
Equity shareholders' funds | £m | 8.9 | 7.7 |
Current assets as % of current liabilities ('quick ratio') | % | 138 | 143 |
Average number of employees | No | 228 | 188 |
STRUCTURE OF THE GROUP |
The company is a private company owned and managed by its two directors. The company has a senior manager's operational board who meet monthly. The company operates an approved EMI scheme, which is open to all employees. |
As at 31st March 2023 there were 5 active members in the scheme. |
ON BEHALF OF THE BOARD: |
3 October 2023 |
Appsbroker Limited (Registered number: 05702796) |
Report of the Directors |
for the Year Ended 31 March 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
DIVIDENDS |
The directors recommend a final dividend payment of £Nil be made in respect of the financial year ended 31 March 2023. |
Total dividends paid during the year amounted to: |
'A' shares - £Nil |
'B' shares - £Nil |
'C' shares - £Nil |
RESEARCH AND DEVELOPMENT |
Appsbroker continues to develop innovative solutions that solve customers' problems. Working closely with customers it is able to develop and sell solutions to an expanding range of customers and markets. It is this on-going research which has been a major driver in Appsbroker's continued success. This research is also crucial in attracting and retaining industry experts who are motivated by the constant technological advances being made in the Cloud environment. Appsbroker is committed to this on-going product development and is confident that it will continue to benefit from the research and development tax credit scheme. |
FUTURE DEVELOPMENTS |
Appsbroker will continue to focus on helping enterprise sized customers to solve their business problems using technology. The lower cost base has allowed the company to return to higher levels of profitability due to increased levels of utilisation across the Delivery teams. The focus of the sales team for the last six months has been on having high level conversations with business leaders outside of IT to understand their problems and demonstrate how Appsbroker can help them. This focus has helped to ensure that the sales pipeline is now in a strong position with September 2023 looking like a record month for Professional Service deal wins. |
The Board is confident that 2023/4 will be a successful year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
OBJECTIVES AND POLICIES |
The Public Cloud market continues to be highly competitive and there is pressure on pricing but Appsbroker is in a strong position to maintain its growth and its market share without impacting gross margins due to its deep knowledge of Google and associated technologies and its ability to innovate to create bespoke solutions for customers. The strong cashflow driven by multi-year licence agreements also gives Appsbroker the capability to invest in the required resources to grow the business in a sustainable and profitable way. |
PRICE RISK, CREDIT RISK, LIQUIDITY RISK AND CASH FLOW RISK |
The trading terms and timescales of trade relations following the implementation of Brexit may create changes in commercial confidence and business practices. These could have an impact on the future growth of the business. Cash flows have remained strong during the year and the group continues to benefit from the favourable tax treatment under the research and development tax credit scheme. |
Enhanced credit management processes have been implemented as part of the response to the uncertainty surrounding the economy driven by Covid-19 and the increased number of customers in Appsbrokers portfolio. |
EMPLOYMENT OF DISABLED PERSONS |
The company is an equal opportunities employer and keeps employees informed through interactive briefings, intranet newsletters and updates. |
EMPLOYEE PENSION SCHEME |
The company operates an Employee pension scheme in line with current guidelines. |
Appsbroker Limited (Registered number: 05702796) |
Report of the Directors |
for the Year Ended 31 March 2023 |
POST BALANCE SHEET EVENTS |
In order to better fulfil its strategic aims Appsbroker has engaged advisors to seek out potential strategic partners. It is envisaged that any such partnership will provide the necessary scale to compete with GSIs and deliver solutions to business problems for enterprise size customers. The Board is positive about this process and has identified a suitable partner with negotiations on-going. |
MODERN SLAVERY STATEMENT |
Appsbroker continues to develop its policies around ethical sourcing to ensure there is no modern slavery or human trafficking in our supply chain. Internal training is also planned to raise awareness within the company. |
STREAMLINED ENERGY AND CARBON REPORTING |
The Company is conscious of its impact on the environment and is committed to making positive changes across the business. |
In comparison with other sectors, the company is fortunate that its environmental impact is relatively low, but climate change is a global challenge, and every business has to play its part in minimising the footprint of their operations. |
The Company has reported scope 1 and 2 greenhouse gas (GHG) emissions in accordance with the requirements of Streamlined Energy and Carbon reporting. This includes the Company's stated emissions for the year ended 31 March 2023. |
Scope 1: Fuel used in company vehicles |
Scope 2: Purchased electricity and natural gas |
The figures were calculated using UK government 2020 conversion factors expressed as Kilogrammes of carbon dioxide equivalent (kgCO2e) |
Scope 1 Emissions |
The Company Scope 1 emissions from fuel used in company vehicles is 8.1 kgCO2e for the year ended 31 March 2023 (2022: 8.1 kgCO2e) |
Scope 2 Emissions |
The Company's Scope 2 Energy and Carbon Emissions from purchased electricity equated to approximately 25,354 kWh or 7.21 kgCO2e for the year ended 31 March 2023 (2022: 27,536 kWh or 5.78 kgCO2e) and emissions from natural gas is 26,000 kWh or 2.8 kgCO2e for the year ended 31 March 2023 (2022: 20,986 kWh or 3.78kgCO2e) |
The Company is in the process of establishing carbon reduction initiatives and targets. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Appsbroker Limited (Registered number: 05702796) |
Report of the Directors |
for the Year Ended 31 March 2023 |
AUDITORS |
The auditors, Sumer Audit, will be proposed for re-appointment. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Appsbroker Limited |
Opinion |
We have audited the financial statements of Appsbroker Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of 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 of the parent company affairs as at 31 March 2023 and of the group's profit 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. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where 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. |
Report of the Independent Auditors to the Members of |
Appsbroker Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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: |
Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Group. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included: |
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; |
- Understanding of management's internal controls designed to prevent and detect irregularities, and fraud; |
- Reviewing the Group's legal costs to check for non-compliance with laws and regulations and fraud; |
- Review of tax compliance with the involvement of our tax specialists in the audit; |
- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses; |
- Testing transactions entered into outside of the normal course of the Group's business; and |
- Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Appsbroker Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
Hermes House |
Fire Fly Avenue |
Swindon |
Wiltshire |
SN2 2GA |
Appsbroker Limited (Registered number: 05702796) |
Consolidated |
Income Statement |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 | 73,522,909 | 46,102,650 |
Cost of sales | 67,749,689 | 38,577,147 |
GROSS PROFIT | 5,773,220 | 7,525,503 |
Administrative expenses | 4,694,728 | 3,216,859 |
1,078,492 | 4,308,644 |
Other operating income | 1,055,932 | 418,442 |
OPERATING PROFIT | 6 | 2,134,424 | 4,727,086 |
Interest receivable and similar income | 7 | 64,969 | 5,797 |
2,199,393 | 4,732,883 |
Interest payable and similar expenses | 8 | 19,314 | 2,914 |
PROFIT BEFORE TAXATION | 2,180,079 | 4,729,969 |
Tax on profit | 9 | 409,239 | 635,963 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,770,840 | 4,094,006 |
Appsbroker Limited (Registered number: 05702796) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,770,840 | 4,094,006 |
OTHER COMPREHENSIVE INCOME |
Currency translation differences | (12,093 | ) | 8,147 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(12,093 |
) |
8,147 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,758,747 |
4,102,153 |
Total comprehensive income attributable to: |
Owners of the parent | 1,758,747 | 4,102,153 |
Appsbroker Limited (Registered number: 05702796) |
Consolidated Balance Sheet |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | 132,715 | 199,953 |
Tangible assets | 14 | 193,242 | 187,161 |
Investments | 15 | - | - |
325,957 | 387,114 |
CURRENT ASSETS |
Debtors | 16 | 19,995,547 | 16,756,012 |
Cash at bank and in hand | 11,968,967 | 7,920,828 |
31,964,514 | 24,676,840 |
CREDITORS |
Amounts falling due within one year | 17 | 23,242,663 | 17,256,548 |
NET CURRENT ASSETS | 8,721,851 | 7,420,292 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,047,808 |
7,807,406 |
CREDITORS |
Amounts falling due after more than one year |
18 |
(45,873 |
) |
(46,356 |
) |
PROVISIONS FOR LIABILITIES | 21 | (20,554 | ) | (19,398 | ) |
NET ASSETS | 8,981,381 | 7,741,652 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 1,150 | 1,158 |
Share premium | 23 | 79,128 | 40,128 |
Capital redemption reserve | 23 | 16 | 5 |
Share option scheme reserve | 23 | 157,290 | 215,289 |
Retained earnings | 23 | 8,743,797 | 7,485,072 |
SHAREHOLDERS' FUNDS | 8,981,381 | 7,741,652 |
The financial statements were approved by the Board of Directors and authorised for issue on 3 October 2023 and were signed on its behalf by: |
M Conner - Director |
Appsbroker Limited (Registered number: 05702796) |
Company Balance Sheet |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
CURRENT ASSETS |
Debtors | 16 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium |
Capital redemption reserve |
Share option scheme reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,050,937 | 4,005,096 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Appsbroker Limited (Registered number: 05702796) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 April 2021 | 1,156 | 4,307,919 | 37,502 |
Changes in equity |
Issue of share capital | 2 | - | 2,626 |
Dividends | - | (925,000 | ) | - |
Total comprehensive income | - | 4,102,153 | - |
Balance at 31 March 2022 | 1,158 | 7,485,072 | 40,128 |
Changes in equity |
Increase in share capital | 3 | - | 39,000 |
Reduction in share capital | (11 | ) | (500,022 | ) | - |
Total comprehensive income | - | 1,758,747 | - |
Balance at 31 March 2023 | 1,150 | 8,743,797 | 79,128 |
Share |
Capital | option |
redemption | scheme | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 April 2021 | 5 | 141,453 | 4,488,035 |
Changes in equity |
Issue of share capital | - | - | 2,628 |
Dividends | - | - | (925,000 | ) |
Total comprehensive income | - | 73,836 | 4,175,989 |
Balance at 31 March 2022 | 5 | 215,289 | 7,741,652 |
Changes in equity |
Increase in share capital | - | - | 39,003 |
Reduction in share capital | - | - | (500,033 | ) |
Total comprehensive income | 11 | (57,999 | ) | 1,700,759 |
Balance at 31 March 2023 | 16 | 157,290 | 8,981,381 |
Appsbroker Limited (Registered number: 05702796) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - |
Total comprehensive income | - | - |
Balance at 31 March 2022 |
Changes in equity |
Increase in share capital | 3 | - | 39,000 |
Reduction in share capital | (11 | ) | (500,022 | ) | - |
Total comprehensive income | - | - |
Balance at 31 March 2023 |
Share |
Capital | option |
redemption | scheme | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Issue of share capital | - | - |
Dividends | - | - | ( |
) |
Total comprehensive income |
Balance at 31 March 2022 |
Changes in equity |
Increase in share capital | - | - | 39,003 |
Reduction in share capital | - | - | (500,033 | ) |
Total comprehensive income | ( |
) |
Balance at 31 March 2023 |
Appsbroker Limited (Registered number: 05702796) |
Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 29 | 5,222,200 | 3,886,013 |
Interest paid | (16,398 | ) | - |
Interest element of hire purchase payments paid |
(2,916 |
) |
(2,914 |
) |
Tax paid | (635,397 | ) | (100,310 | ) |
Net cash from operating activities | 4,567,489 | 3,782,789 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (129,913 | ) | (234,253 | ) |
Sale of tangible fixed assets | 20,001 | 4,863 |
Interest received | 64,969 | 5,797 |
Net cash from investing activities | (44,943 | ) | (223,593 | ) |
Cash flows from financing activities |
Capital repayments in year | (6,966 | ) | (6,954 | ) |
Amount introduced by directors | 797,523 | 925,000 |
Amount withdrawn by directors | (791,852 | ) | (1,704,317 | ) |
Proceeds from issue of ordinary shares | 39,000 | 2,628 |
Share buyback | (500,022 | ) | - |
Issue of share capital | 3 | - |
Equity dividends paid | - | (925,000 | ) |
Net cash from financing activities | (462,314 | ) | (1,708,643 | ) |
Increase in cash and cash equivalents | 4,060,232 | 1,850,553 |
Cash and cash equivalents at beginning of year |
30 |
7,920,828 |
6,062,128 |
Effect of foreign exchange rate changes | (12,093 | ) | 8,147 |
Cash and cash equivalents at end of year | 30 | 11,968,967 | 7,920,828 |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Appsbroker Limited is a |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in sterling which is the functional currency of the group. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company. Consolidation has been performed on the acquisition basis of accounting. Uniform accounting policies are adopted throughout the Group. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances |
Critical accounting estimates and assumptions |
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
(a) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. In particular the group expenses all portable and personal computing products purchased for employees as they have limited value once used. For all other assets their useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the property plant and equipment, and note 3 for the useful economic lives for each class of assets. |
(b) The group designs, builds and sells software systems and does not capitalise its IPR in its own developed software products. |
(c) Inventory provisions. The group does not carry inventory of it's own products and therefore there are no provisions. |
(d) Impairment of debtors. The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 16 for the net carrying amount of the debtors and associated impairment provision. |
(e) Use of derivatives. The group does not use derivative financial instruments. In particular it has no forward foreign currency contracts interest rate or hedge accounting. |
(f) Exposure to price, credit, liquidity and cash flow risk. Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or debt. |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover shown in these accounts comprises the fair value of the consideration received or receivable for the sale of goods and provision of services, in the ordinary course of the Company's activities. The balance of the consideration received in respect of future periods is included in Current Liabilities being shown as Deferred Income. Turnover is shown net of sales/value added tax, returns, rebates and discounts. |
The group recognises revenue when: |
- the amount of revenue can be reliably measured; |
- it is probable that future economic benefits will flow to the entity; |
- and specific criteria have been met for each of the group activities. |
Sale of goods |
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. |
Rendering of services |
Revenue from provision of software services is recognised by reference to the stage of completion. Stage of completion is measured by reference to labour hours incurred to date as a percentage of total estimated labour hours for each contract. Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. |
Government grants |
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Intanigle assets are amortised over a period of 10 years. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Land and buildings | - 25% on a straight line basis |
Plant and machinery | - 4% on a straight line basis |
Fixtures and fittings | - 25% on a straight line basis |
Motor vehicles | - 25% on reducing balance |
Office equipment | - 100% in year of acquisition |
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. |
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
Classification |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the group is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account. |
Recognition and measurement |
Financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in the profit or loss. |
Impairment |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised in profit or loss. |
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Leases |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | ACCOUNTING POLICIES - continued |
Cash and cash equivalents |
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
Trade debtors |
Trade debtors are amounts due from customers for services performed in the ordinary course of business. |
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables. |
Trade creditors |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. |
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. |
Share based payments |
The cost of equity-settled transactions with employees is measured by reference to the fair value of the equity instruments granted at the date at which they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined, using an appropriate pricing model. In valuing equity-settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of the shares of the company (market conditions) and non vesting conditions. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market or non vesting condition, which are treated as vesting irrespective of whether or not the market or non vesting condition is satisfied, provided that all other performance conditions are satisfied. |
At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management's best estimate of the achievement or otherwise of non-market conditions and of the number of equity instruments that will ultimately vest or in the case of an instrument subject to a market condition, be treated as vesting as described above. The movement in cumulative expense since the previous balance sheet date is recognised in the income statement, with a corresponding entry in equity. |
Where the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost based on the original award terms continues to be recognised over the original vesting period. In addition, an expense is recognised over the remainder of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value of the original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognised if this difference is negative. |
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in the profit and loss account for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from equity, with any excess over fair value expensed in the profit and loss account. |
The financial effect of awards by the parent company of options over its equity shares to the employees of subsidiary undertakings are recognised by the parent company in its individual financial statements. In particular the parent company records an increase in its investment in subsidiaries with a credit to equity equivalent to the cost in the subsidiary undertakings. |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Sale of goods | - | 55,603 |
Consultancy services | 15,067,209 | 15,735,212 |
Other services | 58,455,700 | 30,311,835 |
73,522,909 | 46,102,650 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 62,923,045 | 38,474,184 |
Europe | 9,221,855 | 6,433,463 |
Rest of world | 1,378,009 | 1,195,003 |
73,522,909 | 46,102,650 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 16,045,781 | 9,419,059 |
Social security costs | 1,570,206 | 1,140,342 |
Other pension costs | 463,526 | 274,688 |
18,079,513 | 10,834,089 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration and support | 62 | 76 |
Sales | 41 | 37 |
Other departments | 125 | 75 |
The above table of the average number of employees includes those for Appsbroker Limited, Appsbroker Fintech Limited, Appsbroker Europe GmbH and S.C. Appsbroker Consulting S.R.L. |
2023 | 2022 |
£ | £ |
Directors' remuneration | 16,332 | 16,328 |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 266,692 | 153,916 |
Depreciation - owned assets | 103,831 | 236,814 |
Loss on disposal of fixed assets | - | 397 |
Computer software amortisation | 67,238 | 94,916 |
Auditors' remuneration | 15,103 | 17,250 |
Foreign exchange differences | (160,233 | ) | (20,142 | ) |
Research and Development | - | 1,331,317 |
Share based payments | (57,996 | ) | 73,836 |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest | 51,345 | 5,797 |
Interest on directors' loan |
accounts | 13,624 | - |
64,969 | 5,797 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 2,308 | - |
Other interest | 14,090 | - |
Hire purchase | 2,916 | 2,914 |
19,314 | 2,914 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 408,083 | 649,993 |
Deferred tax | 1,156 | (14,030 | ) |
Tax on profit | 409,239 | 635,963 |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
9. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 2,180,079 | 4,729,969 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
414,215 |
898,694 |
Effects of: |
Expenses not deductible for tax purposes | 24,229 | 13,316 |
Capital allowances in excess of depreciation | (13,011 | ) | (5,484 | ) |
Movement in deferred tax | 1,156 | (14,030 | ) |
Research and development tax credit | (90,072 | ) | (252,950 | ) |
Share based payment deduction | (11,019 | ) | 8,738 |
Non-UK profit not subject to Corporation Tax | 83,741 | (14,369 | ) |
Non-UK tax charge | - | 2,048 |
Total tax charge | 409,239 | 635,963 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Currency translation differences | (12,093 | ) | - | (12,093 | ) |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Currency translation differences | 8,147 | - | 8,147 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary A shares | - | 350,000 |
Ordinary B shares | - | 575,000 |
Ordinary C shares | - | - |
- | 925,000 |
12. | PENSIONS AND OTHER SCHEMES |
Defined contribution pension scheme |
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £463,526 (2022 - £274,688). |
Contributions totalling £87,650 (2022 - £72,552) were payable to the scheme at the end of the year and are included in other creditors. |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
13. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
software |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 | 460,367 |
AMORTISATION |
At 1 April 2022 | 260,414 |
Amortisation for year | 67,238 |
At 31 March 2023 | 327,652 |
NET BOOK VALUE |
At 31 March 2023 | 132,715 |
At 31 March 2022 | 199,953 |
14. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Land and | Plant and | and |
buildings | machinery | fittings |
£ | £ | £ |
COST |
At 1 April 2022 | 312,529 | 98,942 | 24,585 |
Additions | - | 2,910 | - |
Disposals | - | - | - |
At 31 March 2023 | 312,529 | 101,852 | 24,585 |
DEPRECIATION |
At 1 April 2022 | 312,529 | 72,474 | 23,321 |
Charge for year | - | 1,002 | - |
At 31 March 2023 | 312,529 | 73,476 | 23,321 |
NET BOOK VALUE |
At 31 March 2023 | - | 28,376 | 1,264 |
At 31 March 2022 | - | 26,468 | 1,264 |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
14. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2022 | 268,631 | 648,584 | 1,353,271 |
Additions | 12,037 | 114,966 | 129,913 |
Disposals | (20,001 | ) | - | (20,001 | ) |
At 31 March 2023 | 260,667 | 763,550 | 1,463,183 |
DEPRECIATION |
At 1 April 2022 | 174,150 | 583,636 | 1,166,110 |
Charge for year | 19,257 | 83,572 | 103,831 |
At 31 March 2023 | 193,407 | 667,208 | 1,269,941 |
NET BOOK VALUE |
At 31 March 2023 | 67,260 | 96,342 | 193,242 |
At 31 March 2022 | 94,481 | 64,948 | 187,161 |
Included within the net book value of motor vehicles above is £36,613 (2022 - £84,491) in respect of assets held under hire purchase agreements. |
Company |
Land and | Plant and | Motor | Office |
buildings | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Included within the net book value of motor vehicles above is £36,613 (2022: £84,491) in respect of assets held under hire purchase agreements. |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
15. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: United Business Centre 3,Str. Palas No. 7B-7C, Building C1,Floor 15, Iasi, 700051, Romania |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
S. C. Appsbroker Consulting S.R.L. is a wholly owned company that is managed locally in Romania. The purpose of the Romanian company is to provide technical support and to develop new applications for the UK business. |
Registered office: Appsbroker House The Square, Old Town, Swindon, Wiltshire, SN1 3EB |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Neue Mainzer Straße 75, 60311 Frankfurt am Main |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) |
Appsbroker Europe GmbH is a wholly owned company that is managed locally in Germany.The purpose of the German company is to provide technical support and to develop new applications for the UK business. |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
16. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 13,254,513 | 10,496,225 |
Amounts owed by group undertakings | - | - |
Other debtors | 66,555 | 118,654 |
Directors' current accounts | 694,831 | 700,503 |
Prepayments and accrued income | 3,938,273 | 4,994,630 |
17,954,172 | 16,310,012 |
Amounts falling due after more than one | year: |
Other debtors | 2,041,375 | 446,000 |
Aggregate amounts | 19,995,547 | 16,756,012 |
An impairment against trade debtors has been recognised of £230,746 (2022 - £Nil). |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 19) | 8,025 | 14,508 |
Trade creditors | 9,545,647 | 7,100,369 |
Amounts owed to group undertakings | - | - |
Tax | 418,553 | 645,867 |
Social security and other taxes | 3,422,474 | 2,107,652 |
VAT | - | 4,145 |
Other creditors | 219,919 | 257,826 |
Accruals and deferred income | 9,628,045 | 7,126,181 |
23,242,663 | 17,256,548 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 19) | 45,873 | 46,356 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 8,025 | 14,508 |
Between one and five years | 45,873 | 46,356 |
53,898 | 60,864 |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
19. | LEASING AGREEMENTS - continued |
Company |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 162,085 | 118,720 |
Between one and five years | - | 102,410 |
162,085 | 221,130 |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts | 53,898 | 60,864 | 53,898 | 60,864 |
The above debt is secured on the assets to which they relate. |
21. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 20,554 | 19,398 | 20,554 | 19,398 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 19,398 |
Provided during year | 1,156 |
Balance at 31 March 2023 | 20,554 |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
21. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Provided during year |
Balance at 31 March 2023 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A shares | 0.001 | p | 660 | 660 |
Ordinary B shares | 0.001 | p | 340 | 340 |
Ordinary C shares | 0.001 | p | 150 | 158 |
1,150 | 1,158 |
The "A", "B" and "C" shares rank equally with regards to voting rights. |
The "A" and "B" shares have a nominal value of 0.001p and were issued at par. The "C" shares have a nominal value of 0.001p and were issued at a premium of 14.9p and £12.99. |
All shares rank equally with regards to dividends, however dividends may be paid on one class of share at the exclusion of other classes of shares at the discretion of the Directors. |
The "A" "B" and "C" shares rank in proportion to the nominal amount paid up with regards to distribution on winding up or other repayment of capital. |
23. | RESERVES |
Share premium - includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium. |
Other reserves - see share based payments transactions note 28. |
Retained earnings - includes all current and prior period retained profits and losses. |
Capital redemption reserve - includes amounts transferred following the redemption or purchase of a company's own shares. |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
24. | FINANCIAL INSTRUMENTS |
The carrying value of the company's financial assets and liabilities are summarised by category below: |
2023 | 2022 |
£ | £ |
Financial Assets |
Measured at undiscounted amount receivable |
- Trade debtors | 13,254,513 | 10,496,225 |
- Other debtors | 66,555 | 118,654 |
- Amounts owed by directors | 694,831 | 700,502 |
14,015,899 | 11,315,381 |
Financial liabilities |
Measured at amortised cost |
- Obligations under finance leases | (53,898 | ) | (60,864 | ) |
Measured at undiscounted amount payable |
- Trade creditors | (9,545,647 | ) | (7,100,369 | ) |
- Other creditors | (4,060,946 | ) | (3,005,821 | ) |
(13,660,491 | ) | (10,167,054 | ) |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 March 2023 and 31 March 2022: |
2023 | 2022 |
£ | £ |
M Conner |
Balance outstanding at start of year | 700,502 | (36,426 | ) |
Amounts advanced | 379,029 | 1,086,928 |
Amounts repaid | (789,585 | ) | (350,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 289,946 | 700,502 |
Mrs N Conner |
Balance outstanding at start of year | - | (42,389 | ) |
Amounts advanced | 412,823 | 617,389 |
Amounts repaid | (7,938 | ) | (575,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 404,885 | - |
The directors' loan balances are unsecured and repayable on demand. |
26. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Dividends |
Total dividends of £Nil (20221 - £925,000) were paid to the directors. |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
26. | RELATED PARTY DISCLOSURES - continued |
Key management personnel of the entity or its parent (in the aggregate) |
2023 | 2022 |
£ | £ |
Salaries and other short term employee benefits | 433,651 | 853,489 |
Pension benefits | 16,380 | 20,000 |
Key management includes the directors and members of senior management. |
Annual rent of £111,720 (2022 - £111,720) was paid to the Directors' SSAS which owns the building the company occupies. |
Other related parties |
Thorne Island Ltd |
A company over which a director of the entity has significant control. As at 31 March 2023 Thorne Island Ltd owed £621,573 (2022 - £468,125), for loans repayable over 5 years. Interest on these loans is charged at rates of between 2% and 2.1%. |
27. | ULTIMATE CONTROLLING PARTY |
The shareholders are the ultimate controlling party. |
28. | SHARE-BASED PAYMENT TRANSACTIONS |
EMI Scheme |
The company operates a share based remuneration scheme for certain employees introduced in 2013. Under the scheme the board of directors can grant options over shares in the company to employees of the company. Options are granted with a fixed exercise price for the reporting date given the restricted market for the shares. The contractual life of an option is 10 years from the grant date. |
Options granted under the share based remuneration schemes generally become exercisable on the third, fourth and fifth anniversary of the date of grant. Exercise of an option is subject to continued employment. Option values have been agreed with the share valuation department of HMRC taking into account the restricted market for the shares and the estimated forecast earnings as at the date of grant. |
The amount recognised for share based payment plan in respect of employee services received during the year is £57,996 credit (2022 - expense £73,836), all of which related to equity-settled share based payment transactions. |
The carrying amount of the liability relating to the equity-settled options at the balance sheet date is £157,290 (2022 - £215,289). Options exercised in the year are detailed in the table below. |
A reconciliation of option movements over the year is shown below: |
2023 | 2022 |
Number |
Weighted average exercise price (£ |
) |
Number |
Weighted average exercise price (£ |
) |
Outstanding at 1 April | 20,765 | 12.68 | 23,445 | 11.34 |
Granted | 5,423 | 11.37 | - | - |
Exercised | (3,000 | ) | 0.98 | (2,680 | ) | 0.98 |
Forfeited | (9,615 | ) | - | - | - |
Expired | - | - | - | - |
Outstanding at 31 March | 13,573 | 3.78 | 20,765 | 12.68 |
Exercisable at 31 March | - | - | - | - |
Appsbroker Limited (Registered number: 05702796) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
29. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 2,180,079 | 4,729,969 |
Depreciation charges | 171,069 | 331,730 |
Loss on disposal of fixed assets | - | 397 |
Share based payment transactions | (57,999 | ) | 73,836 |
Finance costs | 19,314 | 2,914 |
Finance income | (64,969 | ) | (5,797 | ) |
2,247,494 | 5,133,049 |
Increase in trade and other debtors | (3,245,206 | ) | (9,238,650 | ) |
Increase in trade and other creditors | 6,219,912 | 7,991,614 |
Cash generated from operations | 5,222,200 | 3,886,013 |
30. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 11,968,967 | 7,920,828 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 7,920,828 | 6,062,128 |
31. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 7,920,828 | 4,048,139 | 11,968,967 |
7,920,828 | 4,048,139 | 11,968,967 |
Debt |
Finance leases | (60,864 | ) | 6,966 | (53,898 | ) |
(60,864 | ) | 6,966 | (53,898 | ) |
Total | 7,859,964 | 4,055,105 | 11,915,069 |