Registration number:
Symmetry Limited
for the Year Ended 28 February 2023
Symmetry Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Notes to the Financial Statements |
Symmetry Limited
Company Information
Directors |
J Sayer L S Allison S R Kearsley R S Swan S R Smith |
Registered office |
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Auditors |
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Symmetry Limited
Strategic Report for the Year Ended 28 February 2023
Principal activity
The principal activity of the company is business and accounting software providers.
Fair review of the business
Symmetry has been in business since 1996 when it was formed as a management buyout from Oracle UK. In a market that has been becoming more commoditised over the years our approach has been to focus on a brand led, service based approach.
The focus for the brand led approach is our product "bluQube".
bluQube is a highly configurable financial accounting system aimed at medium sized businesses. As a company we feel that it is a supplier's responsibility to provide systems like bluQube in such a way that they can be implemented quickly and simply by the customer to provide benefits to their business as quickly as possible.
Principal risks and uncertainties
Products and business streams
As financial accounting systems were developing over the last 30 years they tended to take one of two routes. Either to be integrated into a full "ERP" system or to specialise in the core accounting functionality ("best of breed"). Both routes have pros and cons but bluQube took the latter route which it is now becoming clear was the better strategy.
What has changed the environment massively is the growth in Cloud based systems (bluQube was one of the first) and "interoperability" that has been delivered by APls and web services. This means that a customer can now buy the finance system that best suits them and yet still expect it to work with their other systems without the need to become tied in to one supplier and compromise on functionality.
Our experience over the years has been that these products typically have a major lifecycle of approximately 15 years. A few years ago we realised that the product was becoming dated and needed a major overhaul. In practice we decided that what we needed to achieve would only be possible if the product was completely rebuilt using a new development technology. The underlying database technology (Oracle) is still the best available but there are now better development platforms available that transform usability and allow us to build software with a look and feel that matches user expectations set by more extensive use of web based applications such as online banking and marketplace sites.
The new product (bluQube 4) was built before the COVID pandemic and was delivered on time without the need for external borrowing and with only minor use of cash reserves. We continue to invest in developing and improving our products.
Response to the new user interface has been very positive and this has allowed us to accelerate our reference site programme which ultimately will enhance our new business performance.
BluQube can be implemented either as a Cloud based product or an On Premise product. Our customer base is now mainly Cloud based using a software "rental" model which means that Symmetry's income streams are now roughly two thirds based on renewable revenues.
Symmetry Limited
Strategic Report for the Year Ended 28 February 2023
Markets
In the past Symmetry's traditional markets were the UK Further and Higher Education sectors.
Over the years these markets been reduced in size by government reducing funding levels and encouraging consolidation through a programme of mergers. This has resulted in the number of organisations being more than halved. Our customer retention has meant that the reduction in base has been proportionately less than in the market overall and the institutions within our customer base are now larger in size.
The reduction also happened at a time when our recurring revenues were increasing as a result of the move to Cloud by most of our base.
We have known for some time that the future for Symmetry must be based on an expansion into other market sectors. This was also one of the driving forces behind the product redevelopment.
In this respect we have had success and now have customers in the financial leasing sector, the telecoms sector, the charities sector, the retail sector, the vehicle leasing sector and the transport sector.
Financial approach
In some ways our financial strategy has been very simple. We have chosen to operate the business in a way that provides year on year profitability and only ever take dividends of less than half of the profits to allow us to build up a cash reserve.
This has meant that Symmetry has no borrowing and no involvement of external funding organisations such as venture capital companies.
We have a well defined business strategy, a clear and effective brand, an experienced management team, the right product, the right people, and the right approach to doing business.
We make use of AI tools to increase the effectiveness of the software and the productivity of our customers but we believe our key differentiator is how we do business.
In an era where many companies are starting to automate the customer interface we believe that dealing direct with customers, listening to what they tell us, adapting the core product based on customer feedback, and always delivering on what we promise makes us different to most of our competitors.
Symmetry Limited
Opportunities
During the COVID-19 pandemic we found that our ability to adapt, replan, and find new ways of delivering high quality services was a real strength. This period has encouraged us to challenge what we do, and to find new opportunities to help our customers in ways that would benefit both their organisations and the wider business.
For various reasons Symmetry has focussed on methods and systems to make the company profitable. The company is therefore well placed for growth and as revenues grow the costs will grow at a much slower rate meaning that profitability would be greatly enhanced.
The general outlook for the business is positive.
Symmetry Limited
Directors' Report for the Year Ended 28 February 2023
The directors present their report and the financial statements for the year ended 28 February 2023.
Directors of the company
The directors who held office during the year were as follows:
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors Milsted Langdon LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved by the
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Symmetry Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and 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 transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Symmetry Limited
Independent Auditor's Report to the Members of Symmetry Limited
Opinion
We have audited the financial statements of Symmetry Limited (the 'company') for the year ended 28 February 2023, which comprise the Profit and Loss Account, Balance Sheet, 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 FRS 102 Section 1A '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 company's affairs as at 28 February 2023 and of its 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements were 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Symmetry Limited
Independent Auditor's Report to the Members of Symmetry Limited
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Directors' Report has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
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, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the 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; or |
• | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
• |
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; |
Symmetry Limited
Independent Auditor's Report to the Members of Symmetry Limited
• |
inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud; |
• |
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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.
......................................
For and on behalf of
Freshford House
Redcliffe Way
BS1 6NL
Symmetry Limited
Profit and Loss Account for the Year Ended 28 February 2023
2023 |
2022 |
|
Turnover |
|
|
Cost of sales |
( |
( |
Gross profit |
|
|
Administrative expenses |
( |
( |
Operating profit |
135,727 |
92,332 |
Other interest receivable and similar income |
|
|
Interest payable and similar expenses |
( |
- |
229 |
123 |
|
Profit before tax |
|
|
Tax on profit |
|
( |
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Symmetry Limited
(Registration number: 03151660)
Balance Sheet as at 28 February 2023
Note |
2023 |
2022 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
- |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
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Capital redemption reserve |
|
|
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Retained earnings |
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|
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Shareholders' funds |
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These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
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Symmetry Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in pound sterling, which is the functional currency of the company, and are rounded to the nearest pound.
Going concern
Based on the information available to the directors at the date of approval, the directors consider it appropriate continue to adopt the going concern basis in preparing these financial statements and that the company has adequate resources to continue to trade for the foreseeable future being 12 months from approval of these financial statements.
Symmetry Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Key sources of estimation uncertainty
In the application of the company'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.
The directors have included intangible assets at cost less any impairment over the course of their estimated life.
The directors have included a debtor for accrued income based on the value of uninvoiced contracts at the year end.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of software and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company 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 company's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Deferred and current taxation assets and liabilities are not discounted.
Symmetry Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Tangible assets
Tangible assets are stated in the balance sheet 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.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Leasehold improvements |
straight line over the terms of the lease |
Furniture, fittings and equipment |
33% reducing balance |
Intangible assets
Intangible assets relate to internally generated software development costs. These development costs are capitalised and then amortised over the life of the software to which the costs relate.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Internally generated software development costs |
15 years straight line |
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.
Debtors
Trade debtors are amounts due from customers for merchandise sold or 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 company will not be able to collect all amounts due according to the original terms of the receivables.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company 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.
Symmetry Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Recognition and measurement
Financial instruments are recognised in the balance sheet when the company 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.
Impairment
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. The impairment loss is recognised in profit or loss.
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Symmetry Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Intangible assets |
Internally generated software development costs |
Total |
|
Cost or valuation |
||
At 1 March 2022 |
|
|
Additions internally developed |
|
|
At 28 February 2023 |
|
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Amortisation |
||
At 1 March 2022 |
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Amortisation charge |
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At 28 February 2023 |
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Carrying amount |
||
At 28 February 2023 |
|
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At 28 February 2022 |
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Symmetry Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Tangible assets |
Long leasehold land and buildings |
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
|||
At 1 March 2022 |
|
|
|
Additions |
- |
|
|
Disposals |
- |
( |
( |
At 28 February 2023 |
|
|
|
Depreciation |
|||
At 1 March 2022 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
- |
( |
( |
At 28 February 2023 |
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|
|
Carrying amount |
|||
At 28 February 2023 |
|
|
|
At 28 February 2022 |
|
|
|
Included within the net book value of land and buildings above is £7,365 (2022 - £11,683) in respect of long leasehold land and buildings.
Debtors |
2023 |
2022 |
|
Trade debtors |
|
|
Amounts due from related parties |
- |
2,115 |
Prepayments |
|
|
Other debtors |
|
|
|
|
|
Less non-current portion |
- |
( |
|
283,513 |
Symmetry Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Creditors |
Due within one year |
Note |
2023 |
2022 |
Trade creditors |
|
|
|
Amounts due to related parties |
|
- |
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
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Accruals |
|
|
|
Corporation tax liability |
15,660 |
15,322 |
|
Deferred income |
|
|
|
|
|
||
Due after one year |
|||
Other non-current financial liabilities |
|
- |
Dividends |
Interim dividends paid
2023 |
2022 |
|||
Interim dividend of £ |
|
|
||
Symmetry Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Related party transactions |
Directors' remuneration
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
455,332 |
360,918 |
Summary of transactions with other related parties
Expenditure with and payables to other related parties
2023 |
Other related parties |
Purchase of goods |
|
|
2022 |
Other related parties |
Purchase of goods |
|
|
Loans to related parties
2023 |
Key management |
Total |
At start of period |
|
|
Repaid |
( |
( |
At end of period |
- |
- |
|
2022 |
Key management |
Total |
At start of period |
|
|
Advanced |
|
|
Repaid |
( |
( |
At end of period |
|
|
|
Terms of loans to related parties
Symmetry Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Loans from related parties
2023 |
Key management |
Total |
At start of period |
|
|
Advanced |
|
|
Repaid |
( |
( |
At end of period |
|
|
|
2022 |
Key management |
Total |
Advanced |
|
|
At end of period |
|
|
|
Terms of loans from related parties