Caseware UK (AP4) 2022.0.179 2022.0.179 In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities. The financial statements were approved and authorised for issue by the board and were signed on its behalf by:Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.The Company assesses impairment on tangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The factors that the Company considers important which could trigger an impairment review include the following: Significant underperformance relative to expected historical or projected future operating results Significant changes in the manner of use of the acquired assets or the strategy for overall business; and Significant negative industry or economic trends. In determining the present value of estimated future cashflows expected to be generated from the continued use of the assets, the Company is required to make estimates and assumptions that can materially affect the financial statements. These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An impairment loss would be recognised whenever evidence exists that the carrying value is not recoverable. For purposes of assessing impairment, assets are grouped at the lowest levels of which there are separately identifiable cashflows. An impairment loss is recognised and charged to profit or loss if the discounted expected future cash flows are less than the carrying amount. Fair value is estimated by discounting the expected future cashflows using a discount factor that reflects the risk-free rate of interest for a term consistent with the period of expected cashflows.false2022-01-0127true28truefalse 04930122 2022-01-01 2022-12-31 04930122 2021-01-01 2021-12-31 04930122 2022-12-31 04930122 2021-12-31 04930122 2021-01-01 04930122 1 2022-01-01 2022-12-31 04930122 d:Director1 2022-01-01 2022-12-31 04930122 d:Director2 2022-01-01 2022-12-31 04930122 d:Director3 2022-01-01 2022-12-31 04930122 d:Director4 2022-01-01 2022-12-31 04930122 d:Director4 2022-12-31 04930122 d:Director5 2022-01-01 2022-12-31 04930122 d:Director5 2022-12-31 04930122 d:RegisteredOffice 2022-01-01 2022-12-31 04930122 d:Agent1 2022-01-01 2022-12-31 04930122 c:FurnitureFittings 2022-01-01 2022-12-31 04930122 c:FurnitureFittings 2022-12-31 04930122 c:FurnitureFittings 2021-12-31 04930122 c:OfficeEquipment 2022-01-01 2022-12-31 04930122 c:OfficeEquipment 2022-12-31 04930122 c:OfficeEquipment 2021-12-31 04930122 c:ComputerEquipment 2022-01-01 2022-12-31 04930122 c:ComputerEquipment 2022-12-31 04930122 c:ComputerEquipment 2021-12-31 04930122 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-01-01 2022-12-31 04930122 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-12-31 04930122 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2021-12-31 04930122 c:CurrentFinancialInstruments 2022-12-31 04930122 c:CurrentFinancialInstruments 2021-12-31 04930122 c:UKTax 2022-01-01 2022-12-31 04930122 c:UKTax 2021-01-01 2021-12-31 04930122 c:ShareCapital 2022-12-31 04930122 c:ShareCapital 2021-12-31 04930122 c:ShareCapital 2021-01-01 04930122 c:SharePremium 2022-01-01 2022-12-31 04930122 c:SharePremium 2022-12-31 04930122 c:SharePremium 2021-12-31 04930122 c:SharePremium 2021-01-01 04930122 c:CapitalRedemptionReserve 2022-01-01 2022-12-31 04930122 c:CapitalRedemptionReserve 2022-12-31 04930122 c:CapitalRedemptionReserve 2021-12-31 04930122 c:CapitalRedemptionReserve 2021-01-01 04930122 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 04930122 c:RetainedEarningsAccumulatedLosses 2022-12-31 04930122 c:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 04930122 c:RetainedEarningsAccumulatedLosses 2021-12-31 04930122 c:RetainedEarningsAccumulatedLosses 2021-01-01 04930122 d:OrdinaryShareClass1 2022-01-01 2022-12-31 04930122 d:OrdinaryShareClass1 2021-01-01 2021-12-31 04930122 d:OrdinaryShareClass1 2022-12-31 04930122 d:OrdinaryShareClass1 2021-12-31 04930122 d:OrdinaryShareClass2 2022-01-01 2022-12-31 04930122 d:OrdinaryShareClass2 2021-01-01 2021-12-31 04930122 d:OrdinaryShareClass2 2022-12-31 04930122 d:OrdinaryShareClass2 2021-12-31 04930122 d:OrdinaryShareClass3 2022-01-01 2022-12-31 04930122 d:OrdinaryShareClass3 2021-01-01 2021-12-31 04930122 d:OrdinaryShareClass3 2022-12-31 04930122 d:OrdinaryShareClass3 2021-12-31 04930122 d:OrdinaryShareClass4 2022-01-01 2022-12-31 04930122 d:OrdinaryShareClass4 2021-01-01 2021-12-31 04930122 d:OrdinaryShareClass4 2022-12-31 04930122 d:OrdinaryShareClass4 2021-12-31 04930122 d:OrdinaryShareClass5 2022-01-01 2022-12-31 04930122 d:OrdinaryShareClass5 2021-01-01 2021-12-31 04930122 d:OrdinaryShareClass5 2022-12-31 04930122 d:OrdinaryShareClass5 2021-12-31 04930122 d:FRS102 2022-01-01 2022-12-31 04930122 d:Audited 2022-01-01 2022-12-31 04930122 d:FullAccounts 2022-01-01 2022-12-31 04930122 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 04930122 c:Subsidiary1 2022-01-01 2022-12-31 04930122 c:DevelopmentCostsCapitalisedDevelopmentExpenditure c:ExternallyAcquiredIntangibleAssets 2022-01-01 2022-12-31 04930122 6 2022-01-01 2022-12-31 04930122 c:DevelopmentCostsCapitalisedDevelopmentExpenditure c:OwnedIntangibleAssets 2022-01-01 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure

img5380.png






Financial Statements
Dictate IT Limited
 For the year ended 31 December 2022





































Registered number: 04930122

 
Dictate IT Limited
 

Company Information


Directors
Howard Beggs 
Rory Cremin 
Jennifer Hughes 
Kandaswamy Murali Krishnan (resigned 31 January 2023)
Mark Rudolph George Miller (resigned 1 January 2023)




Registered number
04930122



Registered office
Aurora House
Deltic Avenue

Rooksley

Buckinghamshire

MK13 8LW




Independent auditor
Grant Thornton
Chartered Accountants & Statutory Auditors

13-18 City Quay

Dublin 2




Bankers
Citibank N.A. London
Canada SQ Service CTR

Citigroup CTR 25

London

United Kingdom

E14 5LB





 
Dictate IT Limited
 

Contents



Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23


 
Dictate IT Limited
 
 
Directors' report
For the year ended 31 December 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the Company is outsourcing medical transcription and supply of digital dictation and speech recognition systems to both secondary and primary care healthcare settings in the UK and Ireland.

Results and dividends

The profit for the year, after taxation, amounted to £3,431,980 (2021: £2,961,763).

The Company has paid a dividend of £2,610,000 during the year (2021: £2,750,000).

Directors

The directors who served during the year were:

Howard Beggs 
Rory Cremin 
Jennifer Hughes 
Kandaswamy Murali Krishnan (resigned 31 January 2023)
Mark Rudolph George Miller (resigned 1 January 2023)

Future developments

The Company plans to continue its present activities.

Research and development activities

The Company continued development work during the year on the Group's digital dictation.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, Grant Thorntonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 1

 
Dictate IT Limited
 

Directors' report (continued)
For the year ended 31 December 2022

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Howard Beggs
Director

Date: 28 July 2023

Page 2

 
Dictate IT Limited
 

Directors' responsibilities statement
For the year ended 31 December 2022

The directors are responsible for preparing the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

On behalf of the board




Howard Beggs

Director


Date: 28 July 2023

Page 3

 
 
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Independent auditor's report to the members of Dictate IT Limited

Opinion


We have audited the financial statements of Dictate IT Limited which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity for the year ended 31 December 2022, and the related notes to the financial statements, including a summary of significant accounting policies.  

The financial reporting framework that has been applied in the 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, Dictate IT Limited's financial statements:


give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the assets, liabilities and financial position of the Company as at 31 December 2022 and of its financial performance for the year then ended; 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 'Responsibilities of the auditor 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 United Kingdom, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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 the date 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.
Page 4

 
 
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Independent auditor's report to the members of Dictate IT Limited (continued)



Other information


Other information comprises the information included in the annual report, other than the financial statements and our Auditor's report thereon, including the Directors' report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the 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 statementsour 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 in the financial statements, 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.


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 Directors' report for the 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 the knowledge and understanding of the Company and its environment we have 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, 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.
the directors were not entitled to take advantage of the small companies' exemptions from the requirement to prepare a strategic report or in preparing the Directors' report.
Page 5

 
 
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Independent auditor's report to the members of Dictate IT Limited (continued)

Responsibilities of management and those charged with governance for the financial statements
 

Management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS102 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, management is 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 management either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.


Those charged with governance are responsible for overseeing the Company's financial reporting process.

Responsibilities of the auditor for the audit of the financial statements
 

The objectives of an auditor 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 their 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.

A further description of an auditor's 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 auditor's report.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).

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

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to compliance with data protection and Employment laws, Health and Safety Regulation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulation that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and UK tax 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 manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.
Page 6

 
 
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Independent auditor's report to the members of Dictate IT Limited (continued)

Responsibilities of the auditor for the audit of the financial statements (continued)

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)

In response to these principal risks, our audit procedures included but were not limited to:

inquiries of management and board on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
inspection of the Company’s regulatory and legal correspondence and review of minutes of board meetings during the year to corroborate inquiries made;
gaining an understanding of the internal controls established to mitigate risk related to fraud;
discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;
identifying and testing journal entries to address the risk of inappropriate journals and management override of controls;
designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
challenging assumptions and judgements made by management in their significant accounting estimates, including development expenditure and estimating allowance for impairment losses in tangible assets; and
review of the financial statements disclosures to underlying supporting documentation and inquiries of management.

The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.

The purpose of our audit work and to whom we owe our responsibilities
 

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.

 
 
Tracey Sullivan (Senior statutory auditor)
for and on behalf of
Grant Thornton
Chartered Accountants
& Statutory Auditors
13 - 18 City Quay
Dublin 2
 
 28 July 2023
Page 7

 
Dictate IT Limited
 

Statement of comprehensive income
For the year ended 31 December 2022

2022
2021
Note
£
£

  

Turnover
  
9,710,260
9,710,324

Cost of sales
  
(2,863,602)
(3,170,531)

Gross profit
  
6,846,658
6,539,793

Administrative expenses
  
(3,689,002)
(3,096,313)

Other operating income
 4 
574,088
84,309

Operating profit
 5 
3,731,744
3,527,789

Tax on profit
 8 
(299,764)
(566,026)

Profit for the financial year
  
3,431,980
2,961,763

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 11 to 23 form part of these financial statements.

Page 8

 
Dictate IT Limited
Registered number:04930122

Statement of financial position
As at 31 December 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 10 
1,210,985
791,766

Tangible assets
 11 
62,744
39,789

Investments
 12 
417,364
417,364

  
1,691,093
1,248,919

Current assets
  

Debtors: amounts falling due within one year
 13 
5,677,810
4,634,270

Cash at bank and in hand
 14 
469,397
1,336,307

  
6,147,207
5,970,577

Current liabilities
  

Creditors: amounts falling due within one year
 15 
(1,469,636)
(1,672,812)

Net current assets
  
 
 
4,677,571
 
 
4,297,765

Net assets
  
6,368,664
5,546,684


Capital and reserves
  

Called up share capital 
 16 
2,823
2,823

Share premium account
 17 
30,816
30,816

Capital redemption reserve
 17 
2,814
2,814

Profit and loss account
 17 
6,332,211
5,510,231

Shareholders' funds
  
6,368,664
5,546,684


The financial statements have been prepared in accordance with the provisions applicable to companies subject to
the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



Howard Beggs
Director

Date: 28 July 2023

The notes on pages 11 to 23 form part of these financial statements.

Page 9

 
Dictate IT Limited
 

Statement of changes in equity
For the year ended 31 December 2022


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 January 2022
2,823
30,816
2,814
5,510,231
5,546,684


Comprehensive income for the year

Profit for the year
-
-
-
3,431,980
3,431,980

Dividends: Equity capital
-
-
-
(2,610,000)
(2,610,000)


At 31 December 2022
2,823
30,816
2,814
6,332,211
6,368,664



Statement of changes in equity
For the year ended 31 December 2021


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 January 2021
2,823
30,816
2,814
5,298,468
5,334,921


Comprehensive income for the year

Profit for the year
-
-
-
2,961,763
2,961,763

Dividends: Equity capital
-
-
-
(2,750,000)
(2,750,000)


At 31 December 2021
2,823
30,816
2,814
5,510,231
5,546,684


The notes on pages 11 to 23 form part of these financial statements.

Page 10

 
Dictate IT Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

1.


General information

Dictate IT Limited is a private company limited by shares which is registered and incorporated in the United Kingdom. The Company's registered office is Aurora House, Deltic Avenue, Rooksley, Milton Keynes, Buckinghamshire, MK13 8LW. The principal activity of the Company is outsourcing medical transcription and supply of digital dictation systems.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The Company is exempt from the requirement to produce consolidated accounts by virtue of s401 of the Companies Act 2006, as the results of the Company and its subsidiary are included in the consolidated financial statements of Clanwilliam Headquarters Limited, drawn up to 31 December 2022, available from the Companies Registration Office, Bloom House, Gloucester Place Lower, Dublin 1.

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 11

 
Dictate IT Limited
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.3

Revenue

Revenue arises mainly from outsourcing medical transcription and supply of digital dictation systems.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.5

Finance costs

Finance costs are charged to the Statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 12

 
Dictate IT Limited
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.6

Pensions

Defined contribution pension plan

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

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

 
2.7

Taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.8

 Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

The estimated useful lives range as follows:
  Software development  - 3 years
Page 13

 
Dictate IT Limited
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)


2.8
 Intangible assets (continued)

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.9

 Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%
Office equipment
-
25%
Computer equipment
-
25%

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

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

 
2.10

 Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 14

 
Dictate IT Limited
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.11

 Debtors

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

 
2.12

 Cash and cash equivalents

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

 
2.13

 Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, including transaction costs, and are measured subsequently at amortised cost using the effective interest method.
 
 
2.14

 Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:
at fair value with changes recognised in the Statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably;
at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Page 15

 
Dictate IT Limited
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)


2.14
 Financial instruments (continued)

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an 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.

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

  
2.15

 Operating leases: the Company as lessee

Rentals paid under operating leases are recognised in the Statement of comprehensive income on a straight line basis over the lease term.

 
2.16

 Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make significant judgments and estimates.

Development expenditure
Development expenditure is capitalised in accordance with the accounting policy above. The initial capitalisation of costs is based on management's judgement that technical and economic feasibility is confirmed, usually when a product development project has reached a defined milestone according to an established project management model. In determining the amounts to be capitalised, management makes assumptions regarding the expected future cash generation of the assets, discount rates to be applied and the expected period of benefits. 

Estimating allowance for impairment losses in tangible assets
The Company assesses impairment on tangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The factors that the Company considers important which could trigger an impairment review include the following:

1)Significant underperformance relative to expected historical or projected future operating results
2)Significant changes in the manner of use of the acquired assets or the strategy for overall business; and
3)Significant negative industry or economic trends.
Page 16

 
Dictate IT Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

3.Judgments in applying accounting policies and key sources of estimation uncertainty (continued)

In determining the present value of estimated future cashflows expected to be generated from the continued use of the assets, the Company is required to make estimates and assumptions that can materially affect the financial statements.

These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An impairment loss would be recognised whenever evidence exists that the carrying value is not recoverable. For purposes of assessing impairment, assets are grouped at the lowest levels of which there are separately identifiable cashflows.

An impairment loss is recognised and charged to profit or loss if the discounted expected future cash flows are less than the carrying amount. Fair value is estimated by discounting the expected future cashflows using a discount factor that reflects the risk-free rate of interest for a term consistent with the period of expected cashflows.



4.


Other operating income

2022
2021
£
£

Dividend Income
460,264
-

R&D tax credits
113,824
84,309

574,088
84,309



5.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Exchange differences
(6,096)
7,626

Depreciation
32,120
33,603

Amortisation
296,746
207,403

Rent
9,684
47,341


6.


Employees

The average monthly number of employees, including the directors, during the year was 27 (2021: 28).



Page 17

 
Dictate IT Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

7.


Directors' remuneration

2022
2021
£
£



Directors emoluments
83,832
134,132

Directors pension contribution
2,515
4,024

86,347
138,156


8.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
559,684
559,422

Adjustments in respect of previous periods
(259,920)
6,604


Taxation on profit on ordinary activities
299,764
566,026

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - lower than) the profit before tax multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
3,731,744
3,527,789


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021: 19%)
709,031
670,280

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
15,521
(14,471)

Depreciation for year in excess of capital allowances
(108,521)
(104,212)

Adjustments to tax charge in respect of prior periods
(259,920)
-

R&D Tax Credit
21,627
14,429

Non-taxable income
(109,076)
-

Group relief surrender
31,102
-

Total tax charge for the year
299,764
566,026


Factors that may affect future tax charges

There are no factors which may affect future tax charges.

Page 18

 
Dictate IT Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

9.


Dividends

2022
2021
£
£


Dividends paid
2,610,000
2,750,000


10.


Intangible assets




Software development

£



Cost


At 1 January 2022
6,849,011


Additions
750,085


Disposals
(34,120)



At 31 December 2022

7,564,976



Amortisation


At 1 January 2022
6,057,245


Charge for the year on owned assets
296,746



At 31 December 2022

6,353,991



Net book value



At 31 December 2022
1,210,985



At 31 December 2021
791,766



Page 19

 

Dictate IT Limited
 
 
 

Notes to the financial statements
For the year ended 31 December 2022


11.


Tangible fixed assets






Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2022
129,718
93,670
228,631
452,019


Additions
-
-
56,014
56,014


Disposals
-
(2,436)
-
(2,436)



At 31 December 2022

129,718
91,234
284,645
505,597



Depreciation


At 1 January 2022
129,718
92,174
190,338
412,230


Disposals
-
(1,497)
-
(1,497)


Charge for the year
-
557
31,563
32,120



At 31 December 2022

129,718
91,234
221,901
442,853



Net book value



At 31 December 2022
-
-
62,744
62,744



At 31 December 2021
-
1,496
38,293
39,789

Comparative balances have been reclassed to conform with current year presentation.

Page 20

 
Dictate IT Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

12.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2022
417,364



At 31 December 2022

417,364






Net book value



At 31 December 2022
417,364



At 31 December 2021
417,364









13.


Debtors: Amounts falling due within one year

2022
2021
£
£


Trade debtors
2,372,742
1,524,078

Amounts owed by group undertakings
3,019,156
3,062,871

Other debtors
58,613
29,714

Prepayments and accrued income
55,659
17,607

Corporation tax repayable
171,640
-

5,677,810
4,634,270


Amounts owed by group undertakings are unsecured, interest free and repayable and demand.


14.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
469,397
1,336,307


Page 21

 
Dictate IT Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

15.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
109,407
79,828

Amounts owed to group undertakings
470,022
222,159

Corporation tax
-
489,497

Other taxation and social security
625,057
641,849

Other creditors
14,343
5,062

Accruals
151,338
189,750

Deferred income
99,469
44,667

1,469,636
1,672,812


Amounts owed to group undertakings are interest free and repayable on demand.
Glas Trust Corporation Limited hold a fixed and floating charge over the assets of the Company.


16.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



1,835 (2021 - 1,835) A Ordinary shares of £1.00 each
1,835
1,835
358 (2021 - 358) B1 Ordinary shares of £1.00 each
358
358
357 (2021 - 357) B2 Ordinary shares of £1.00 each
357
357
136 (2021 - 136) C1 Ordinary shares of £1.00 each
136
136
137 (2021 - 137) C2 Ordinary shares of £1.00 each
137
137

2,823

2,823

17.


Reserves

Share premium account

Share premium comprises of premiums paid on the issue of ordinary share capital.

Capital redemption reserve

The Company is able to redeem its shares wholly out of profits available for distribution, a sum equal to the amount by which the Company's share capital is diminished on cancellation of the shares are transferred to this reserve. 

Profit and loss account

Includes all current and prior period retained profits and losses.

Page 22

 
Dictate IT Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

18.


Commitments under operating leases

At 31 December 2022 the Company had no future lease payments due to the leases being terminated during the year.


19.


Related party transactions

The Company has availed of the exemptions in FRS102 Section 33, Paragraph 33.1A which allows non-disclosure of transactions between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.


20.


Post balance sheet events

There have been no significant events affecting the Company since the year end.


21.


Controlling party

The immediate parent company is Clanwilliam Investments UK Ltd, a company incorporated in the United Kingdom. 
The smallest and largest consolidated financial statements presented are that of Clanwilliam Headquarters Limited. They are publicly available from the Companies Registration Office, Bloom House, Gloucester Place Lower, Dublin 1.
Clanwilliam Headquarters Limited is owned by a UK trust called The Clanwilliam Group Trust. M H Steven Wilson is the sole trustee and is the ultimate controlling party.


Page 23