Registered number: 06386360
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
COMPANY INFORMATION
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BRIGHT NETWORK (UK) LIMITED
CONTENTS
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BRIGHT NETWORK (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present the strategic report for the year ended 31 March 2023.
Principal activity The principal activity of the company is a media technology business that connects the world’s leading employers with the best and brightest graduates and interns.
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BRIGHT NETWORK (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Overview
FY23 marked another year of significant growth for the business. As well as developing and strengthening core financial metrics there has been continued investment in our long-term strategic competitive advantage across the marketing, technology, people and business functions. This approach strives to develop enduring shareholder value. As the business developed during 2023 it was split into two discreet business units, the Platform and the Technology Academy. The Platform refers to the first product offering of Bright Network, a cutting edge data and technology marketing and attraction platform that allows companies to communicate their internship and graduate programmes to our proprietary student and graduate audience of 775,000+ members. The Technology Academy is our new ‘Recruit Train Deploy’ business that we launched in FY22 to train junior software engineers, who are then deployed into clients on a consultancy basis . Further details behind the competitive advantage that we are building can be found below: Technology • Career Path Test launched in UK & Germany – The company has launched this powerful member benefit and acquisition tool into the UK and German market. Members benefit from the ability to view comprehensive job and sector matches, as well as gaining a deeper understanding of their own values, drivers and motivations when it comes to the world of work. We see this tech product as a keystone for our global expansion • AI and Machine Learning – the business continues to build and invest in our data science team and further integrate AI solutions into our products. The early success of these machine learning developments has resulted in the publication of an academic paper showcasing our state-of-the-art job filtering capabilities at a major AI conference. This creates a solid foundation for future work on developing market leading job matching solutions • Personalised Website Advertising - this offering will enable our clients to launch hyper targeted advertising campaigns through promoted listings across various strategic locations, including our search results pages, member dashboard, and newsletter. We’re excited to launch this product for the campaign season in September 2023 Marketing • Acquisition – we acquired 204,187 new members in the UK in FY23, up 29% on FY22. A bigger audience means we have more candidates on our platform to market clients roles to • Client Engagement – we continue to engage our blue chip client network combining face to face interactions and Bright Network’s annual research report, launched at the increasingly popular Research Breakfast in April, where we hosted 200+ leaders from blue chips • Awards – further to the awards won in FY22, the company was shortlisted for ‘Workforce Solution of the Year’, ‘Tech Leader of the Year’ and ‘Talent Tech Fast Growth’ Platform • Germany – As part of the wider strategy to help students from across the globe the company launched into Germany in September 2022. There has been traction on both side of the market with over 7,500 students signing up in the first five months and the first sale made to clients • Shift to Self Serve – our technology investments continued to see more clients self-serving on the platform which frees up our Partnership Success Team to focus on the client relationship and service, adding value to their campaigns
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BRIGHT NETWORK (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Technology Academy • Growth – revenue for Technology Academy increased nearly 380% for the financial year, this was driven by both building out key client relationships, plus onboarding new clients • Training – our investment in our training team means we been able to train +130 consultants in the last 12 months • Lloyds Banking Group Graduation event – the first cohort of software engineers we trained over two years ago have now become full time employees at LBG showing our ability to help our blue chip clients acquire exceptional diverse talent at scale People • Talent Acquisition - our internal HQ team headcount is currently 75 – we have started to build out an internal talent acquisition function • Development – our People Team has built and delivered an internal management training programme that 21 of our current and future managers have participated in - we have already seen this have a great impact on our latest People Survey Engagement scores. Fundraise In the second half of FY23 the company started the process to fundraise, aimed at deepening the company’s tech capabilities as well as expanding internationally. The company completed ~£5m of new equity funding in July 2023 from its two largest shareholders.
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BRIGHT NETWORK (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The principal risks are identified below:
Business performance risk This arises from the company not performing as expected. The company takes a number of measures to manage this risk, including monthly financial and KPI reporting, weekly management meetings, monthly board meetings and quarterly forecasting. Liquidity risk This arises from the difficulties the company may face in meeting obligations under financial liabilities as they fall due. The company mitigates liquidity risk by maintaining a sufficient cash balance to meet foreseeable obligations. Management actively monitor long term cash flow forecasts and have historically raised money in advance of needing to. Market risk Client recruitment activity is significantly influenced by economic cycles and the levels of business confidence. Businesses are less likely to need new hires and employees are less likely to move jobs when they do not have confidence in the market, leading to reduced recruitment activity. The company has deliberately pursued a diverse client base across several industries to mitigate this risk. Furthermore, the company has diversified its product base through the inception of Bright Network Technology Academy as well as entering a new territory, Germany, in September 2022. Management closely monitors economic indicators and adjust tactics and strategy accordingly. IT risk The company’s platform and systems are an integral part of the operations. Loss of platform or systems capability could have a material impact on performance, impacting the quality of service provided and the ability to deliver financial performance. This is mitigated through a combination of IT access controls, strong product security features, and insurance. Cyber risk Cyber risk relates to confidential, sensitive, and personal data which is held across the Company. Failure to handle this data properly could expose the Company to financial penalties and reputational risk. There is also an increasing risk of loss of data due to malicious outside attacks or accidental breaches. As well as developing a platform with strong security features, the company takes out a comprehensive suite of insurance products to mitigate against the risk of a cyber attack.
•Revenue – FY23 closed with substantial YoY revenue growth of 77%. Revenue overperformance on
both lines of business resulted in a combined revenue total that exceeds the FY23 budget by over £1m, £11.6m vs £10.5m • Costs – cost control led to gross profit exceeding budget by £882k for Platform and £422k for BNTA. Overheads have scaled ahead of budget as the business invested in growing and retaining the team through recruitment and a salary and benefits package benchmarking exercise. Since introducing enhanced pay and benefits employee satisfaction in this area has increased to above 4/5 for the first time in the last two years • EBITDA – Overall EBITDA was ahead of budget by £316k. The combination of revenue and EBITDA overperformance has resulted in a current cash position of ~£2.5m
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BRIGHT NETWORK (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
This report was approved by the board and signed on its behalf.
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BRIGHT NETWORK (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
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;
∙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 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.
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BRIGHT NETWORK (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The loss for the year, after taxation, amounted to £550,853 (2022 - loss £157,771).
The Directors do not recommend a final dividend (2022: £Nil).
Directors’ and officers‘ liability The Company has made qualifying third-party indemnity provision for the benefit of its Directors against liability in respect of proceedings brought by third-parties, subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying third-party indemnity provision was in place during the year and remains in force as at the date of approving this Directors‘ Report. Going Concern The Company's business activities, together with the factors likely to affect the future development and principal risks and uncertainties are described in the Strategic Report. The Company is in a net asset position at year end. As a consequence the Directors believe that it is well placed to manage its business risks successfully. Having considered the company's forecasts, the level of cash resources available to the business and the company's equity fundraise in July 2023, as well as the ability to manage the cost base, the Board has concluded that the Company has adequate resource to continue in operational existence for foreseeable future.
The directors who served during the year were:
Looking ahead, there continues to be a degree of global macro-economic uncertainty as a result of increasing interest rates and inflation caused by the war in Ukraine. These two events have had an impact on the macroeconomic environment but the Directors remain satisfied with the future prospects of the company.
After the year end, the company issued 41,810 B1 Ordinary shares and 21,670 C Ordinary Shares at a nominal value of £0.001 for an amount of £82.7034 per share.
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BRIGHT NETWORK (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The auditor, Cooper Parry Group Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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BRIGHT NETWORK (UK) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIGHT NETWORK (UK) LIMITED
We have audited the financial statements of Bright Network (UK) Limited (the 'Company') for the year ended 31 March 2023, which comprise the Profit and loss account, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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 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.
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BRIGHT NETWORK (UK) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIGHT NETWORK (UK) LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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BRIGHT NETWORK (UK) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIGHT NETWORK (UK) LIMITED (CONTINUED)
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 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.
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the key laws and regulations that are applicable to the company. We determined that the most significant laws and regulations in the context of the financial statements included but were not limited to the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant tax legislation. We also assessed which areas of the financial statements are more susceptible to misstatement. We considered the opportunities and incentives that may exist within the organisation for fraud, and identified the greatest potential for fraud in revenue recognition, particularly in respect of any manual adjustments made to revenue outside of the day to day recording of transaction and also the potential for off balance sheet items to be considered on balance sheet. We are also mandated to perform specific procedures under ISAs (UK) to respond to the risk of management override. The primary responsibility for the prevention and detection of fraud and irregularities rests with those charged with governance of the company and management. We are not responsible for preventing irregularities. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: • The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; • We identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience; • Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit; • We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: • Making enquiries of management regarding any instances of known or suspected fraud or non- compliance with laws and regulations, as well as any actual or potential litigation and claims; • Gaining an understanding of the design and implementation of the processes and controls in place within the company which are designed to prevent, detect or correct fraud or error within the financial statements.
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BRIGHT NETWORK (UK) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIGHT NETWORK (UK) LIMITED (CONTINUED)
To address the risk of fraud through management bias and override of controls, we: • Reviewed correspondence with legal and regulatory bodies where applicable; • Performed analytical procedures to identify any unusual or unexpected relationships; • Reviewed the detail of certain nominal accounts for indications of management override; • Challenged the accounting treatment applied in respect of revenue recognised during the year, in particular in relation to manual adjustments made to revenue; • Identified and tested journal entries which we considered to be unusual and may be indicative of bias on the part of management or those charged with governance, investigating the rationale behind significant or unusual transactions; • Reviewed the minutes of meetings of management and those charged with governance; In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: • We agreed the financial statements disclosures to underlying supporting documentation. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor report.
The comparative figures provided, for the financial statements, for the year to 31 March 2022 have not been audited.
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 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
Statutory Auditor
1 Finsbury Avenue
Broadgate
EC2M 2PF
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BRIGHT NETWORK (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
REGISTERED NUMBER: 06386360
BALANCE SHEET
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 20 to 37 form part of these financial statements.
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BRIGHT NETWORK (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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BRIGHT NETWORK (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Bright Network (UK) Limited is a private limited company, registered in the United Kingdom and domiciled in England and Wales. The company's registered office address is: Fifth Floor, 80 Middlesex Street, London, E1 7EZ.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
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:
Rendering of services Revenue derived from services rendered is recognised in the period in which the services are provided in accordance with the stage of delivery 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; • the stage of delivery at the end of the reporting period can be measured reliably; and • the costs incurred and the costs to deliver the service can be measured reliably. Marketing and Attraction Digital & Events products are sold as a package of marketing and attraction services. Sales are recognised at the point of sale and deferred to the correct period of recognition. Events sales are recognised at the point of delivery. Digital revenue is recognised in the month of sale. Technology Academy Technology Academy revenue is recognised in the period in which consultants perform their work. Consultants are charged out on a pre agreed day rate and timesheets are submitted to calculate the chargeable revenue.
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
The Company's business activities, together with the factors likely to affect the future development and principal risks and uncertainties are described in the Strategic Report.
The Company is in a net asset position at year end. As a consequence the Directors believe that it is well placed to manage its business risks successfully. Having considered the company's forecasts, the level of cash resources available to the business and the company's equity fundraise in July 2023, as well as the ability to manage the cost base, the Board has concluded that the Company has adequate resource to continue in operational existence for foreseeable future. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. 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.
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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:
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.
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised costs using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
exercise judgement in the process of applying the group’s accounting policies. 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. 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. Impairment of fixed assets The directors assess the impairment of fixed assets subject to depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important that could trigger an impairment review include the following: - Significant under performance relative to historical or projected future operating results; - Significant changes in the use of the acquired assets or the business strategy; and - Significant negative industry or economic trends. Depreciation and residual values The directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives, and residual values are appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Recoverability of trade debtors Trade and other debtors are recognised to the extent that they are judged recoverable. The directors' reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain. The directors make allowance for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The directors specifically analyse historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the profit and loss account. Leases The directors determine whether leases entered into by the group either as a lessor or lessee are an operating leases or a finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the group on a lease by lease basis based On an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet. Fair value calculations Management believe the estimates used to establish a fair value for share based payments, using the Black Scholes pricing model. The inputs to the fair value model reflect managements best estimate.
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Analysis of turnover by country of destination:
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
10.Taxation (continued)
As at the year end, the company has tax losses carried forward of £2,705,309 (2022: £2,614,085) to offset against future taxable profits.
On 3 March 2021, the Chancellor of the Exchequer announced that the corporation tax rate would increase to a maximum of 25% from 1 April 2023. This was substantively enacted on 24 May 2021. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised, based on tax law and corporation tax rates that have been enacted, or substantively enacted, at the balance sheet date. As such, the deferred tax rate applicable at 31 May 2022 is 25% and the deferred tax has been re-measured at this rate. The recent budget on 23 September 2022, the Chancellor of the Exchequer announced that the corporation tax rate would not increase to a maximum of 25% however this has not been enacted as at year-end.
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Share premium account
Other reserves
Profit & loss account
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIGHT NETWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The accounts have been restated to incorporate the impact of a restatement of the share based payment.
Prior to the restatement, the share based payment charge amounted to £Nil, resulting in the share option reserve account totalling £Nil, and a loss on the profit or loss of £36,625. Following the restatement, the share based payment charge amounted to £121,146, resulting in the share option reserve account totalling £448,027, and a loss on the profit or loss of £157,771.
The Company contributes to a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £68,815 (2021 - £42,873). Contributions totalling £454 (2022 - £570) were payable to the fund at the balance sheet date and are included in creditors.
There is no ultimate controlling party by virtue of shareholdings.
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