Registered number
04597890
Smartology Limited
Filleted Accounts
31 December 2023
Smartology Limited
Registered number: 04597890
Balance Sheet
as at 31 December 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 3 6,234,038 5,806,561
Investments 4 8 8
6,234,046 5,806,569
Current assets
Debtors 5 1,222,187 1,402,192
Cash at bank and in hand 76,616 195,343
1,298,803 1,597,535
Creditors: amounts falling due within one year 6 (2,303,808) (1,332,921)
Net current (liabilities)/assets (1,005,005) 264,614
Total assets less current liabilities 5,229,041 6,071,183
Creditors: amounts falling due after more than one year 7 (15,125) (983,372)
Net assets 5,213,916 5,087,811
Capital and reserves
Called up share capital 10 9
Share premium 10,666,327 9,919,647
Profit and loss account (5,452,421) (4,831,845)
Shareholders' funds 5,213,916 5,087,811
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
David Paul Wilkinson
Director
Approved by the board on 12 February 2024
Smartology Limited
Notes to the Accounts
for the year ended 31 December 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Debtors
Short term debtors are measured at transaction price, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2023 2022
Number Number
Average number of persons employed by the company 24 24
3 Tangible fixed assets
Capitalised Software Development
£
Cost
At 1 January 2023 8,377,805
Additions 1,265,255
At 31 December 2023 9,643,060
Depreciation
At 1 January 2023 2,571,244
Charge for the year 837,778
At 31 December 2023 3,409,022
Net book value
At 31 December 2023 6,234,038
At 31 December 2022 5,806,561
4 Investments
Investments in
subsidiary
undertakings
£
Cost
At 1 January 2023 8
At 31 December 2023 8
5 Debtors 2023 2022
£ £
Trade debtors 788,530 941,484
Corporation tax debtor 393,822 412,070
Other debtors 39,835 48,638
1,222,187 1,402,192
6 Creditors: amounts falling due within one year 2023 2022
£ £
Bank loans and overdrafts 370,835 273,064
Debenture loans 960,000 -
Trade creditors 696,281 497,669
Taxation and social security costs 224,647 189,800
Other creditors 52,045 372,388
2,303,808 1,332,921
7 Creditors: amounts falling due after one year 2023 2022
£ £
Bank loans 15,125 23,372
Debenture loans - 960,000
15,125 983,372
8 Loans 2023 2022
£ £
Creditors include:
Instalments falling due for payment after more than five years 2,075 12,723
Secured bank loans 360,187 262,416
Optimum Finance Ltd hold a debenture over book debts.
9 Research and development
Continued development of the product and software platform is crucial to the long-term success of the Company. Accordingly, after a review by management, it has been decided that, to present the Financial Statements in a true and fair view, development costs should be capitalised going forward, rather than expensed to the P&L as incurred. Therefore, amounts totalling £1,265,255 (2022: £1,578,114) were capitalised during the current financial year.

The company takes advantage of Research and Development tax reliefs and surrenders losses for corporation tax credits.
10 Going concern
These financial statements have been prepared on a going concern basis. There are convertible loans of £960,000: the board expects these to be converted to shares in due course. The company has the support of its major shareholders.
11 Related party transactions
Paid Fees and interest Accruals Amounts outstanding
£ £ £
Entities with a common director 132,081 - -
Directors 25,000 - -
Amounts owed to related parties - - -
Entities with a common director - 9,939 974,017
31/12/23 157,081 9,939 974,017
Entities with a common director 225,193 - -
Directors 23,750 - -
Amounts owed to related parties
Entities with a common director - 9,939 969,939
31/12/22 248,943 9,939 969,939
12 Controlling party
The company knows or has reasonable cause to believe that there is no registrable person or registrable relevant legal entity in relation to the company
13 Other information
Smartology Limited is a private company limited by shares and incorporated in England. Its registered office is:
Associates House
118A East Barnet Road
Barnet
Herts
EN4 8RE
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