REGISTERED NUMBER: 09822653 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 DECEMBER 2022 |
FOR |
LOGICMONITOR UK LIMITED |
REGISTERED NUMBER: 09822653 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 DECEMBER 2022 |
FOR |
LOGICMONITOR UK LIMITED |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income |
9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Notes to the Consolidated Financial Statements |
14 |
LOGICMONITOR UK LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Tagus House |
9 Ocean Way |
Southampton |
Hampshire |
SO14 3TJ |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
The directors present their strategic report of the company and the group for the year ended 30 December 2022. |
BUSINESS REVIEW |
The Group is funded solely by the parent company and performs most of the business' European transactions. The Group has been focussing on increasing its headcount to support strong product sales and expansion occurring in Europe, which has been a success. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The risks to the Group are limited as the parent company is responsible for the development and distribution of the product. There is some uncertainty on how new European markets will embrace the business brand, which could increase or decrease the annual expenditures in the Group. |
FINANCIAL KEY PERFORMANCE INDICATORS |
Since the Group is strictly an expense-based entity, the KPI's that are evaluated are expenses vs budget. The Group's revenue is based upon a gross up of expenses that is invoiced monthly to the parent company. |
ON BEHALF OF THE BOARD: |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 30 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the Group is to provide sales and marketing services support to its parent company LogicMonitor Inc. in the specific contracted region. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 December 2022. |
FUTURE DEVELOPMENTS |
The Group looks to further expand its market presence in Europe through new product offerings and further enhancements of its existing software products to contribute to the Company's vision of establishing a global Center of Excellence. To support this growth, the Group expects continued increases to its existing salesforce and support staff over the next 12 months. |
POST BALANCE SHEET EVENTS |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, HJS Accountants Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LOGICMONITOR UK LIMITED |
Opinion |
In our opinion the financial statements: |
- give a true and fair view of the state of the group's and the parent company's affairs as at 30 December 2022 and of its profit for the year then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
We have audited the financial statements of Logicmonitor UK Limited (the 'parent company') and its subsidiaries for the year ended 30 December 2022 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity and notes to the financial statements, including 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). |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Emphasis of Matter |
We draw your attention to Note 8 in the financial statements which confirms that there has been a write down to the goodwill. A decision has been made for a subsidiary of the parent company based in Sweden to cease trading and close as a result the goodwill has been written down during the year, inline with the results of the subsidiary for 2023. This had led to the result of negative reserves. Additional investigation was carried out with regards to the group's ability to continue as a going concern and the group has the support of the ultimate parent company for at least 12 months' from the date of signing of the financial statements. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LOGICMONITOR UK LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of our audit: |
- the information given in the strategic and directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the strategic and 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 obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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 parent company financial statements are not in agreement with the accounting records and returns; or |
- certain disclosures of directors' remuneration specified by law are not made; or |
- we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LOGICMONITOR UK LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by the relevant construction authorities. We also considered the laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006. |
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 management bias in accounting estimates and judgmental areas of the financial statements. |
Audit procedures performed by the audit engagement team included: |
- Discussions with senior management, including consideration of known or suspected instances of noncompliance with laws and regulations or instances of fraud; |
- Identifying and testing journal entries based on risk criteria; |
- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; |
- Testing transactions entered into outside of the normal course of the group and parent company's business; |
- Reviewing any potential litigation or claims against the entity which indicate any potential noncompliance issues. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or though collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LOGICMONITOR UK LIMITED |
Use of our report |
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 group and parent company and the group and parent company's member, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Tagus House |
9 Ocean Way |
Southampton |
Hampshire |
SO14 3TJ |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 19,940,030 | 20,759,564 |
Cost of sales | (13,766,500 | ) | (11,611,716 | ) |
GROSS PROFIT | 6,173,530 | 9,147,848 |
Distribution costs | - | (1,724 | ) |
Administrative expenses | (13,047,478 | ) | (8,759,792 | ) |
OPERATING (LOSS)/PROFIT | 4 | (6,873,948 | ) | 386,332 |
Interest receivable and similar income |
3,896 |
- |
(6,870,052 | ) | 386,332 |
Gain/loss on revaluation of intangible assets |
- |
250,667 |
(6,870,052 | ) | 636,999 |
Interest payable and similar expenses |
5 |
(935 |
) |
(5,233 |
) |
(LOSS)/PROFIT BEFORE TAXATION | (6,870,987 | ) | 631,766 |
Tax on (loss)/profit | 6 | (117,282 | ) | 175,972 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(6,988,269 |
) |
807,738 |
(Loss)/profit attributable to: |
Owners of the parent | (6,988,269 | ) | 807,738 |
Total comprehensive income attributable to: |
Owners of the parent | (6,988,269 | ) | 807,738 |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
30 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | 4,187,945 | 13,035,990 |
Tangible assets | 9 | 288,844 | 195,384 |
Investments | 10 | - | - |
4,476,789 | 13,231,374 |
CURRENT ASSETS |
Debtors: amounts falling due within one year |
11 |
4,264,438 |
3,845,310 |
Cash at bank | 1,460,756 | 1,877,690 |
5,725,194 | 5,723,000 |
CREDITORS |
Amounts falling due within one year | 12 | 15,461,498 | 17,225,620 |
NET CURRENT LIABILITIES | (9,736,304 | ) | (11,502,620 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
(5,259,515 |
) |
1,728,754 |
CAPITAL AND RESERVES |
Called up share capital | 14 | 1 | 1 |
Retained earnings | 15 | (5,259,516 | ) | 1,728,753 |
SHAREHOLDERS' FUNDS | (5,259,515 | ) | 1,728,754 |
(5,259,515 | ) | 1,728,754 |
The financial statements were approved by the Board of Directors and authorised for issue on 1 February 2024 and were signed on its behalf by: |
N S C Lee - Director |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
COMPANY STATEMENT OF FINANCIAL POSITION |
30 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors: amounts falling due within one year |
11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 13 |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
(12,186,344 | ) | (382,235 | ) |
Company's loss for the financial year | (11,808,890 | ) | (1,428,193 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 31 December 2020 | - | 921,015 | 921,015 |
Changes in equity |
Issue of share capital | 1 | - | 1 |
Total comprehensive income | - | 807,738 | 807,738 |
Balance at 30 December 2021 | 1 | 1,728,753 | 1,728,754 |
Changes in equity |
Total comprehensive income | - | (6,988,269 | ) | (6,988,269 | ) |
Balance at 30 December 2022 | 1 | (5,259,516 | ) | (5,259,515 | ) |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 31 December 2020 |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 December 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 December 2022 | ( |
) | ( |
) |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Logicmonitor UK Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23; |
• | the requirement of paragraph 33.7; |
• | the requirements of paragraph 24(b) of IFRS 6. |
Basis of consolidation |
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
For the year ended 30 December 2022 the subsidiary company, Dexda Limited, was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies. |
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015. |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 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 Group 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. |
Goodwill |
Goodwill represents the difference between the amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life. An impairment assessment is carried out at each reporting date to assess the carrying amount against the recoverable amount, with any impairment losses being recognised in the statement of comprehensive income for the reporting period. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Debtors: |
Short term debtors are measured at transaction price, less any impairment. |
Creditors: |
Short term creditors are measured at transaction price. |
Cash: |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. |
There are no complex financial instruments. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
The Group's functional and presentational currency is GBP, rounded to the nearest £1. |
Transactions and balances |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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. |
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
At the balance sheet date, the current liabilities of the Company exceeded its current assets by £15,538,361 (2021: £16,006,142), and overall the Company had net liabilities of £12,236,129 (2021: net liabilities of £427,239). The current liabilities of the Group exceeded its current assets by £9,736,304 (2021: £11,502,610), but overall, the Group had net liabilities of £5,259,516 (2021: net assets of £1,728,754). |
However, the company is effectively a branch of LogicMonitor, Inc, with all operating costs attracting a mark-up percentage which is paid by LogicMonitor, Inc. |
LogicMonitor, Inc has confirmed that it will continue to support LogicMonitor UK Limited, and its subsidiaries, for a period of at least 12 months from the date of this report. The financial statements have therefore been prepared on a going concern basis which assumes that the Company will continue in operational existence for the foreseeable future and which relies on the continued support of the parent undertaking. |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
3. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 11,738,030 | 10,277,866 |
Social security costs | 1,886,766 | 1,656,840 |
Other pension costs | 365,795 | 330,210 |
13,990,591 | 12,264,916 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Support staff |
The average number of employees by undertakings that were proportionately consolidated during the year was 28 (2021 - 29 ) . |
2022 | 2021 |
£ | £ |
Directors' remuneration | - | - |
4. | OPERATING (LOSS)/PROFIT |
The operating loss (2021 - operating profit) is stated after charging: |
2022 | 2021 |
£ | £ |
Other operating leases | 1,196,304 | 1,235,500 |
Depreciation - owned assets | 206,550 | 99,344 |
Goodwill amortisation | - | 1,028,361 |
Patents and licences amortisation | 692,095 | 83,806 |
Development costs amortisation | 1,575,560 | 1,575,560 |
Foreign exchange differences | 463,088 | 27,144 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Interest payable on CT | 935 | - |
Non bank interest on loans | - | 5,233 |
935 | 5,233 |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
6. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the loss for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 112,501 | (215,718 | ) |
Deferred tax | 4,781 | 39,746 |
Tax on (loss)/profit | 117,282 | (175,972 | ) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
(Loss)/profit before tax | (6,870,987 | ) | 631,766 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
(1,305,488 |
) |
120,036 |
Effects of: |
Expenses not deductible for tax purposes | 1,938,540 | 118,377 |
Adjustments to tax charge in respect of previous periods | - | 2,504 |
Fixed Asset Differences | (16,485 | ) | (7,633 | ) |
Remeasurement of deferred tax for changes in tax rates | 1,147 | 10,801 |
Movement in deferred tax not recognised | 4,781 | 7,541 |
Profit in relation to overseas subsidiaries | (505,213 | ) | (427,598 | ) |
Total tax charge/(credit) | 117,282 | (175,972 | ) |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
8. | INTANGIBLE FIXED ASSETS |
Group |
Patents and | Development |
Goodwill | licences | costs | Totals |
£ | £ | £ | £ |
COST |
At 31 December 2021 | 12,705,595 | 251,193 | 7,878,042 | 20,834,830 |
Impairments | (6,580,390 | ) | - | - | (6,580,390 | ) |
At 30 December 2022 | 6,125,205 | 251,193 | 7,878,042 | 14,254,440 |
AMORTISATION |
At 31 December 2021 | 4,480,107 | 167,613 | 3,151,120 | 7,798,840 |
Amortisation for year | - | 692,095 | 1,575,560 | 2,267,655 |
At 30 December 2022 | 4,480,107 | 859,708 | 4,726,680 | 10,066,495 |
NET BOOK VALUE |
At 30 December 2022 | 1,645,098 | (608,515 | ) | 3,151,362 | 4,187,945 |
At 30 December 2021 | 8,225,488 | 83,580 | 4,726,922 | 13,035,990 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
and | Office |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 31 December 2021 | 42,182 | 364,581 | 406,763 |
Additions | 48,586 | 264,676 | 313,262 |
Disposals | (630 | ) | (129,604 | ) | (130,234 | ) |
At 30 December 2022 | 90,138 | 499,653 | 589,791 |
DEPRECIATION |
At 31 December 2021 | 25,003 | 186,376 | 211,379 |
Charge for year | 18,576 | 187,974 | 206,550 |
Eliminated on disposal | - | (116,982 | ) | (116,982 | ) |
At 30 December 2022 | 43,579 | 257,368 | 300,947 |
NET BOOK VALUE |
At 30 December 2022 | 46,559 | 242,285 | 288,844 |
At 30 December 2021 | 17,179 | 178,205 | 195,384 |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
and | Office |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 31 December 2021 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 December 2022 |
DEPRECIATION |
At 31 December 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 December 2022 |
NET BOOK VALUE |
At 30 December 2022 |
At 30 December 2021 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 31 December 2021 |
Impairments | ( |
) |
At 30 December 2022 |
NET BOOK VALUE |
At 30 December 2022 |
At 30 December 2021 |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Dexda Limited |
Registered office: 30 Stamford Street, London, United Kingdom, SE1 9LQ |
Nature of business: |
% |
Class of shares: | holding |
Ordinary | 100.00 |
LogicMonitor AB (Sweden) |
Registered office: Ynglingagatan 14, 113 47 Stockholm |
Nature of business: |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Dexda Limited was acquired on 4 June 2021, and was a subsidiary undertaking of the Company at the year-end; LogicMonitor AB (Sweden) was acquired on 2 January 2020 and was also a subsidiary undertaking of the Company at year-end. |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 152,017 | 2,017 |
Other debtors | 2,292,033 | 2,391,793 |
Tax | - | 10,773 |
VAT | 59,935 | 115,130 |
Deferred tax asset | 1,077,307 | 1,082,088 | - | - |
Prepayments and accrued income | 683,146 | 243,509 |
4,264,438 | 3,845,310 |
Deferred tax asset |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Deferred tax | 1,077,307 | 1,082,088 | - | - |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade creditors | 116,412 | 173,098 |
Amounts owed to group undertakings | 13,791,446 | 14,975,044 |
Corporation tax | 53,524 | 120,485 |
Social security and other taxes | 179,381 | 31,353 |
Other creditors | 320,347 | 748,295 |
Accruals and deferred income | 1,000,388 | 1,177,345 |
15,461,498 | 17,225,620 |
13. | DEFERRED TAX |
Company |
2022 | 2021 |
£ | £ |
Deferred tax | 49,785 | 45,004 |
Group |
£ |
Balance at 31 December 2021 | (1,082,088 | ) |
Fixed asset timing differences | 4,781 |
Balance at 30 December 2022 | (1,077,307 | ) |
Company |
£ |
Balance at 31 December 2021 |
Fixed asset timing differences | 4,781 |
Balance at 30 December 2022 |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary shares attracting |
voting and dividend rights. | £0.01 | 1 | 1 |
LOGICMONITOR UK LIMITED (REGISTERED NUMBER: 09822653) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
15. | RESERVES |
Group |
Retained |
earnings |
£ |
At 31 December 2021 | 1,728,753 |
Deficit for the year | (6,988,269 | ) |
At 30 December 2022 | (5,259,516 | ) |
Company |
Retained |
earnings |
£ |
At 31 December 2021 | ( |
) |
Deficit for the year | ( |
) |
At 30 December 2022 | ( |
) |
16. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme for employees. At the year-end there were contributions outstanding amounting to £Nil (2021: £Nil). |
17. | POST BALANCE SHEET EVENTS |
The directors have noted during 2023 that they intend to cease the trading and close the subsidiary based in Sweden. Progress was made on this during 2023 and the original plan was for this to be complete by 31 December 2023, however, there is still some activity at this date. As a result of this, a decision was made to recognise an impairment on the goodwill balance as at 30 December 2022. |
18. | ULTIMATE CONTROLLING PARTY |
The company's immediate parent company is LogicMonitor, Inc. |
LogicMonitor, Inc. is a wholly owned subsidiary of Gaucho Intermediate, Inc. incorporated in USA, whose principal place of business is 1209 Orange Street, Wilmington, DE 19801. |
The ultimate parent company of the group is Gaucho Topco, LLC. incorporated in USA, whose principal place of business is 1209 Orange Street, Wilmington, DE 19801. |
Gaucho Topco, LLC. is the smallest and largest group to consolidate these financial statements. The consolidated financial statements of Gaucho Topco, LLC. are available at the above address. |