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Company registration number: 06037342







FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2022


ABBYY UK LIMITED






































img5c3a.png                        

 


ABBYY UK LIMITED
 


 
COMPANY INFORMATION


Director
Mr U C Persson 




Registered number
06037342



Registered office
70 Gracechurch Street
3rd Floor

London

EC3V 0HR




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Magna House

18-32 London Road

Staines-Upon-Thames

TW18 4BP





 


ABBYY UK LIMITED
 



CONTENTS



Page
Statement of Financial Position
1
Statement of Changes in Equity
2
Notes to the Financial Statements
3 - 9


 


ABBYY UK LIMITED
REGISTERED NUMBER:06037342



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

As restated
2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 4 
1
1

Tangible assets
 5 
16,738
26,134

Investments
 6 
11
11

  
16,750
26,146

Current assets
  

Stocks
  
497
497

Debtors: amounts falling due after more than one year
 7 
500,027
142,387

Debtors: amounts falling due within one year
 7 
4,763,316
3,597,567

Cash at bank and in hand
  
726,308
875,616

  
5,990,148
4,616,067

Creditors: amounts falling due within one year
 8 
(5,567,833)
(4,477,583)

Net current assets
  
 
 
422,315
 
 
138,484

Total assets less current liabilities
  
439,065
164,630

  

Net assets
  
439,065
164,630


Capital and reserves
  

Called up share capital 
  
20,000
20,000

Other reserves
  
1,031,935
1,031,935

Profit and loss account
  
(612,870)
(887,305)

  
439,065
164,630


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 have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the income statement in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


Mr U C Persson
Director

Date: 19 February 2024

The notes on pages 3 to 9 form part of these financial statements.

Page 1

 


ABBYY UK LIMITED
 



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Other   reserves
Profit and loss account
Total equity

£
£
£
£


At 1 January 2021 (as previously stated)
20,000
1,100,572
(416,899)
703,673

Prior year adjustment (see note 9)
-
-
(735,920)
(735,920)


At 1 January 2021 (as restated)
20,000
1,100,572
(1,152,819)
(32,247)


Comprehensive income for the year

Profit for the year
-
-
184,636
184,636

Transfer to profit and loss account - share options
exercised
-
(80,878)
80,878
-

Share options issued
-
46,672
-
46,672

Share options lapsed
-
(34,431)
-
(34,431)



At 1 January 2022 (as restated)
20,000
1,031,935
(887,305)
164,630


Comprehensive income for the year

Profit for the year
-
-
274,435
274,435


At 31 December 2022
20,000
1,031,935
(612,870)
439,065


The notes on pages 3 to 9 form part of these financial statements.

Page 2

 


ABBYY UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Abbyy UK Limited is a private company, limited by shares, incorporated and domiciled in England. The address of the registered office is disclosed on the company information page.

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 following principal accounting policies have been applied:

 
2.2

Turnover

The turnover shown in the profit and loss account represents amounts receivable for goods and services provided during the year in the normal course of business, net of discounts, VAT and other sales and related taxes.
Turnover in respect of license fees is recognised when the license has been delivered.
Turnover in respect of software maintenance is recognised over the relevant period covered by maintenance agreement.

  
2.3

Intangible assets

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value 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 Income Statement over its useful economic life
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.

 
2.4

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:

Computer equipment
-
Straight line over 3 years

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.

Page 3

 


ABBYY UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Associates and joint ventures

Associates and Joint Ventures are held at cost less impairment.

 
2.6

Valuation of investments

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Income Statement for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.8

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.

 
2.9

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.

Page 4

 


ABBYY UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.10

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
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.

 
2.11

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.12

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.

Page 5

 


ABBYY UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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 reporting 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.


3.


Employees

The average monthly number of employees, including directors, during the year was 24 (2021 - 22).

4.


Intangible assets




Goodwill

£



Cost


At 1 January 2022
56,585



At 31 December 2022

56,585



Amortisation


At 1 January 2022
56,584



At 31 December 2022

56,584



Net book value



At 31 December 2022
1



At 31 December 2021
1


Page 6

 


ABBYY UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

5.


Tangible fixed assets





Computer equipment

£



Cost or valuation


At 1 January 2022
52,786


Additions
3,435


Disposals
(6,448)



At 31 December 2022

49,773



Depreciation


At 1 January 2022
26,652


Charge for the year on owned assets
12,831


Disposals
(6,448)



At 31 December 2022

33,035



Net book value



At 31 December 2022
16,738



At 31 December 2021
26,134


6.


Fixed asset investments





Investments in associates

£



Cost or valuation


At 1 January 2022
11



At 31 December 2022
11




Page 7

 


ABBYY UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

7.


Debtors

2022
2021
£
£

Due after more than one year

Other debtors
30,240
30,240

Prepayments and accrued income
469,787
112,147

500,027
142,387


As restated
2022
2021
£
£

Due within one year

Trade debtors
525,092
753,693

Amounts owed by group undertakings
3,281,588
1,818,760

Other debtors
36,480
39,128

Prepayments and accrued income
556,595
688,587

Deferred taxation
363,561
297,399

4,763,316
3,597,567



8.


Creditors: Amounts falling due within one year

As restated
2022
2021
£
£

Trade creditors
23,305
42,233

Amounts owed to group undertakings
3,123,530
2,325,735

Corporation tax
106,653
-

Other taxation and social security
279,637
215,666

Other creditors
30,566
5,674

Accruals and deferred income
2,004,142
1,888,275

5,567,833
4,477,583


Page 8

 


ABBYY UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

9.


Prior year adjustment

The figures for the year to 31 December 2020 included other income of £891,613 relating to the recharge of certain employment costs, including share option expenses, to a fellow group entity. Upon review and reconciliation of the charges, the fellow group undertaking has not accepted the element relating to recharge of the share option expense as being a relevant cost borne by Abbyy UK Limited and to be included within the arrangements. Accordingly, there was a misinterpretation of the arrangements and overstatement of income due to the company during that period, giving rise to a prior year adjustment as explained below.
This prior period adjustment has resulted in a reduction in amounts owed by group undertakings of £891,613 at 1 January 2020 and 31 December 2021, an increase in the deferred tax asset at those dates of £54,638, a decrease in corporation tax creditor of £101,055 at those dates and a credit to the tax charge of £155,693 for the year ended 31 December 2020. 
The brought forward profit and loss reserve reduced by £735,920 as at 1 January 2021 and 31 December 2021.


10.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
200,326
166,739

Later than 1 year and not later than 5 years
24,964
224,510

225,290
391,249


11.


Parent Company

ABBYY Development Inc., a company incorporated in the United States of America, is the parent company of the smallest group for which consolidated financial statements are drawn up of which the company is a member.
 
ABBYY Development Inc.'s registered office is 2626 Glenwood Avenue, Suite 550, Raleigh, NC 27608.


12.


Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2022 was unqualified.

The audit report was signed on 19 February 2024 by Andrew Cook FCA (Senior Statutory Auditor) on behalf of Menzies LLP.

 
Page 9