CYNET SECURITY UK LTD |
Statement of financial position as at 31 December 2022 |
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31.12.2022 |
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31.12.2021 |
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Notes |
£ |
£ |
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£ |
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Fixed assets |
Fixed assets |
5 |
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24,733 |
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4,087 |
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Current assets |
Debtors |
6 |
7,232,866 |
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4,406,302 |
Cash at bank and in hand |
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2,030,629 |
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1,654,405 |
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9,263,495 |
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6,060,707 |
Creditors: amounts falling due |
within one year |
8 |
(6,331,093) |
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(4,801,171) |
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Net current assets |
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2,932,402 |
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1,259,536 |
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Total assets less current liabilities |
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2,957,135 |
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1,263,623 |
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Creditors: amounts falling due |
9 |
after more than one year |
(2,647,220) |
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(1,257,543) |
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Net assets |
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£ 309,915 |
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£ 6,080 |
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Capital and deficit |
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£ |
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£ |
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Called up share Capital |
10 |
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1,000 |
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1,000 |
Profit and loss account |
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308,915 |
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5,080 |
Shareholders' fund |
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£ 309,915 |
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£ 6,080 |
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- |
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The accounts have been prepared and delivered in accordance with 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. |
The notes on pages 2 to 5 form an integral part of these financial statements. |
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The financial statements on pages 1 to 5 were approved by the Board of Directors and were signed on its behalf by: |
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__________________________ |
E. Gruner |
Director |
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13 February 2024 |
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CYNET SECURITY UK LTD |
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Notes to the financial statements - 31 December 2022 |
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COMPANY INFORMATION |
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1. |
Company Information |
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Cynet Security UK Ltd (the Company) is a private limited company incorporated and domiciled in England and Wales. The address of its registered office is 37 Broadhurst Gardens, London, NW6 3QT. |
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The company is a wholly owned subsidiary of Cynet Security Ltd, a company registered in Israel. |
2. |
Statement of Compliance |
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The financial statements have been prepared in accordance with the provisions of FRS 102 Section 1A small entities and the Companies Act 2006. |
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3. |
Accounting Policies |
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Basis of accounting |
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The financial statements have been prepared on a going concern basis, under historical cost convention. |
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The financial statements are presented in sterling (£). |
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The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
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Going concern |
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The Director considers that the Company has adequate resources to continue in operational existence for the foreseeable future with guaranteed financial support from the parent company. |
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In the period up to the signing of the accounts, the company continued to be profitable and has a positive cash flow and the forecast for the next 12 months is that the company will continue to be so. |
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Based on the above and also the effect of Covid-19 (directors' note), the directors believe that the financial statements can be prepared on a going concern basis. |
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Cash flow |
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The company has a small entity has taken advantage not to prepare a cash flow statement under FRS102 |
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Section 1A Small Entities. |
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Turnover and revenue recognition |
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Turnover is the amount derived from ordinary activities and represents net invoiced value of software and |
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related services excluding VAT. |
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Revenue from software licences agreements are recognized upon the delivery of the software when |
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collections are probable; the licence fees is otherwise fixed or determinable: no significant obligation with |
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regard to implementation remains; and persuasive evidence that an arrangement exists. |
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Revenues from maintenance arrangements are deferred and recognized on a straight-line basis over the life of |
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the related agreement. |
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Basic financial instruments |
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The Company only enters into basic financial instrument transactions that result in the recognition of |
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financial assets and liabilities like trade and other debtors and creditors, loans from banks and other |
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third parties, loans to related parties and investments in non-puttable ordinary shares. |
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Deferred taxation |
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Deferred taxation is provided to take into account timing differences arising from the inclusion of items of expenditure in taxation computations in periods that differ from those in which they are included in the financial statements to the extent that it is probable that a liability or assets will crystallize in the future. |
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Provision for deferred taxation is set off against debit balance of deferred taxation. |
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CYNET SECURITY UK LTD |
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Notes to the financial statements - 31 December 2022 |
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Foreign currencies |
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Monetary assets and liabilities in foreign currencies are translated into Sterling at the rate of |
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exchange ruling at the Balance Sheet date. |
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Non monetary items are translated into sterling at the actual rate ruling on the date of the transaction. |
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Foreign currency transactions relating to income and expenditure are translated into sterling at the |
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rate of exchange ruling on the date of the transaction. |
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Exchange rate differences are recognised in profit or loss in the period which they arise. |
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Employee benefits |
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The company provides a range of benefits to employees, including annual bonus arrangements, |
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paid holiday arrangements and defined contribution pension plans. |
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(i) Short term benefits |
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Short term benefits, including holiday pay and other similar non-monetary benefits are |
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recognised as an expense in the period in which the service is received. |
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(ii) Defined contribution pension plans |
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The company operated a defined contribution plan for its employees. A defined contribution |
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plan is a pension plan under which the company pays fixed contributions into a separate entity. |
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Once the contributions have been paid the company has no further payment obligations. The |
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contributions are recognised as an expense when they are due. Amounts not paid are shown in |
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accruals in the balance sheet. The assets of the plan are held separately from the company in |
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independently administered funds. |
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(iii) Bonus plan |
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The company operates annual bonus plan for employees and expense is recognised in the profit |
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and loss account when the company has a legal or constructive obligation to make payment under |
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the plan as a result of passed events and reliable estimation of the obligation can be made. |
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(iv) Share based payments |
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The company participates in a share-based payment arrangement established by the ultimate parent company. The company recognises the share-based payment expenses based on the specific cost that is relating to the company participating employees. The corresponding credit is recognised as a component of equity. |
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4. |
Employee information |
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2022 |
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2021 |
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The average number of employees during the year was |
44 |
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24 |
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No remunerations paid to the director during the above 2 years. |
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5. |
Fixed assets |
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Computers, |
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Plant |
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fixtures |
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& |
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& fittings |
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Machinery |
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Total |
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£ |
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£ |
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£ |
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Cost: |
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At 1 January 2022 |
2,125 |
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1,962 |
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4,087 |
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Additions |
25,113 |
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25,113 |
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At 31 December 2022 |
27,238 |
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1,962 |
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29,200 |
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Depreciation: |
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At 1 January 2022 |
- |
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- |
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- |
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Charge for the year |
3,815 |
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652 |
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4,467 |
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At 31 December 2022 |
3,815 |
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652 |
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4,467 |
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Net book value: |
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At 31 December 2022 |
23,423 |
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1,310 |
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24,733 |
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At 31 December 2021 |
2,125 |
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1,962 |
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4,087 |
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CYNET SECURITY UK LTD |
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Notes to the financial statements - 31 December 2022 |
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6. |
Debtors |
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31.12.2022 |
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31.12.2021 |
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£ |
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£ |
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Trade debtors |
4,608,043 |
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2,497,108 |
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Parent company |
2,043,300 |
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1,686,428 |
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Group company |
496,066 |
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156,970 |
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Prepayments and accrued income |
85,457 |
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47,859 |
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Deferred tax |
0 |
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17,937 |
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7,232,866 |
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4,406,302 |
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7. |
Deferred tax asset |
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31.12.2022 |
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31.12.2021 |
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£ |
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£ |
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As at 1.1.2022 |
17,937 |
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16,913 |
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Transfer from profit and loss account |
(17,937) |
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1,024 |
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As at 31.12.2022 |
- |
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17,937 |
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The amount of deferred tax asset relates to the following timing differences: |
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31.12.2022 |
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31.12.2021 |
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£ |
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£ |
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Timing differences on fixed assets |
6,183 |
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(777) |
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Timing differences on provisions |
(6,183) |
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18,714 |
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- |
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17,937 |
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17937 |
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8. |
Creditors: amounts falling due |
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within one year |
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31.12.2022 |
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31.12.2021 |
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£ |
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£ |
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Trade creditors |
207,212 |
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385,690 |
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Taxes and social security costs |
176,865 |
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107,305 |
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VAT |
35,285 |
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64,470 |
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Other creditors |
23,200 |
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34,558 |
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Corporation tax |
83,973 |
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22,949 |
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Accruals and deferred income |
5,804,558 |
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4,186,199 |
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6,331,093 |
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4,801,171 |
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9. |
Creditors: amounts falling due |
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after more than one year |
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31.12.2022 |
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31.12.2021 |
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£ |
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£ |
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Deferred income |
2,647,220 |
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1,257,543 |
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2,647,220 |
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1,257,543 |
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CYNET SECURITY UK LTD |
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Notes to the financial statements - 31 December 2022 |
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10. |
Share Capital |
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31.12.2022 |
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31.12.2021 |
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£ |
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£ |
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Allotted, called up and fully paid: |
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100,000 Ordinary shares of £0.01 each |
1,000 |
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1,000 |
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11. |
Financial commitment |
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As at 31.12.22 and 31.12.21 the company did not have any financial commitments. |
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12. |
Related party transactions: |
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Control: |
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The Company's ultimate parent undertaking and controlling party is Cynet Security Ltd, a company incorporated in Israel. Registered address is Sderot Nim 2, Rishon Lezion 7546354, Israel. |
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Transaction: |
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The company is exempt from disclosing transactions with related parties that are wholly owned within the same group in accordance with FRS 102 Section 33(1)A. |
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13. |
Audit report information |
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As the income statement has been omitted from the filing of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444 (5B) of the Companies Act 2006. The auditor's report was unqualified. |
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The senior statutory auditor was Mr.Ran Shahmoon. |
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The auditor was Shahmoon & Co. |
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Date auditor signed accounts: 13 February 2024 |
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Name of director signing accounts: E. Gruner |
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Date director signed accounts: 13 February 2024 |