Company Registration No. 11465231 (England and Wales)
BROMPTON TECHNOLOGY HOLDINGS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 AUGUST 2023
6th Floor Kings House
9-10 Haymarket
London
SW1Y 4BP
BROMPTON TECHNOLOGY HOLDINGS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 34
BROMPTON TECHNOLOGY HOLDINGS LIMITED
COMPANY INFORMATION
- 1 -
Directors
C Hunt
C Deighton
R Mead
N Gaydon
Mr S W Barham
(Appointed 30 November 2023)
Secretary
C Hunt
Company number
11465231
Registered office
272 Gunnersbury Avenue
London
W4 5QB
Auditor
TC Group
6th Floor Kings House
9-10 Haymarket
London
United Kingdom
SW1Y 4BP
Business address
272 Gunnersbury Avenue
London
W4 5QB
BROMPTON TECHNOLOGY HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -

The directors present the strategic report for the year ended 31 August 2023.

Principal activity

The principal activity of the group is the design, development and distribution of industry-leading LED video processing products for the entertainment, film, broadcast and related industries.

Business review

The Group had an excellent year with turnover more than doubling as live events returned to pre-pandemic levels and virtual production using LED, which had taken off during COVID, continuing to be in demand.

Principal risks and uncertainties

Brompton’s main customers are primarily export-focused, with key markets being China and the United States, meaning there are risks associated with large-scale geo-political events affecting trade.

 

High cost of living, inflationary pressures and higher interest rates reducing the appetite for investment may pose a risk to product revenue if there are consequent effects on demand.

 

The Group has implemented enhanced IT security measures to protect against potential data loss and cyber crime.

Brompton uses contract manufacturers in the UK and overseas, and there is a risk to production should global or environmental events impact on its ability to supply key assemblies. There has been significant disruption in the global supply chain for electronics that has extended the lead times of some core components and the directors have initiated longer lead-time ordering, and some redesign of affected materials, to mitigate this threat to supply as much as possible.

Financial and credit risk

Brompton has budgetary and forecasting procedures in place to monitor its working capital and cash requirements. An enhanced internal ERP system is in place to support planning, audit and approval processes for purchases, expenses, and credit management. Customer trade credit limits are regularly assessed by senior management.

Currency risk

The Group holds debtor and creditor balances in foreign currencies, and where possible attempts to buy and sell in US dollars to set off balances against each other. Bank reserves of foreign currency are regularly monitored and transferred to pounds at prevailing rates of exchange.

Key performance indicators

The Group monitors its performance primarily via comparative earnings before distributions and tax after adjustments for non-recurring expenditure.

2023
2022
£
£
Operating profit / (loss) before interest and tax
1,106,787
(449,011)
Interest
(457,468)
(45,737)
Profit / (loss) before tax for the financial year
649,319
(494,748)
BROMPTON TECHNOLOGY HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -
Future developments

Brompton has continued to invest in product development and design activities in the present year by further increasing R&D staff numbers and committing to expenditure on related prototypes and certifications.

On behalf of the board

R Mead
Director
29 February 2024
BROMPTON TECHNOLOGY HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 August 2023.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

C Hunt
C Deighton
R Mead
N Gaydon
M Otway
(Resigned 29 November 2023)
Mr S W Barham
(Appointed 30 November 2023)
Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 5 -
Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the exposure of the group to financial, credit and currency risk.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
R Mead
Director
29 February 2024
BROMPTON TECHNOLOGY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BROMPTON TECHNOLOGY HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of Brompton Technology Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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).

In our opinion the financial statements:

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.

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's and parent 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.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BROMPTON TECHNOLOGY HOLDINGS LIMITED
- 7 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent company or to cease operations, or have no realistic alternative but to do so.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BROMPTON TECHNOLOGY HOLDINGS LIMITED
- 8 -
Auditor's 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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

 

BROMPTON TECHNOLOGY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BROMPTON TECHNOLOGY HOLDINGS LIMITED
- 9 -

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

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'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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Wilson ACA FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
1 March 2024
Office: London
BROMPTON TECHNOLOGY HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
34,607,309
16,807,498
Cost of sales
(23,785,068)
(11,475,247)
Gross profit
10,822,241
5,332,251
Distribution costs
(923,393)
(447,589)
Administrative expenses
(8,792,061)
(5,333,673)
Operating profit/(loss)
4
1,106,787
(449,011)
Interest payable and similar expenses
8
(457,468)
(45,737)
Profit/(loss) before taxation
649,319
(494,748)
Tax on profit/(loss)
9
97,671
507,186
Profit for the financial year
746,990
12,438
Other comprehensive income
-
-
Total comprehensive income for the year
746,990
12,438
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
BROMPTON TECHNOLOGY HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
2,438,947
823,988
Tangible assets
11
200,208
202,799
2,639,155
1,026,787
Current assets
Stocks
14
2,936,355
347,730
Debtors
15
4,346,874
2,554,515
Cash at bank and in hand
1,300,041
3,964,415
8,583,270
6,866,660
Creditors: amounts falling due within one year
16
(5,776,606)
(3,708,913)
Net current assets
2,806,664
3,157,747
Total assets less current liabilities
5,445,819
4,184,534
Creditors: amounts falling due after more than one year
17
(4,990,524)
(4,529,311)
Net assets/(liabilities)
455,295
(344,777)
Capital and reserves
Called up share capital
21
245
245
Share premium account
173
173
Merger reserve
(998,402)
(998,402)
Share-based payments reserve
284,636
231,554
Profit and loss reserves
1,168,643
421,653
Total equity
455,295
(344,777)
The financial statements were approved by the board of directors and authorised for issue on 29 February 2024 and are signed on its behalf by:
29 February 2024
R Mead
Director
Company registration number 11465231 (England and Wales)
BROMPTON TECHNOLOGY HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2023
31 August 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
162,645
109,563
Current assets
Debtors
15
3,810,558
4,121,791
Cash at bank and in hand
83,211
-
0
3,893,769
4,121,791
Creditors: amounts falling due within one year
16
(187,730)
(10,849)
Net current assets
3,706,039
4,110,942
Total assets less current liabilities
3,868,684
4,220,505
Creditors: amounts falling due after more than one year
17
(4,750,524)
(4,199,270)
Net (liabilities)/assets
(881,840)
21,235
Capital and reserves
Called up share capital
21
245
245
Share premium account
173
173
Share-based payments reserve
284,636
231,554
Profit and loss reserves
(1,166,894)
(210,737)
Total equity
(881,840)
21,235

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £956,158 (2022 - £210,737 loss).

The financial statements were approved by the board of directors and authorised for issue on 29 February 2024 and are signed on its behalf by:
29 February 2024
R Mead
Director
Company registration number 11465231 (England and Wales)
BROMPTON TECHNOLOGY HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 13 -
Share capital
Share premium account
Merger reserve
Share-based payments reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 September 2021
163
-
0
(998,402)
-
409,215
(589,024)
Year ended 31 August 2022:
Profit and total comprehensive income for the year
-
-
-
-
12,438
12,438
Issue of share capital
21
82
173
-
-
-
255
Share-based payments
-
-
-
231,554
-
231,554
Balance at 31 August 2022
245
173
(998,402)
231,554
421,653
(344,777)
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
-
-
746,990
746,990
Share-based payments
-
-
-
53,082
-
53,082
Balance at 31 August 2023
245
173
(998,402)
284,636
1,168,643
455,295
BROMPTON TECHNOLOGY HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 14 -
Share capital
Share premium account
Share-based payments reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 September 2021
163
-
0
-
-
0
163
Year ended 31 August 2022:
Loss and total comprehensive income for the year
-
-
-
(210,737)
(210,737)
Issue of share capital
21
82
173
-
-
255
Share-based payments
-
-
231,554
-
231,554
Balance at 31 August 2022
245
173
231,554
(210,737)
21,235
Year ended 31 August 2023:
Loss and total comprehensive income for the year
-
-
-
(956,157)
(956,157)
Share-based payments
-
-
53,082
-
53,082
Balance at 31 August 2023
245
173
284,636
(1,166,894)
(881,840)
BROMPTON TECHNOLOGY HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(747,655)
(1,665,349)
Interest paid
(457,468)
(45,737)
Income taxes refunded
-
0
351,347
Net cash outflow from operating activities
(1,205,123)
(1,359,739)
Investing activities
Purchase of intangible assets
(1,614,959)
(823,988)
Purchase of tangible fixed assets
(95,073)
(168,657)
Net cash used in investing activities
(1,710,032)
(992,645)
Financing activities
Proceeds from issue of shares
-
255
Proceeds from borrowings (net of transaction costs)
340,822
4,183,315
Repayment of bank loans
(90,041)
(29,959)
Net cash generated from financing activities
250,781
4,153,611
Net (decrease)/increase in cash and cash equivalents
(2,664,374)
1,801,227
Cash and cash equivalents at beginning of year
3,964,415
2,163,188
Cash and cash equivalents at end of year
1,300,041
3,964,415
BROMPTON TECHNOLOGY HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
178,071
(4,142,751)
Interest paid
(435,682)
(40,819)
Net cash outflow from operating activities
(257,611)
(4,183,570)
Financing activities
Proceeds from issue of shares
-
255
Proceeds from borrowings
340,822
4,183,315
Net cash generated from financing activities
340,822
4,183,570
Net increase in cash and cash equivalents
83,211
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
83,211
-
0
BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 17 -
1
Accounting policies
Company information

Brompton Technology Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 272 Gunnersbury Avenue, London, W4 5QB.

 

The group consists of Brompton Technology Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

On 3 August 2018, Brompton Technology Holdings Limited issued shares in consideration for all the shares in Brompton Technology Limited.

 

The criteria for merger relief, as set out in section 612 of CA 2006, were met so the relief was applied. On this basis, no share premium was recorded on the issue of the shares in Brompton Technology Holdings Limited.

 

As the investment in Brompton Technology Limited is accounted for at cost less impairment, the cost has been recorded at the nominal value of the shares issued by Brompton Technology Holdings Limited in exchange for the shares in Brompton Technology Limited.

 

Merger accounting has been applied to the business combination as the criteria in paragraph 19.27 of FRS 102 were met.

 

Under merger accounting, the carrying values of the assets and liabilities of the parties to the combination are not adjusted to the fair value on consolidation.

 

Also, as the share for share exchange was recorded at nominal value, the difference between the consideration and the book value of the net assets acquired is shown as a movement in the merger reserve.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Brompton Technology Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 August 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets other than goodwill

In the research phase of an internal project, it is not possible to demonstrate that the project will generate future economic benefits and therefore all expenditure in the research phase of a project is expensed as and when it is incurred.

 

Intangible assets are recognised from the development phase of a project if, and only if, certain specific criteria are met to demonstrate that they will generate future economic benefits and that the cost can be reliably measured.

 

If it is not possible to distinguish between the research and development phase of an internal project the expenditure is treated as if it were all incurred in the research phase only.

Capitalised development costs are subsequently amortised to administrative expenses on a straight-line basis over their expected useful economic lives of 7 years. The expected useful economic life of development costs are estimated using business plans which set out the development plan and time to market for the associated project.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 19 -

Amortisation begins when the intangible asset is available for use and in the location and condition necessary for it to be useable in the manner intended by management. At the year-end, capitalised development costs are all in respect of projects where the asset is not yet available for use and therefore no amortisation has been charged.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixture, fittings & equipment
3 years straight line
Computer equipment
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and associated costs which have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 20 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 cost 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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 22 -
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Share-based payments

The company participates in a share-based payment arrangement in respect of which share options are granted to employees of the company and its subsidiary.

 

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model.

 

The fair value of equity settled share-based payments granted to the company's employees is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The fair value of equity settled share-based payments granted to employees of the company's subsdiary is recognised as a capital contribution to the subsidiary, and presented as an increase in the company’s investment in the subsidiary. A corresponding adjustment is made to equity.

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Research and development costs

The group invests heavily in research and development.

 

Development expenditure is recognised as an expense except that costs incurred on development projects are capitalised as intangible assets to the extent that such expenditure is expected to generate future economic benefits.

 

Significant judgement is applied in determining if development costs meet the criteria to be capitalised as intangible assets.

Amortisation and impairment of intangible assets

Development costs capitalised as intangible assets are subsequently amortised on a straight-line basis over their expected useful economic lives of 7 years. The expected useful economic life of development costs are estimated using business plans which set out the development plan and time to market for the associated project.

 

Amortisation begins when the intangible asset is available for use and in the location and condition necessary for it to be useable in the manner intended by management.

 

Furthermore, intangible assets are reviewed for impairment at the end of the financial year if events or changes in circumstances indicate that the carrying value may not be recovered. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Share based payment charges

The charge related to equity-settled transactions with the group's employees is measured by reference to the fair value of the equity instruments at the date they are granted, using an appropriate valuation model selected according to the terms and conditions of the grant.

 

Judgement is applied in determining the most appropriate valuation model and in determining the inputs to the model. Judgement is also applied in relation to the estimated number of options which are expected to vest, by reference to historic leaver rates.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 24 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Distribution of LED processing and support products
34,607,309
16,807,498
2023
2022
£
£
Turnover analysed by geographical market
APAC
22,649,658
8,739,686
The Americas
7,799,037
6,292,759
EMEA
4,158,614
1,775,053
34,607,309
16,807,498
4
Operating profit/(loss)
2023
2022
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange losses/(gains)
279,675
(288,108)
Research and development costs
1,163,922
1,037,325
Depreciation of owned tangible fixed assets
97,664
47,396
Share-based payments
53,082
231,554
Operating lease charges
608,206
401,437
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
5,000
Audit of the financial statements of the company's subsidiaries
10,000
10,000
15,000
15,000
BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 25 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
53
40
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,990,200
2,201,773
60,000
130,056
Social security costs
338,962
235,699
8,006
188
Pension costs
262,859
161,840
30,000
-
0
3,592,021
2,599,312
98,006
130,244
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
60,000
7,902
Company pension contributions to defined contribution schemes
30,000
-
90,000
7,902
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
21,786
4,918
Other interest on financial liabilities
435,682
40,819
457,468
45,737
BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 26 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(200,000)
(507,186)
Adjustments in respect of prior periods
102,329
-
0
Total current tax
(97,671)
(507,186)

The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
649,319
(494,748)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 21.50% (2022: 19.00%)
139,604
(94,002)
Tax effect of expenses that are not deductible in determining taxable profit
63,267
13,385
Unutilised tax losses carried forward
160,331
13,800
Permanent capital allowances in excess of depreciation
(8,598)
(32,653)
Share based payment charge
11,413
43,995
Under/(over) provided in prior years
102,329
-
0
Research and development tax relief
(566,017)
(451,711)
Taxation credit
(97,671)
(507,186)

The company has tax losses of c.£818k available for carry forward (2022 - c.£73k).

 

The group has tax losses of c.£2.718m available for carry forward (2022 - c.£1.973m).

BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 27 -
10
Intangible fixed assets
Group
Development costs
£
Cost
At 1 September 2022
823,988
Additions
1,614,959
At 31 August 2023
2,438,947
Amortisation and impairment
At 1 September 2022 and 31 August 2023
-
0
Carrying amount
At 31 August 2023
2,438,947
At 31 August 2022
823,988
The company had no intangible fixed assets at 31 August 2023 or 31 August 2022.
11
Tangible fixed assets
Group
Fixture, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 September 2022
8,594
282,098
290,692
Additions
228
94,845
95,073
At 31 August 2023
8,822
376,943
385,765
Depreciation and impairment
At 1 September 2022
239
87,654
87,893
Depreciation charged in the year
2,928
94,736
97,664
At 31 August 2023
3,167
182,390
185,557
Carrying amount
At 31 August 2023
5,655
194,553
200,208
At 31 August 2022
8,355
194,444
202,799
The company had no tangible fixed assets at 31 August 2023 or 31 August 2022.
BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 28 -
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
162,645
109,563
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2022
109,563
Capital contributions
53,082
At 31 August 2023
162,645
Carrying amount
At 31 August 2023
162,645
At 31 August 2022
109,563
13
Subsidiaries

Details of the company's subsidiaries at 31 August 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Brompton Technology Limited
England and Wales
Ordinary
100.00
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
2,936,355
347,730
-
0
-
0
BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 29 -
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,622,131
1,371,274
-
0
-
0
Corporation tax recoverable
600,142
502,471
-
0
-
0
Amounts owed by group undertakings
-
-
3,810,558
4,121,791
Other debtors
834,922
424,752
-
0
-
0
Prepayments and accrued income
289,679
256,018
-
0
-
0
4,346,874
2,554,515
3,810,558
4,121,791
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
90,000
90,000
-
0
-
0
Trade creditors
252,656
169,372
37,790
-
0
Amounts owed to connected companies
4,818,446
2,852,961
-
0
-
0
Other taxation and social security
194,069
52,555
121,744
3,349
Other creditors
219,332
335,319
-
0
-
0
Accruals and deferred income
202,103
208,706
28,196
7,500
5,776,606
3,708,913
187,730
10,849
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
240,000
330,041
-
0
-
0
Other borrowings
18
4,750,524
4,199,270
4,750,524
4,199,270
4,990,524
4,529,311
4,750,524
4,199,270
BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 30 -
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
330,000
420,041
-
0
-
0
Other loans
4,750,524
4,199,270
4,750,524
4,199,270
5,080,524
4,619,311
4,750,524
4,199,270
Payable within one year
90,000
90,000
-
0
-
0
Payable after one year
4,990,524
4,529,311
4,750,524
4,199,270

In February 2021, Barclays Bank UK PLC provided Brompton Technology Limited, the subsidiary of Brompton Technology Holdings Limited, with a loan of £450,000 under the Coronavirus Business Interruption Loan Scheme (CBILS), for general business purposes.

 

The loan is repayable over 6 years in monthly instalments which started in March 2022. Interest is charged at a margin of 2.28% over base rate.

 

The bank loan is secured by way of a fixed and floating charge over the assets of the subsidiary.

 

The subsidiary's indebtedness to the bank in respect of the CBILS loan is also subject to a cross-company guarantee from a connected company.

On 13 July 2022, the directors of the company created and authorised the issue of Loan Notes amounting to £5,099,796.

 

The Loan Notes are secured by way of a fixed and floating charge over the assets of the company and its subsidiary, Brompton Technology Limited.

 

Interest accrues on the principal amount of the Loan Notes at a rate of 8%.

 

To the extent not previously redeemed, the Loan Notes will be redeemed by the company on 13 July 2027, 5 years after the Loan Notes were issued.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
262,859
161,840

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 31 -
20
Share-based payment transactions

The company participates in a share-based payment arrangement in respect of which share options are granted to employees of the company and its subsidiary, Brompton Technology Limited.

 

Details of the share options granted, forfeited, outstanding and exercisable at the end of each year are as follows:

Group and company
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 September 2022
570
460
598.23
552.15
Granted
-
110
-
790.91
Forfeited
(30)
-
552.15
-
Outstanding at 31 August 2023
540
570
600.79
598.23
Exercisable at 31 August 2023
180
180
698.06
698.06

The options outstanding at 31 August 2023 had an exercise price ranging from £552.15 to £790.91, and their weighted average contractual life was 2 years.

Group and company

The share-based payment charges are based on the fair value of share options, measured using the Black-Scholes model.

 

The Black-Scholes share option pricing model was used to value the share-based payment awards as it was considered that this would result in a materially accurate estimate of the fair value of the share options granted.

Inputs were as follows:
2023
2022
Weighted average share price
-
1,160.32
Weighted average exercise price
-
598.23
Expected volatility
-
17.00
Expected life
-
2.00
Risk free rate
-
2.00
BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
20
Share-based payment transactions
(Continued)
- 32 -

The volatility assumption, measured at the standard deviation of expected share price returns, is based on a statistical analysis of daily share prices over the last five years of comparable publicly quoted companies.

 

During the year, the company recognised a share-based payment expense of £Nil (2022: £122,154) relating to options granted to the company’s employees.

 

The company also recognised a capital contribution of £53,082 (2022: £109,400) relating to options granted to employees of the company’s subsidiary.

Group
Company
2023
2022
2023
2022
£
£
£
£
Expenses recognised in the year
Arising from equity settled share based payment transactions
53,082
231,554
-
122,154
21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 5p each
3,260
3,260
163
163
A Ordinary shares of 5p each
1,313
1,313
66
66
B Ordinary shares of 5p each
328
328
16
16
4,901
4,901
245
245
22
Share-based payments reserve

The share based payments reserve of £284,636 (2022: £231,554) relates to equity settled share based payment transactions.

BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 33 -
23
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
449,333
229,890
-
-
Between two and five years
1,106,933
285,052
-
-
1,556,266
514,942
-
-
24
Cash absorbed by group operations
2023
2022
£
£
Profit for the year after tax
746,990
12,438
Adjustments for:
Taxation credited
(97,671)
(507,186)
Finance costs
457,468
45,737
Amortisation of transaction costs relating to loan
210,432
15,955
Depreciation and impairment of tangible fixed assets
97,664
47,396
Equity settled share based payment expense
53,082
231,554
Movements in working capital:
(Increase)/decrease in stocks
(2,588,625)
121,231
Increase in debtors
(1,694,688)
(560,312)
Increase/(decrease) in creditors
2,067,693
(1,072,162)
Cash absorbed by operations
(747,655)
(1,665,349)
BROMPTON TECHNOLOGY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 34 -
25
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Loss for the year after tax
(956,157)
(210,737)
Adjustments for:
Finance costs
435,682
40,819
Amortisation of transaction costs relating to loan
210,432
15,955
Equity settled share based payment expense
-
122,154
Movements in working capital:
Decrease/(increase) in debtors
311,233
(4,121,791)
Increase in creditors
176,881
10,849
Cash generated from/(absorbed by) operations
178,071
(4,142,751)
26
Analysis of changes in net debt - group
1 September 2022
Cash flows
31 August 2023
£
£
£
Cash at bank and in hand
3,964,415
(2,664,374)
1,300,041
Borrowings excluding overdrafts
(4,619,311)
(461,213)
(5,080,524)
(654,896)
(3,125,587)
(3,780,483)
27
Analysis of changes in net debt - company
1 September 2022
Cash flows
31 August 2023
£
£
£
Cash at bank and in hand
-
83,211
83,211
Borrowings excluding overdrafts
(4,199,270)
(551,254)
(4,750,524)
(4,199,270)
(468,043)
(4,667,313)
2023-08-312022-09-01falseCCH SoftwareCCH Accounts Production 2023.300No description of principal activityC DeightonR MeadN GaydonM OtwayMr S W BarhamMr Scott W BarhamC Huntfalse114652312022-09-012023-08-3111465231bus:CompanySecretaryDirector12022-09-012023-08-3111465231bus:Director12022-09-012023-08-3111465231bus:Director22022-09-012023-08-3111465231bus:Director32022-09-012023-08-3111465231bus:Director52022-09-012023-08-3111465231bus:Director42022-09-012023-08-3111465231bus:Director62022-09-012023-08-3111465231bus:CompanySecretary12022-09-012023-08-3111465231bus:RegisteredOffice2022-09-012023-08-3111465231bus:Consolidated2023-08-31114652312023-08-3111465231bus:Consolidated2022-09-012023-08-3111465231bus:Consolidated2021-09-012022-08-31114652312021-09-012022-08-3111465231core:OtherResidualIntangibleAssetsbus:Consolidated2023-08-3111465231core:OtherResidualIntangibleAssetsbus:Consolidated2022-08-3111465231core:DevelopmentCostsCapitalisedDevelopmentExpenditurebus:Consolidated2023-08-3111465231core:DevelopmentCostsCapitalisedDevelopmentExpenditurebus:Consolidated2022-08-3111465231bus:Consolidated2022-08-3111465231core:FurnitureFittingsbus:Consolidated2023-08-3111465231core:ComputerEquipmentbus:Consolidated2023-08-3111465231core:FurnitureFittingsbus:Consolidated2022-08-3111465231core:ComputerEquipmentbus:Consolidated2022-08-3111465231core:ShareCapitalbus:Consolidated2023-08-3111465231core:ShareCapitalbus:Consolidated2022-08-3111465231core:SharePremiumbus:Consolidated2023-08-3111465231core:SharePremiumbus:Consolidated2022-08-3111465231core:ShareCapital2023-08-3111465231core:ShareCapital2022-08-3111465231core:SharePremium2023-08-3111465231core:SharePremium2022-08-3111465231core:OtherMiscellaneousReserve2023-08-3111465231core:OtherMiscellaneousReserve2022-08-3111465231core:RetainedEarningsAccumulatedLosses2023-08-3111465231core:ShareCapitalbus:Consolidated2021-08-3111465231core:SharePremiumbus:Consolidated2021-08-3111465231core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-08-3111465231core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-08-3111465231core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-08-3111465231core:ShareCapital2021-08-3111465231core:SharePremium2021-08-3111465231core:RetainedEarningsAccumulatedLosses2021-08-3111465231core:RetainedEarningsAccumulatedLosses2022-08-31114652312022-08-3111465231core:ShareCapitalbus:Consolidated2021-09-012022-08-3111465231core:SharePremiumbus:Consolidated2021-09-012022-08-3111465231core:ShareCapital2021-09-012022-08-3111465231core:SharePremium2021-09-012022-08-3111465231bus:Consolidated2021-08-31114652312021-08-3111465231core:IntangibleAssetsOtherThanGoodwill2022-09-012023-08-3111465231core:FurnitureFittings2022-09-012023-08-3111465231core:ComputerEquipment2022-09-012023-08-3111465231core:UKTaxbus:Consolidated2022-09-012023-08-3111465231core:UKTaxbus:Consolidated2021-09-012022-08-3111465231bus:Consolidated12022-09-012023-08-3111465231bus:Consolidated12021-09-012022-08-3111465231bus:Consolidated22022-09-012023-08-3111465231bus:Consolidated22021-09-012022-08-3111465231bus:Consolidated32022-09-012023-08-3111465231bus:Consolidated32021-09-012022-08-3111465231core:DevelopmentCostsCapitalisedDevelopmentExpenditurebus:Consolidated2022-08-3111465231core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-09-012023-08-3111465231core:FurnitureFittingsbus:Consolidated2022-08-3111465231core:ComputerEquipmentbus:Consolidated2022-08-3111465231bus:Consolidated2022-08-3111465231core:FurnitureFittingsbus:Consolidated2022-09-012023-08-3111465231core:ComputerEquipmentbus:Consolidated2022-09-012023-08-311146523112022-09-012023-08-3111465231core:CurrentFinancialInstruments2023-08-3111465231core:CurrentFinancialInstruments2022-08-3111465231core:CurrentFinancialInstrumentsbus:Consolidated2023-08-3111465231core:CurrentFinancialInstrumentsbus:Consolidated2022-08-3111465231core:WithinOneYearbus:Consolidated2023-08-3111465231core:WithinOneYearbus:Consolidated2022-08-3111465231core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3111465231core:CurrentFinancialInstrumentscore:WithinOneYear2022-08-3111465231core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-08-3111465231core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-08-3111465231core:Non-currentFinancialInstrumentscore:AfterOneYear2023-08-3111465231core:Non-currentFinancialInstrumentscore:AfterOneYear2022-08-3111465231core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-08-3111465231core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-08-3111465231core:Non-currentFinancialInstrumentsbus:Consolidated2023-08-3111465231core:Non-currentFinancialInstrumentsbus:Consolidated2022-08-3111465231core:Non-currentFinancialInstruments2023-08-3111465231core:Non-currentFinancialInstruments2022-08-3111465231bus:PrivateLimitedCompanyLtd2022-09-012023-08-3111465231bus:FRS1022022-09-012023-08-3111465231bus:Audited2022-09-012023-08-3111465231bus:ConsolidatedGroupCompanyAccounts2022-09-012023-08-3111465231bus:FullAccounts2022-09-012023-08-31xbrli:purexbrli:sharesiso4217:GBP