Tecknuovo Limited
Annual Report and Financial Statements
For the year ended 30 June 2023
Company Registration No. 09611416 (England and Wales)
Tecknuovo Limited
Company Information
Directors
A Sargent
K Blackstone
Company number
09611416
Registered office
20-22 Wenlock Road
London
N1 7GU
Auditor
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Business address
Chancery House
Chancery Lane
London
WC2A 1QS
Tecknuovo Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 9
Statement of income and retained earnings
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 22
Tecknuovo Limited
Strategic Report
For the year ended 30 June 2023
Page 1

The directors present the strategic report for the year ended 30 June 2023.

Fair review of the business

During the year to 30 June 2023, the principal activity of the Company continued to be the delivery of consultancy services, with a focus on supporting digital transformation projects and building resilience and enduring capability for our customers. Whilst our principal activities have not significantly changed during the year, the Company has in line with its strategic objectives continued to expand its services within central government departments choosing projects where we believe we can deliver a positive and long-term impact to consumers and wider society. With our deliberately different ethos, and mission to reduce dependency for our customers on external technical suppliers, we believe we can contribute to the improvement of and reduction in cost of public services through our zero-dependency framework. With the Company’s appointment as a supplier to the DALAS framework in July 2023, the Company will continue to grow its public sector projects in both a prime and partner capacity during the coming years. The Company has also broadened its private sector industry coverage with new customers within the fintech and insurance sectors and has sought to develop strategic partnerships to extend our customer base and therefore improve resilience in our customer portfolio.

 

Turnover continued to increase year on year with an increase in gross profit of 9.7% notwithstanding the economic challenges the UK faced during the period. The Company maintained focus on its planned restructuring and building of capacity within its operations, investing in people, processes, and systems to support the Company’s sustainable growth ambitions, including across its core operations within sales, engagement, and delivery functions. Whilst investment activities have contributed to an increase in administrative costs of 18%, the Company has increased its gross profit margin (2023: 28.4% from 2022: 26.6%) and maintaining profit before tax of £ 4,124,428 consistent with 2022.

Risk Management and principal risks and uncertainties

The Company has matured its approach to risk management and has established a risk management process for managing and mitigating recognised exposure to financial, commercial, operational, and legislative & regulatory risks. During the last quarter of 2023, the Company achieved certification across ISO27001 (Information Security), ISO9001 (Quality), and ISO14001 (Environment). The Company has a dedicated legal & compliance function to oversee management and reporting of risks, in accordance with the Company’s integrated management system, and which are captured at the strategic, operations, functional, and process levels, recorded and reported in line with the Company’s risk management matrix.

 

Our primary risks continue to be volatility in the economic environment and uncertainties in respect of a change in government, although the UK economy has proven so far to be more resilient than expected (notwithstanding the impact of the coronavirus pandemic, rising inflation, the cost-of-living crisis, and the war in Ukraine) and our customers have maintained or continued to increase investment in their digital transformation projects during the period. A change in government may bring uncertainty in respect of public spending and priorities within central government leading to potential delay, reduction in spending and/or the redefining of transformation programmes. It could also bring uncertainty with respect to regulation and policy, particularly changes in employment and tax legislation which may not be conducive to our engagement model and may increase our costs, creating pressure on both turnover and gross profit margin. However, we remain confident that our established business model, our continued development in our service offering to customers, and our investment in building and maintaining resilience within our business, will support sustainable growth for the Company. We remain a lean and agile business allowing us to pivot and adapt quickly to a changing environment and we continue to monitor our risks closely.

Financial risk management objectives and policies

The Company manages its financial risks through strict credit control and cash flow management, and through the proactive evaluation of and regular monitoring of the credit status of new and existing customers.

Tecknuovo Limited
Strategic Report (Continued)
For the year ended 30 June 2023
Page 2
Key Performance Indicators

The Company monitors financial performance of the business against the key metrics of gross profit margin, and EBITDA. The Company’s EBITDA increased from 2022: £4,174,342 to 2023: £4,207,817.

Future Developments

The Company will continue to expand and strengthen its strategic partnerships, develop its service capability including offering AI as a service, and seek to support on larger more complex projects to give the greatest value to our customers and the wider community. The Company will seek to add depth to existing industry sectors, including education, insurance, and communications, and expand its support to central government customers as its primary focus, and will continue to explore new growth sectors, including the healthcare sector as its secondary focus. The Company has plans to launch its Teckacademy in 2024, with an ambition to bring a deliberately different training experience for individuals looking to enter into or develop within our digital communities, strengthening our zero dependency framework.

On behalf of the board

A Sargent
Director
14 March 2024
Tecknuovo Limited
Directors' Report
For the year ended 30 June 2023
Page 3

The directors present their annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company continued to be that of the provision of project consultancy.

Directors

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

A Sargent
K Blackstone
Results and dividends

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

Ordinary dividends were paid amounting to £1,996,837. The directors do not recommend payment of a final dividend.

Auditor

Moore Kingston Smith LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Tecknuovo Limited
Directors' Report (Continued)
For the year ended 30 June 2023
Page 4
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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
A Sargent
Director
14 March 2024
Tecknuovo Limited
Independent Auditor's Report
To the Members of Tecknuovo Limited
Page 5
Opinion

We have audited the financial statements of Tecknuovo Limited (the 'company') for the year ended 30 June 2023 which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the 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 FRS 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 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 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.

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.

Tecknuovo Limited
Independent Auditor's Report (Continued)
To the Members of Tecknuovo Limited
Page 6

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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Tecknuovo Limited
Independent Auditor's Report (Continued)
To the Members of Tecknuovo Limited
Page 7
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

Tecknuovo Limited
Independent Auditor's Report (Continued)
To the Members of Tecknuovo Limited
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of 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 to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Other matters

The corresponding figures in the financial statements for the company were not audited as the company did not require a statutory audit under the Companies Act 2006 in the prior year.

Tecknuovo Limited
Independent Auditor's Report (Continued)
To the Members of Tecknuovo Limited
Page 9

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.

Steven Rushmer (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
14 March 2024
Chartered Accountants
Statutory Auditor
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Tecknuovo Limited
Statement of Income and Retained Earnings
For the year ended 30 June 2023
Page 10
2023
2022
£
£
Turnover
3
31,462,852
30,273,119
Cost of sales
(22,519,229)
(22,196,707)
Gross profit
8,943,623
8,076,412
Administrative expenses
(4,783,298)
(3,935,863)
Operating profit
4,160,325
4,140,549
Interest payable and similar expenses
6
(35,897)
(24,555)
Profit before taxation
4,124,428
4,115,994
Taxation
7
(862,402)
(788,898)
Profit and total comprehensive income for the year
3,262,026
3,327,096
Retained earnings at 1 July 2022
1,737,507
1,149,111
Dividends
(1,996,837)
(2,738,700)
Retained earnings at 30 June 2023
3,002,696
1,737,507

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

Tecknuovo Limited
Balance Sheet
As at 30 June 2023
30 June 2023
Page 11
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
9
27,943
43,993
Tangible assets
10
40,134
50,317
68,077
94,310
Current assets
Debtors
11
5,899,572
8,471,985
Cash at bank and in hand
711,079
169,970
6,610,651
8,641,955
Creditors: amounts falling due within one year
12
(3,596,618)
(6,838,886)
Net current assets
3,014,033
1,803,069
Total assets less current liabilities
3,082,110
1,897,379
Creditors: amounts falling due after more than one year
13
(30,182)
(155,872)
Net assets
3,051,928
1,741,507
Capital and reserves
Called up share capital
16
4,216
4,000
Share premium account
45,016
-
0
Profit and loss reserves
3,002,696
1,737,507
Total equity
3,051,928
1,741,507
The financial statements were approved by the board of directors and authorised for issue on 14 March 2024 and are signed on its behalf by:
A Sargent
K Blackstone
Director
Director
Company Registration No. 09611416
Tecknuovo Limited
Statement of Changes in Equity
For the year ended 30 June 2023
Page 12
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2021
4,000
-
0
1,149,111
1,153,111
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
-
3,327,096
3,327,096
Dividends
8
-
-
(2,738,700)
(2,738,700)
Balance at 30 June 2022
4,000
-
0
1,737,507
1,741,507
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
3,262,026
3,262,026
Issue of share capital
16
216
45,016
-
45,232
Dividends
8
-
-
(1,996,837)
(1,996,837)
Balance at 30 June 2023
4,216
45,016
3,002,696
3,051,928
Tecknuovo Limited
Statement of Cash Flows
For the year ended 30 June 2023
Page 13
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
3,698,613
3,280,885
Interest paid
(35,897)
(24,555)
Income taxes paid
(989,847)
(287,416)
Net cash inflow from operating activities
2,672,869
2,968,914
Investing activities
Purchase of intangible assets
-
0
(47,635)
Purchase of tangible fixed assets
(21,259)
(28,910)
Net cash used in investing activities
(21,259)
(76,545)
Financing activities
Repayment of bank loans
(113,664)
(80,465)
Dividends paid
(1,996,837)
(2,738,700)
Net cash used in financing activities
(2,110,501)
(2,819,165)
Net increase in cash and cash equivalents
541,109
73,204
Cash and cash equivalents at beginning of year
169,970
96,766
Cash and cash equivalents at end of year
711,079
169,970
Tecknuovo Limited
Notes to the Financial Statements
For the year ended 30 June 2023
Page 14
1
Accounting policies
Company information

Tecknuovo Limited is a private company limited by shares incorporated in England and Wales. The registered office is 20-22 Wenlock Road, London, N1 7GU. The principal place of business is Chancery House, Chancery Lane, London, WC2A 1QS.

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
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Turnover

Turnover represents amounts receivable for services net of VAT and trade discounts.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Website
3 year straight line
1.5
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:

Fixtures, fittings & equipment
3 year straight line
Computer equipment
3 year straight line
1.6
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.

Tecknuovo Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 15
1.7
Financial instruments

The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.

1.8
Taxation

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

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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.9
Retirement benefits

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

1.10
Share-based payments

The company has established a share option scheme for eligible employees.

 

The fair value of equity-settled share payment to employees is determined at the date of the grant and is expensed on a straight line basis over the vesting period based on the company's estimate of shares or options that will eventually vest.

1.11
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 leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

Tecknuovo Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 16
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.

Useful Economic lives of intangible assets

The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note note 9 for the carrying amount of the intangible assets and note 1.4 for the useful economic lives for each class of asset.

Useful economic lives of tangible assets

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the property, plant and equipment and note 1.5 for the useful economic lives for each class of asset.

3
Turnover

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Consultancy services
31,377,827
30,207,493
Permanent placements
15,000
10,080
Margin only
15,998
55,546
Other income
54,027
-
31,462,852
30,273,119
4
Employees

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

2023
2022
Number
Number
Directors
2
2
Administration
38
32
Total
40
34
Tecknuovo Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
4
Employees
(Continued)
Page 17

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,998,806
2,503,367
Social security costs
368,541
314,450
Pension costs
140,763
85,540
3,508,110
2,903,357

The directors deem that directors remuneration is that of key management personnel.

5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
72,000
72,000
6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
35,897
24,555
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
862,402
788,898
Tecknuovo Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
7
Taxation
(Continued)
Page 18

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

2023
2022
£
£
Profit before taxation
4,124,428
4,115,994
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
1,031,107
782,039
Tax effect of expenses that are not deductible in determining taxable profit
19,866
14,000
Effect of change in corporation tax rate
(189,920)
-
0
Depreciation on assets not qualifying for tax allowances
7,861
-
0
Capital allowances
(6,512)
(7,141)
Taxation charge for the year
862,402
788,898
8
Dividends
2023
2022
£
£
Interim paid
1,996,837
2,738,700
9
Intangible fixed assets
Website
£
Cost
At 1 July 2022 and 30 June 2023
95,224
Amortisation and impairment
At 1 July 2022
51,231
Amortisation charged for the year
16,050
At 30 June 2023
67,281
Carrying amount
At 30 June 2023
27,943
At 30 June 2022
43,993
Tecknuovo Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 19
10
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 July 2022
1,970
109,756
111,726
Additions
2,129
19,130
21,259
Disposals
(1,970)
-
0
(1,970)
At 30 June 2023
2,129
128,886
131,015
Depreciation and impairment
At 1 July 2022
1,970
59,439
61,409
Depreciation charged in the year
354
31,088
31,442
Eliminated in respect of disposals
(1,970)
-
0
(1,970)
At 30 June 2023
354
90,527
90,881
Carrying amount
At 30 June 2023
1,775
38,359
40,134
At 30 June 2022
-
0
50,317
50,317
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,969,488
5,937,840
Other debtors
265,821
-
0
Prepayments and accrued income
2,664,263
2,534,145
5,899,572
8,471,985
Tecknuovo Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 20
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
14
125,689
113,663
Trade creditors
61,193
128,941
Corporation tax
661,453
788,898
Other taxation and social security
493,393
356,131
Other creditors
620,262
3,444,893
Accruals and deferred income
1,634,628
2,006,360
3,596,618
6,838,886

Investec Capital Solutions No.1 Limited hold a fixed and floating charge over all assets of the company.

13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
14
30,182
155,872
14
Loans and overdrafts
2023
2022
£
£
Bank loans
155,871
269,535
Payable within one year
125,689
113,663
Payable after one year
30,182
155,872

The company's loan obligations include two CBIL's loan totalling £155,871. Interest is charged at a fixed rate of 10.10%.

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
140,763
85,540

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Tecknuovo Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 21
16
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
71,600 Ordinary A shares of 1p each
716
500
350,000 Ordinary B shares of 1p each
3,500
3,500
4,216
4,000

Ordinary A and B shares both have full voting, dividend and capital distribution rights. The ordinary A and B shares rank pari passu on winding up of the company.

 

The company has an Employee Management Incentive share option scheme for eligible employees. The options lapse 10 years after the date they were granted and are exercisable on sale of the company or at the discretion of the board. At 30 June 2023 there were 12,687 share options exercisable subject to the above conditions.

17
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
28,558
-
0
Between two and five years
107,856
-
0
136,414
-
0
18
Related party transactions

Included in other creditors at the year end is £592,943 (2022: £nil) due to the directors of the company.

 

Included in other debtors at the year end is £45,232 (2022: £nil) from the directors of the company. This amount was repaid to the company within 9 months of the balance sheet date.

Tecknuovo Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 22
19
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
3,262,026
3,327,096
Adjustments for:
Taxation charged
862,402
788,898
Finance costs
35,897
24,555
Amortisation and impairment of intangible assets
16,050
9,091
Depreciation and impairment of tangible fixed assets
31,442
24,702
Movements in working capital:
Decrease/(increase) in debtors
2,617,645
(3,804,174)
(Decrease)/increase in creditors
(3,126,849)
2,910,717
Cash generated from operations
3,698,613
3,280,885
20
Analysis of changes in net funds/(debt)
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
169,970
541,109
711,079
Borrowings excluding overdrafts
(269,535)
113,664
(155,871)
(99,565)
654,773
555,208
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