Company Registration No. 02644447 (England and Wales)
LUMERA LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LB GROUP
1 Vicarage Lane
Stratford
London
E15 4HF
LUMERA LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
3 - 11
LUMERA LTD
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
7
75,639
61,736
Current assets
Debtors
8
604,418
581,924
Cash at bank and in hand
201,547
405,808
805,965
987,732
Creditors: amounts falling due within one year
9
(1,152,704)
(287,025)
Net current (liabilities)/assets
(346,739)
700,707
Total assets less current liabilities
(271,100)
762,443
Provisions for liabilities
10
(5,000)
(20,000)
Net (liabilities)/assets
(276,100)
742,443
Capital and reserves
Called up share capital
11
216,362
216,362
Share premium account
42,200
42,200
Profit and loss reserves
(534,662)
483,881
Total equity
(276,100)
742,443
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 22 March 2024 and are signed on its behalf by:
Mr G M Cadwallader
Director
Company registration number 02644447 (England and Wales)
LUMERA LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
216,362
42,200
697,050
955,612
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(213,169)
(213,169)
Balance at 31 December 2022
216,362
42,200
483,881
742,443
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(1,018,543)
(1,018,543)
Balance at 31 December 2023
216,362
42,200
(534,662)
(276,100)
LUMERA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Lumera Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1 Vicarage Lane, Stratford, London, E15 4HF.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
The company made a loss of £1,018,543 (2022: £213,169) during the year ended 31 December 2023 and at that date its liabilities exceed its assets by £276,100 (2022: £742,443 assets exceed liabilities).
The company has prepared a budget which indicates that the company has insufficient resources to meet its minimum expenditure commitments and support its current level of corporate overheads and therefore needs to receive group funding to continue as a going concern.
The parent company, which has provided the company with a loan of £695,652, has confirmed its intension to provide necessary financial support for a minimum of 12 months from the date of signing the financial statements. At the time of approving of the financial statements the directors have considered the availability of the financial support described above and are of opinion that the parent company has adequate resources in order to fulfil this requirement for the foreseeable future. Therefore, the directors, with on-going support from the parent company, have adopted the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover from the supply of software customisation services represents the value of services provided under contracts to the extend that there is a right to consideration and is recorded at fair value of consideration receivable. Where a contract has only been partially completed at the Statement of financial position date turnover represents the fair value of the service provided to date, based on the stage of completion of the contract activity at the Statement of financial position date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.
Managed services and support contracts income are recognised evenly over the period of the contract.
LUMERA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Development expenditure is recognised as an intangible asset when all of the following criteria are met:
- It is technically feasible to complete the intangible asset so that it will be available for use or sale;
- Management intends to complete the intangible asset and use or sell it;
- There is an ability to use or sell the intangible asset;
- It can be demonstrated how the intangible asset will generate probable future economic benefits; adequate technical, financial and other resources to complete the development and to use of sell the intangible asset are available; and
- The expenditure attributable to the intangible asset during its development can be reliably measured.
All other research and development expenditure is written off as incurred.
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:
Development costs
10% 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:
Leasehold improvements
Over the term of the lease
Computers
25% reducing balance
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 credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company 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.
LUMERA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
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 company after deducting all of its liabilities.
LUMERA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
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 company’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 when the company has 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.
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
LUMERA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
1.15
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.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Amounts recognised on software capitalisation
The amount recognised as turnover in respect of software customisation is ascertained by reference to the value of the work carried out to date and consists of direct software development contractors' remuneration and profit element. This is based on management's judgement that these relate to time and costs as reported on the statements of work.
3
Exceptional item
The exceptional item is in relation to intercompany loan written off in the prior period. On 28 July 2022 Lumera Limited sold all of its 216,362 ordinary shares to Lumera AB, company registered in Sweden, immediate controlling party. As such the group loan of £174,982 repayable to Valliant Limited, the previous owner was deemed irrecoverable and written off by Lumera Limited.
LUMERA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,450
15,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
26
21
6
Intangible fixed assets
Development costs
£
Cost
At 1 January 2023 and 31 December 2023
312,812
Amortisation and impairment
At 1 January 2023 and 31 December 2023
312,812
Carrying amount
At 31 December 2023
At 31 December 2022
LUMERA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
7
Tangible fixed assets
Leasehold improvements
Computers
Total
£
£
£
Cost
At 1 January 2023
320,745
320,745
Additions
5,000
29,536
34,536
At 31 December 2023
5,000
350,281
355,281
Depreciation and impairment
At 1 January 2023
259,009
259,009
Depreciation charged in the year
2,290
18,343
20,633
At 31 December 2023
2,290
277,352
279,642
Carrying amount
At 31 December 2023
2,710
72,929
75,639
At 31 December 2022
61,736
61,736
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
197,378
127,711
Other debtors
407,040
454,213
604,418
581,924
9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
69,127
41,857
Amounts owed to group undertakings
695,652
Taxation and social security
69,165
43,599
Deferred income
239,506
137,667
Other creditors
2,414
Accruals and deferred income
76,840
63,902
1,152,704
287,025
Amounts owed to group undertakings are interest free and payable on demand.
LUMERA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
10
Provisions for liabilities
2023
2022
£
£
Dilapidations
5,000
20,000
As part of the Company's leasing arrangement there is an obligation to return the business office back to its original state. The present value of the estimated final cost is capitalised and amortised over the life of the lease.
11
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
216,362
216,362
216,362
216,362
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Mark Middleton
Statutory Auditor:
LB Group Limited (Stratford)
Date of audit report:
22 March 2024
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
97,644
32,441
Between two and five years
1,801
97,644
34,242
14
Related party transactions
The company has taken advantage of exemptions, under the terms of Financial Reporting Standards 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclosure related party transactions with wholly owned subsidiaries within the group.
LUMERA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
15
Ultimate controlling party
Lumera Limited is owned 100% by Lumera AB, a private limited liability company incorporated and registered under the laws of Sweden with corporate registration number 556638-5968.
The ultimate controlling party of the group is Olleti Intressenter AB, a private limited liability company incorporated and registered under the laws of Sweden with corporate registration number 559094-8674.
2023-12-312023-01-01false22 March 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMr G M CadwalladerMr M A GammelgårdMr K M LillienbergMr A A M HubbardMr C J AlfredsonMr G M Cadwalladerfalse026444472023-01-012023-12-31026444472023-12-31026444472022-12-3102644447core:LeaseholdImprovements2023-12-3102644447core:ComputerEquipment2023-12-3102644447core:LeaseholdImprovements2022-12-3102644447core:ComputerEquipment2022-12-3102644447core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3102644447core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3102644447core:CurrentFinancialInstruments2023-12-3102644447core:CurrentFinancialInstruments2022-12-3102644447core:ShareCapital2023-12-3102644447core:ShareCapital2022-12-3102644447core:SharePremium2023-12-3102644447core:SharePremium2022-12-3102644447core:RetainedEarningsAccumulatedLosses2023-12-3102644447core:RetainedEarningsAccumulatedLosses2022-12-3102644447core:ShareCapital2021-12-3102644447core:SharePremium2021-12-3102644447core:RetainedEarningsAccumulatedLosses2021-12-31026444472021-12-3102644447bus:CompanySecretaryDirector12023-01-012023-12-3102644447core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31026444472022-01-012022-12-3102644447core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3102644447core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3102644447core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3102644447core:LeaseholdImprovements2023-01-012023-12-3102644447core:ComputerEquipment2023-01-012023-12-3102644447core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3102644447core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3102644447core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3102644447core:LeaseholdImprovements2022-12-3102644447core:ComputerEquipment2022-12-31026444472022-12-3102644447core:WithinOneYear2023-12-3102644447core:WithinOneYear2022-12-3102644447core:BetweenTwoFiveYears2023-12-3102644447core:BetweenTwoFiveYears2022-12-3102644447bus:PrivateLimitedCompanyLtd2023-01-012023-12-3102644447bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3102644447bus:FRS1022023-01-012023-12-3102644447bus:Audited2023-01-012023-12-3102644447bus:Director12023-01-012023-12-3102644447bus:Director22023-01-012023-12-3102644447bus:Director32023-01-012023-12-3102644447bus:Director42023-01-012023-12-3102644447bus:Director52023-01-012023-12-3102644447bus:CompanySecretary12023-01-012023-12-3102644447bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP