Registration number:
for the Year Ended
Avocor Limited
(Registration number: 03974449)
Balance Sheet as at 31 December 2022
Note |
31 December |
31 December |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Net liabilities |
( |
( |
|
Capital and reserves |
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Called up share capital |
1,000,000 |
1,000,000 |
|
Other reserves |
2,558,468 |
2,558,468 |
|
Retained earnings |
(7,494,026) |
(5,353,752) |
|
Shareholders' deficit |
(3,935,558) |
(1,795,284) |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
......................................... |
Avocor Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Presentational currency is sterling, £, and the financial statements are in round pounds except for some notes which are in greater detail.
Going concern
With the passing of the Covid pandemic, the UK economy returned to some form of normality in 2022. With schools, offices and meeting spaces open again, Avocor Ltd started to see revenues climb back to pre-pandemic levels.
In the spring, Avocor attended the first post pandemic ISE event in Barcelona. The industry showcase was strategically important and provided Avocor with a mechanism to expand our range and reach into new regions and new sectors.
Revenue grew through the first half of the year and was enhanced further with the launch of Avocor’s first Google Meet hardware product, the AVM-2770. This was designed in partnership with Google and was well received globally. A significant pre order book for this product had built up during the first half of the year resulting in a strong Q3 from a revenue perspective.
During the course of Q4, the 2nd Google Meet hardware product was launched, the AVM-6570. With the product showcased at ISE in Q1 2023, a significant order book had been built up over the course of the year and led to a strong finish to the year resulting in significant year on year revenue growth.
With the planned introduction of new products in the spring of 2023, commitment to further resource in mainland Europe, secured funding from our investment partners, the Avocor Group is confident on building on the momentum of 2022 with further growth and increased profitability in 2023.
Avocor Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Audit Report
Material uncertainty related to going concern
We draw attention to pages 8, 9 and Note 2 in the financial statements, which indicate that the company incurred a net loss of £2,140,274 during the year ended 31 December 2022 and, as of that date, the company’s current liabilities exceeded its total assets by £3,935,558. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. 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.
The name of the Senior Statutory Auditor who signed the audit report on
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax payable.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
33% straight line basis |
Office equipment |
33% straight line basis |
Intangible assets
Expenditure on development costs are capitalised as intangible assets and are stated in the statement of financial position at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
The cost of intangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Avocor Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Development costs and website |
33% - 50% straight line basis |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Avocor Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Intangible assets |
Development costs and website |
Total |
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Cost or valuation |
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At 1 January 2022 |
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Additions acquired separately |
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At 31 December 2022 |
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Amortisation |
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At 1 January 2022 |
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Amortisation charge |
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At 31 December 2022 |
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Carrying amount |
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At 31 December 2022 |
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At 31 December 2021 |
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Avocor Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Tangible assets |
Fixtures and fittings |
Office equipment |
Total |
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Cost or valuation |
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At 1 January 2022 |
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Additions |
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Disposals |
- |
( |
( |
At 31 December 2022 |
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Depreciation |
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At 1 January 2022 |
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Charge for the year |
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Eliminated on disposal |
- |
( |
( |
At 31 December 2022 |
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Carrying amount |
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At 31 December 2022 |
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At 31 December 2021 |
- |
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Debtors |
Current |
31 December |
31 December |
Trade debtors |
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Prepayments |
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Other debtors |
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|
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Avocor Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Creditors |
Creditors: amounts falling due within one year
31 December |
31 December |
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Due within one year |
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Trade creditors |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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Taxation and social security |
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Other creditors |
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Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Avocor Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Related party transactions |
Summary of transactions with entities with joint control or significant interest
There are no terms or conditions in place regarding these transactions.
Summary of transactions with other related parties
Expenditure with and payables to related parties
2022 |
Entities with joint control or significant influence |
Other related parties |
Purchase of goods |
|
- |
Rendering of services |
- |
|
|
|
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Amounts payable to related party |
|
- |
|
2021 |
Entities with joint control or significant influence |
Other related parties |
Purchase of goods |
|
- |
Rendering of services |
- |
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Transfers of research and development |
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- |
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Amounts payable to related party |
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Transactions with parent
The net amount due to the parent company is £4,270,924 (2021: £2,463,923 owed by the parent), of which £3,137,486 is a loan.
Capital Contribution |
On 6 August 2019 the share capital of the company was acquired by Avocor Technologies (USA) Inc.
As part of this transaction, the trade creditor balance at the time with Agile Display Solutions became part of a debt restructuring agreement with Avocor Technologies (USA) Inc and has therefore been treated as a capital contribution.
Avocor Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Share capital |
Allotted, called up and fully paid shares
31 December |
31 December |
|||
No. |
£ |
No. |
£ |
|
|
|
1,000,000 |
|
1,000,000 |