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Registration number: 03974449

Avocor Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2022

 

Avocor Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 9

 

Avocor Limited

(Registration number: 03974449)
Balance Sheet as at 31 December 2022

Note

31 December
2022
£

31 December
2021
£

Fixed assets

 

Intangible assets

4

791,428

536,922

Tangible assets

5

10,410

7,603

 

801,838

544,525

Current assets

 

Stocks

3,981,556

1,840,751

Debtors

6

1,887,588

1,561,842

Cash at bank and in hand

 

346,339

521,403

 

6,215,483

3,923,996

Creditors: Amounts falling due within one year

7

(10,952,879)

(6,263,805)

Net current liabilities

 

(4,737,396)

(2,339,809)

Net liabilities

 

(3,935,558)

(1,795,284)

Capital and reserves

 

Called up share capital

11

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 Board on 1 February 2024 and signed on its behalf by:
 

.........................................
S Hix
Company secretary and director

 

Avocor Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Arena Building Centre
Building B
Riverside Way,
Camberley
Surrey
GU15 3YL
United Kingdom

2

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

The Independent Auditor's Report was unqualified. The audit report included the following paragraph;

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 6 February 2024 was Caroline Webster, who signed for and on behalf of UHY Ross Brooke.

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

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 15 (2021 - 15).

 

Avocor Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

4

Intangible assets

Development costs and website
 £

Total
£

Cost or valuation

At 1 January 2022

1,384,558

1,384,558

Additions acquired separately

822,528

822,528

At 31 December 2022

2,207,086

2,207,086

Amortisation

At 1 January 2022

847,636

847,636

Amortisation charge

568,022

568,022

At 31 December 2022

1,415,658

1,415,658

Carrying amount

At 31 December 2022

791,428

791,428

At 31 December 2021

536,922

536,922

 

Avocor Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

5

Tangible assets

Fixtures and fittings
£

Office equipment
£

Total
£

Cost or valuation

At 1 January 2022

2,125

33,677

35,802

Additions

1,772

7,956

9,728

Disposals

-

(12,952)

(12,952)

At 31 December 2022

3,897

28,681

32,578

Depreciation

At 1 January 2022

2,125

26,074

28,199

Charge for the year

489

6,432

6,921

Eliminated on disposal

-

(12,952)

(12,952)

At 31 December 2022

2,614

19,554

22,168

Carrying amount

At 31 December 2022

1,283

9,127

10,410

At 31 December 2021

-

7,603

7,603

6

Debtors

Current

31 December
2022
£

31 December
2021
£

Trade debtors

1,073,804

984,738

Prepayments

575,038

298,997

Other debtors

238,746

278,107

 

1,887,588

1,561,842

 

Avocor Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

7

Creditors

Creditors: amounts falling due within one year

31 December
2022
£

31 December
2021
£

Due within one year

Trade creditors

4,476,812

3,135,213

Amounts owed to group undertakings and undertakings in which the company has a participating interest

4,270,924

2,463,923

Taxation and social security

525,148

215,007

Other creditors

1,679,995

449,662

10,952,879

6,263,805

8

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 £18,756 (2021 - £18,756). Financial commitments relate to a non-cancellable operating lease of property.

 

Avocor Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

9

Related party transactions

Summary of transactions with entities with joint control or significant interest

Transactions with entities of significant influence, Agile Display Solutions, a company which is a shareholder in the parent company.
 Transactions relate to the purchase of stock and movement of funds to facilitate the purchase of Avocor Limited by Avocor US Technologies Inc.
 There are no terms or conditions in place regarding these transactions.
 

Summary of transactions with other related parties

Transactions with other related parties relate to a company with a shared director.
 Transactions relate to the provision of research and development consultancy services.
 

Expenditure with and payables to related parties

2022

Entities with joint control or significant influence
£

Other related parties
£

Purchase of goods

2,071,393

-

Rendering of services

-

427,713

2,071,393

427,713

Amounts payable to related party

1,904,216

-

2021

Entities with joint control or significant influence
£

Other related parties
£

Purchase of goods

724,685

-

Rendering of services

-

261,378

Transfers of research and development

165,060

-

889,745

261,378

Amounts payable to related party

1,623,853

22,260

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.

10

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

11

Share capital

Allotted, called up and fully paid shares

 

31 December
2022

31 December
2021

 

No.

£

No.

£

Ordinary shares of £1 each of £1 each

1,000,000

1,000,000

1,000,000

1,000,000