Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-31false2022-01-01falsefalseThe principal activity for the Company in the period under review was sales and marketing support activities for the parent company, Ownbackup Inc.14367 11121433 2022-01-01 2022-12-31 11121433 2021-01-01 2021-12-31 11121433 2022-12-31 11121433 2021-12-31 11121433 2021-01-01 11121433 1 2022-01-01 2022-12-31 11121433 1 2021-01-01 2021-12-31 11121433 5 2022-01-01 2022-12-31 11121433 5 2021-01-01 2021-12-31 11121433 6 2022-01-01 2022-12-31 11121433 6 2021-01-01 2021-12-31 11121433 d:Director1 2022-01-01 2022-12-31 11121433 d:RegisteredOffice 2022-01-01 2022-12-31 11121433 e:Buildings e:ShortLeaseholdAssets 2022-01-01 2022-12-31 11121433 e:Buildings e:ShortLeaseholdAssets 2022-12-31 11121433 e:Buildings e:ShortLeaseholdAssets 2021-12-31 11121433 e:FurnitureFittings 2022-01-01 2022-12-31 11121433 e:FurnitureFittings 2022-12-31 11121433 e:FurnitureFittings 2021-12-31 11121433 e:FurnitureFittings e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 11121433 e:OfficeEquipment 2022-01-01 2022-12-31 11121433 e:OfficeEquipment 2022-12-31 11121433 e:OfficeEquipment 2021-12-31 11121433 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 11121433 e:ComputerEquipment 2022-01-01 2022-12-31 11121433 e:ComputerEquipment 2022-12-31 11121433 e:ComputerEquipment 2021-12-31 11121433 e:ComputerEquipment e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 11121433 e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 11121433 e:CurrentFinancialInstruments 2022-12-31 11121433 e:CurrentFinancialInstruments 2021-12-31 11121433 e:Non-currentFinancialInstruments 2022-12-31 11121433 e:Non-currentFinancialInstruments 2021-12-31 11121433 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 11121433 e:CurrentFinancialInstruments e:WithinOneYear 2021-12-31 11121433 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 11121433 e:Non-currentFinancialInstruments e:AfterOneYear 2021-12-31 11121433 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 11121433 e:ReportableOperatingSegment1 2021-01-01 2021-12-31 11121433 e:UKTax 2022-01-01 2022-12-31 11121433 e:UKTax 2021-01-01 2021-12-31 11121433 e:ForeignTax 2022-01-01 2022-12-31 11121433 e:ForeignTax 2021-01-01 2021-12-31 11121433 e:ShareCapital 2022-01-01 2022-12-31 11121433 e:ShareCapital 2022-12-31 11121433 e:ShareCapital 2021-01-01 2021-12-31 11121433 e:ShareCapital 2021-12-31 11121433 e:ShareCapital 2021-01-01 11121433 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 11121433 e:RetainedEarningsAccumulatedLosses 2022-12-31 11121433 e:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 11121433 e:RetainedEarningsAccumulatedLosses 2021-12-31 11121433 e:RetainedEarningsAccumulatedLosses 2021-01-01 11121433 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 11121433 e:AcceleratedTaxDepreciationDeferredTax 2021-12-31 11121433 e:TaxLossesCarry-forwardsDeferredTax 2022-12-31 11121433 e:TaxLossesCarry-forwardsDeferredTax 2021-12-31 11121433 e:RetirementBenefitObligationsDeferredTax 2022-12-31 11121433 e:RetirementBenefitObligationsDeferredTax 2021-12-31 11121433 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-01-01 2022-12-31 11121433 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-12-31 11121433 d:OrdinaryShareClass1 2022-01-01 2022-12-31 11121433 d:OrdinaryShareClass1 2022-12-31 11121433 d:OrdinaryShareClass1 2021-12-31 11121433 d:FRS102 2022-01-01 2022-12-31 11121433 d:Audited 2022-01-01 2022-12-31 11121433 d:FullAccounts 2022-01-01 2022-12-31 11121433 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 11121433 e:WithinOneYear 2022-12-31 11121433 e:WithinOneYear 2021-12-31 11121433 e:BetweenOneFiveYears 2022-12-31 11121433 e:BetweenOneFiveYears 2021-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 11121433









OWNCOMPANY UK LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
COMPANY INFORMATION


Director
S Gutmann 




Registered number
11121433



Registered office
Suite 4
7th Floor

50 Broadway

London

SW1H 0DB




Independent auditor
Nortons Assurance Limited
Chartered Accountants and Statutory Auditor

Second Floor

NOW Building

Thames Valley Park

Reading

Berkshire

RG6 1RB





 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 

CONTENTS



Page
Strategic Report
1
Director's Report
2 - 3
Independent Auditor's Report
4 - 7
Profit and Loss Account
8
Balance Sheet
9
Statement of Changes in Equity
10
Statement of Cash Flows
11
Analysis of Net Debt
12
Notes to the Financial Statements
13 - 26

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The Directors present their strategic report for the year ended 31 December 2022.

Business review
 
The results of the Company for the year show a profit on ordinary activities before tax of £1,377,625 (2021 - £973,236). The shareholders' funds for the Company total £1,859,170 (2021 - £865,248).
The Company provides a suite of cloud-based data protection tools, including data backup and restoration, security posture management, archiving, and sandbox seeding tools. The directors are confident that business is moving forward and has a promising future. Investments are being made to expand the Company’s market and customer base and to sell additional products and services to its current customers. 
The Company has a good cash position at year-end due to previously funded financing.

Principal risks and uncertainties
 
The Company's success is dependent on the operations of the Parent Company.
Cashflow risk
The Company operates on a cost-plus revenue model and is fully funded by the other group entities.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations, which will result in financial loss to the Company. The Company does not have any external debt.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit. Due to the nature of the business, the Company has minimal liquidity risk and cash flows are managed on a daily basis.
Foreign exchange risk
The Company has transaction currency exposure which arise from purchases and sales in currencies other than its functional currency. Management monitors foreign currency balances and controls these to limit exchange rate exposure.
Competition risk
Continual development of R&D to develop new products at a group level.

Financial key performance indicators
 
The directors oversee the operations of the group at the Parent Company level, of which the Company is included. The directors of the Company do not believe the use of financial key performance indicators are appropriate for assessing the performance or position of the Company. 


This report was approved by the board and signed on its behalf.


................................................
S Gutmann
Director

Date: 1 March 2024
Page 1

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The director presents his report and the financial statements for the year ended 31 December 2022.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £993,922 (2021 - £875,090).

No dividend has been paid or proposed in the current year (2021 - £nil)

Director

The director who served during the year was:

S Gutmann 

Future developments

There are no significant future developments to note.

Branches outside the United Kingdom

The Company has a branch established in France.

Page 2

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Matters covered in the Strategic Report

The Company has chosen in accordance with Companies Act 2006, a. 414C (11) to set out in the strategic report information required by The 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 risk and uncertainties and financial risk management objectives and policies.

Disclosure of information to auditor

The director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditor is unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, Nortons Assurance Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
S Gutmann
Director

Date: 1 March 2024
Page 3

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 

Opinion


We have audited the financial statements of OwnCompany UK Limited (formerly known as Ownbackup UK Limited) (the 'Company') for the year ended 31 December 2022, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Company's affairs as at 31 December 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 United Kingdom, including the Financial Reporting Council'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 director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 4

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED) (CONTINUED)


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 director is responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.


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 Director's 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 2, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED) (CONTINUED)


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. 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 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 management. 
Our approach was as follows: 
 
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework including the Companies Act 2006 and the relevant tax compliance regulations in the UK.
 
We understood how the Company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures.
 
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by discussing with management to understand where it considered there was a susceptibility to fraud. We considered the controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud and error.  
 
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved journal entry testing, with a focus on journals indicating large or unusual transactions based on our understanding of the business, enquiries of Company management and focused testing. In addition, we completed procedures to conclude on the compliance of the disclosures in the Annual Report and Accounts with the requirements of the relevant accounting standards and UK legislation. 


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Page 6

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED) (CONTINUED)


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 2006Our 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.





Karen Cairns (Senior Statutory Auditor)
  
for and on behalf of
Nortons Assurance Limited
 
Chartered Accountants and Statutory Auditor
  
Second Floor
NOW Building
Thames Valley Park
Reading
Berkshire
RG6 1RB

5 March 2024
Page 7

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
28,798,913
13,126,560

Administrative expenses
  
(27,421,288)
(12,153,324)

Operating profit
 5 
1,377,625
973,236

Tax on profit
 8 
(383,703)
(98,146)

Profit for the financial year
  
993,922
875,090

There are no items of other comprehensive income for 2022 or 2021 other than the profit for the yearAs a result, no separate Statement of Comprehensive Income has been presented.

The notes on pages 13 to 26 form part of these financial statements.
Page 8

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
REGISTERED NUMBER: 11121433

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 9 
3,654,065
207,975

Current assets
  

Debtors: amounts falling due within one year
 10 
13,266,183
13,196,251

Cash at bank and in hand
 11 
1,917,938
1,046,407

  
15,184,121
14,242,658

Creditors: amounts falling due within one year
 12 
(15,506,721)
(13,585,385)

Net current (liabilities)/assets
  
 
 
(322,600)
 
 
657,273

Creditors: amounts falling due after more than one year
 13 
(926,321)
-

Provisions for liabilities
  

Deferred tax
 14 
(407,586)
-

Other provisions
 15 
(138,388)
-

  
 
 
(545,974)
 
 
-

Net assets
  
1,859,170
865,248


Capital and reserves
  

Called up share capital 
 16 
100
100

Profit and loss account
 17 
1,859,070
865,148

  
1,859,170
865,248


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
S Gutmann
Director

Date: 1 March 2024

The notes on pages 13 to 26 form part of these financial statements.
Page 9

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 21 January 2021
100
(9,942)
(9,842)


Comprehensive income for the year

Profit for the year
-
875,090
875,090


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
875,090
875,090


Total transactions with owners
-
-
-



At 1 January 2022
100
865,148
865,248


Comprehensive income for the year

Profit for the year
-
993,922
993,922


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
993,922
993,922


Total transactions with owners
-
-
-


At 31 December 2022
100
1,859,070
1,859,170


The notes on pages 13 to 26 form part of these financial statements.

Page 10

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
993,922
875,090

Adjustments for:

Depreciation of tangible assets
318,036
39,058

Taxation charge
383,703
98,146

(Increase) in debtors
(434,490)
(220,001)

Decrease/(increase) in amounts owed by groups
545,910
(12,424,174)

Increase in creditors
3,282,299
919,509

(Decrease)/increase in amounts owed to groups
(335,139)
11,694,054

Increase in provisions
138,388
-

Corporation tax (paid)
(256,972)
(5,197)

Net cash generated from operating activities

4,635,657
976,485


Cash flows from investing activities

Purchase of tangible fixed assets
(3,764,126)
(228,579)

Net cash from investing activities
(3,764,126)
(228,579)


Net increase in cash and cash equivalents
871,531
747,906

Cash and cash equivalents at beginning of year
1,046,407
298,501

Cash and cash equivalents at the end of year
1,917,938
1,046,407


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,917,938
1,046,407

1,917,938
1,046,407


The notes on pages 13 to 26 form part of these financial statements.

Page 11

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022




At 1 January 2022
Cash flows
At 31 December 2022
£

£

£

Cash at bank and in hand

1,046,407

871,531

1,917,938


1,046,407
871,531
1,917,938

The notes on pages 13 to 26 form part of these financial statements.
Page 12

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

OwnCompany UK Limited (formerly called Ownbackup UK Limited) ("the Company") is a company incorporated in the United Kingdom under the Companies Act. 
On 19 October 2023 the directors passed a resolution to change the name of the Company to OwnCompany UK Limited.
The Company is a private company limited by shares and is registered in England and Wales. The Company's registered address is  Suite 4, 7th Floor, 50 Broadway, London, SW1H 0DB.
The principal activity for the Company in the period under review was sales and marketing support activities for its parent company, OwnCompany Inc.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have received confirmation of continued financial support for the foreseeable future from the parent company, OwnCompany Inc., thus the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 13

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP. The financial statements are rounded to the nearest whole pound.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.4

Revenue

Revenue represents amounts charged to the Company's parent, OwnCompany Inc., for sales and marketing services provided, excluding value added tax. Revenue is recognised when chargeable costs are incurred.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Pensions

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.7

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 15

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold improvements
-
Shorter of the term of lease or useful life of the assets (useful life currently evaluated to be 10 years)
Fixtures and fittings
-
7 years
Office equipment
-
5 years
Computer equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.11

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Page 16

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.12

Financial instruments

The Company 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 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 17

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the directors are required to make judgments, 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 those 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 if the revision affects only that period, or in the period of the revision and the future period if the revision affects both current and future periods.
The more significant estimates and assumptions by management include, among others valuation and recognition of share-based payments, and accounting for income taxes. Management believes that the estimates and judgments upon which it relies are reasonable based upon information available to it at the time that these estimates and judgments were made. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial statements will be affected.


4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Intercompany revenue
28,798,913
13,126,560


All turnover arose within the rest of the world.


5.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Exchange differences
(6,248)
(898)

Other operating lease rentals
1,789,794
314,703

Share-based payments
405,308
298,493

Page 18

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2022
2021
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
15,500
11,000


7.


Employees

Staff costs were as follows:


2022
2021
£
£

Wages and salaries
16,401,580
8,843,364

Social security costs
2,666,943
1,240,634

Cost of defined contribution scheme
690,656
310,621

19,759,179
10,394,619


The Directors are employed by other Group entities and the services provided to the Company are incidental and therefore no recharge of cost has been performed.

The average monthly number of employees, including the director, during the year was as follows:


        2022
        2021
            No.
            No.







General & administration
2
8



Marketing
5
2



Product & strategy
3
2



Sales
105
51



COGS
15
3



Accounting & finance
1
-



IT
2
-



People
9
-



Director
1
1

143
67

Page 19

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
(102,058)
76,863

Adjustments in respect of previous periods
23,860
494

Foreign tax


Foreign tax on income for the year
43,251
31,096

Total current tax
(34,947)
108,453

Deferred tax


Origination and reversal of timing differences
418,650
(10,307)

Total deferred tax
418,650
(10,307)


Taxation on profit on ordinary activities
383,703
98,146

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
1,377,625
973,236


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
261,749
184,915

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
5,153
1,455

Capital allowances for year in excess of depreciation
(72,867)
(8,773)

Higher rate taxes on overseas earnings
53,242
-

Adjustments to tax charge in respect of prior periods
23,860
494

Effects of share based payments
12,090
(79,649)

Effect of changes in tax rate
100,476
(296)

Total tax charge for the year
383,703
98,146

Page 20

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
8.Taxation (continued)


Factors that may affect future tax charges

The Finance Act 2021 was substantially enacted in May 2021 and has increased the corporation tax rate from 19% to 25% with effect from 1 April 2023.


9.


Tangible fixed assets





Short-term leasehold improve-ments
Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2022
38,064
15,481
35,901
160,259
249,705


Additions
2,402,712
813,194
334,706
213,514
3,764,126



At 31 December 2022

2,440,776
828,675
370,607
373,773
4,013,831



Depreciation


At 1 January 2022
2,220
2,952
5,306
31,252
41,730


Charge for the year on owned assets
155,673
34,184
32,169
96,010
318,036



At 31 December 2022

157,893
37,136
37,475
127,262
359,766



Net book value



At 31 December 2022
2,282,883
791,539
333,132
246,511
3,654,065



At 31 December 2021
35,844
12,529
30,595
129,007
207,975

Page 21

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


Debtors

2022
2021
£
£


Amounts owed by group undertakings
12,300,983
12,846,893

Other debtors
761,495
187,398

Prepayments and accrued income
203,705
150,896

Deferred taxation
-
11,064

13,266,183
13,196,251



11.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
1,917,938
1,046,407



12.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
633,740
149,710

Amounts owed to group undertakings
11,358,915
11,694,054

Corporation tax
8,953
108,456

Other taxation and social security
1,039,061
495,563

Other creditors
360,790
188,128

Accruals and deferred income
2,105,262
949,474

15,506,721
13,585,385



13.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Accruals and deferred income
926,321
-


Page 22

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

14.


Deferred taxation




2022
2021


£

£






At beginning of year
11,064
757


Charged to profit or loss
(418,650)
10,307



At end of year
(407,586)
11,064

The deferred taxation balance is made up as follows:

2022
2021
£
£


Accelerated capital allowances
(582,871)
(43,033)

Share-based payments
108,090
49,271

Other
67,195
4,826

(407,586)
11,064


The net deferred tax asset expected to reverse in the next 12 months is expected to be £8,907. 


15.


Provisions




Asset retirement obligation

£





Charged to profit or loss
138,388



At 31 December 2022
138,388

As part of its property leasing arrangements, the group has an obligation to return the property to its original condition. Where the group has conducted significant leasehold improvements it has an obligation to remove these improvements. The present value of the expected cost is capitalised as a part of the leasehold improvement asset. The provision is expected to be utilised at the end of the respective lease in 2027.

Page 23

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

16.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



100 (2021 - 100) Ordinary share shares of £1.00 each
100
100

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.



17.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.

Page 24

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

18.


Share-based payments

In August 2016, the Company's Board of Directors adopted a share option plan ("the Plan"), under which options to purchase the Company's ordinary shares may be granted to employees, officers, directors, consultants, and service providers of the Company and its subsidiary. Options granted under the Plan are exercisable until ten years from the date of the grant. 
The weighted average fair value of stock options granted was calculated using the Black-Scholes option pricing model with assumptions listed below:

Weighted
average
exercise
price
($)
2022
Number
2022
Weighted
average
exercise
price
($)
2021
Number
2021

Outstanding at the beginning of the year

1.14

1,836,850

1.41
 
1,391,335
 
Granted during the year

5.74

128,785

2.58
 
901,230
 
Forfeited during the year

0.61

(44,917)

1.01
 
(52,027)
 
Exercised during the year

3.22

(1,675)

0.37
 
(140,750)
 
Expired during the year

-

-

0.86
 
(262,938)
 
Outstanding at the end of the year
1.37

1,919,043

1.14
 
1,836,850
 

2022
2021

Option pricing model used


Black Scholes

Black Scholes
 
Weighted average share price ($)


1.37

1.14
 
Exercise price ($)


2.75

6.02
 
Expected volatility


45.89%

45.95%
 
Risk-free interest rate


3.06%

1.08%
 

2022
2021
£
£


Expense recognised in accordance with Section 26 of FRS 102 share based payments
405,308
298,493

Page 25

 
OWNCOMPANY UK LIMITED (FORMERLY KNOWN AS OWNBACKUP UK LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

19.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £690,656 (2021 - £310,621). Contributions totalling £228,662 (2021 - £101,694) were payable to the fund at the balance sheet date and are included in creditors.


20.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
2,061,768
224,768

Later than 1 year and not later than 5 years
6,242,600
-

8,304,368
224,768


21.


Controlling party

The Company's immediate parent is OwnCompany Inc. (formerly Ownbackup Inc.), however the ultimate parent and controlling party is considered to be Own Data Company Ltd. (formerly Ownbackup Ltd.), a company registered in Israel.
Own Data Company Ltd. is the smallest and largest group for which consolidated accounts including Ownbackup UK Limited are drawn up. The registered address of Ownbackup Limited is 3 Aluf Kalman Magen St, Tel Aviv 6107075, Israel.
 
Page 26