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Registration number: 04789680

Conversity Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Conversity Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 9

 

Conversity Limited

Company Information

Directors

Howard Arnold Muntz

Richard Merrigan

Diwaker Singh

Andrew Bryant Symmonds

Registered office

C/O Bracher Rawlins Llp
16 High Holborn
London
WC1V 6BX

Accountants

Carbon Accountancy Limited
Chartered Accountants
80-83 Long Lane
London
EC1A 9ET

 

Conversity Limited

(Registration number: 04789680)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

938,504

1,034,082

Tangible assets

5

4,472

3,883

 

942,976

1,037,965

Current assets

 

Debtors

6

173,410

388,477

Cash at bank and in hand

 

700,729

339,458

 

874,139

727,935

Creditors: Amounts falling due within one year

7

(1,066,504)

(1,779,509)

Net current liabilities

 

(192,365)

(1,051,574)

Total assets less current liabilities

 

750,611

(13,609)

Creditors: Amounts falling due after more than one year

7

(864,206)

(794,980)

Net liabilities

 

(113,595)

(808,589)

Capital and reserves

 

Called up share capital

8

1,453,738

539,508

Share premium reserve

1,862,036

1,742,354

Retained earnings

(3,429,369)

(3,090,451)

Shareholders' deficit

 

(113,595)

(808,589)

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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.

 

Conversity Limited

(Registration number: 04789680)
Balance Sheet as at 31 December 2023

Approved and authorised by the Board on 8 March 2024 and signed on its behalf by:
 

.........................................
Howard Arnold Muntz
Director

 

Conversity Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

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:
C/O Bracher Rawlins Llp
16 High Holborn
London
WC1V 6BX

These financial statements were authorised for issue by the Board on 8 March 2024.

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.

Going concern

The company has a balance sheet deficit of £113,595 (2022: £808,589). During the year, the company raised funds by issuing preference shares and directors believe it is appropriate to prepare the financial statements on a going concern basis.

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.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

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.

 

Conversity Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Office equipment

50% straight line basis

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

20% 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.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Conversity Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 11 (2022 - 15).

 

Conversity Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

4

Intangible assets

Internally generated software development costs
 £

Total
£

Cost or valuation

At 1 January 2023

3,358,868

3,358,868

Additions acquired separately

282,504

282,504

Disposals

(1,316,488)

(1,316,488)

At 31 December 2023

2,324,884

2,324,884

Amortisation

At 1 January 2023

2,324,786

2,324,786

Amortisation charge

378,082

378,082

Amortisation eliminated on disposals

(1,316,488)

(1,316,488)

At 31 December 2023

1,386,380

1,386,380

Carrying amount

At 31 December 2023

938,504

938,504

At 31 December 2022

1,034,082

1,034,082

 

Conversity Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

5

Tangible assets

Fixtures and fittings
£

Total
£

Cost or valuation

At 1 January 2023

46,845

46,845

Additions

5,370

5,370

Disposals

(38,886)

(38,886)

At 31 December 2023

13,329

13,329

Depreciation

At 1 January 2023

42,962

42,962

Charge for the year

4,781

4,781

Eliminated on disposal

(38,886)

(38,886)

At 31 December 2023

8,857

8,857

Carrying amount

At 31 December 2023

4,472

4,472

At 31 December 2022

3,883

3,883

6

Debtors

Current

2023
£

2022
£

Trade debtors

26,955

52,107

Prepayments

52,876

40,098

Other debtors

93,579

296,272

 

173,410

388,477

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

140,000

289,725

Trade creditors

 

246,787

121,766

Taxation and social security

 

293,073

462,580

Accruals and deferred income

 

377,446

388,311

Other creditors

 

9,198

517,127

 

1,066,504

1,779,509

 

Conversity Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

864,206

794,980

8

Share capital


Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £0.000001 each

48,177,900

48

48,127,900

48

A Ordinary shares of £0.01 each

2,000

20

2,000

20

C Ordinary shares of £0.000001 each

28,815,900

29

28,815,900

29

D Ordinary shares of £0.000001 each

16,084,500

16

16,084,500

16

A1 Ordinary shares of £0.000001 each

1,262,716,719

1,263

393,493,133

393

B1 Ordinary shares of £0.000001 each

190,910,329

191

145,901,947

146

Preference shares of £0.10 each

14,521,710

1,452,171

5,388,555

538,855

1,561,229,058

1,453,738

637,863,935

539,507


 

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Other borrowings

864,206

794,980

10

Contingent liabilities

Conversity Limited recognises a £125,000 contingent liability payable in the event that certain performance targets are not met.