Company registration number 08072284 (England and Wales)
MIRRORWEB LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
MIRRORWEB LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
MIRRORWEB LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
1,768,951
1,431,239
Tangible assets
5
13,964
25,245
Investments
6
1
1
1,782,916
1,456,485
Current assets
Debtors
8
1,485,114
1,096,220
Cash at bank and in hand
139,650
146,188
1,624,764
1,242,408
Creditors: amounts falling due within one year
9
(2,447,499)
(1,588,692)
Net current liabilities
(822,735)
(346,284)
Total assets less current liabilities
960,181
1,110,201
Creditors: amounts falling due after more than one year
10
(33,119)
(36,574)
Net assets
927,062
1,073,627
Capital and reserves
Called up share capital
12
206
191
Share premium account
5,393,965
4,294,368
Profit and loss reserves
(4,467,109)
(3,220,932)
Total equity
927,062
1,073,627

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

MIRRORWEB LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 OCTOBER 2023
31 October 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 16 April 2024 and are signed on its behalf by:
DM Clee
Director
Company Registration No. 08072284
MIRRORWEB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2021
178
3,330,349
(2,132,013)
1,198,514
Year ended 31 October 2022:
Loss and total comprehensive income for the year
-
-
(1,088,919)
(1,088,919)
Issue of share capital
12
13
964,019
-
964,032
Balance at 31 October 2022
191
4,294,368
(3,220,932)
1,073,627
Year ended 31 October 2023:
Loss and total comprehensive income for the year
-
-
(1,246,177)
(1,246,177)
Issue of share capital
12
15
1,099,597
-
1,099,612
Balance at 31 October 2023
206
5,393,965
(4,467,109)
927,062
MIRRORWEB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
1
Accounting policies
Company information

Mirrorweb Limited is a private company limited by shares incorporated in England and Wales. The registered office is Manchester House, 18-22 Bridge Street, Manchester, Greater Manchester, United Kingdom, M3 3BZ.

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. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors feel that future profitability forecasts and funding sources will enable the company to continue to trade for at least the next 12 months. Thus the directors continue to adopt 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 goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Subscription sales are recognised within the period to which they relate to.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets other than goodwill

Development costs internally generated are recognised at cost and subsequently measured at cost less accumulated amortisation.

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
straight line over 8-10 years
1.6
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.

MIRRORWEB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 5 -

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:

Office equipment
33.3% straight line basis
1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand.

1.9
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 measured at transaction price including transaction costs.

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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price.

 

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 at transaction price.

1.10
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.

MIRRORWEB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 6 -
1.11
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.

 

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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

MIRRORWEB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 7 -
1.16

Share option costs

There are share options held by employees of the company. The share options are administered through an Enterprise Management Incentive Plan ("EMI Plan"). The EMI Plan allows certain employees of Mirrorweb Limited to acquire shares in the company. Shares are subscribed for an agreed market value (with H M Revenue and Customs) at the time of granting the option.

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.

Clasification of preference shares

The company's preference shares have been classified as equity within these financial statements. This classification is based on the application and interpretation of the relevant accounting standards, alongside the directors' judgements around the likely events and conditions in which the preference shares and associated dividends will be redeemed in the future.

 

If any of the underlying assumptions or judgements around the eventual redemption of the preference shares were to change then this classification may need to be reassessed.

Deferred tax asset

The company has recognised a deferred tax asset within debtors over one year. This is based on the directors' assessment that it is probable that the tax losses carried forward, will be utilised against future profits.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
49
46
MIRRORWEB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
4
Intangible fixed assets
Development costs
£
Cost
At 1 November 2022
1,796,106
Additions - internally developed
566,700
At 31 October 2023
2,362,806
Amortisation and impairment
At 1 November 2022
364,867
Amortisation charged for the year
228,988
At 31 October 2023
593,855
Carrying amount
At 31 October 2023
1,768,951
At 31 October 2022
1,431,239
5
Tangible fixed assets
Office equipment
£
Cost
At 1 November 2022
152,022
Additions
4,797
At 31 October 2023
156,819
Depreciation and impairment
At 1 November 2022
126,777
Depreciation charged in the year
16,078
At 31 October 2023
142,855
Carrying amount
At 31 October 2023
13,964
At 31 October 2022
25,245
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1
1
MIRRORWEB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
7
Subsidiaries

Details of the company's subsidiaries at 31 October 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Mirrorweb Inc
USA
Ordinary
100.00
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
245,295
223,913
Amounts owed by group undertakings
218,448
123,747
Other debtors
584,062
560,354
1,047,805
908,014
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
437,309
188,206
Total debtors
1,485,114
1,096,220
9
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loan
5,556
5,556
Obligations under finance leases
-
0
783
Other borrowings
168,937
200,000
Trade creditors
385,072
213,703
Other taxation and social security
249,993
81,634
Other creditors
53,038
43,378
Accruals and deferred income
1,584,903
1,043,638
2,447,499
1,588,692
10
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loan
33,119
36,574
MIRRORWEB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
11
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
896
(776)
Tax losses
878,651
546,792
Development costs timing difference
(442,238)
(357,810)
437,309
188,206
2023
Movements in the year:
£
Asset at 1 November 2022
(188,206)
Credit to profit or loss
(249,103)
Asset at 31 October 2023
(437,309)
MIRRORWEB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
12
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share B of 1p each
1,000
1,000
10
10
Ordinary share C of 1p each
9,300
9,300
93
93
Ordinary share E1 of 1p each
4,635
3,900
47
39
Ordinary share E2 of 1p each
5,627
4,900
56
49
20,562
19,100
206
191
Preference share of 0p each
450,000
450,000
-
-

During the year, a total of 1,462 shares were issued and the company received investment totalling £1.14 million

13
Related party transactions

During the period the company entered into the following transactions with related parties:

 

Mr D Clee

Director

 

During the period the company provided the director with an unsecured loan. At the balance sheet date the amount due from the director was £59,384 (2022 : £4,410). The maximum amount due from the director in the period was £59,384.

14
Events after the reporting date

In November 2023 the company received further investments totalling £600K for the issue of E3 shares.

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