Evoluteiq Limited
Unaudited Financial Statements
For the year ended 31 December 2023
Pages for Filing with Registrar
Company Registration No. 11865494 (England and Wales)
EvoluteIQ Limited
Evoluteiq Limited
Company Information
Directors
S Gupte
D A Kinger
S S Koppikar
P Dahlgren
N Prabhu Haladi
Company number
11865494
Registered office
6th Floor
9 Appold Street
London
EC2A 2AP
Accountants
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Evoluteiq Limited
Balance Sheet
As at 31 December 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
3,296,003
1,440,861
Current assets
Debtors
4
2,345,947
954,029
Cash at bank and in hand
168,841
458,667
2,514,788
1,412,696
Creditors: amounts falling due within one year
5
(5,512,275)
(2,557,845)
Net current liabilities
(2,997,487)
(1,145,149)
Net assets
298,516
295,712
Capital and reserves
Called up share capital
6
13,514
13,514
Share premium account
796,486
796,486
Profit and loss reserves
(511,484)
(514,288)
Total equity
298,516
295,712

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 December 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.

The financial statements were approved by the board of directors and authorised for issue on 30 April 2024 and are signed on its behalf by:
D A Kinger
Director
Company Registration No. 11865494
EvoluteIQ Limited
Evoluteiq Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 2
1
Accounting policies
Company information

EvoluteIQ Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, 9 Appold Street, London, EC2A 2AP.

1.1
Accounting convention

These financial statements have been prepared in accordance with section 1A of 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 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.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.3
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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:

Software
5 years straight line
1.4
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

EvoluteIQ Limited
Evoluteiq Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 3

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.5
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
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 initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

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.

EvoluteIQ Limited
Evoluteiq Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 4
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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 initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.8
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. 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.

EvoluteIQ Limited
Evoluteiq Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 5
1.9
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.

2
Employees

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

2023
2022
Number
Number
Total
1
1
3
Intangible fixed assets
Software
£
Cost
At 1 January 2023
1,713,468
Additions
2,436,281
At 31 December 2023
4,149,749
Amortisation and impairment
At 1 January 2023
272,607
Amortisation charged for the year
581,139
At 31 December 2023
853,746
Carrying amount
At 31 December 2023
3,296,003
At 31 December 2022
1,440,861
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,608,367
891,952
Other debtors
22,486
14,010
Prepayments and accrued income
715,094
48,067
2,345,947
954,029
EvoluteIQ Limited
Evoluteiq Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
4
Debtors
(Continued)
Page 6
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,129,439
917,618
Amounts owed to group undertakings
2,889,429
1,090,486
Taxation and social security
24,765
149,812
Other creditors
11,557
8,492
Accruals and deferred income
457,085
391,437
5,512,275
2,557,845

Amounts owed to group undertakings includes a balance of £2,613,985 owed to EvoluteIQ AB, the parent company (2022: £984,943). The loan is unsecured, repayable on demand and incurs interest of 6% per annum. As at the year end, interest of £275,444 had been accrued (2022: £105,543).

6
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
13,514
13,514
13,514
13,514

 

EvoluteIQ Limited
Evoluteiq Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 7
7
Related party transactions

During the period, the company received technology support services totalling £2,095,000 (2022: £840,000) from Quadwave Consulting UK Limited, an associated company with a common director. At the year end an amount of £540,100 (2022: £190,000) was due to Quadwave Consulting UK Limited.

 

During the period, the company received technology support services totalling £111,802 (2022: £110,847) from Quadwave Consulting Private Limited, a company with a common director. At the year end an amount of £20,148 (2022: £13,977) was due to Quadwave Consulting Private Limited.

 

During the period, the company received technology support services totalling £6,132 (2022: £6,132) from Invenqo Solutions Private Limited, a company with a common director. At the year end an amount of £1,022 (2022: £1,022) was due to Invenqo Solutions Private Limited.

 

During the period, the company received marketing, branding and consultancy services totalling £25,000 (2022: £30,000) from Familjen Dahlgren Invest AB, a company with a common director. At the year end an amount of £nil (2022: £7,500) was due to Familjen Dahlgren Invest AB.

 

During the period, the company received consultancy services totalling £1,057,740 (2022: £1,360,655) from EvoluteIQ Solutions Private Limited, a company with a common director, At the year end there was £382,081 (2022: £408,460) due to EvoluteIQ Solutions Private Limited.

 

The company also received IP license income totalling £88,940 (2022: £137,858) from EvoluteIQ Solutions Private Limited. At year end there was a balance of £39,994 (2022: £207,033) due from EvoluteIQ Solutions Private Limited in respect of these fees.

8
Controlling party

The immediate parent company is EvoluteIQ AB, registered in Sweden. There is no single controlling party.

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