REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
MOMENTUM DESIGN LAB LTD |
REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
MOMENTUM DESIGN LAB LTD |
MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
MOMENTUM DESIGN LAB LTD |
COMPANY INFORMATION |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Herschel House |
58 Herschel Street |
Slough |
Berkshire |
SL1 1PG |
MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467) |
BALANCE SHEET |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
PROVISIONS FOR LIABILITIES |
NET ASSETS/(LIABILITIES) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 8 |
Share option reserve | 9 |
Retained earnings | 9 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Momentum Design Lab Ltd is a |
The trading address of the company is 74 Rivington Street, London, EC2A 3AY. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on the going concern basis on the basis that the ultimate parent company has confirmed that it will continue to support the company, and is able to do so, for a period of at least 12 months and 1 day following the signing of the audit report. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover includes revenue earned from the rendering of services. Revenue is recognised over the life of the contracts. Where work has been invoiced but not yet performed, deferred revenue is accounted for within the financial statements. |
Where services performed but not yet billed, accrued income is recognised for when the company can measure reliably the value of services provided, and it is probable that economic benefits or service potential associated with the transaction will flow to the company. |
Tangible fixed assets |
Plant and machinery etc | - |
Financial instruments |
Basic financial instruments as covered by Section 11 of FRS102 are measured at amortised cost. The company does not have any other financial instruments as covered by Section 12 of FRS102. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Share based payments |
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services. Two separate awards of share options were in issue during the year. One issue being a performance based vesting condition, dependent on achieving targets related to EBITDA. The other issue being a time based vesting condition, dependent on satisfying a specified term of service. |
The cost of equity-settled transactions is measured at the fair value on grant date.Fair value is determined using the Black-Scholes option pricing model that takes into account the exercise price, the term of the options, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Company received the services that entitle the employees to receive payment. No account is taken of any other vesting conditions. |
The cost of equity-settled transactions is recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments and accrued income |
Included within Trade Debtors is a provision for £421,413 (2022: £377,984) comprising (i) the impairment of a customer balance as at 31st December 2022 and still included as at 31st December 2023 for a total of £377,984, and (ii) the impairment of a customer balance as at 31st December 2023 for a total of £43,756. |
As at the reporting date, there was a reasonable expectation that no further amounts were recoverable from either customer, and therefore both the specific trade balance has been provided for in full. |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors & accruals |
7. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
8. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 1 | 1 |
9. | RESERVES |
Share |
Retained | option |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | (265,204 | ) | 44,371 | (220,833 | ) |
Profit for the year | 462,656 | 462,656 |
Share option expense | - | 21,222 | 21,222 |
At 31 December 2023 | 197,452 | 65,593 | 263,045 |
10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
As stated above, the Report of the Auditors was unqualified. |
We would like to draw your attention to the following statement contained within our audit report as included within the full financial statements:- |
"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 2006. Our 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 a Report of the Auditors 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." |
MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
11. | SHARE-BASED PAYMENT TRANSACTIONS |
The company has a share option plan which is open to certain employees of the company at the discretion of the Board. Options are exercisable at a price specified in the aforementioned option plan. Should the options remain unexercised, they lapse after 10 years from the date of the grant. The options also lapse following the employee leaving the group and various other conditions set out in the plan rules. |
At the beginning of the period, 1st January 2023, a total of 31,016 equity-settled share options were in issue, of which 13,417 had vested. Within the 13,417 which had vested, 6,530 had fully vested due to being performance condition based only. During the year, there were no additional share options granted under the scheme, nor were there any exercises, forfeitures or cancellations in the year. At the end of 2023, a total of 19,538 options had vested, of which 6,530 being fully vested as described above. |
The only share options yet to vest are only conditional on term of service, becoming fully vested after 4 years of issue. The fair valuation methodology utilised was the Black Scholes method, being deemed appropriate due to the relatively straight forward capital structure being assessed. |
The charge recognised in the profit and loss account is allocated on the basis of the share-based payments charge for each individual employee of the UK entity to whom share options have been granted. |
31.12.23 | 31.12.22 |
£ | £ |
Equity-settled schemes | 21,222 | 44,371 |
12. | ULTIMATE PARENT COMPANY |
The ultimate parent company is HTEC Group Inc., a company incorporated in the USA. |
The only group of undertakings for which consolidated financial statements are prepared which include Momentum Design Lab Ltd are those of HTEC Group Inc. Copies of these consolidated financial statements are available from HTEC Group Inc., 535 Mission Street, 14th floor, San Francisco, USA. |
13. | ULTIMATE CONTROLLING PARTY |
There is no ultimate controlling party. |