Company registration number 12334877 (England and Wales)
AMPHORA SOFTWARE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
AMPHORA SOFTWARE LTD
COMPANY INFORMATION
Directors
Mr P J Burki
Mr D Glasspool
(Appointed 5 February 2024)
Company number
12334877
Registered office
Ensors Chartered Accountants
Connexions
159 Princes Street
Ipswich
IP1 1QJ
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
AMPHORA SOFTWARE LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Income statement
9
Group statement of comprehensive income
10
Group statement of financial position
11
Company statement of financial position
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 34
AMPHORA SOFTWARE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The results for the year and the financial position of the Group are shown in the financial statements which comprise the Statement of Comprehensive Income and the Statement of Financial Position.
Principal risks and uncertainties
The board and the management committee monitor the group's progress against its business objectives and financial performance on a regular basis. The principal risks and uncertainties facing the group are discussed below.
These mainly include, but are not limited to:
Economic downturn – The group acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of potential financial difficulties. Customers needs are constantly reviewed to enable early action to be taken to maintain strong relationships with its key customers.
Loss of key personnel – This would present significant operational difficulties for the Group. Management seek to ensure that key personnel are appropriate as to ensure that good performance is recognised.
Protection of intellectual property rights – the group has a limited ability to protect others from obtaining and using technology without authorisation.
Failure of third-party service providers – The Group employs third-party service providers that store, process and transmit proprietary and confidential information on our behalf. We rely on encryption and authentication technology licensed from third parties in an effort to securely transmit confidential and sensitive information.
Internal process and development control - The company became ISO 27001 and 9001 certified on 14 May 2019 and the Company continues to undergo annual ISO assessments and checks.
Development and performance
As reported in the group income statement, turnover has reduced to $9.4m (2022: $10.9m). This drop in revenue is due to the reduced professional services in the year which outweighed the gain in maintenance and support and license income. Some major developments of modules are being discussed with the main client of Amphora which will allow the group to increase not only revenues, but diversify the offering of modules and hopefully, attract new clients.
The balance sheet shows that the Group’s net assets at the year-end have slightly decreased from net assets of $153k to net liabilities of $61k. This is due to a less revenue as compared to the previous year, net results shows a $63k loss in the profit and loss statement.
The group will continue to invest in the development of its software and have added a new office in Bangalore at the beginning of 2024 with AI competences which will allow the group to keep up with developments in the software industry.
Key performance indicators
Management use a range of performance measures to monitor and manage the business as set out below:
AMPHORA SOFTWARE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Mr P J Burki
Director
29 July 2024
AMPHORA SOFTWARE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The Company was established in 2019 as a result of a group re organization. The group is a leading software solution provider for commodity trading, logistics, shipping and risk management in the crude oil, refined products, LPG coal, iron ore, LNG, base metals and concentrates marketplace.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P J Burki
Mr C J Mudry
(Resigned 5 February 2024)
Mr D Glasspool
(Appointed 5 February 2024)
Financial instruments
Liquidity risk
Management monitor the rolling cash flow forecasts on a monthly basis to ensure the group meets its obligations as they fall due.
Foreign currency risk
The group operates internationally and is exposed to foreign exchange risk of future commercial transactions that are not denominated in the group's functional currency.
Credit risk
The group has internal controls in place to avoid the customer or counterparty defaulting on its contractual obligations and resulting in a financial loss.
Future developments
Overall, the directors believe that the Company is well placed in terms of strategic and market position to maximise its ability to generate sales, satisfy customer demand while continuing to support existing clients and enhance its current software offering in spite of the difficult economic conditions.
Auditor
The auditor, Ensors Accountants LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
AMPHORA SOFTWARE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Mr P J Burki
Director
AMPHORA SOFTWARE LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
AMPHORA SOFTWARE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AMPHORA SOFTWARE LTD
- 6 -
Opinion
We have audited the financial statements of Amphora software Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The 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 group's and the parent company's affairs as at 31 December 2023 and of the group's loss 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.
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 UK, including the FRC’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 directors' 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 group's and parent 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 directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
AMPHORA SOFTWARE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AMPHORA SOFTWARE LTD
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' 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 directors' responsibilities statement, the directors are 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 directors determine 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 directors are responsible for assessing the parent 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 directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
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:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
There are, however, inherent limitations to our above audit procedures. Auditing standards only require us to enquire of the directors and management regarding non-compliance with laws and regulations, as well as review regulatory and legal correspondence (if there is any). It is therefore possible that instances of non-compliance could be missed, particularly where the law in itself is far removed from any financial transactions.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
AMPHORA SOFTWARE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AMPHORA SOFTWARE LTD
- 8 -
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 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.
Zoe Plowman (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP
1 August 2024
Chartered Accountants
Statutory Auditor
Connexions
159 Princes Street
Ipswich
IP1 1QJ
AMPHORA SOFTWARE LTD
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
$
$
Revenue
3
9,391,440
10,922,173
Cost of sales
(6,454,302)
(7,881,217)
Gross profit
2,937,138
3,040,956
Administrative expenses
(3,812,202)
(2,720,372)
Other operating income
48,529
15,810
Operating (loss)/profit
4
(826,535)
336,394
Investment income
8
54,984
4,811
Finance costs
9
(2,523)
(3,541)
Other gains and losses
10
37,067
-
(Loss)/profit before taxation
(737,007)
337,664
Tax on (loss)/profit
11
673,690
(211,936)
(Loss)/profit for the financial year
23
(63,317)
125,728
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
AMPHORA SOFTWARE LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
$
$
(Loss)/profit for the year
(63,317)
125,728
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(151,348)
279,151
Total comprehensive income for the year
(214,665)
404,879
Total comprehensive income for the year is all attributable to the owners of the parent company.
AMPHORA SOFTWARE LTD
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
$
$
$
$
Non-current assets
Intangible assets
12
795,884
1,215,721
Property, plant and equipment
13
89,443
186,427
885,327
1,402,148
Current assets
Trade and other receivables
16
2,571,520
3,112,058
Cash and cash equivalents
1,939,553
1,816,471
4,511,073
4,928,529
Current liabilities
17
(5,431,546)
(6,140,855)
Net current liabilities
(920,473)
(1,212,326)
Total assets less current liabilities
(35,146)
189,822
Non-current liabilities
18
(26,554)
(36,857)
Net (liabilities)/assets
(61,700)
152,965
Equity
Called up share capital
22
244
244
Retained earnings
23
(61,944)
152,721
Total equity
(61,700)
152,965
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 29 July 2024 and are signed on its behalf by:
Mr P J Burki
Director
Company registration number 12334877 (England and Wales)
AMPHORA SOFTWARE LTD
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
$
$
$
$
Non-current assets
Goodwill
12
42,460
66,419
Investments
14
195
13,004
42,655
79,423
Current assets
Trade and other receivables
16
1,139,285
1,532,768
Cash and cash equivalents
16,842
17,731
1,156,127
1,550,499
Current liabilities
17
(2,026,146)
(2,201,827)
Net current liabilities
(870,019)
(651,328)
Net liabilities
(827,364)
(571,905)
Equity
Called up share capital
22
244
244
Retained earnings
23
(827,608)
(572,149)
Total equity
(827,364)
(571,905)
As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s loss for the year was $269,644 (2022 - $488,332 loss).
The financial statements were approved by the board of directors and authorised for issue on 29 July 2024 and are signed on its behalf by:
Mr P J Burki
Director
Company registration number 12334877 (England and Wales)
AMPHORA SOFTWARE LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Retained earnings
Total
$
$
$
Balance at 1 January 2022
244
(252,158)
(251,914)
Year ended 31 December 2022:
Profit for the year
-
125,728
125,728
Other comprehensive income:
Currency translation differences
-
279,151
279,151
Total comprehensive income
-
404,879
404,879
Balance at 31 December 2022
244
152,721
152,965
Year ended 31 December 2023:
Loss for the year
-
(63,317)
(63,317)
Other comprehensive income:
Currency translation differences
-
(151,348)
(151,348)
Total comprehensive income
-
(214,665)
(214,665)
Balance at 31 December 2023
244
(61,944)
(61,700)
AMPHORA SOFTWARE LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Retained earnings
Total
$
$
$
Balance at 1 January 2022
244
(195,255)
(195,011)
Year ended 31 December 2022:
Loss for the year
-
(488,333)
(488,333)
Other comprehensive income:
Currency translation differences
-
111,439
111,439
Total comprehensive income
-
(376,894)
(376,894)
Balance at 31 December 2022
244
(572,149)
(571,905)
Year ended 31 December 2023:
Profit for the year
-
(269,644)
(269,644)
Other comprehensive income:
Currency translation differences
-
14,185
14,185
Total comprehensive income
-
(255,459)
(255,459)
Balance at 31 December 2023
244
(827,608)
(827,364)
AMPHORA SOFTWARE LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(23,994)
251,417
Interest paid
(2,523)
(3,541)
Income taxes refunded/(paid)
185,245
(162,580)
Net cash inflow from operating activities
158,728
85,296
Investing activities
Purchase of property, plant and equipment
(51,767)
(58,755)
Proceeds from disposal of property, plant and equipment
85,051
-
Intercompany loan written off
37,065
-
Interest received
54,984
4,812
Net cash generated from/(used in) investing activities
125,333
(53,943)
Financing activities
Repayment of bank loans
(9,631)
(17,582)
Net cash used in financing activities
(9,631)
(17,582)
Net increase in cash and cash equivalents
274,430
13,771
Cash and cash equivalents at beginning of year
1,816,471
1,523,549
Effect of foreign exchange rates
(151,348)
279,151
Cash and cash equivalents at end of year
1,939,553
1,816,471
AMPHORA SOFTWARE LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
155,792
(3,314)
Interest paid
(38,378)
(41,801)
Net cash inflow/(outflow) from operating activities
117,414
(45,115)
Investing activities
Proceeds from disposal of subsidiaries
12,809
Proceeds from disposal of investments
(187,931)
(104,786)
Interest received
42,634
48,999
Net cash used in investing activities
(132,488)
(55,787)
Net decrease in cash and cash equivalents
(15,074)
(100,902)
Cash and cash equivalents at beginning of year
17,731
7,194
Effect of foreign exchange rates
14,185
111,439
Cash and cash equivalents at end of year
16,842
17,731
AMPHORA SOFTWARE LTD
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Judgements and key sources of estimation uncertainty
In the application of the group’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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Intangible fixed asset valuation
Determining whether intangible assets such as the Intellectual Property are impaired requires an estimation of the value in use of the cash generating units to which the IP has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. The carrying amount of these assets can be found in note 12.
2
Accounting policies
Company information
Amphora software Ltd (“the company”) is a private limited company by shares domiciled and incorporated in England and Wales. The registered office is The News Building, 3 London Bridge Street, London, SE1 9SG.
The group consists of Amphora software Ltd and all of its subsidiaries.
2.1
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.
The financial statements are prepared in united states dollar, 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 18 -
2.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
2.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Amphora software Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
2.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group can also rely on support from its ultimate parent company and its beneficial owners in order for the group to continue trading. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
2.5
Revenue
Revenue 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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 19 -
Revenue represents the amount derived from customers for goods and services provided, excluding value added tax.
Implementation, consultancy and development services
Implementation, consultancy and development services are generally fixed price contracts or are invoiced on a time and materials basis. Revenue and profit on fixed price contracts are recognised in accordance with long term accounting principles reflecting percentage of completion method. Profit is not recognised until all fundamental performance hurdles have been overcome. Revenue in respect of time and materials contracts is recognised as the work is performed. Where the implementation services offered by the company in respect of these arrangements are not essential to the functionality of the software this can be performed by other suppliers, these are described in the arrangement such that the total price of the arrangement would be expected to vary as a result of the inclusion or exclusion of these services, these services are accounted for as a separate element of the arrangement.
Maintenance and support contracts
Revenues related to significant post contract support agreements (e.g. maintenance) are deferred and recognised on a straight line basis over the period of the agreements. Where the company sells software which includes a significant element of customer specific development and the service portion cannot be separated from the contract as a whole, the entire arrangement including the software component is accounted for as a long term contract.
Licences and subscriptions
When sold separately, revenue from the sale of additional software licences are recognised on the transfer of such licences.
Licences incorporated into a total contract price are deferred and recognised in accordance with the percentage of completion method.
2.6
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
20% straight line
2.7
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Fixtures and fittings
33% Straight line
Computers
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 20 -
2.8
Non-current investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
2.9
Impairment of non-current assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
2.10
Cash and cash equivalents
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.
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 21 -
2.11
Financial instruments
The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 22 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
2.12
Equity instruments
Equity instruments issued by the group 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 group.
2.13
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 income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 23 -
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 income statement, 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 if, and only if, there is 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.
2.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 24 -
2.16
Leases
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 leased asset are consumed.
2.17
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.
3
Revenue
2023
2022
$
$
Revenue analysed by class of business
License
1,304,766
853,000
Maintenance and Support
6,324,419
5,757,662
Professional fees
1,758,614
3,909,623
Other Revenue
3,641
401,888
9,391,440
10,922,173
2023
2022
$
$
Revenue analysed by geographical market
UK
3,301,244
1,496,086
Europe
4,966,641
4,799,861
Rest of World
1,123,555
4,626,226
9,391,440
10,922,173
2023
2022
$
$
Other revenue
Interest income
54,984
4,811
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Revenue
(Continued)
- 25 -
4
Operating (loss)/profit
2023
2022
$
$
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
182,942
(84,033)
Depreciation of owned property, plant and equipment
63,700
60,807
Amortisation of intangible assets
419,837
448,201
Operating lease charges
230,899
219,566
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
$
$
For audit services
Audit of the financial statements of the group and company
33,663
32,361
Audit of the financial statements of the company's subsidiaries
14,338
33,271
48,001
65,632
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
84
92
1
1
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
$
$
$
$
Wages and salaries
6,880,319
7,870,972
Social security costs
495,580
560,757
-
-
Pension costs
114,192
160,164
7,490,091
8,591,893
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
7
Directors' remuneration
2023
2022
$
$
Remuneration for qualifying services
370,187
572,144
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
$
$
Remuneration for qualifying services
366,832
572,144
8
Investment income
2023
2022
$
$
Interest income
Interest on bank deposits
54,984
4,811
2023
2022
Investment income includes the following:
$
$
Interest on financial assets not measured at fair value through profit or loss
54,984
4,811
9
Finance costs
2023
2022
$
$
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,523
3,541
10
Other gains and losses
2023
2022
$
$
Amounts written back to current loans
37,067
-
11
Taxation
2023
2022
$
$
Current tax
UK corporation tax on profits for the current period
7,692
133,551
Other taxes
3,960
6,715
Total current tax
11,652
140,266
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
2023
2022
$
$
(Continued)
- 27 -
Deferred tax
Origination and reversal of timing differences
(685,342)
71,670
Total tax (credit)/charge
(673,690)
211,936
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
$
$
(Loss)/profit before taxation
(737,007)
337,664
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(173,344)
64,156
Tax effect of expenses that are not deductible in determining taxable profit
111,328
91,783
Tax effect of income not taxable in determining taxable profit
75,544
Tax effect of utilisation of tax losses not previously recognised
231,917
79,043
Effect of overseas tax rates
(49,384)
(25,830)
Other non UK tax rates
(3,207)
(1,490)
Deferred tax current movement
(791,000)
(71,270)
Taxation (credit)/charge
(673,690)
211,936
In the Autumn Statement in November 2022, the government confirmed the increase in corporation tax rate to 25% from 1 April 2023 will go ahead. This has resulted in a marginal rate calculated at 23.52% due to the year end straddling the 1 April 2023.
12
Intangible fixed assets
Group
Software
$
Cost
At 1 January 2023 and 31 December 2023
5,590,215
Amortisation and impairment
At 1 January 2023
4,374,494
Amortisation charged for the year
419,837
At 31 December 2023
4,794,331
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 28 -
Carrying amount
At 31 December 2023
795,884
At 31 December 2022
1,215,721
Company
Goodwill
$
Cost
At 1 January 2023 and 31 December 2023
125,285
Amortisation and impairment
At 1 January 2023
58,866
Amortisation charged for the year
23,959
At 31 December 2023
82,825
Carrying amount
At 31 December 2023
42,460
At 31 December 2022
66,419
13
Property, plant and equipment
Group
Leasehold improvements
Fixtures and fittings
Computers
Total
$
$
$
$
Cost
At 1 January 2023
7,634
27,251
584,342
619,227
Additions
2,888
48,879
51,767
Disposals
(4,980)
(144,292)
(149,272)
At 31 December 2023
7,634
25,159
488,929
521,722
Depreciation and impairment
At 1 January 2023
7,633
22,815
402,352
432,800
Depreciation charged in the year
1,476
62,224
63,700
Eliminated in respect of disposals
(2,073)
(62,148)
(64,221)
At 31 December 2023
7,633
22,218
402,428
432,279
Carrying amount
At 31 December 2023
1
2,941
86,501
89,443
At 31 December 2022
1
4,436
181,990
186,427
The company had no property, plant and equipment at 31 December 2023 or 31 December 2022.
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Investments in subsidiaries
15
195
13,004
Movements in non-current investments
Company
Shares in subsidiaries
$
Cost or valuation
At 1 January 2023 and 31 December 2023
13,004
Carrying amount
At 31 December 2023
13,004
At 31 December 2022
13,004
Error! Does not agree to TB:
195
Difference
12,809
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Amphora Software DMCC
Dubai, UAE
Ordinary
100.00
Amphora Inc
Texas, USA
Ordinary
100.00
Amphora Software Pte.Ltd
Singapore
Ordinary
100.00
Amphora Switzerland
Switzerland
Ordinary
100.00
Amphora UK Ltd
England
Ordinary
100.00
Amphora Software Private Limited, Hyderabad
India
Ordinary
100.00
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
16
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
$
$
$
$
Trade receivables
677,142
1,059,828
Corporation tax recoverable
161,756
455,845
Amounts owed by group undertakings
-
-
1,139,662
1,514,594
Other receivables
393,330
753,840
(377)
18,174
Prepayments and accrued income
348,801
634,588
1,581,029
2,904,101
1,139,285
1,532,768
Amounts falling due after more than one year:
Deferred tax asset (note 20)
990,491
207,957
Total debtors
2,571,520
3,112,058
1,139,285
1,532,768
17
Current liabilities
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Bank loans
19
13,558
12,886
Trade payables
118,486
286,209
Amounts owed to group undertakings
2,573,678
2,632,036
1,969,365
2,170,133
Other taxation and social security
99,718
60,909
-
-
Other payables
302,617
590,460
Accruals and deferred income
2,323,489
2,558,355
56,781
31,694
5,431,546
6,140,855
2,026,146
2,201,827
18
Non-current liabilities
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Bank loans and overdrafts
19
26,554
36,857
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
19
Borrowings
Group
Company
2023
2022
2023
2022
$
$
$
$
Bank loans
40,112
49,743
Payable within one year
13,558
12,886
Payable after one year
26,554
36,857
Bounce back loan is a government backed funding which is repayable in instalments over one to six years. The interest rate on the loan is fixed at 2.50%.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Assets
Assets
2023
2022
Group
$
$
Tax losses
990,491
207,957
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
$
$
Asset at 1 January 2023
(207,957)
-
Credit to profit or loss
(782,534)
-
Asset at 31 December 2023
(990,491)
-
The deferred tax asset in relation to tax losses is expected to reverse and relates to the utilisation of tax losses against future expected profits.
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
$
$
Charge to profit or loss in respect of defined contribution schemes
114,192
160,164
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
$
$
Issued and fully paid
Ordinary of $1.22 each
200
200
244
244
The ordinary shares are £1 ordinary shares, which are shown above as $1.22 shares.
23
Retained earnings
The profit and loss account includes all current and prior period retained profits and losses.
24
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
$
$
$
$
Within one year
276,264
171,142
-
-
Between two and five years
1,064,959
83,908
-
-
1,341,223
255,050
-
-
Reduction in rent payments recognised in profit or loss arising from the COVID-19 pandemic
-
2,512
-
-
25
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Expense recharges
Loan note
2023
2022
2023
2022
$
$
$
$
Group
MDJ Partnership DMCC
1,637
76,270
2,550,286
2,555,765
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Related party transactions
(Continued)
- 33 -
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2023
2022
$
$
Group
MDJ Partnership DMCC
2,550,286
2,632,035
The loan note is non interest bearing and is repayable on demand within 3 years.
26
Ultimate controlling party
The ultimate controlling party of the group is MDJ Partnership DMCC Dubai. There is no requirement to consolidate in Dubai and the accounts are not publically available.
27
Cash (absorbed by)/generated from group operations
2023
2022
$
$
(Loss)/profit for the year after tax
(63,317)
125,728
Adjustments for:
Taxation (credited)/charged
(673,690)
211,936
Finance costs
2,523
3,541
Investment income
(54,984)
(4,811)
Amortisation and impairment of intangible assets
419,837
448,201
Depreciation and impairment of property, plant and equipment
63,700
60,807
Other gains and losses
(37,067)
-
Movements in working capital:
Decrease/(increase) in trade and other receivables
1,028,985
(334,105)
Decrease in trade and other payables
(709,981)
(259,880)
Cash (absorbed by)/generated from operations
(23,994)
251,417
AMPHORA SOFTWARE LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
28
Cash generated from/(absorbed by) operations - company
2023
2022
$
$
Loss for the year after tax
(269,644)
(488,333)
Adjustments for:
Finance costs
38,378
41,801
Investment income
(42,636)
(48,998)
Amortisation and impairment of intangible assets
23,959
25,939
Other gains and losses
187,931
104,786
Movements in working capital:
Decrease in trade and other receivables
393,485
173,725
(Decrease)/increase in trade and other payables
(175,681)
187,766
Cash generated from/(absorbed by) operations
155,792
(3,314)
29
Analysis of changes in net funds - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
$
$
$
$
Cash at bank and in hand
1,816,471
274,430
(151,348)
1,939,553
Borrowings excluding overdrafts
(49,743)
9,631
-
(40,112)
1,766,728
284,061
(151,348)
1,899,441
30
Analysis of changes in net funds - company
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
$
$
$
$
Cash at bank and in hand
17,731
(15,074)
14,185
16,842
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100Mr P J BurkiMr C J MudryMr C J ReolMiss R AroraMr D 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