Company registration number 09260399 (England and Wales)
NURON LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
NURON LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 13
NURON LIMITED
BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,497
33,638
Current assets
Stocks
6
141,120
125,310
Debtors
7
148,378
141,566
Cash at bank and in hand
60,178
239,867
349,676
506,743
Creditors: amounts falling due within one year
8
(342,219)
(259,899)
Net current assets
7,457
246,844
Total assets less current liabilities
8,954
280,482
Creditors: amounts falling due after more than one year
9
(1,633,607)
(1,587,498)
Net liabilities
(1,624,653)
(1,307,016)
Capital and reserves
Called up share capital
12
535,607
535,607
Share premium account
13
1,318,375
1,318,375
Other reserves
14
1,010,465
1,017,376
Profit and loss reserves
15
(4,489,100)
(4,178,374)
Total equity
(1,624,653)
(1,307,016)

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

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 2 August 2024 and are signed on its behalf by:
Mr Mark Rutherford
Director
Company Registration No. 09260399
NURON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
535,488
1,316,471
1,000,000
(3,654,849)
(802,890)
Year ended 30 June 2022:
Loss and total comprehensive income for the year
-
-
-
(527,532)
(527,532)
Issue of share capital
12
119
1,904
-
-
2,023
Transfers
-
-
-
4,007
4,007
Other movements
-
-
17,376
-
17,376
Balance at 30 June 2022
535,607
1,318,375
1,017,376
(4,178,374)
(1,307,016)
Year ended 30 June 2023:
Loss and total comprehensive income for the year
-
-
-
(317,637)
(317,637)
Transfers
-
-
-
6,911
6,911
Other movements
-
-
(6,911)
-
(6,911)
Balance at 30 June 2023
535,607
1,318,375
1,010,465
(4,489,100)
(1,624,653)
NURON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
1
Accounting policies
Company information

Nuron Limited is a private company limited by shares incorporated in England and Wales. The registered office is Fieldfisher Riverbank House, 2 Swan Lane, London, England, EC4R 3TT.

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.

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
Going concern

The company has contracted £1.4m of revenue in the 12 months to the 30th June 2024, and has been successful in securing increasing order size from its customer base. The company operates in sectors with high levels of demand and multiple challenges to be met, hence a high potential for growth. Nuron has scarce, high- value skills in infrastructure monitoring, measurement, robotics and data science which our clients tell us they value greatly. The company continues to diversify its sectors of operation, clients and projects and has increased the level of qualified opportunities for its services.true

 

The directors have prepared forecasts for a period of 12 months from the approval of these financial statements. The cash flows are based on a number of possible scenarios that reflect the commercial opportunities in the sales pipeline of the business as well as business that the company expects to identify in the future.

 

Additionally, in respect of Innovate Loan 1 (see note 14), repayments for the loan were expected to begin in January 2023, although the company has since secured an amendment to the loan facility to defer loan repayments to July 2024. The company is seeking further amendments to the loan repayment conditions to defer some payments for a further period to enable funds generated from operations to be directed to several growth opportunities in the next 6 months. It is also planning to raise additional funding in relation to those opportunities and to refinance some elements of the loan facility.

 

The directors recognise that the potential risks around whether target revenues will be achieved and whether the conditions for the loan amendment will be achieved present a material uncertainty that may cast significant doubt on the ability of the company to continue as a going concern. However, the directors are confident that the company will be able to meet its forecast revenue targets and that the conditions within the loan amendment agreement will be satisfied. Thus, the directors are confident that the company will continue in operational existence for the foreseeable future. The directors therefore continue to adopt the going concern basis in preparing these 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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Recurring revenue

 

Revenue arising from service contracts is recognised based on the period to which the service is provided or when the contracted service is completed. Where revenue is derived from long term leases of network infrastructure it is recognised on straight-line basis over the term of the lease and maybe subject to performance based incentives or penalties according to contractually agreed criteria.

NURON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 4 -
1.4
Research and development expenditure

Research costs related to original and planned investigation, undertaken with the prospect of gaining new scientific or technical knowledge are expensed in the period incurred.

 

Development costs relating to the development of products or the improvement of existing technologies are deferred and the costs are amortised over the periods expected to benefit from them. Amortisation will only start once the commercial production has commenced, when the developed product or services come into use or fees from the licensing of any associated intellectual property are recognised.

 

Development costs will only be deferred to the extent that: there is a clearly defined project; expenditure is separately identifiable; the project is commercially viable; the project is technically feasible; project income is expected to outweigh cost; and resources are available to complete the project.

 

Costs relating to the filing of patents are treated as development costs to the extent that they meet the capitalisation criteria laid down in this accounting policy.

 

During the year the company incurred costs which met both criteria.

1.5
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.

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:

Plant and equipment
33% straight line
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 credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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.

NURON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 5 -

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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
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.

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 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.

NURON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 6 -
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.

1.10
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 fixed 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.

1.11
Retirement benefits

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

1.12
Share-based payments

Executive directors and employees have been granted share options under the company share option scheme. At grant date, the fair value of the options is measured, and recognised over the period until the options vest as an employment expense with a corresponding increase in equity. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest.

 

The total amount to be expensed is determined by reference to the fair value of the options granted a) including any market performance conditions; b) excluding the impact of any service and non market performance vesting conditions, such as profitability levels, sales growth targets and continuing service and c) including the impact of any non vesting conditions, such as any savings requirements.

 

Non market vesting conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the company revises its estimates of the number of options that are expected to vest based on meeting service and non market vesting conditions. It recognised the impact of revisions to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

1.13
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 leases asset are consumed.

1.14
Government grants

Government grants receivable are based on an agreed rate of reimbursement of eligible costs, subject to a maximum amount. Government grants are recognised as income to match them with the related cost. Income is not recognised until there is reasonable assurance that it will be received.

NURON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 7 -
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.

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.

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:

Valuation of Stock

Determining the carrying value of stock requires an estimation of the selling price to ensure that stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stock held by the company includes a rig held at £137,801.

 

The rig is a bespoke, highly specialised piece of equipment that aids in the placing of sensors into wastewater infrastructure for the company's monitoring and fibre deployment technology services. Due to the specialised nature of the equipment, the market for sale is narrow. The company intends to sell the rig as part of a wastewater solution project and expects that the sale price will exceed the cost of the rig due to the expertise and labour that has been involved in creating the equipment.

 

There is inherent estimation uncertainty surrounding the future of the rig and its sale. Should the company not proceed with a wastewater solution opportunity, there may be difficulties in recovering the costs incurred.

3
Employees

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

2023
2022
Number
Number
14
13
NURON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
4
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
212,288
148,439
Company pension contributions to defined contribution schemes
11,883
9,489
224,171
157,928

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
73,404
62,844
5
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 July 2022
159,702
8,406
11,085
179,193
Additions
-
0
-
0
1,260
1,260
At 30 June 2023
159,702
8,406
12,345
180,453
Depreciation and impairment
At 1 July 2022
126,981
7,697
10,877
145,555
Depreciation charged in the year
32,715
73
613
33,401
At 30 June 2023
159,696
7,770
11,490
178,956
Carrying amount
At 30 June 2023
6
636
855
1,497
At 30 June 2022
32,721
709
208
33,638
6
Stocks
2023
2022
£
£
Finished goods and goods for resale (see note 2)
141,120
125,310
NURON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
33,131
28,569
Other debtors
37,619
83,311
Prepayments and accrued income
77,628
29,686
148,378
141,566
8
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
10
70,543
77,034
Trade creditors
34,096
65,076
Taxation and social security
190,242
41,314
Other creditors
3,247
4,126
Accruals and deferred income
44,091
72,349
342,219
259,899
9
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
10
1,524,072
1,484,874
Other borrowings
10
109,535
102,624
1,633,607
1,587,498
Amounts included above which fall due after five years are as follows:
Payable by instalments
64,900
146,155
10
Loans and overdrafts
2023
2022
£
£
Bank loans
1,594,615
1,561,908
Preference shares
109,535
102,624
1,704,150
1,664,532
Payable within one year
70,543
77,034
Payable after one year
1,633,607
1,587,498
NURON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10
Loans and overdrafts
(Continued)
- 10 -

Loans consist of one bank loan and two loans from Innovate UK, which is a UK government agency.

 

NatWest Bounce Back Loan Scheme

On 16 June 2020, the company entered into a loan agreement with NatWest under the Government backed "Bounce Back Loan Scheme" (BBLS) for a loan of £26,499. The loan is repayable by monthly instalments of £470 commencing 30 June 2021. Interest is charged at a fixed rate of 2.5% per annum with an initial interest free period for the first 12 months. The loan has been guaranteed by the UK government.

 

Innovate UK Loan 1

On 19 October 2018, the company entered into a loan agreement with Innovate UK for a maximum facility of £649,000. The facility had been fully drawn down by 31 October 2019 and, under the initial agreement, was repayable by instalments of £35,696 on a quarterly basis commencing 31 October 2022.

 

Interest is charged at a fixed rate of 3.7% per annum and is paid on a quarterly basis. The loan is secured by a fixed and floating charge over all property, assets and undertakings of the company. A legal charge is also held by the lender over the intellectual property to be developed and/or acquired in connection with the loan agreement.

 

Included within the terms of the loan was a covenant that the borrower shall maintain a liquidity ratio of not less than 1.1:1 throughout the period of the loan, measured each financial quarter from the date of the loan agreement. Whilst the company were in breach of the covenant during the reporting period, this covenant was since amended to reduce the minimum liquidity ratio required (see below).

On 3 April 2023, and amendment deed was agreed with Innovate UK to defer the repayment by instalments to 30 January 2024, to then commence in equal quarterly instalments as per the original agreement.

 

Following the end of the accounting period, on 15 February 2024. a further amendment deed was agreed to defer the repayments for the quarters ended 30 January 2024 and 30 April 2024 and reduce the minimum liquidity ratio covenant to 0.75:1. The financial statements reflect the position at the balance sheet date and further disclosure has been made in note 21 (events after the reporting date).

 

The loan repayments were therefore due to begin on 31 July 2024. The company are not able to begin loan repayments and have entered into a discussion with Innovate UK to further amend the terms of the loan. The directors have every expectation that an amendment will be achievable.

NURON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10
Loans and overdrafts
(Continued)
- 11 -

Innovate UK Loan 2

On 18 August 2020, the company entered into a second loan agreement with Innovate UK for a maximum facility of £870,000. The facility had been fully drawn down by 31 March 2022 and, under the initial agreement, was repayable by instalments of £57,999 on a quarterly basis commencing 30 September 2023.

 

Interest is charged at a fixed rate of 7.4% per annum. A portion of the interest which has accrued equal to 3.7% per annum is repayable on a quarterly basis from the initial draw down of the loan facility, The remaining interest, equal to 3.7% per annum, is deferred until the first date of the repayment period, at which point it will be added to the principal amount of the loan to be repaid in instalments. During the repayment period, the full interest of 7.4% will apply.

 

The loan is secured by a fixed and floating charge over all property, assets and undertakings of the company. A legal charge is also held by the lender over the intellectual property to be developed and/or acquired in connection with the loan agreement.

 

Included within the terms of the loan was a covenant that the borrower shall maintain a liquidity ratio of not less than 1.1:1 throughout the period of the loan, measured each financial quarter from the date of the loan agreement. Whilst the company were in breach of the covenant during the reporting period, the company are in negotiations with Innovate UK to amend the loan agreement to reduce the minimum liquidity ratio required and Innovate UK have not requested repayment of the loan.

 

On 8 August 2022, an amendment deed was agreed with Innovate UK to defer the repayment by instalments to 31 March 2025, to then commence in equal quarterly instalments as per the original agreement.

 

As with the first Innovate UK loan, the loan contains a covenant that the borrower maintains a liquidity ratio of not less than 1.1:1. No amendment has been put in place to the second Innovate UK loan, however the company are entering negotiations with Innovate UK to amend this. Therefore, this should not be deemed repayable.

11
Share-based payment transactions

The company operates an equity settled share based remuneration scheme (EMI Scheme) for employees.

 

The contractual life of an option is ten years from grant and the options are exercisable from the fifth anniversary of employment.

 

83,696 of the share options were exercisable during the year of which only 11,901 were exercised. The total share based payment expenses has been calculated however, no charge has been recognised in the current period as the options are out of the money. The following table illustrates the number and weighted average exercise prices of, and movements in, share options during the period:

NURON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
11
Share-based payment transactions
(Continued)
- 12 -
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 July 2022
111,309
124,138
2.32
2.16
Forfeited
-
0
(928)
-
0
8.82
Exercised
-
0
(11,901)
-
0
0.17
Outstanding at 30 June 2023
111,309
111,309
-
0
2.32
Exercisable at 30 June 2023
83,696
83,696
-
0
0.17

The options outstanding at 30 June 2023 had an exercise price ranging from £0.17 to £8.82, and a remaining contractual life of 2 and a half years to 7 and a half years.

The option pricing model used was the Black Scholes model.

Inputs were as follows:
2023
2022
Weighted average exercise price
232.00
232.00
Expected volatility
26.00
26.00
Expected life
5.00
5.00
Risk free rate
0.53
0.53
12
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
531,617
531,617
531,617
531,617
Ordinary B shares of 1p each
216,248
216,248
2,162
2,162
Ordinary C shares of 1p each
182,842
182,842
1,828
1,828
930,707
930,707
535,607
535,607
Redeemable preference shares of 10p each
1,200,000
1,200,000
-
-

Each ordinary share has full rights in the company with respect to voting, dividends and distribution. Redeemable preference shares have been recognised as a debt instrument due to the substance of the agreement.

13
Share premium account

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

NURON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
14
Other reserves

Other reserves comprise of a capital contribution reserve of £1,017,376 (2022: £1,000,000) and a preference share reserve of £10,465 (2022: £17,376).

 

The capital contribution reserve relates to capital contributions made by existing investors in accordance with the investment agreement entered into on 10 August 2018. The investment agreement gave the company entitlement to a capital contribution totalling £1,000,000 upon achieving the required milestones.

 

The preference share reserve relates to redeemable preference shares issued by the company on 20 December 2021. There are 1,200,000 10p shares totalling £120,000. Due to the nature of the agreement, the shares were recognised as a debt instrument in the financial statements and recognised at amortised cost using a market rate effective interest rate. The difference between the face value of the loan and the amount initially recognised has been recognised as the preference share reserve, which reflects the benefit transferred to the company by the shareholder due to the preference shares being free of any interest, dividends or redemption premium. The company recognises an annual transfer from the preference share reserve to retained earnings of an amount equal to the interest expense recognised under the amortised cost method. The shares are redeemable on 23 December 2024.

15
Profit and loss reserves

The retained earnings reserve records retained earnings and accumulated losses.

16
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Kalbinder Sanghera
Statutory Auditor:
Kirk Rice LLP
17
Events after the reporting date

An amendment deed was produced post year-end dated 15th February 2024 in relation to the first Innovate UK loan of £649,000 between Innovate UK Loans Limited and the company. The amendment documents that both the Lender and Borrower agree that any principal which is payable in accordance with the Repayment Terms will be deferred between 30th January 2024 and 30th April 2024 (2 quarters deferred). The amount currently shown in the financial statements as payable within one year (£64,000) therefore will not fall due until more than one year after the balance sheet date.

18
Ultimate controlling party

The directors do not consider there to be any ultimate controlling party.

2023-06-302022-07-01false05 August 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityThis audit opinion is unqualifiedMr Mark RutherfordMr Michael AingerMr Peter BourkeDr Paul DickensonMs Claire FenwickMr Christopher SmedleyFieldFisher Secretaries Limitedfalsefalse092603992022-07-012023-06-30092603992023-06-30092603992022-06-3009260399core:PlantMachinery2023-06-3009260399core:FurnitureFittings2023-06-3009260399core:ComputerEquipment2023-06-3009260399core:PlantMachinery2022-06-3009260399core:FurnitureFittings2022-06-3009260399core:ComputerEquipment2022-06-3009260399core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3009260399core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-3009260399core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3009260399core:Non-currentFinancialInstrumentscore:AfterOneYear2022-06-3009260399core:CurrentFinancialInstruments2023-06-3009260399core:CurrentFinancialInstruments2022-06-3009260399core:Non-currentFinancialInstruments2023-06-3009260399core:Non-currentFinancialInstruments2022-06-3009260399core:ShareCapital2023-06-3009260399core:ShareCapital2022-06-3009260399core:SharePremium2023-06-3009260399core:SharePremium2022-06-3009260399core:OtherMiscellaneousReserve2023-06-3009260399core:OtherMiscellaneousReserve2022-06-3009260399core:RetainedEarningsAccumulatedLosses2023-06-3009260399core:RetainedEarningsAccumulatedLosses2022-06-3009260399core:ShareCapital2021-06-3009260399core:SharePremium2021-06-3009260399core:OtherMiscellaneousReserve2021-06-3009260399core:RetainedEarningsAccumulatedLosses2021-06-30092603992021-06-3009260399core:ShareCapitalOrdinaryShares2023-06-3009260399core:ShareCapitalOrdinaryShares2022-06-3009260399bus:Director12022-07-012023-06-3009260399core:RetainedEarningsAccumulatedLosses2021-07-012022-06-30092603992021-07-012022-06-3009260399core:RetainedEarningsAccumulatedLosses2022-07-012023-06-3009260399core:ShareCapital2021-07-012022-06-3009260399core:SharePremium2021-07-012022-06-3009260399core:PlantMachinery2022-07-012023-06-3009260399core:FurnitureFittings2022-07-012023-06-3009260399core:ComputerEquipment2022-07-012023-06-3009260399core:PlantMachinery2022-06-3009260399core:FurnitureFittings2022-06-3009260399core:ComputerEquipment2022-06-30092603992022-06-3009260399core:FinancialLiabilitiesHeldForTradingcore:FinancialInstrumentsHeldForSale2023-06-3009260399bus:PrivateLimitedCompanyLtd2022-07-012023-06-3009260399bus:SmallCompaniesRegimeForAccounts2022-07-012023-06-3009260399bus:FRS1022022-07-012023-06-3009260399bus:Audited2022-07-012023-06-3009260399bus:Director22022-07-012023-06-3009260399bus:Director32022-07-012023-06-3009260399bus:Director42022-07-012023-06-3009260399bus:Director52022-07-012023-06-3009260399bus:Director62022-07-012023-06-3009260399bus:CompanySecretary12022-07-012023-06-3009260399bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP