Registered number: 09778030
THE WORKSHOP TECHNOLOGIES LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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THE WORKSHOP TECHNOLOGIES LTD
COMPANY INFORMATION
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K MacDonald (resigned 31 October 2023)
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Fetter Yard 86 Fetter Lane
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Chartered Accountants & Statutory Auditor
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THE WORKSHOP TECHNOLOGIES LTD
CONTENTS
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Independent Auditors' Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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THE WORKSHOP TECHNOLOGIES LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Workshop Technologies Ltd (TWS) specialises in the provision of IT and Data Solutions to some of the world’s boldest digital entertainment brands.
The company’s activities can be primarily split into the following categories:
• Strategic Product Management
• Business Intelligence
• Data Solutions
• Blockchain Development
• Internal Marketing & Communications
• Program Management
TWS’s turnover for the financial year was €56.9m (2022: €49.6m).
In 2023, many of the initiatives from the strategy planning framework initiated in 2022 to align short-term and long-term vision across the organisation were realised. The framework ensures all areas of the business are aligned and working towards a shared goal. Success criteria for each area of the business was determined in order to measure success against the organisation’s strategies. As the objectives and goals cascaded throughout the teams, each employee contributed to the success of the organisation.
A Hybrid Working policy was brought into place in February, 2023 whereby employees are required to work from the office three days per week. This new policy was introduced to nurture a collaborative working environment which is the core of our company culture and beliefs. We believe in-person connection within and across teams plays a key role in defining the success of our organisation.
As Covid restrictions eased, there was an increase in business travel in 2023 as teams from the various offices began meeting in person to collaborate. For example, each business unit is conducting quarterly business reviews (QBRs) in person in either Malaga or London.
From a product and service offerings standpoint, the focus in 2023 was on maturing two specific capabilities in response to the client and market demands: security as a service and blockchain development.
Lastly, the company continues to monitor and invest in employee wellbeing and diversity & inclusion projects, forming internal committees focused on both areas and running workshops, surveys and seminars for all staff.
Principal risks and uncertainties
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The core revenue stream for 2023 was received in GBP (100%, 2022: 100%). There are risks and uncertainties inherent in fluctuating exchange rates between GBP and EUR.
One of the other principal risks for The Workshop is the recruitment and retention of staff in order to meet the demands of ever-growing roadmaps and client requests. Staff turnover in 2023 rose to 39% (2022: 38%).
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THE WORKSHOP TECHNOLOGIES LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Financial key performance indicators
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KPI’s Objective 2023 2022
Staff Retention and Development
Staff Turnover Ensure we have the smartest workforce to achieve our clients' demands 39% 38%
Training and Development costs Reduce staff turnover €231,284 €357,575
Recruitment Costs Recruit top talent €341,793 €1,067,082
Liquidity & Efficiency
Working Capital Ratio Ensure we have enough short-term assets
to meet short-term debt 0.78 0.59
Accounts Receivable Turnover Ensure timely payment of receivables 5.66 6.60
Financial Leverage
Debt Ratio To reduce the debt level 0.72 0.81
SECR (Streamlined Energy and Carbon Reporting)
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The following table provides a breakdown of the greenhouse gas emissions for the accounting year ended 31/12/2023 and a comparative year to 31/12/2022. We have used the GHG Protocol Corporate Accounting and Reporting Standard as the method to quantify and report greenhouse gas emissions. They have been reported in line with the UK Government’s ‘Environmental Reporting Guidelines: including streamlined energy and carbon reporting guidance’ (dated March 2019).
2023 2022
Scope 1 CO2 emissions (tonnes) 11.28 14.95
Scope 2 CO2 emissions (tonnes) 67.06 42.93
Total energy consumption (kWH) 385,572 304,896
Intensity ratio (tCO2e/No. employees) 0.43 0.43
Intensity Ratio
Methodology
Emissions fall within the activities for which the company has operational control. The exclusions and limitations for the data include:
• estimated kWh from service charge gas allocation from the company’s landlord
• exclusion of all Scope 3 data on the grounds that the disclosure of such data is currently on a voluntary basis.
Intentions for the future
In future years, we intend to broaden the scope of the SECR reporting to include Scope 3 data such as waste disposal and employee business travel.
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THE WORKSHOP TECHNOLOGIES LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Directors' statement of compliance with duty to promote the success of the Company
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The Directors of the company are aware of their requirement to act in the best interests of all stakeholders of the business and the wider community as follows:
Shareholders
The goals and values of the company are aligned with the strategic objectives of the shareholders to ensure long-term growth. This is reinforced with our core values of moving Fearlessly Forward, which is being courageous in our pursuit of new opportunities and horizons.
Employees
We are committed to the wellbeing of our employees through diversity and inclusion projects and internal committees that run workshops, surveys and seminars for all staff.
Customers
The needs of our customers are put above everything else. We'd never jeopardise their trust in us.
Suppliers
We review suppliers to ensure they are environmentally responsible, ethically sourced and sustainable where possible.
Community and the Environment
We’re committed to making the world a better place. We give support to different charity programmes, participate in outreach activities and organise regular donations. We have also launched several initiatives to reduce our carbon footprint.
This report was approved by the board and signed on its behalf.
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THE WORKSHOP TECHNOLOGIES LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of The Workshop Technologies Limited ("the Company") is the provision of data and IT solutions.
The profit for the year, after taxation, amounted to €3,253,771 (2022 - €1,941,546).
There were no dividends declared in the year. The directors do not recommend payment of a final dividend.
The directors who served during the year were:
K MacDonald (resigned 31 October 2023)
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THE WORKSHOP TECHNOLOGIES LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Strategy Planning and Realisation
In 2024, the strategy planning initiatives put in motion in the last two years will be refined as the business continues to grow and develop. Refined strategic objectives will be formulated and initiatives needed to achieve key results will be established. These will be reviewed regularly and actions will be taken to ensure the desired outcome. Once a strategy has been realised, it is replaced with a new one to ensure continuous success.
Commercial Services
Our division of internal and external marketing, focuses on market research and provides insights on areas such as IAAS (Infrastructure as a Service) and software development to our group commercial team. The team also includes an internal incubation pod which can provide rapid software prototypes before they are assessed for full product development. Our Product Directors work closely and collaborate with the team to produce MVPs (minimum valuable product) according to the demands of the market.
2024 Corporate OKRs
The 2024 OKRs (Objectives and Key Results) continue to focus on developing new product lines particularly on the infrastructure side of the business. This includes a diverse range of products and services including cloud services, data storage and cyber security. A team of internal data analysts analyse both business and client data so further improvements can be made to these products and services.
More resource will be allocated to blockchain development as the BlockTech team focus on development, design and research of the blockchain analytics platform.
Employee Engagement
The OKRs also reflect considerable effort being focused on operational efficiencies, ensuring our ability to scale in a cost-effective way, and the retention and development of our team members, with renewed resources being pointed towards employee engagement and the marketing of TWS as an employee brand.
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Under section 487(2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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THE WORKSHOP TECHNOLOGIES LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE WORKSHOP TECHNOLOGIES LTD
We have audited the financial statements of The Workshop Technologies Ltd (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of 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 Company's affairs as at 31 December 2023 and of its profit 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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
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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 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.
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THE WORKSHOP TECHNOLOGIES LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE WORKSHOP TECHNOLOGIES LTD (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the 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.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its 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, or returns adequate for our audit have not been received from branches not visited by us; or
∙the 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
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As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 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 Company or to cease operations, or have no realistic alternative but to do so.
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THE WORKSHOP TECHNOLOGIES LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE WORKSHOP TECHNOLOGIES LTD (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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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 Auditors' 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:
∙Enquiring of management around actual and potential litigation and claims;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work over the risks of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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THE WORKSHOP TECHNOLOGIES LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE WORKSHOP TECHNOLOGIES LTD (CONTINUED)
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Auditors' 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.
Michael Wedge FCA (Senior Statutory Auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
London
5 July 2024
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THE WORKSHOP TECHNOLOGIES LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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Other comprehensive income for the year
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Surplus on revaluation of intangible fixed assets
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Other comprehensive income for the year
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Total comprehensive income for the year
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There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.
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The notes on pages 14 to 27 form part of these financial statements.
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THE WORKSHOP TECHNOLOGIES LTD
REGISTERED NUMBER: 09778030
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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THE WORKSHOP TECHNOLOGIES LTD
REGISTERED NUMBER: 09778030
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 June 2024.
The notes on pages 14 to 27 form part of these financial statements.
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THE WORKSHOP TECHNOLOGIES LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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Comprehensive income for the year
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Surplus on revaluation of other fixed assets
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Reserves transfer on disposal of intangible fixed assets
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At 1 January 2023 (as previously stated)
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Prior year adjustment - correction of error
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At 1 January 2023 (as restated)
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Comprehensive income for the year
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Surplus on revaluation of other fixed assets
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The notes on pages 14 to 27 form part of these financial statements.
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The principal activity of The Workshop Technologies Limited ("the Company") is the provision of data and IT solutions.
The Company is a private company limited by shares, incorporated in England and Wales.
The registered office address can be found on the Company Information page.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of The Workshop Ventures Limited as at 31 December 2023 and these financial statements may be obtained from Companies House or on request from the company's registered address: Fetter Yard 86 Fetter Lane 1st Floor, London, England, EC4A 1EN.
The Company has taken the exemption not to prepare consolidated financial statements, on the grounds it is a wholly-owned subsidiary of The Workshop Ventures Limited.
The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to trade for at least 12 months from the date of approval of these financial statements, and will be able to meet its liabilities as they fall due.
The directors are confident that the Company's access to working capital and future profit generation is sufficient to support the business in the foreseeable future, and accordingly, consider it appropriate to prepare the financial statements on a going concern basis.
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is Euros.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue represents amounts receivable for the provision of data and IT solutions and is recognised over the period of the contract.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Domain name
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Cryptocurrencies
Cryptocurrencies are initially recognised at cost. After recognition, under the revaluation model, cryptocurrencies shall be carried at a revalued amount, being its fair value at the date of revaluation less any subsequent accumulated amortisation and subsequent impairment losses - provided that the fair value can be determined by reference to an active market.
Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Long-term leasehold property
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over the term of the lease
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to and from related parties.
(i) Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Statement of Income and Retained Earnings.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
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.
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
(i) Dilapidations provision
Upon termination of the current lease contracts, the Company is obligated to restore the premises to the condition they were in when the leases were signed. To this effect, a dilapidations provision has been included and reflects the total estimated cost to fulfill this obligation. The cost is a source of estimation uncertainty, but such estimations have been provided by an independent third party. See note 17 for the carrying amount of the provision as at the reporting date.
Turnover is attributable to the provision of data and IT solutions.
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All turnover arose within the United Kingdom.
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The operating profit is stated after charging:
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Other operating lease rentals
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Depreciation of tangible fixed assets
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Defined contribution pension cost
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During the year, the Company obtained the following services from the Company's auditors and their associates:
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Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
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The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to no directors (2022 - 1) in respect of defined contribution pension schemes.
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The highest paid director received remuneration of €3,249,618 (2022 - €369,187).
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The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to €4,600 (2022 - €4,693).
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
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Expenses not deductible for tax purposes
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Capital allowances for year in excess of depreciation
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Other differences leading to an increase (decrease) in the tax charge
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Charge for the year on owned assets
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Long-term leasehold property
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Charge for the year on owned assets
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Investments in subsidiary companies
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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The following was a subsidiary undertaking of the Company:
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RGT Desarrollo Informatico S.L
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C/Ochoa,
16-20,
Edificio Nerja,
29590 Malaga
Spain
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The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
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Aggregate of share capital and reserves
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RGT Desarrollo Informatico S.L
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings are unsecured, interest-free and repayable on demand.
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Cash and cash equivalents
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest-free and repayable on demand.
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Fixed asset timing differences
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Charged to profit or loss
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Authorised, allotted, called up and fully paid
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1 (2022 - 1) Ordinary share of €1.00
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Revaluation reserve
The revaluation reserve comprises unrealised gains on the revaluation of the holding of Cryptocurrency.
Foreign exchange reserve
Includes all foreign exchange variances incurred when retranslating the the figures as at the date of the change in functional currency.
Profit and loss account
Includes accumulated and current year profit and loss.
The comparative information in the financial statements has been restated from the figures previously reported in the prior year accounts to reflect the impact of negative goodwill arising from a business combination.
Intangible fixed assets have increased by €43,358, other creditors have decreased by €427,197 and administrative expenses have increased by €17,343.
The result of this adjustment has increased net assets by €383,839 from the figures as previously reported.
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THE WORKSHOP TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to €1,156,959 (2022: €1,148,478). Contributions totaling €6,170 (2022: €200,706) were payable to the fund at the reporting date.
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Commitments under operating leases
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At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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Where possible, the company has taken advantage of the exemptions in Section 33.1 A of FRS 102 not to disclose transactions with other wholly-owned group undertakings.
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The Company's immediate parent company is The Workshop Ventures Limited.
The ultimate controlling party is the LTS Investment Fund Ltd, a Mauritius incorporated and based Trust. The registered office is Les Cascades, Edith Cavell Street, Port Louis, Republic of Mauritius.
The consolidated financial statements of the Workshop Ventures Limited as at 31 December 2023 may be obtained from Fetter Yard, 86 Fetter Lane, 1st Floor, London, England, EC4A 1EN.
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