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Registration number: 10536443

Flexys Solutions Ltd

Unaudited Filleted Financial Statements

for the Year Ended 31 March 2024

Pages for filing with Registrar

 

Flexys Solutions Ltd

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 13

 

Flexys Solutions Ltd

Company Information

Directors

B J Dewis

B M Smith

J A J Hill

Registered office

Future Space
North Gate (UWE) Filton Road
Stoke Gifford
Bristol
BS34 8RB

Registered number

10536443

Accountants

Corrigan Accountants Limited
1st Floor
25 King Street
Bristol
BS1 4PB

 

Flexys Solutions Ltd

(Registration number: 10536443)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

2,813,462

2,519,938

Tangible assets

5

11,776

27,058

 

2,825,238

2,546,996

Current assets

 

Debtors

6

966,394

1,257,583

Cash at bank and in hand

 

564,919

658,390

 

1,531,313

1,915,973

Creditors: Amounts falling due within one year

7

(2,564,828)

(1,523,901)

Net current (liabilities)/assets

 

(1,033,515)

392,072

Total assets less current liabilities

 

1,791,723

2,939,068

Creditors: Amounts falling due after more than one year

7

(485,287)

(727,110)

Provisions for liabilities

(78,000)

(183,441)

Net assets

 

1,228,436

2,028,517

Capital and reserves

 

Called up share capital

7

7

Share premium reserve

4,300,440

4,300,440

Other reserves

33,408

28,357

Profit and loss account

(3,105,419)

(2,300,287)

Total equity

 

1,228,436

2,028,517

 

Flexys Solutions Ltd

(Registration number: 10536443)
Balance Sheet as at 31 March 2024

For the financial year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised for issue by the Board on 1 August 2024 and signed on its behalf by:
 

.........................................
J A J Hill
Director

   
     
 

Flexys Solutions Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

1

Statutory information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Future Space
North Gate (UWE) Filton Road
Stoke Gifford
Bristol
BS34 8RB

2

Accounting policies

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The financial statements are prepared in pounds sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The company's continued investment in developing the product and switch of focus from services revenue to ARR has resulted in a loss for the year in line with the forecasts for the period. The directors are confident that through a combination of increased future revenues, careful cost control and the continued support of existing investors who have confirmed that additional funding is available, the company will continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis of accounting in preparing the annual financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.

 

Flexys Solutions Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Tax

The tax expense or credit for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.


Deferred tax
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation.

The cost of tangible fixed assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Office equipment

33% on cost

Computer equipment

33% on cost

Intangible fixed assets

Development expenditure is written off as incurred, except that development expenditure incurred on an individual project is capitalised as an intangible asset when the company can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development.

Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried as cost less any accumulated amortisation and accumulated impairment losses.

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life of 10 years.

 

Flexys Solutions Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Research and development costs

Research costs are written off to the profit or loss account in the year incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects in which case the costs are capitalised as fixed assets.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank.

Trade debtors

Trade debtors are recognised initially at the transaction price. They are subsequently measured less any provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are recognised initially at the transaction price.

Compound financial instruments

Compound financial instruments consist of convertible loans that can be converted to share capital at the option of the holder.

The liability component of a compound financial instrument is initially recognised at the fair value of a similar liability that does not have an equity conversion option. The equity component is initially recognised at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortised cost using the effective interest method, and interest expense included within interest payable and similar charges. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition except on conversion or expiry.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

 

Flexys Solutions Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Share based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the profit and loss account over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employees' services are received.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 34 (2023 - 40).

 

Flexys Solutions Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

4

Intangible fixed assets

Internally generated software development costs
 £

Cost

At 1 April 2023

3,922,372

Additions internally developed

761,958

At 31 March 2024

4,684,330

Amortisation

At 1 April 2023

1,402,434

Amortisation charge

468,434

At 31 March 2024

1,870,868

Carrying amount

At 31 March 2024

2,813,462

At 31 March 2023

2,519,938

 

Flexys Solutions Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

5

Tangible fixed assets

Office equipment
 £

Computer equipment
 £

Total
£

Cost

At 1 April 2023

1,910

72,787

74,697

Additions

-

1,657

1,657

Disposals

-

(5,264)

(5,264)

At 31 March 2024

1,910

69,180

71,090

Depreciation

At 1 April 2023

1,468

46,171

47,639

Charge for the year

342

16,249

16,591

Eliminated on disposal

-

(4,916)

(4,916)

At 31 March 2024

1,810

57,504

59,314

Carrying amount

At 31 March 2024

100

11,676

11,776

At 31 March 2023

442

26,616

27,058

6

Debtors: amounts falling due within one year

2024
£

2023
£

Trade debtors

788,708

789,585

Other debtors

18,685

13,917

Prepayments and accrued income

44,715

75,368

Corporation tax

114,286

378,713

966,394

1,257,583

 

Flexys Solutions Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

7

Creditors: Amounts falling due within one year

Note

2024
£

2023
£

Loans and borrowings

8

530,690

19,700

Trade creditors

 

46,907

32,913

Taxation and social security

 

299,309

311,210

Other creditors

 

21,794

21,229

Accruals and deferred income

 

1,666,128

1,138,849

 

2,564,828

1,523,901

Due after one year

 

Loans and borrowings

8

39,037

139,568

Other non-current financial liabilities

 

446,250

587,542

 

485,287

727,110

8

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

Bank loan

7,200

7,200

Convertible loan

100,000

-

Other loan

423,490

12,500

530,690

19,700

2024
£

2023
£

Non-current loans and borrowings

Bank loan

39,037

39,568

Convertible loan

-

100,000

39,037

139,568

 

Flexys Solutions Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Loans and borrowings falling due within one year include £23,490 (2023 - £12,500) advanced against debts subject to financing agreements.

Also within loans and borrowings falling due within one year, is a loan of £400,000. This is unsecured and bears interest at 15%. Repayment is due October 2024.

The convertible loan represents a £100,000 convertible loan note which bears interest at a rate of 12% per annum. Repayment is due October 2024.

The bank loan is the government backed Business Bounce Back Loan, an unsecured loan with a flexible repayment term of 6 years, charged at 2.5% interest.

9

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary shares of £0.00015 each

48,651

7.29

48,651

7.29

         

10

Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

3,180

4,350

The amount of non-cancellable operating lease payments recognised as an expense during the year was £14,988 (2023 - £24,171).

 

Flexys Solutions Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

11

Share-based payments

Unapproved Options

Scheme details and movements

The company has issued options over its unissued shares to a director. Their vesting is conditional upon criterian including the option holder's continued employment by the company. The options are exerciseable on an exit event.

The terms of the options are 10 years from the date of grant.

The movements in the number of share options during the year were as follows:

2024
Number

2023
Number

Outstanding, start of period

685

685

Granted during the period

400

-

Outstanding, end of period

1,085

685

Exercisable, end of period

-

-

The movements in the weighted average exercise price of share options during the year were as follows:

2024
£

2023
£

Outstanding, start of period

7.46

7.46

Granted during the period

30.03

-

Outstanding, end of period

15.78

7.46

Exercisable, end of period

-

-

Effect of share-based payments on profit or loss and financial position

The total expense recognised in profit or loss for the year was £3,963 (2023 - £3,453).

 

Flexys Solutions Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

EMI Options

Scheme details and movements

The company has issued EMI options over its unissued share capital to certain employees. Their vesting is conditional upon criteria including the option holder's continued employment by the company. The options are exercisable on an exit event.

The term of the options are 10 years from the date of grant.

The movements in the number of share options during the year were as follows:

2024
Number

2023
Number

Outstanding, start of period

1,470

2,205

Granted during the period

2,480

-

Forfeited during the period

(1,250)

(735)

Outstanding, end of period

2,700

1,470

Exercisable, end of period

-

-

The movements in the weighted average exercise price of share options during the year were as follows:

2024
£

2023
£

Outstanding, start of period

81.18

78.16

Granted during the period

30.03

-

Forfeited during the period

(44.18)

(72.13)

Outstanding, end of period

51.03

81.18

Exercisable, end of period

-

-

Effect of share-based payments on profit or loss and financial position

The total expense recognised in profit or loss for the year was £1,088 (2023 - £8,130).