Company registration number 04483206 (England and Wales)
ALPHANUMERIC SYSTEMS UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
ALPHANUMERIC SYSTEMS UK LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
ALPHANUMERIC SYSTEMS UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Current assets
Debtors
3
538,513
838,103
Cash at bank and in hand
1,239,770
1,050,279
1,778,283
1,888,382
Creditors: amounts falling due within one year
4
(111,229)
(235,386)
Net current assets
1,667,054
1,652,996
Capital and reserves
Called up share capital
1
1
Other reserves
329,815
329,815
Profit and loss reserves
1,337,238
1,323,180
Total equity
1,667,054
1,652,996

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 22 May 2024 and are signed on its behalf by:
W R Trice
Director
Company registration number 04483206 (England and Wales)
ALPHANUMERIC SYSTEMS UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022 as originally stated
1
329,815
1,078,703
1,408,519
Reversal of GAAP difference (see note 1)
-
-
164,906
164,906
As restated
1
329,815
1,243,609
1,573,425
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
79,571
79,571
Balance at 31 December 2022
1
329,815
1,323,180
1,652,996
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
14,058
14,058
Balance at 31 December 2023
1
329,815
1,337,238
1,667,054
ALPHANUMERIC SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

Alphanumeric Systems UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 New Street Square, London, EC4A 3TW. The Company Registration Number is 04483206.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 principle accounting policies adopted are set out below.

1.2
Restatement

The prior year numbers have been restated for a push down accounting entry relating to intangible recognition under US GAAP which was originally posted on acquisition by the parent. As this intangible was fully amortised in prior years in the US books, the directors have concluded that this entry should be reversed. Consequently intercompany and retained profits have been adjusted by £164,906. This adjustment did not have any effect on the profit for the year.

1.3
Going concern

The company generates a significant proportion of their revenue from one key customer. It operates under a contract with this customer and the contract is due to expire on 31 May 2024.

 

The directors have prepared forecasts to 31 May 2025 based on the expectation that the service agreement with their key customer will be renewed, and that the company will continue in operational existence for the foreseeable future. There is currently however no legally binding agreement that guarantees contract renewal at the date accounts were approved and this therefore represents a material uncertainty for the company.

 

The company as at 31 December 2023 had a net asset position of £1.67 million, cash of £1.2 million and a profit for the year of £14,058, and an expectation that the contract with its key customer will be renewed.

 

The directors have received assurances from its Parent company that they will provide such funds to enable the company to meet its liabilities as they fall due in the unlikely event that its key contract is not renewed.

 

The directors fully expect the contract to be renewed and are not aware of any reasons why it would currently not be. Consequently the directors have prepared these financial statements on the going concern basis.

1.4
Turnover
Turnover represents the sales value of services provided during the year. Turnover is attributable to one continuing activity, the provision of training courses and the development of training materials, for users of computerised information technology systems.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

ALPHANUMERIC SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
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.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.

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.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

ALPHANUMERIC SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
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.

1.10
Retirement benefits

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

1.11
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
Employees

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

2023
2022
Number
Number
Total
13
17
ALPHANUMERIC SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
3
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
482,172
459,792
Amounts owed by group undertakings
8,400
378,311
Other debtors
47,630
-
0
Prepayments and accrued income
311
-
0
538,513
838,103
4
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
5,984
19,374
Corporation tax
3,656
18,210
Other taxation and social security
49,707
88,929
Accruals and deferred income
51,882
108,873
111,229
235,386
5
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:
Andrew Turner
Statutory Auditor:
Mercer & Hole LLP
Date of audit report:
23 May 2024
6
Related party transactions
Transactions with related parties

The company has taken advantage of the exemption available in FRS102 para 1AC.35 not to disclose transactions entered into between two or more wholly-owned members of the group.

7
Parent company

The company is a wholly owned subsidiary of Alphanumeric Systems Inc, a company registered in the USA.

The smallest and largest group within which the company's financial statements are consolidated into are those of Alphanumeric Systems Inc. Copies can be obtained from the Corporate Headquarters at 4515 Falls of Neuse Road, Suite 250, Raleigh, NC 27609, USA.

ALPHANUMERIC SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
8
Restatement

The prior year numbers have been restated for a push down accounting entry relating to intangible recognition under US GAAP which was originally posted on acquisition by the parent. As this intangible was fully amortised in prior years in the US books, the directors have concluded that this entry should be reversed. Consequently intercompany and retained profits have been adjusted by £164,906. This adjustment did not have any effect on the profit for the year.

Reconciliation of changes in equity
1 January
31 December
2022
2022
Notes
£
£
Adjustments to prior year
Equity as previously reported
1,408,519
1,488,090
Reversal of GAAP difference
1
164,906
-
Equity as adjusted
1,573,425
1,488,090
Notes to reconciliation

The above adjustment has no effect on profit for the year.

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