Acorah Software Products - Accounts Production 15.0.600 false true 30 June 2023 1 July 2022 false 1 July 2023 30 June 2024 30 June 2024 04646508 A Hill B Hill iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure 04646508 2023-06-30 04646508 2024-06-30 04646508 2023-07-01 2024-06-30 04646508 frs-core:CurrentFinancialInstruments 2024-06-30 04646508 frs-core:Non-currentFinancialInstruments 2024-06-30 04646508 frs-core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2024-06-30 04646508 frs-core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-07-01 2024-06-30 04646508 frs-core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-06-30 04646508 frs-core:LandBuildings frs-core:LeasedAssetsHeldAsLessee 2024-06-30 04646508 frs-core:LandBuildings frs-core:LeasedAssetsHeldAsLessee 2023-07-01 2024-06-30 04646508 frs-core:LandBuildings frs-core:LeasedAssetsHeldAsLessee 2023-06-30 04646508 frs-core:PlantMachinery 2024-06-30 04646508 frs-core:PlantMachinery 2023-07-01 2024-06-30 04646508 frs-core:PlantMachinery 2023-06-30 04646508 frs-core:WithinOneYear 2024-06-30 04646508 frs-core:SharePremium 2024-06-30 04646508 frs-core:ShareCapital 2024-06-30 04646508 frs-core:RetainedEarningsAccumulatedLosses 2024-06-30 04646508 frs-bus:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 04646508 frs-bus:FilletedAccounts 2023-07-01 2024-06-30 04646508 frs-bus:SmallEntities 2023-07-01 2024-06-30 04646508 frs-bus:AuditExempt-NoAccountantsReport 2023-07-01 2024-06-30 04646508 frs-bus:SmallCompaniesRegimeForAccounts 2023-07-01 2024-06-30 04646508 frs-core:OtherProvisionsContingentLiabilities 2023-07-01 2024-06-30 04646508 frs-core:OtherProvisionsContingentLiabilities 2023-06-30 04646508 frs-core:CostValuation 2023-06-30 04646508 frs-core:CostValuation 2024-06-30 04646508 frs-core:ProvisionsForImpairmentInvestments 2023-06-30 04646508 frs-core:ProvisionsForImpairmentInvestments 2024-06-30 04646508 frs-bus:Director1 2023-07-01 2024-06-30 04646508 frs-bus:Director2 2023-07-01 2024-06-30 04646508 frs-countries:EnglandWales 2023-07-01 2024-06-30 04646508 2022-06-30 04646508 2023-06-30 04646508 2022-07-01 2023-06-30 04646508 frs-core:CurrentFinancialInstruments 2023-06-30 04646508 frs-core:Non-currentFinancialInstruments 2023-06-30 04646508 frs-core:BetweenOneFiveYears 2023-06-30 04646508 frs-core:WithinOneYear 2023-06-30 04646508 frs-core:SharePremium 2023-06-30 04646508 frs-core:ShareCapital 2023-06-30 04646508 frs-core:RetainedEarningsAccumulatedLosses 2023-06-30
Registered number: 04646508
Virtalis Limited
Unaudited Financial Statements
For The Year Ended 30 June 2024
Contents
Page
Balance Sheet 1—2
Notes to the Financial Statements 3—7
Page 1
Balance Sheet
Registered number: 04646508
2024 2023
Notes £ £ £ £
FIXED ASSETS
Intangible Assets 4 2,822,991 2,744,247
Tangible Assets 5 39,671 84,971
Investments 6 20,329 20,329
2,882,991 2,849,547
CURRENT ASSETS
Stocks 7 56,088 60,079
Debtors 8 2,179,910 2,389,492
Cash at bank and in hand 252,031 350,270
2,488,029 2,799,841
Creditors: Amounts Falling Due Within One Year 9 (4,366,362 ) (5,283,395 )
NET CURRENT ASSETS (LIABILITIES) (1,878,333 ) (2,483,554 )
TOTAL ASSETS LESS CURRENT LIABILITIES 1,004,658 365,993
Creditors: Amounts Falling Due After More Than One Year 10 (18,355 ) (41,341 )
PROVISIONS FOR LIABILITIES
Provisions For Charges 12 - (219,003 )
NET ASSETS 986,303 105,649
CAPITAL AND RESERVES
Called up share capital 13 80,329 80,329
Share premium account 26,868 26,868
Profit and Loss Account 879,106 (1,548 )
SHAREHOLDERS' FUNDS 986,303 105,649
Page 1
Page 2
For the year ending 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Profit and Loss Account.
On behalf of the board
B Hill
Director
28/08/2024
The notes on pages 3 to 7 form part of these financial statements.
Page 2
Page 3
Notes to the Financial Statements
1. General Information
Virtalis Limited is a private company, limited by shares, incorporated in England & Wales, registered number 04646508 . The registered office is Chester House, 79 Dane Road, Sale, Manchester, M33 7BP.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2. Significant judgements and estimations
In the application of the company’s accounting policies, the director is 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.
Judgements, estimates and assumptions have been made in the preparation of these financial statements. The Directors have exercised significant judgement when introducing a new accounting policy with regards to revenue recognition.
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
Revenue from hardware sales
A new recognition policy was introduced from 1st July 2023 in how hardware sales are recognised, this new policy is not reflected in the comparative period as the recognition policy requires live data and therefore it was impractical to accurately record on historic data. 
The new policy accounts for the complexities of hardware procurement, construction phases, and installation, alongside the continuous transfer of risks and rewards throughout the project lifecycle. Revenue is recognised in stages that reflect the ongoing transfer of risks and rewards. In case of project termination, Virtalis is entitled to revenue for the completed work. This policy ensures that revenue recognition reflects project milestones and the transfer of risks.
2.4. Intangible Fixed Assets and Amortisation - Other Intangible
Other intangible assets are capitalised development costs. The expenditure relating to relevant staff costs, on-costs and benefits as well as materials and services consumed is capitalised and amortised over the period during which the company is expected to benefit, matched to the levels of turnover generated and commencing when sales of the product are first made. During the year capitalised development costs are amortised on a straight line basis over their expected useful economic lives, which is 10 years.
2.5. Research and Development
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research is recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. 
If it is not possible to distinguish between the research phase and the development phase of an internal project the expenditure is treated as if it were all incurred in the research phase only.
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2.6. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold 5 years straight line
Plant & Machinery 3, 4 or 5 years straight line
2.7. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
2.8. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
2.9. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.10. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
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2.11. Government Grant
Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.
Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.
Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.
All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.
3. Average Number of Employees
Average number of employees, including directors, during the year was: 23 (2023: 43)
23 43
4. Intangible Assets
Development Costs
£
Cost
As at 1 July 2023 7,977,637
Additions 560,638
As at 30 June 2024 8,538,275
Amortisation
As at 1 July 2023 5,233,390
Provided during the period 481,894
As at 30 June 2024 5,715,284
Net Book Value
As at 30 June 2024 2,822,991
As at 1 July 2023 2,744,247
5. Tangible Assets
Land & Property
Leasehold Plant & Machinery Total
£ £ £
Cost
As at 1 July 2023 167,055 820,251 987,306
Additions - 2,270 2,270
Disposals (2,277 ) - (2,277 )
As at 30 June 2024 164,778 822,521 987,299
Depreciation
As at 1 July 2023 128,930 773,405 902,335
Provided during the period 25,377 19,916 45,293
As at 30 June 2024 154,307 793,321 947,628
Net Book Value
As at 30 June 2024 10,471 29,200 39,671
As at 1 July 2023 38,125 46,846 84,971
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6. Investments
Subsidiaries
£
Cost
As at 1 July 2023 20,329
As at 30 June 2024 20,329
Provision
As at 1 July 2023 -
As at 30 June 2024 -
Net Book Value
As at 30 June 2024 20,329
As at 1 July 2023 20,329
The company holds 100% of the issued share capital of Virtalis Inc, being $1,000, a company incorporated in the United States, 100% of the issued share capital of Virtalis GmbH, being €25,000, a company incorporated in Germany, and 100% of the issued share capital of Virtalis Sdn Bhd, being RM100, a company incorporated in Malaysia.
7. Stocks
2024 2023
£ £
Stock 31,812 31,812
Work in progress 24,276 28,267
56,088 60,079
8. Debtors
2024 2023
£ £
Due within one year
Trade debtors 41,971 33,869
Prepayments and accrued income 103,907 30,371
Other debtors 166 3,720
Corporation tax recoverable assets - 699,000
Deferred tax current asset 300,000 -
Amounts owed by group undertakings 1,733,866 1,622,532
2,179,910 2,389,492
9. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 35,496 85,199
Trade creditors 129,630 535,852
Amounts owed to group undertakings 2,792,747 2,659,890
Other creditors 1,280,564 1,468,566
Taxation and social security 127,925 533,888
4,366,362 5,283,395
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10. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts - 22,986
Other creditors 18,355 18,355
18,355 41,341
11. Obligations Under Finance Leases and Hire Purchase
2024 2023
£ £
The future minimum finance lease payments are as follows:
Not later than one year 35,496 85,199
Later than one year and not later than five years - 22,986
35,496 108,185
35,496 108,185
12. Provisions for Liabilities
Other Provisions Total
£ £
As at 1 July 2023 219,003 219,003
Reversals (219,003 ) (219,003)
During the year the status of the lease changed and therefore derecognition of the provision was required. 
13. Share Capital
2024 2023
£ £
Allotted, Called up and fully paid 80,329 80,329
14. Contingent Liabilities
At 30 June 2024, the company had contingent liabilities in relation to obligations under lease agreements to restore and make good the leased premises at the property 79 Dane Road It is known that these costs must be incurred in the last three months of the period ending 28/11/2028. Although this timing is certain, the value of these costs can not at present be reliably estimated. It is understood at present that no reimbursement will be received in relation to these costs.
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