Company registration number 06557609 (England and Wales)
POLYGON DIGITAL SOLUTIONS LIMITED
FORMERLY KNOWN AS CAPTION DATA LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
POLYGON DIGITAL SOLUTIONS LIMITED
FORMERLY KNOWN AS CAPTION DATA LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
POLYGON DIGITAL SOLUTIONS LIMITED
FORMERLY KNOWN AS CAPTION DATA LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
327,493
194,164
Tangible assets
5
8,711
11,442
336,204
205,606
Current assets
Stocks
76,331
162,742
Debtors
6
158,898
145,495
Cash at bank and in hand
15,599
88,892
250,828
397,129
Creditors: amounts falling due within one year
7
(1,800,726)
(1,105,964)
Net current liabilities
(1,549,898)
(708,835)
Total assets less current liabilities
(1,213,694)
(503,229)
Provisions for liabilities
8
(16,000)
(16,000)
Net liabilities
(1,229,694)
(519,229)
Capital and reserves
Called up share capital
9
177
177
Share premium account
389,386
389,386
Profit and loss reserves
(1,619,257)
(908,792)
Total equity
(1,229,694)
(519,229)
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 3 September 2024 and are signed on its behalf by:
Mr P Sanders
Director
Company Registration No. 06557609
POLYGON DIGITAL SOLUTIONS LIMITED
FORMERLY KNOWN AS CAPTION DATA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Polygon Digital Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Blackstone Road, Stukeley Meadows Industrial Estate, Huntingdon, Cambridgeshire, PE29 6EE.
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 principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
In assessing the going concern basis, the directors have considered the company’s business activities and its financial position. As at 31 December 2023 the company had cash reserves of £15,599, net current liabilities of £1,549,898 and net liabilities of £1,229,694. Included in creditors amounts falling within one year are amounts totalling £1,528,450 owed to fellow group undertakings. To ensure that the company remains a going concern, Polygon Group AB, head of the largest consolidation group, have confirmed that they will continue to provide such financial support as the company requires to enable it to meet its liabilities as they fall due for a period of at least 12 months from the date these financial statements are approved.
The directors continue to closely monitor the company's liquidity and capital adequacy and in doing so, forecasts have been produced covering a period of at least twelve months from the date that the financial statements are approved.
1.3
Reporting period
The current reporting period for the company is twelve months. The comparative reporting period was reduced to eight months to a year end coterminous with other group entities. Comparative amounts presented in the financial statements, including the related notes, are therefore not entirely comparable due to this reporting period reduction.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.5
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.6
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.
POLYGON DIGITAL SOLUTIONS LIMITED
FORMERLY KNOWN AS CAPTION DATA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development costs
Straight line over 5 years
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
Straight line over 5 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.9
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials only.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash at bank and bank overdrafts.
1.12
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
POLYGON DIGITAL SOLUTIONS LIMITED
FORMERLY KNOWN AS CAPTION DATA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial assets
Basic financial assets, which include trade debtors, amounts owed by group undertakings, other debtors, deferred tax asset and cash and bank balances, are initially measured at transaction price 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.
Basic financial liabilities
Basic financial liabilities, including bank loans and overdrafts, trade creditors, amounts owed to group undertakings, other creditors and taxation and social security, 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.
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.
1.13
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
POLYGON DIGITAL SOLUTIONS LIMITED
FORMERLY KNOWN AS CAPTION DATA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.15
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.16
Employee benefits
The costs of short-term employee benefits are recognised as an expense.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.19
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
POLYGON DIGITAL SOLUTIONS LIMITED
FORMERLY KNOWN AS CAPTION DATA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 6 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Valuation and amortisation of intangible fixed assets
Intangible assets are amortised over their useful lives, taking into account, where appropriate, residual values. The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates.
Dilapidations
Obligations under a lease arise from the date the lease is signed so tenants may make provision for dilapidations in anticipation of the estimated cost of future repairs and renovations that will need to be met in line with their lease obligations.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
17
16
4
Intangible fixed assets
Goodwill
Development costs
Total
£
£
£
Cost
At 1 January 2023
2,908
345,367
348,275
Additions
209,220
209,220
At 31 December 2023
2,908
554,587
557,495
Amortisation and impairment
At 1 January 2023
2,908
151,203
154,111
Amortisation charged for the year
75,891
75,891
At 31 December 2023
2,908
227,094
230,002
Carrying amount
At 31 December 2023
327,493
327,493
At 31 December 2022
194,164
194,164
POLYGON DIGITAL SOLUTIONS LIMITED
FORMERLY KNOWN AS CAPTION DATA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
5
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 January 2023
60,874
Additions
1,318
At 31 December 2023
62,192
Depreciation and impairment
At 1 January 2023
49,432
Depreciation charged in the year
4,049
At 31 December 2023
53,481
Carrying amount
At 31 December 2023
8,711
At 31 December 2022
11,442
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,209
4,518
Amounts owed by group undertakings
51,661
109,485
Other debtors
106,028
31,492
158,898
145,495
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
183,969
59,134
Amounts owed to group undertakings
1,528,450
466,001
Taxation and social security
27,181
26,343
Accruals and deferred income
61,126
554,486
1,800,726
1,105,964
POLYGON DIGITAL SOLUTIONS LIMITED
FORMERLY KNOWN AS CAPTION DATA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
8
Provisions for liabilities
2023
2022
£
£
Dilapidations
16,000
16,000
Movements on provisions:
Dilapidations
£
At 1 January 2023 and 31 December 2023
16,000
POLYGON DIGITAL SOLUTIONS LIMITED
FORMERLY KNOWN AS CAPTION DATA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
17,725
17,725
177
177
10
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:
Robert Kempson ACA
Statutory Auditor:
Edwards
Date of audit report:
3 September 2024
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
39,408
77,335
12
Related party transactions
The company has taken advantage of the exemption conferred within FRS102 section 33.1A not to disclose transactions between wholly owned members of the same group.
13
Parent company
The company's immediate parent undertaking is R3 Polygon UK Ltd.
In the directors opinion, the company's ultimate parent undertaking is PolyStorm Jersey Limited, incorporated in Jersey, of which AEA Investors Fund VII LP is the majority shareholder.
The largest and smallest group which consolidates the results of the company is Polygon Group AB. Copies of the group financial statements may be obtained from Hi Tech Building 21, Sveavagen, 9, 3rd Floor 101 52, Stockholm, Sweden.
2023-12-312023-01-01false03 September 2024CCH SoftwareCCH Accounts Production 2024.200No description of principal activityThis audit opinion is unqualifiedMr P SandersMr D SimkinsMr N J BoocockMs C FinsloS A S Liljestrandfalsefalse065576092023-01-012023-12-31065576092023-12-31065576092022-12-3106557609core:FurnitureFittings2023-12-3106557609core:FurnitureFittings2022-12-3106557609core:ShareCapital2023-12-3106557609core:ShareCapital2022-12-3106557609core:SharePremium2023-12-3106557609core:SharePremium2022-12-3106557609core:RetainedEarningsAccumulatedLosses2023-12-3106557609core:RetainedEarningsAccumulatedLosses2022-12-3106557609bus:Director12023-01-012023-12-3106557609core:Goodwill2023-01-012023-12-3106557609core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3106557609core:FurnitureFittings2023-01-012023-12-31065576092022-05-012022-12-3106557609core:Goodwill2022-12-3106557609core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-31065576092022-12-3106557609core:Goodwill2023-12-3106557609core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3106557609core:Goodwillcore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3106557609core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3106557609core:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3106557609core:Goodwill2022-12-3106557609core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3106557609core:FurnitureFittings2022-12-3106557609core:CurrentFinancialInstruments2023-12-3106557609core:CurrentFinancialInstruments2022-12-3106557609core:WithinOneYear2023-12-3106557609core:WithinOneYear2022-12-3106557609bus:PrivateLimitedCompanyLtd2023-01-012023-12-3106557609bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3106557609bus:FRS1022023-01-012023-12-3106557609bus:Audited2023-01-012023-12-3106557609bus:Director22023-01-012023-12-3106557609bus:Director32023-01-012023-12-3106557609bus:Director42023-01-012023-12-3106557609bus:Director52023-01-012023-12-3106557609bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP