Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-312024-03-31falsefalse272023-04-01falselicensing of customisable office space to Technology companies.32false 09310488 2023-04-01 2024-03-31 09310488 2022-04-01 2023-03-31 09310488 2024-03-31 09310488 2023-03-31 09310488 2022-04-01 09310488 c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2023-03-31 09310488 c:CurrentFinancialInstruments c:WithinOneYear c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2023-03-31 09310488 c:Non-currentFinancialInstruments c:AfterOneYear c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2023-03-31 09310488 c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2022-04-01 2023-03-31 09310488 1 2023-04-01 2024-03-31 09310488 d:Director1 2023-04-01 2024-03-31 09310488 d:Director2 2023-04-01 2024-03-31 09310488 d:Director3 2023-04-01 2024-03-31 09310488 d:Director4 2023-04-01 2024-03-31 09310488 d:Director5 2023-04-01 2024-03-31 09310488 d:RegisteredOffice 2023-04-01 2024-03-31 09310488 c:Buildings c:LongLeaseholdAssets 2023-04-01 2024-03-31 09310488 c:FurnitureFittings 2023-04-01 2024-03-31 09310488 c:FurnitureFittings 2024-03-31 09310488 c:FurnitureFittings 2023-03-31 09310488 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 09310488 c:ComputerEquipment 2023-04-01 2024-03-31 09310488 c:ComputerEquipment 2024-03-31 09310488 c:ComputerEquipment 2023-03-31 09310488 c:ComputerEquipment c:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 09310488 c:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 09310488 c:CurrentFinancialInstruments 2024-03-31 09310488 c:CurrentFinancialInstruments 2023-03-31 09310488 c:Non-currentFinancialInstruments 2024-03-31 09310488 c:Non-currentFinancialInstruments 2023-03-31 09310488 c:CurrentFinancialInstruments c:WithinOneYear 2024-03-31 09310488 c:CurrentFinancialInstruments c:WithinOneYear 2023-03-31 09310488 c:ShareCapital 2023-04-01 2024-03-31 09310488 c:ShareCapital 2024-03-31 09310488 c:ShareCapital 2022-04-01 2023-03-31 09310488 c:ShareCapital 2023-03-31 09310488 c:ShareCapital 2022-04-01 09310488 c:SharePremium 2023-04-01 2024-03-31 09310488 c:SharePremium 2024-03-31 09310488 c:SharePremium 2022-04-01 2023-03-31 09310488 c:SharePremium 2023-03-31 09310488 c:SharePremium 2022-04-01 09310488 c:CapitalRedemptionReserve 2023-04-01 2024-03-31 09310488 c:ForeignCurrencyTranslationReserve 2023-04-01 2024-03-31 09310488 c:MergerReserve 2023-04-01 2024-03-31 09310488 c:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 09310488 c:RetainedEarningsAccumulatedLosses 2024-03-31 09310488 c:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 09310488 c:RetainedEarningsAccumulatedLosses 2023-03-31 09310488 c:RetainedEarningsAccumulatedLosses 2022-04-01 09310488 d:OrdinaryShareClass1 2023-04-01 2024-03-31 09310488 d:OrdinaryShareClass1 2024-03-31 09310488 d:OrdinaryShareClass1 2023-03-31 09310488 d:OrdinaryShareClass2 2023-04-01 2024-03-31 09310488 d:OrdinaryShareClass2 2024-03-31 09310488 d:OrdinaryShareClass2 2023-03-31 09310488 d:OrdinaryShareClass3 2023-04-01 2024-03-31 09310488 d:OrdinaryShareClass3 2024-03-31 09310488 d:FRS102 2023-04-01 2024-03-31 09310488 d:Audited 2023-04-01 2024-03-31 09310488 d:FullAccounts 2023-04-01 2024-03-31 09310488 d:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 09310488 c:Subsidiary2 2023-04-01 2024-03-31 09310488 c:Subsidiary2 1 2023-04-01 2024-03-31 09310488 c:Subsidiary3 2023-04-01 2024-03-31 09310488 c:Subsidiary3 1 2023-04-01 2024-03-31 09310488 c:Subsidiary4 2023-04-01 2024-03-31 09310488 c:Subsidiary4 1 2023-04-01 2024-03-31 09310488 c:Subsidiary5 2023-04-01 2024-03-31 09310488 c:Subsidiary5 1 2023-04-01 2024-03-31 09310488 c:Subsidiary6 2023-04-01 2024-03-31 09310488 c:Subsidiary6 1 2023-04-01 2024-03-31 09310488 c:Subsidiary7 2023-04-01 2024-03-31 09310488 c:Subsidiary7 1 2023-04-01 2024-03-31 09310488 c:Subsidiary8 2023-04-01 2024-03-31 09310488 c:Subsidiary8 1 2023-04-01 2024-03-31 09310488 c:Subsidiary9 2023-04-01 2024-03-31 09310488 c:Subsidiary9 1 2023-04-01 2024-03-31 09310488 c:Subsidiary10 2023-04-01 2024-03-31 09310488 c:Subsidiary10 1 2023-04-01 2024-03-31 09310488 c:Subsidiary11 2023-04-01 2024-03-31 09310488 c:Subsidiary11 1 2023-04-01 2024-03-31 09310488 c:Subsidiary12 2023-04-01 2024-03-31 09310488 c:Subsidiary12 1 2023-04-01 2024-03-31 09310488 c:Subsidiary13 2023-04-01 2024-03-31 09310488 c:Subsidiary13 1 2023-04-01 2024-03-31 09310488 c:WithinOneYear 2024-03-31 09310488 c:WithinOneYear 2023-03-31 09310488 c:BetweenOneFiveYears 2024-03-31 09310488 c:BetweenOneFiveYears 2023-03-31 09310488 c:MoreThanFiveYears 2024-03-31 09310488 c:MoreThanFiveYears 2023-03-31 09310488 d:Consolidated 2024-03-31 09310488 d:ConsolidatedGroupCompanyAccounts 2023-04-01 2024-03-31 09310488 2 2023-04-01 2024-03-31 09310488 6 2023-04-01 2024-03-31 09310488 e:PoundSterling 2023-04-01 2024-03-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 09310488







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024


TECHSPACE GROUP LIMITED






































img11d5.png                        

 


TECHSPACE GROUP LIMITED
 


 
COMPANY INFORMATION


Directors
J. D. Bevan 
C. Hudack 
A. C. M. Rabarts 
R. D. Stevenson 
Noe Group (Corporate Services) Limited 




Registered number
09310488



Registered office
25 Luke Street

London

EC2A 4DS




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Ashcombe House

5 The Crescent

Leatherhead

Surrey

KT22 8DY





 


TECHSPACE GROUP LIMITED
 



CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated statement of financial position
10
Company statement of financial position
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Consolidated analysis of net debt
15
Notes to the financial statements
16 - 34


 


TECHSPACE GROUP LIMITED
 


 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The Directors present their Strategic Report for the year ended 31 March 2024.

Principal activity

The Principal Activity of the Group is the licensing of customisable office space to Technology companies.

Business review
 
The Directors are pleased with the Group’s performance in a challenging economic climate characterised by high interest rates and subdued growth.
Strong operating cash flow generation has enabled the Group to invest £1.0m in capital expenditure to enhance existing sites and establish a new location in Worship Street, London. The financial year concluded with a cash balance of £3.2 m and a debt-free position.
The Board considers EBITDA the most appropriate metric for evaluating the Group’s operating performance and is pleased with the £0.5m FY24 result. Revenue grew by 14% compared to the previous year, although the EBITDA margin contracted modestly to 4% due to start-up costs associated with the new site at Worship Street in London.
Despite the challenging macroeconomic environment, the Group has demonstrated resilience and continued growth. The Directors remain confident in the Group’s ability to navigate these conditions and capitalise on opportunities within the flexible workspace sector.
The Group opened one new site and signed one additional site during the financial year which will increase the footprint by over 40%. Both sites will deliver markedly enhanced product and service experience aligned with current and emerging market needs:

Techspace Worship Street opened in June 2023 and is trading in line with expectations.
A new 50,000 sq ft site in Kreuzberg, Berlin is expected to open in 2025.

Key performance indicators
 
Revenue: £12.8m, up 15% on the prior year
 
Gross Margin: 24%, down 7% on the prior year
 
EBITDA: £0.5m, 310% down on prior year
 
Average occupancy: 74%, 3% below prior year
The Group faces several key risks, which are actively managed through robust processes.

Liquidity Risk
The Group maintains rigorous cash flow monitoring and reporting procedures to the leadership team and board. These measures are designed to ensure adequate liquidity. 

Economic and Market Risk
The Group’s profitability is susceptible to fluctuations in occupancy and pricing, particularly given its significant fixed cost base. A potential oversupply of flexible office space could exacerbate downward pressure on these metrics. To mitigate this, the Group diligently monitors debtors, collection rates, occupancy, and pricing while leveraging its dual-market presence in London and Berlin.

The Group is mindful of the prevailing macroeconomic conditions and their potential impact on costs and demand. While supply contracts for essential utilities and rent offer some stability, a recessionary environment could soften demand for new memberships and profitability. The Group, however, does not anticipate significant cash flow disruptions due to its long-term member contracts and a robust credit collection process.

 
Page 1

 


TECHSPACE GROUP LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Despite short-term challenges, the Group maintains a positive medium-term outlook driven by the increasing demand for flexible office space among larger corporations seeking to optimise their real estate portfolios.

Geopolitical Risk
The Group is aware of the ongoing geopolitical tensions, including the war in Ukraine and the conflicts in the middle east. While there are no direct operational implications, the Group closely monitors the situation for potential indirect impacts such as macroeconomic shocks and increased economic volatility.

It is important to note that the Group has no business dealings with sanctioned entities and that energy costs, though impacted by the war in Ukraine, represent a relatively small proportion of overall expenses.



This report was approved by the board and signed on its behalf.



J. D. Bevan
Director

Date: 2 September 2024

Page 2

 


TECHSPACE GROUP LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £722k (2023 - loss £92k).

The directors do not recommend the payment of a dividend (2023 - £nil).

Directors

The directors who served during the year were:

J. D. Bevan 
C. Hudack 
A. C. M. Rabarts 
R. D. Stevenson 
Noe Group (Corporate Services) Limited 

Matters covered in the Group strategic report

The Company has chosen, in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out within the Company's Strategic Report the Company's Strategic Report Information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.

Page 3

 


TECHSPACE GROUP LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Disclosure of information to auditors

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 and the Group'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 and the Group's auditors are aware of that information.

Post balance sheet events

The Group entered into a lease agreement for a new 72,000 sq ft flagship location in London subsequent to the balance sheet date on June 14th 2024. Construction is expected to be completed by late October in line with the lease commencement date. This new site is anticipated to significantly enhance the Group’s scale of operations in the long term.

Auditors

The auditorsMenzies LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





J. D. Bevan
Director

Date: 2 September 2024

25 Luke Street
London
EC2A 4DS

Page 4

 


TECHSPACE GROUP LIMITED
 


 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TECHSPACE GROUP LIMITED

Opinion


We have audited the financial statements of Techspace Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 March 2024 and of the Group's loss 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.


Basis for opinion


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 Group 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


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 Group's or the parent 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.


Other information


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 ReportOur 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.


Page 5

 


TECHSPACE GROUP LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TECHSPACE GROUP LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group 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 Group 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
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


TECHSPACE GROUP LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TECHSPACE GROUP LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

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 Group 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:

The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations that were most significant included:
 
The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation;
UK health and safety legislation;
General Data Protection Regulations; and
UK tax legislation.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
 
We understood how the Group is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.
 
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
 
We assessed the susceptibility of the Group financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
 
Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgments made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
 
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
 
The application of inappropriate judgments or estimation to manipulate the Group's financial position;
Posting of unusual journals and complex transactions; and
The use of management override of controls to manipulate results, or to cause the Group to enter into transactions not in its best interests.

 


Page 7

 


TECHSPACE GROUP LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TECHSPACE GROUP LIMITED (CONTINUED)

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.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Use of our report
 

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 2006Our 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.





Andrew Hookway FCA (Senior Statutory Auditor)
for and on behalf of
Menzies LLP
Chartered Accountants
Statutory Auditor
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

2 September 2024
Page 8

 


TECHSPACE GROUP LIMITED
 


 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
12,830
11,191

Cost of sales
  
(9,745)
(7,727)

Gross profit
  
3,085
3,464

Administrative expenses
  
(3,175)
(2,838)

Other operating income
 5 
594
112

EBITDA
 6 
504
738

Depreciation
  
(1,088)
(830)

Loss from operations
 6 
(584)
(92)

Interest receivable and similar income
 10 
34
-

Loss before taxation
  
(550)
(92)

Tax on loss
 11 
(172)
-

Loss for the financial year
  
(722)
(92)

Loss for the year attributable to:
  

Owners of the parent Company
  
(722)
(92)

  
(722)
(92)

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

The notes on pages 16 to 34 form part of these financial statements.

 

Page 9

 


TECHSPACE GROUP LIMITED
 



CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£000
£000

Fixed assets
  

Tangible assets
 12 
6,910
3,966

  
6,910
3,966

Current assets
  

Debtors: amounts falling due after more than one year
 14 
1,333
1,429

Debtors: amounts falling due within one year
 14 
2,740
3,111

Cash at bank and in hand
  
3,182
3,461

  
7,255
8,001

Creditors: amounts falling due within one year
 15 
(7,131)
(7,877)

Net current assets
  
 
 
124
 
 
124

Total assets less current liabilities
  
7,034
4,090

Creditors: amounts falling due after more than one year
 16 
(4,968)
(1,500)

Provisions for liabilities
  

Other provisions
 17 
(233)
-

  
 
 
(233)
 
 
-

Net assets
  
1,833
2,590


Capital and reserves
  

Called up share capital 
 18 
74
75

Share premium account
 19 
-
11,101

Other reserves
 19 
(269)
(235)

Profit and loss account
 19 
2,028
(8,351)

  
1,833
2,590


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




J. D. Bevan
Director

Date: 2 September 2024

The notes on pages 16 to 34 form part of these financial statements.

Page 10

 


TECHSPACE GROUP LIMITED
REGISTERED NUMBER:09310488



COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£000
£000

Fixed assets
  

Tangible assets
 12 
54
52

Investments
 13 
60
60

  
114
112

Current assets
  

Debtors: amounts falling due after more than one year
 14 
8,470
7,882

Debtors: amounts falling due within one year
 14 
223
137

Cash at bank and in hand
  
1,048
1,432

  
9,741
9,451

Creditors: amounts falling due within one year
 15 
(320)
(455)

Net current assets
  
 
 
9,421
 
 
8,996

Total assets less current liabilities
  
9,535
9,108

  

  

Net assets
  
9,535
9,108


Capital and reserves
  

Called up share capital 
 18 
74
75

Share premium account
 19 
-
11,101

Profit and loss account brought forward
  
(2,068)
(2,305)

Profit for the year
  
427
237

Other changes in the profit and loss account

  

11,101
-

Profit and loss account carried forward
  
9,461
(2,068)

  
9,535
9,108


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


J. D. Bevan
Director

Date: 2 September 2024

The notes on pages 16 to 34 form part of these financial statements.

 
Page 11


 
TECHSPACE GROUP LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024



Called up share capital
Share premium account
Other reserves
Profit and loss account
Total equity


£000
£000
£000
£000
£000



At 1 April 2022
75
11,173
(323)
(8,259)
2,666



Comprehensive income for the year


Loss for the year
-
-
-
(92)
(92)


Foreign exchange movement
-
-
88
-
88

Total comprehensive income for the year
-
-
88
(92)
(4)


Fees on the issue of shares
-
(72)
-
-
(72)





At 1 April 2023
75
11,101
(235)
(8,351)
2,590



Comprehensive income for the year


Loss for the year
-
-
-
(722)
(722)


Foreign exchange movement
-
-
(34)
-
(34)

Total comprehensive income for the year
-
-
(34)
(722)
(756)



Contributions by and distributions to owners


Shares cancelled during the year
(1)
-
-
-
(1)


Cancellation of share premium
-
(11,101)
-
11,101
-



At 31 March 2024
74
-
(269)
2,028
1,833



The notes on pages 16 to 34 form part of these financial statements.

Page 12


 
TECHSPACE GROUP LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024



Called up share capital
Share premium account
Profit and loss account
Total equity


£000
£000
£000
£000



At 1 April 2022
75
11,173
(2,305)
8,943



Comprehensive income for the year


Profit for the year
-
-
237
237

Total comprehensive income for the year
-
-
237
237


Fees on the issue of shares
-
(72)
-
(72)





At 1 April 2023
75
11,101
(2,068)
9,108



Comprehensive income for the year


Profit for the year
-
-
427
427

Total comprehensive income for the year
-
-
427
427



Contributions by and distributions to owners


Shares cancelled during the year
(1)
-
-
(1)


Cancellation of share premium
-
(11,101)
11,101
-



At 31 March 2024
74
-
9,460
9,534



The notes on pages 16 to 34 form part of these financial statements.

Page 13

 


TECHSPACE GROUP LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£000
£000

Cash flows from operating activities

Loss for the financial year
(722)
(92)

Adjustments for:

Depreciation of tangible assets
1,088
830

Loss on disposal of tangible assets
-
6

Government grants
(329)
(112)

Interest received
(34)
-

Taxation charge
172
-

Decrease/(increase) in debtors
466
(1,382)

Increase in creditors
2,555
3,418

Increase in provisions
233
-

Foreign exchange
-
187

Net fair value losses/(gains) recognised in P&L
-
(54)

Net cash generated from operating activities

3,429
2,801


Cash flows from investing activities

Purchase of tangible fixed assets
(4,065)
(1,454)

Sale of tangible fixed assets
-
(7)

Government grants received
329
112

Interest received
34
-

Net cash from investing activities

(3,702)
(1,349)

Cash flows from financing activities

Cancellation of ordinary shares
-
(71)

Purchase of ordinary shares
(6)
-

Repayment of loans
-
(50)

Net cash used in financing activities
(6)
(121)

Net (decrease)/increase in cash and cash equivalents
(279)
1,331

Cash and cash equivalents at beginning of year
3,461
2,130

Cash and cash equivalents at the end of year
3,182
3,461


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,182
3,461

3,182
3,461


The notes on pages 16 to 34 form part of these financial statements.

Page 14

 


TECHSPACE GROUP LIMITED
 



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£000

£000

£000

Cash at bank and in hand

3,461

(279)

3,182


3,461
(279)
3,182

The notes on pages 16 to 34 form part of these financial statements.

Page 15

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Techspace Group Limited is a private company limited by shares and incorporated in England and Wales. Details of the Company's registered office and principal place can be found on the Company Information page.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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.

Information on the impact of first-time adoption of FRS 102 is given in note 25.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The Group’s financial position, cash flows and liquidity, along with their implications for the going concern assessment, are detailed below. Directors have considered these factors alongside the principal risks and their potential impact on the Group’s future. Based on this assessment, the Directors believe it is appropriate to prepare the consolidated financial statements on a going concern basis. This assessment constitutes a critical accounting judgment, as outlined below.

As of 31 March 2024, the business has experienced robust trading conditions, securing numerous new long-term license agreements. The Group’s strong operating performance has contributed to a growing cash balance and generated predictable cash flows over the assessment period. Occupancy levels are healthy, with positive EBITDA, and robust cash flow, the Group held a cash balance of approximately £3.0m as of 30 June 2024. Successful debt collection has continued post year-end. 

Given the Group’s current cash balance and ongoing cash generation, the Directors conclude that no material uncertainty exists regarding the Group’s ability to continue as a going concern.

The Group is mindful of the prevailing macroeconomic conditions, including inflationary pressures. While these factors have increased costs, the Group’s fixed-term supply contracts have mitigated operational challenges. Although a recession poses a potential risk, the Group’s long-term contracts provide cash flow stability. While softer demand could impact new sales and profitability, the Group does not anticipate significant credit collection issues. The Directors maintain a positive medium-term outlook, underpinned by the growing demand for flexible office space among larger corporations.



Page 16

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.3
Going concern (continued)

To assess potential downside scenarios, the Group conducted a 12-month forecast and sensitivity analysis which also included the new site opening at Goswell Road in London. The base case forecast indicates a profitable business at the EBITDA level for the current financial year. To evaluate the impact of delayed sales, the Group modeled a slower sales profile across vacant units across the portfolio. The Directors have carefully considered various scenarios, including delayed sales and lower pricing, and concluded that the Group possesses sufficient financial resources to withstand these potential challenges. The directors do not consider it necessary to raise a debt facility at this time due to its strong cash position.

While the war in Ukraine and the conflicts in the middle east heighten the risk of macroeconomic shocks, the Group has not experienced any direct operational impacts. The Directors believe that a material delay in sales is unlikely, and the budgeted revenues reflect a prudent forecast. Even under sensitivity analysis, the Directors remain confident that the going concern basis is appropriate for the financial statements.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP and the accounts are rounded to the nearest £'000.

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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Revenue

The Group provides rental office space and services. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Group recognises revenue when it transfers control over a product or service to a customer. Revenue is recognised on a straight-line basis over the term of the contract.
Revenue in the Company comprises administration services which are recharged to the Group and interest on intercompany loans.

Page 17

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.7

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.8

Government grants

Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received. The Group received multiple grants as a result of the pandemic. In Germany, the group accessed the Kurzarbeit and the Corona Aid Scheme. 
Government grants (such as the German Kurzarbeit) are recognised in Profit or Loss on a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to compensate. The rebate credit received from the respective governments are netted off the payroll costs in administrative expenses. 
Government grants (such as the German Corona Aid Scheme) that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognised in profit in the period in which they become receivable. The component of the German Corona Aid Scheme grant whose primary condition is that the Group should purchase, construct or otherwise acquire non- current assets are recognised as deferred revenue in the consolidated statement of financial position and transferred to Profit or Loss on a systematic and rational basis over the useful lives of the related assets.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

Page 18

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.11

Taxation

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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.

 
2.12

Tangible fixed assets

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.

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:

Leasehold property
-
Over the life of the lease
Fixtures and fittings
-
Over 5 years
Computer equipment
-
Over 3 years

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.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 19

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.14

Provisions for liabilities

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.

 
2.15

Financial instruments

The Group only enters into basic financial instrument 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, loans
to related parties and investments in non-puttable ordinary shares.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements requires management to exercise judgement in applying the Group's accounting policies. It also requires the use of estimates and assumptions that affect the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis, with revisions recognised in the period in which the estimates are revised and in any future periods affected. 
Rent free accrual
The group recognises any contracted rent increases and lease incentives, such as rent-free periods and
landlord cash contributions to fit-out costs, over the life of the lease. In calculating the rent expense, only
known increases in rent are factored into the calculations, and therefore actual costs may differ from these
estimates.
Dilapidations provision
A dilapidation provision has been recognised, relating to the estimated costs of rectification that the group is
liable for under the terms of the leases of its spaces. The provision is for the cost of removing leasehold
improvements and has been recognised at the present value of the estimated cost to return the properties
back to their original condition. In calculating the provision, a discount rate based on the group's cost of
borrowing has been used. Actual costs at the end of the lease may differ from these estimates. 

Page 20

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£000
£000

Sales
11,317
10,312

Customisation revenue
190
169

Events revenue
630
451

Other income
693
259

12,830
11,191


Analysis of turnover by country of destination:

2024
2023
£000
£000

United Kingdom
8,340
6,099

Rest of Europe
4,490
5,092

12,830
11,191



5.


Other operating income

2024
2023
£000
£000

Insurance proceeds
265
-

Government grants receivable
329
112

594
112



6.


Operating loss

The operating loss is stated after charging:

2024
2023
£000
£000

Depreciation
1,088
830

Exchange differences
-
(20)

Other operating lease rentals
4,989
4,388

Page 21

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£000
£000

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
44
35

Fees payable to the Company's auditors in respect of:

Accountancy fees
9
19

Taxation compliance services
11
17


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Wages and salaries
2,425
2,038
2,086
1,732

Social security costs
336
280
259
212

Cost of defined contribution scheme
52
36
52
36

2,813
2,354
2,397
1,980


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Direct staff
19
15
13
9



Administrative
24
21
19
18

43
36
32
27

Page 22

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Directors' remuneration

2024
2023
£000
£000

Directors' emoluments
705
579

Group contributions to defined contribution pension schemes
12
8

717
587


During the year retirement benefits were accruing to 3 directors (2023 -3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £278k (2023 -£281k).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 -£NIL).


10.


Interest receivable

2024
2023
£000
£000


Other interest receivable
34
-

34
-

Page 23

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
172
-


172
-


Total current tax
172
-

Deferred tax

Total deferred tax
-
-


172
-

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 -the same as) the standard rate of corporation tax in the UK of 25% (2023 -19%). The differences are explained below:

2024
2023
£000
£000


Loss on ordinary activities before tax
(550)
(92)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -19%)
(138)
(17)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3
-

Capital allowances for year in excess of depreciation
137
17

Movement in deferred tax not recognised
(2)
-

Tax charge on foreign subsidiaries
172
-

Total tax charge for the year
172
-


Factors that may affect future tax charges

There are no factors that may affect future tax charges.

Page 24

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Tangible fixed assets

Group






Long term Leasehold property
Fixtures and fittings
Computer equipment
Total

£000
£000
£000
£000



Cost or valuation


At 1 April 2023
6,189
2,268
79
8,536


Additions
3,677
358
30
4,065


Disposals
(1,103)
(681)
(49)
(1,833)


Exchange adjustments
(28)
(27)
-
(55)



At 31 March 2024

8,735
1,918
60
10,713



Depreciation


At 1 April 2023
3,312
1,201
57
4,570


Charge for the year
696
378
14
1,088


Disposals
(1,103)
(681)
(49)
(1,833)


Exchange adjustments
(10)
(12)
-
(22)



At 31 March 2024

2,895
886
22
3,803



Net book value



At 31 March 2024
5,840
1,032
38
6,910



At 31 March 2023
2,877
1,067
22
3,966

Page 25

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           12.Tangible fixed assets (continued)


Company






Fixtures and fittings
Computer equipment
Total

£000
£000
£000

Cost or valuation


At 1 April 2023
63
79
142


Additions
2
23
25


Disposals
(21)
(49)
(70)



At 31 March 2024

44
53
97



Depreciation


At 1 April 2023
34
57
91


Charge for the year
9
13
22


Disposals
(21)
(49)
(70)



At 31 March 2024

22
21
43



Net book value



At 31 March 2024
22
32
54



At 31 March 2023
30
22
52






Page 26

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Fixed asset investments

Company





Investments in subsidiary companies

£000



Cost 


At 1 April 2023
88



At 31 March 2024

88



Impairment


At 1 April 2023
28



At 31 March 2024

28



Net book value



At 31 March 2024
60



At 31 March 2023
60

The Group has no investments.

Page 27

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Techspace WSP Limited
25 Luke Street, London, EC2A 4DS
Ordinary
100%
Techspace LUK Limited
25 Luke Street, London, EC2A 4DS
Ordinary
100%
Techspace UWD Limited
25 Luke Street, London, EC2A 4DS
Ordinary
100%
Techspace TAN Limited
25 Luke Street, London, EC2A 4DS
Ordinary
100%
Techspace CML Limited
25 Luke Street, London, EC2A 4DS
Ordinary
100%
Techspace LEM Limited
25 Luke Street, London, EC2A 4DS
Ordinary
100%
Techspace GES Limited
25 Luke Street, London, EC2A 4DS
Ordinary
100%
Techspace BER GmbH
Lobeckstraße 36-40, 10969 Berlin
Ordinary
100%
Techspace KOP GmbH
Lobeckstraße 36 - 40, 10969 Berlin
Ordinary
100%
Techspace BLN GmbH
Lobeckstraße 36 - 40, 10969 Berlin
Ordinary
100%
Techspace EIS GmbH
Kühlhaus, Köpenicker Straße 40 B, 10179 Berlin
Ordinary
100%
Techspace Goswell Road Limited
25 Luke Street, London, EC2A 4DS
Ordinary
100%

Page 28

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Due after more than one year

Amounts owed by group undertakings
-
-
8,470
7,882

Other debtors
1,333
1,429
-
-

1,333
1,429
8,470
7,882


The intercompany loan is due from the Company's subsidiaries. The balance is subject to interest at 8.5%. The balance is not expected to be repaid within 12 months, and therefore it is classified as non- current.

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Due within one year

Trade debtors
891
1,625
-
11

Other debtors
841
383
102
19

Prepayments and accrued income
1,008
1,103
121
107

2,740
3,111
223
137



15.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Trade creditors
1,258
2,117
34
108

Corporation tax
172
-
-
-

Other taxation and social security
399
420
79
112

Other creditors
1,625
2,994
10
30

Accruals and deferred income
3,677
2,346
197
205

7,131
7,877
320
455


Page 29

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£000
£000

Other creditors
4,968
1,500

4,968
1,500





17.


Provisions


Group






Dilapidations provision

£000





Dilapidations
233



At 31 March 2024
233

Provision has been made for dilapidation works that are required at the end of the lease. Timing of payments will be due on lease expiry. The unwinding of the provision will be recognised in the profit and loss account, within 'interest payable and similar expenses'.


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



9,517,193 (2023 -10,287,000) Ordinary shares of £0.001 each
9,517
10,287
64,781,661 (2023 -64,782,000) A Preference Shares shares of £0.001 each
64,782
64,782
127,722 (2023 - Nil) Deferred shares shares of £0.00001 each
1
-

74,300

75,069

The A preference shares have full voting, dividend and capital distribution rights (including winding up). The shares are not liable to be redeemed. On a distribution of assets on liquidation or a return of capital A preference shares hold priority of payment to any other classes of shares. The ordinary shares have equal and full voting, dividend and capital distribution rights (including winding up). The shares are not liable to be redeemed. 
On 28 March 2024, 642,122 £0.001 Ordinary shares were cancelled for consideration of £5,734.15.
Also on 28 March 2024, 127,722 Ordinary shares were redesignated to 127,722 £0.00001 Deferred shares with the difference in par value being transferred to the capital redemption reserve. The deferred shares have equal and full voting, dividend and capital distribution rights (including winding up). The shares are not liable to be redeemed. 


Page 30

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.


Reserves

Share premium account

This reserve represents the premium paid above the nominal share value for those shares less insurance costs. During the year, the share premium was cancelled and transferred to the profit and loss account.

Capital redemption reserve

This reserve holds the Company's own shares purchased during the year.

Foreign exchange reserve

This reserve comprises of the foreign exchange conversion requirement of entities whose base currency is Euro into the Group consolidated base currency which is Sterling.

Merger Reserve

This reserve represents the difference between the consideration paid by the Parent company and the fair value of the assets of subsidiary companies transferred during a group reconstruction.

Profit and loss account

This reserve comprises of all current and prior period retained profit and losses after deducting any distributions made to the Group's shareholders.


20.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £51,820 (2023 - £34,166). Contributions totalling £10,332 (2023 - £16,093) were payable to the fund at the reporting date and are included in creditors


21.


Commitments under operating leases

At 31 March 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Not later than 1 year
5,745
6,055
16
18

Later than 1 year and not later than 5 years
17,903
21,801
11
28

Later than 5 years
17,590
22,555
-
-

41,238
50,411
27
46

Page 31

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

22.


Related party transactions

Group and company 
During the year, the Group received rent payments of £nil (2023 - £3,564) from a company which has a controlling interest in the Group. The services were sold at an arm's length basis. There were no outstanding amounts to or from the Company at the period end. During the year, the Group paid consultancy fees to a non- executive director of £27,500 (2023 - £20,625). 
Company 
During the year the company paid licence fees to subsidiaries with total cost of £122,472 (2023: £116,620) and made management recharges to subsidiaries with total proceeds of £3,105,072 (2023: £3,083,116). The company also received interest from subsidiaries and related companies amounting to £713,112 (2023: £129,243). The balance owed by group undertakings to the company at the year end was £8,470,286 (2023: £7,881,753). These balances are unsecured and repayable on demand. Balances from two of the group undertakings were interest bearing at a rate of 8.5%. Balances from the other group undertakings were interest free. During the year the company incurred expenses for corporate governance of £30,000 (2023: £30,000) with a company which has a controlling interest. The services were sold at an arm's length basis. There were no outstanding amounts to or from the company at the period end. During the year the company granted a loan to the investing company which was fully repaid during the year, and there is no liability at the year end. The loan was interest bearing and given at an arm's length basis.


23.


Post balance sheet events

The Group entered into a lease agreement for a new 72,000 sq ft flagship location in London subsequent to the balance sheet date on June 14th 2024. Construction is expected to be completed by late October in line with the lease commencement date. This new site is anticipated to significantly enhance the Group’s scale of operations in the long term. 


24.


Controlling party

Throughout the year, the Company's immediate parent company has been TSCW Investing LP, which is incorporated in Guernsey. Throughout the current and prior year, the Company's ultimate parent company and ultimate controlling party has been Finsbury Trust Company Limited, in its capacity as trustee of the DC Settlement, which is incorporated in Gibraltar. Neither the entity's parent nor the ultimate controlling party produce consolidated financial statements available for public use.

Page 32

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

25.


First time adoption of FRS 102

The financial statements for the year ended 31 March 2023 were prepared in accordance with International Financial Reporting Standards (IFRS). The company has decided to prepare the financial statements for the year ended 31 March 2024 in accordance with Financial Reporting Standard 102 (FRS 102). The Group transitioned to FRS 102 from IFRS as at 1 April 2022
The impact of the transition to FRS 102 is as follows:

Group


As previously stated
1 April
2022
Effect of transition
1 April
2022
FRS 102
(as restated)
1 April
2022
£000
£000
£000

Fixed assets
  
20,894
(17,607)
3,287

Current assets
  
4,739
551
5,290

Creditors: amounts falling due within one year
  
(6,263)
352
(5,911)

Net current assets/(liabilities)
  
 
(1,524)
 
903
 
(621)

Total assets less current liabilities
  
 
19,370
 
(16,704)
 
2,666

Creditors: amounts falling due after more than one year
  
(19,055)
19,055
-

Net  assets
  
 
315
 
2,351
 
2,666

Capital and reserves
  
315
2,351
2,666

  
 
315
 
2,351
 
2,666
Page 33

 


TECHSPACE GROUP LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           25.First time adoption of FRS 102 (continued)

As previously stated
1 April
2022
Effect of transition
1 April
2022
FRS 102
(as restated)
1 April
2022
£000
£000
£000

Turnover
  
8,121
-
8,121

Cost of sales
  
(5,122)
-
(5,122)

  
 
2,999
 
-
 
2,999

Administrative expenses
  
(2,750)
(1,611)
(4,361)

Other operating income
  
1,481
-
1,481

Operating profit
  
 
1,730
 
(1,611)
 
119

Interest payable and similar charges
  
(2,638)
2,233
(405)

Taxation
  
(10)
-
(10)

Loss on ordinary activities after taxation and for the financial year
  
 
(918)
 
622
 
(296)

Explanation of changes to previously reported profit and equity:

1

The accounts were previously prepared under IFRS.

Company

There were no adjustments to the Company's results.


Page 34