Company No:
Contents
Note | 2023 | 2022 | ||
£ | £ | |||
Restated - note 2 | ||||
Fixed assets | ||||
Tangible assets | 4 |
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Investments | 5 |
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183,169 | 269,981 | |||
Current assets | ||||
Debtors | 6 |
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Cash at bank and in hand |
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1,861,230 | 1,649,510 | |||
Creditors: amounts falling due within one year | 7 | (
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Net current liabilities | (145,980) | (242,825) | ||
Total assets less current liabilities | 37,189 | 27,156 | ||
Creditors: amounts falling due after more than one year | 8 | (
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Net liabilities | (
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Capital and reserves | ||||
Called-up share capital |
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Capital redemption reserve |
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Profit and loss account | (
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Total shareholder's deficit | (
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Directors' responsibilities:
The financial statements of Perspicuity Limited (registered number:
B Gower
Director |
S Gower
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Perspicuity Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 150 High Street, Sevenoaks, TN13 1XE, United Kingdom. The principal place of business is Yeovil Innovation Centre, Barracks Close, Copse Road, Yeovil, Somerset, BA22 8RN, United Kingdom.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to meet its financial obligations from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Material prior period errors are corrected retrospectively by adjusting the period to which the error relates.
Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity.
Revenue received in advance of the period to which it relates is included as deferred income within other creditors on the balance sheet.
Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Vehicles |
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Fixtures and fittings |
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Computer equipment |
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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.
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss Account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
The prior period has been restated to increase the deferred income at the balance sheet date and thus reduce the turnover recognised in the accounting period, as the deferred income was previously understated. The deferred income and amounts recoverable on contracts have been restated with the corresponding adjustment to turnover and the associated adjustments to the corporation tax and deferred tax charges. The net effect on profit for the previous financial period is a decrease of £259,183.
As previously reported | Adjustment | As restated | ||||
Year ended 31 December 2022 | £ | £ | £ | |||
Accruals and deferred income | (983,898) | (423,754) | (1,407,652) | |||
Amounts recoverable on contracts | 0 | 61,104 | 61,104 | |||
Corporation tax liability | (106,787) | 52,979 | (53,808) | |||
Deferred tax provision | (50,488) | 50,488 | 0 | |||
Profit and loss account | (31,493) | 259,183 | 227,690 |
2023 | 2022 | ||
Number | Number | ||
Monthly average number of persons employed by the Company during the year, including directors |
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Vehicles | Fixtures and fittings | Computer equipment | Total | ||||
£ | £ | £ | £ | ||||
Cost | |||||||
At 01 January 2023 |
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Additions |
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At 31 December 2023 |
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Accumulated depreciation | |||||||
At 01 January 2023 |
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Charge for the financial year |
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At 31 December 2023 |
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Net book value | |||||||
At 31 December 2023 |
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At 31 December 2022 |
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Other investments | Total | ||
£ | £ | ||
Cost or valuation before impairment | |||
At 01 January 2023 |
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Disposals | (
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At 31 December 2023 |
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Provisions for impairment | |||
At 01 January 2023 |
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At 31 December 2023 |
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Carrying value at 31 December 2023 |
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Carrying value at 31 December 2022 |
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Cryptocurrency totalling £41,463 has been drawn by directors during the year.
2023 | 2022 | ||
£ | £ | ||
Trade debtors |
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Amounts owed by Group undertakings |
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Amounts owed by directors |
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Amounts recoverable on contracts |
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Prepayments |
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Other debtors |
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2023 | 2022 | ||
£ | £ | ||
Bank loans and overdrafts (secured) |
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Trade creditors |
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Accruals and deferred income |
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Taxation and social security |
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Obligations under finance leases and hire purchase contracts (secured) |
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Other creditors |
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2023 | 2022 | ||
£ | £ | ||
Bank loans (secured) |
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Obligations under finance leases and hire purchase contracts (secured) |
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Other creditors |
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Within bank loans is a balance of £120,000 (2022 - £168,000) relating to an outstanding amount due from a Coronavirus Business Interruption Loan. The UK government have guaranteed 80% of the value of the original loan (being £192,000).
Hire purchase contracts are secured on the assets concerned which are included within motor vehicles. The net book value of relevant assets as at 31 December 2023 is £146,416 (2022 - £183,020).
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2023 | 2022 | ||
£ | £ | ||
within one year |
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between one and five years |
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The non-cancellable operating lease payments are in relation to the business premises. The business moved to new premises from 11 March 2024.
Transactions with the entity's directors
Advances
At 1 January 2023, the balance owed by the directors was £227,128. During the year, £206,305 was advanced to the directors, and £6,113 was repaid by the directors. At 31 December 2023, the balance owed by the directors was £427,320.
At 1 January 2022, the balance owed to the directors was £22,833. During the year, £349,598 was advanced to the directors, and £99,637 was repaid by the directors. At 31 December 2022, the balance owed by the directors was £227,128.
These financial statements are available upon request from Companies House, Cardiff.