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Company No: 04365513 (England and Wales)

PERSPICUITY LIMITED

Unaudited Financial Statements
For the financial year ended 31 December 2023
Pages for filing with the registrar

PERSPICUITY LIMITED

Unaudited Financial Statements

For the financial year ended 31 December 2023

Contents

PERSPICUITY LIMITED

BALANCE SHEET

As at 31 December 2023
PERSPICUITY LIMITED

BALANCE SHEET (continued)

As at 31 December 2023
Note 2023 2022
£ £
Restated - note 2
Fixed assets
Tangible assets 4 175,600 220,769
Investments 5 7,569 49,212
183,169 269,981
Current assets
Debtors 6 1,860,132 1,577,500
Cash at bank and in hand 1,098 72,010
1,861,230 1,649,510
Creditors: amounts falling due within one year 7 ( 2,007,210) ( 1,892,335)
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 ( 306,194) ( 244,785)
Net liabilities ( 269,005) ( 217,629)
Capital and reserves
Called-up share capital 7,811 7,811
Capital redemption reserve 2,250 2,250
Profit and loss account ( 279,066 ) ( 227,690 )
Total shareholder's deficit ( 269,005) ( 217,629)

For the financial year ending 31 December 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements of Perspicuity Limited (registered number: 04365513) were approved and authorised for issue by the Board of Directors on 18 September 2024. They were signed on its behalf by:

B Gower
Director
S Gower
Director
PERSPICUITY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2023
PERSPICUITY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2023
1. Accounting policies

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.

General information and basis of accounting

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 £.

Going concern

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.

Prior year adjustment

Material prior period errors are corrected retrospectively by adjusting the period to which the error relates.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

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.

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.

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.

Employee benefits

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.

Taxation

Current tax
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.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Vehicles 20 % reducing balance
Fixtures and fittings 3 years straight line
Computer equipment 2 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Leases

The Company as lessee
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.

Impairment of assets

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.

Fixed asset investments

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.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Financial instruments

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.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

Dividends

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.

2. Prior year adjustment

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

3. Employees

2023 2022
Number Number
Monthly average number of persons employed by the Company during the year, including directors 32 30

4. Tangible assets

Vehicles Fixtures and fittings Computer equipment Total
£ £ £ £
Cost
At 01 January 2023 271,214 7,022 58,615 336,851
Additions 975 1,614 21,250 23,839
At 31 December 2023 272,189 8,636 79,865 360,690
Accumulated depreciation
At 01 January 2023 83,197 2,190 30,695 116,082
Charge for the financial year 37,733 2,559 28,716 69,008
At 31 December 2023 120,930 4,749 59,411 185,090
Net book value
At 31 December 2023 151,259 3,887 20,454 175,600
At 31 December 2022 188,017 4,832 27,920 220,769

5. Fixed asset investments

Other investments Total
£ £
Cost or valuation before impairment
At 01 January 2023 182,500 182,500
Disposals ( 41,643) ( 41,643)
At 31 December 2023 140,857 140,857
Provisions for impairment
At 01 January 2023 133,288 133,288
At 31 December 2023 133,288 133,288
Carrying value at 31 December 2023 7,569 7,569
Carrying value at 31 December 2022 49,212 49,212

Cryptocurrency totalling £41,463 has been drawn by directors during the year.

6. Debtors

2023 2022
£ £
Trade debtors 402,479 303,303
Amounts owed by Group undertakings 710,022 777,550
Amounts owed by directors 427,320 227,128
Amounts recoverable on contracts 37,755 61,104
Prepayments 89,180 50,403
Other debtors 193,376 158,012
1,860,132 1,577,500

Within other debtors in 2022, there is an invoice discounting arrangement.

7. Creditors: amounts falling due within one year

2023 2022
£ £
Bank loans and overdrafts (secured) 89,623 64,666
Trade creditors 122,592 48,067
Accruals and deferred income 1,327,346 1,407,652
Taxation and social security 222,907 306,024
Obligations under finance leases and hire purchase contracts (secured) 42,787 44,708
Other creditors 201,955 21,218
2,007,210 1,892,335

8. Creditors: amounts falling due after more than one year

2023 2022
£ £
Bank loans (secured) 72,000 120,000
Obligations under finance leases and hire purchase contracts (secured) 97,029 124,785
Other creditors 137,165 0
306,194 244,785

Within bank loans and overdrafts under one year is a bank overdraft which is secured by a fixed and floating charge over all assets and undertaking of the company.

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).

9. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

2023 2022
£ £
within one year 30,891 59,896
between one and five years 3,880 9,983
34,771 69,879

The non-cancellable operating lease payments are in relation to the business premises. The business moved to new premises from 11 March 2024.

10. Related party transactions

Transactions with the entity's directors

Advances

The Directors' loan account is repayable on demand and interest free. The disclosure represents the full aggregate loan balance and transactions for all directors.

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.

11. Ultimate controlling party

The company's immediate parent is Perspicuity Holdings Limited, incorporated in England and Wales. Its registered office address is Mansion House 54-58 Princes Street, Yeovil BA20 1EP.

These financial statements are available upon request from Companies House, Cardiff.