Company Registration No. 07553139 (England and Wales)
Planixs GRP Limited
Annual report and financial statements
for the year ended 31 March 2024
Planixs GRP Limited
Company information
Directors
Steven Clarke
Paul Elswood
Neville Roberts
Spencer Woods
Philip Yates
Company number
07553139
Registered office
Union House 2/10
Albert Square
Manchester
M2 6LW
Independent auditor
Saffery LLP
Trinity
16 John Dalton Street
Manchester
M2 6HY
Planixs GRP Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Income statement
9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 27
Planixs GRP Limited
Strategic report
For the year ended 31 March 2024
1
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
Planixs is a UK-based Fintech that has been working in the real-time Intraday Liquidity Management space from 2012 as a company and 2008 as individuals. Planixs started out in the UK where the regulators were the first in the world to focus on this topic, and hence UK banks had to respond to regulation. Planixs has developed an award winning Realiti® software suite using industry leading technology platform combining deep experience of cash and liquidity management. Realiti provides a wide range of capabilities covering cash and securities, optimising intraday liquidity via payment throttling, transaction comparison by intraday reconciliation, sweeping end of day cash and achieving compliance via stress testing and regulatory reporting. Today, Realiti is live and operational in banks around the world. There are users of the Realiti system at head offices, subsidiaries, and branches across major global financial centres. The Planxis innovation and dedication have seen the company recognised as a UK tech leader in prestigious awards and surveys.
The Company achieved turnover for the year of £6,443k (2023: £5,469k) an increase of 18% on prior year. Of the £6,443k, 77% relates to recurring revenue.
The Company recorded a loss before taxation of £2,016k (2023: loss of £2,755k) representing the ongoing development costs associated with software development programme.
During the year, Planixs received £1,045k from HMRC in respect of the R&D claim relating to the financial year ended December 2023 (2022: £1,078k).
Future developments
Planixs will continue to optimise the product going into financial year 2025 to improve global capability and improve operational delivery costs.
Principal risks and uncertainties
The risks below are the principal risks that may impact the Company achieving its strategic objectives.
Company specific and market
The loss of customers is a risk to Planixs, however the extended duration of contracts and uique product offering compared to the competition, remove and mitigate those risks. In addition, the upsell opportunity to existing clients for modules they currently do not have, further cements the relationship with the client. New customers in either existing or new geographical locations, further enhances the strong position in the market.
Resources
Reliance on key personnel with specific technological skill sets is a risk to any business but Planixs continues to monitor this and has put in place mechanisms to enable effective knowledge transfer and succession planning to mitigate this risk.
Changes in legislation / regulation
Whilst Planixs provides software solutions for the highly regulated banking sector it is not a regulated entity. Planixs customers are however regulated by the Prudential Regulation Authority (PRA).
Planixs GRP Limited
Strategic report (continued)
For the year ended 31 March 2024
2
Liquidity
Inadequate funds are a risk to any business. Planxis uses a rolling three-year forecast to monitor cash flow and ensure sufficient funds are available as required. This three year plan is updated regularly, and outputs are presented to and discussed by the Board.
Cyber Security
Given the nature of Planixs' business, exposure resulting from a cyberattack or data breach is a real and major risk. Planixs therefore actively manages this via numerous means including regular systems penetration testing and employing staff with dedicated Information Security experience to ensure compliance in all relevant areas. Planxis are working to attaining ISO27001 accreditation and SOC2 compliance in the next financial year. In addition, all employees undertake periodic mandatory training in relation to the importance of cyber and information security.
Key performance indicators
The Company uses several key performance indicators (‘KPIs’) to monitor and track performance. Performance indicators are reviewed regularly by senior management and the board.
Turnover and ARR
Turnover for the year was £6.443m (2022: £5.469m) and ARR £5.070m (2022: £5.156m) which reflects growth rates of a 18% and -2% accordingly. The growth has arisen due to customers taking advantage of Planixs enhanced and new product offerings.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)
EBITDA indicates how well the Company is managing its day-to-day operations as is therefore a fair indicator of the Company’s current performance and potential.
EBITDA for the year ended 31 December 2024 was (£1.745m) (2022: ((£2.602)). A key driver behind the increase in EBITDA is the additional turnover generated in the year.
Headcount
Headcount is monitored as a metric for the growth of the company.
Headcount for the year ended 31 December 2024 was 66 (2023: 62).
Disabled employees
Planixs provides equal opportunities for disabled employees, except as far as such opportunities are constrained by the practical limitations of their disability. Where an existing employee becomes disabled, such steps as are practical and reasonable are taken to retain them in their employment.
Political donations and expenditure
There were no political donations made or expenditure incurred during 2024.
Neville Roberts
Director
15 August 2024
Planixs GRP Limited
Directors' report
For the year ended 31 March 2024
3
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of the development, sale and support of real-time liquidity management software.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Steven Clarke
Paul Elswood
Conor Parsons
(Resigned 15 November 2023)
Neville Roberts
Spencer Woods
Philip Yates
Qualifying third party indemnity provision
The Company holds Directors and Officers Liability insurance.
Financial instruments
The Company's main financial instruments are cash and trade receivables. The Company does not use derivative financial instruments.
Cautionary Statement
Any forward-looking statements included in this report and the strategic report have been made by the Directors in good faith based on their knowledge and information available at the time. Such statements should be treated with caution due to the inherent risks and uncertainties relating to such information.
Going Concern
The Directors continue to adopt the going concern basis in the preparation of the financial statements. The loss-making position is as a result of the Company still being in its investment phase. The Company is reliant on support from external lenders, however, following successful refinancing, the Directors are confident that the Company will continue operations into the foreseeable future . The Board is consciously pursuing an exciting new strategic direction to simplify the software architecture and provide a new lower total cost of ownership for Planixs and its customers to operate and enjoy. The Directors have prepared cash flow forecasts for a 12-month period from the date of approval of these financial statements. These have been prepared considering trading performance, bank and loan facilities available. They have applied a range of sensitivities to these forecasts and such forecasts and analysis have indicated that sufficient funds should be available to enable the Group to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. As a result, the Board believes that it is appropriate to prepare the financial statements on a going concern basis.
Research and development
Planixs develops its own software for client use in their daily liquidity operations which is fully embedded in their IT systems and infrastructure. Planixs are at the forefront of Liquidity management software solutions in the banking sector on a global basis and generate research and development projects on an on-going basis.
Planixs GRP Limited
Directors' report (continued)
For the year ended 31 March 2024
4
Auditor
Saffery LLP have expressed their willingness to continue in office.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and FRS102 as applicable).
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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements 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 company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Neville Roberts
Director
15 August 2024
Planixs GRP Limited
Independent auditor's report
To the members of Planixs GRP Limited
5
Opinion
We have audited the financial statements of Planixs GRP Limited (the 'company') for the year ended 31 March 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The 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 company's affairs as at 31 March 2024 and of its 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.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our 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.
Planixs GRP Limited
Independent auditor's report (continued)
To the members of Planixs GRP Limited
6
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 auditor's 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 financial statements.
Planixs GRP Limited
Independent auditor's report (continued)
To the members of Planixs GRP Limited
7
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Planixs GRP Limited
Independent auditor's report (continued)
To the members of Planixs GRP Limited
8
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 2006. Our 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 auditor's 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.
Diane Petit-Laurent FCA
Senior Statutory Auditor
For and on behalf of Saffery LLP
15 August 2024
Chartered Accountants
Statutory Auditors
Trinity
16 John Dalton Street
Manchester
M2 6HY
Planixs GRP Limited
Income statement
For the year ended 31 March 2024
9
2024
2023
Notes
£
£
Turnover
3
6,442,638
5,469,155
Cost of sales
(1,451,562)
(1,591,082)
Gross profit
4,991,076
3,878,073
Administrative expenses
(6,760,725)
(6,491,105)
Other operating income
1,551
Operating loss
4
(1,769,649)
(2,611,481)
Interest receivable and similar income
21,309
Interest payable and similar expenses
7
(269,309)
(143,659)
Loss before taxation
(2,017,649)
(2,755,140)
Tax on loss
8
449,691
1,114,300
Loss for the financial year
(1,567,958)
(1,640,840)
The income statement has been prepared on the basis that all operations are continuing operations.
Planixs GRP Limited
Statement of comprehensive income
For the year ended 31 March 2024
10
2024
2023
£
£
Loss for the year
(1,567,958)
(1,640,840)
Other comprehensive income
-
-
Total comprehensive income for the year
(1,567,958)
(1,640,840)
Planixs GRP Limited
Statement of financial position
As at 31 March 2024
11
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
17,714
21,498
Current assets
Debtors
10
1,324,276
2,185,859
Cash at bank and in hand
2,874,394
3,492,045
4,198,670
5,677,904
Creditors: amounts falling due within one year
11
(5,141,824)
(4,493,403)
Net current (liabilities)/assets
(943,154)
1,184,501
Total assets less current liabilities
(925,440)
1,205,999
Creditors: amounts falling due after more than one year
12
(1,272,725)
(1,854,545)
Net liabilities
(2,198,165)
(648,546)
Capital and reserves
Called up share capital
17
190
188
Share premium account
5,195,497
5,194,154
Other reserves
94,014
77,020
Profit and loss reserves
(7,487,866)
(5,919,908)
Total equity
(2,198,165)
(648,546)
The financial statements were approved by the board of directors and authorised for issue on 15 August 2024 and are signed on its behalf by:
Neville Roberts
Director
Company Registration No. 07553139
Planixs GRP Limited
Statement of changes in equity
For the year ended 31 March 2024
12
Share capital
Share premium account
Share based payments
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
188
5,194,154
58,887
(4,279,068)
974,161
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
-
(1,640,840)
(1,640,840)
Credit to equity for equity settled share-based payments
-
-
18,133
-
18,133
Balance at 31 March 2023
188
5,194,154
77,020
(5,919,908)
(648,546)
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
-
-
(1,567,958)
(1,567,958)
Issue of share capital
17
2
1,343
-
-
1,345
Credit to equity for equity settled share-based payments
-
-
16,994
-
16,994
Balance at 31 March 2024
190
5,195,497
94,014
(7,487,866)
(2,198,165)
Planixs GRP Limited
Statement of cash flows
For the year ended 31 March 2024
13
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
20
(1,268,038)
(1,606,722)
Interest paid
(264,530)
(114,322)
Income taxes refunded
1,045,429
1,077,550
Net cash outflow from operating activities
(487,139)
(643,494)
Investing activities
Purchase of tangible fixed assets
(7,711)
(14,358)
Interest received
21,309
Net cash generated from/(used in) investing activities
13,598
(14,358)
Financing activities
Proceeds from issue of shares
1,345
Repayment of bank loans
(145,455)
Proceeds from new bank loans
2,000,000
Net cash (used in)/generated from financing activities
(144,110)
2,000,000
Net (decrease)/increase in cash and cash equivalents
(617,651)
1,342,148
Cash and cash equivalents at beginning of year
3,492,045
2,149,897
Cash and cash equivalents at end of year
2,874,394
3,492,045
Planixs GRP Limited
Notes to the financial statements
For the year ended 31 March 2024
14
1
Accounting policies
Company information
Planixs GRP Limited is a private company limited by shares incorporated in England and Wales. The registered office is Union House 2/10, Albert Square, Manchester, M2 6LW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Revenue from the provision of bundled on-premise term licences (software licences and maintenance), maintenance contracts, hosted software subscription licences and hosting services is recognised equally over the duration of the contract.
1.4
Research and development expenditure
Research and development expenditure is written off against profits in the year in which it is incurred.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
15
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% straight line method
Computers
33% straight line method
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
16
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
17
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
18
1.13
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
19
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Share-based payments
The directors are required to determine the fair value of equity-settled share-based payments and recognise this as an expense over the period in which the employees become unconditionally entitled to the awards. Therefore, the directors are required to estimate the fair value of the share-based payments using an option valuation model and need to estimate inputs such as volatility. In addition to this, the terms of the share-based payments are such that the directors are required to estimate the number of options expected to vest, and the time period over which these options are expected to vest. The directors re-assess this estimate at each reporting period. During the year, the company recognised total share-based payment expenses of £16,994 (2023 - £18,133) which related to equity settled share based payment transactions.
Research and development
The directors must assess whether the company has carried out qualifying research and development activities to meet the criteria for a tax credit. This requires judgement over the technical and commercial feasibility of the projects. During the year, Planixs received £1,045k from HMRC in respect of the R&D claim relating to the financial year ended December 2023 (2022: £1,078k).
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
2,978,240
3,040,038
Europe
2,523,464
1,399,088
North America
940,934
1,030,029
6,442,638
5,469,155
2024
2023
£
£
Other revenue
Interest income
21,309
-
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
20
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
19,055
(27,590)
Research and development costs
3,915,418
4,207,402
Fees payable to the company's auditor for the audit of the company's financial statements
22,205
19,300
Depreciation of owned tangible fixed assets
11,495
8,622
Share-based payments
16,994
18,133
Operating lease charges
137,124
133,791
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
66
62
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,793,465
2,644,254
Pension costs
228,392
115,693
3,021,857
2,759,947
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
487,241
426,242
Company pension contributions to defined contribution schemes
16,537
4,403
503,778
430,645
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
6
Directors' remuneration (continued)
21
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
203,618
-
Company pension contributions to defined contribution schemes
8,151
-
As total directors' remuneration was less than £200,000 in the prior year, no disclosure is provided.
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
269,309
143,659
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(447,079)
(1,045,429)
Deferred tax
Origination and reversal of timing differences
(2,612)
(68,871)
Total tax credit
(449,691)
(1,114,300)
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
8
Taxation (continued)
22
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(2,017,649)
(2,755,140)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(504,412)
(523,477)
Tax effect of expenses that are not deductible in determining taxable profit
4,844
1,798
Adjustments in respect of financial assets
(818)
Additional deduction for R&D expenditure
(620,742)
(848,299)
Surrender of tax losses for R&D tax credit refund
670,619
324,444
Remeasurement of deferred tax for changes in tax rates
(292)
Movement in deferred tax not recognised
(67,656)
Taxation credit for the year
(449,691)
(1,114,300)
9
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 April 2023
31,147
159,966
191,113
Additions
7,711
7,711
At 31 March 2024
31,147
167,677
198,824
Depreciation and impairment
At 1 April 2023
31,147
138,468
169,615
Depreciation charged in the year
11,495
11,495
At 31 March 2024
31,147
149,963
181,110
Carrying amount
At 31 March 2024
17,714
17,714
At 31 March 2023
21,498
21,498
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
23
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
490,719
769,162
Corporation tax recoverable
447,079
1,045,429
Other debtors
55,180
125,315
Prepayments and accrued income
253,594
164,796
1,246,572
2,104,702
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
6,065
Deferred tax asset (note 14)
77,704
75,092
77,704
81,157
Total debtors
1,324,276
2,185,859
11
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
13
581,820
145,455
Trade creditors
341,103
267,485
Taxation and social security
495,512
510,571
Other creditors
236,308
146,120
Accruals and deferred income
3,487,081
3,423,772
5,141,824
4,493,403
The bank loan shown above is secured by a fixed and floating charge, registered against all assets of the company in favour of Clydesdale Bank PLC.
12
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
13
1,272,725
1,854,545
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
24
13
Loans and overdrafts
2024
2023
£
£
Bank loans
1,854,545
2,000,000
Payable within one year
581,820
145,455
Payable after one year
1,272,725
1,854,545
The bank loan shown above is secured by a fixed and floating charge, registered against all assets of the company in favour of Clydesdale Bank PLC.
The bank loan is at 12.75% per annum, with quarterly repayments until a final repayment date in August 2027.
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Fixed asset timing differences
(4,429)
(5,375)
Short term timing differences
14,478
67,656
Losses and other deductions
67,655
-
Unpaid interest
-
12,811
77,704
75,092
2024
Movements in the year:
£
Asset at 1 April 2023
(75,092)
Effect of change in tax rate - profit or loss
(2,612)
Asset at 31 March 2024
(77,704)
The deferred tax asset set out above is not expected to reverse within 12 months. It relates to the utilisation of tax losses against future expected profits of the same period.
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
25
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
228,392
115,693
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share-based payment transactions
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 April 2023
1,815,001
1,759,501
0.85
1.13
Granted
233,088
62,500
2.80
0.36
Forfeited
(261,651)
(7,000)
2.67
0.36
Outstanding at 31 March 2024
1,786,438
1,815,001
1.15
0.85
Exercisable at 31 March 2024
The weighted average share price at the date of exercise for share options exercised during the year was £nil (2023 - £nil).
The options outstanding at 31 March 2024 had an exercise price ranging from £0.01 to £2.80, and a estimated remaining contractual life of 1 year and 9 months.
The fair value of share options is based on the most recently transaction price, discounted for marketability and other factors. This value is used in the Black Scholes Model and adjusted for annual risk free rate and annualised volatility.
Liabilities and expenses
During the year, the company recognised total share-based payment expenses of £16,994 (2023 - £18,133) which related to equity settled share based payment transactions.
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
26
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 0.001p each
953,000
953,000
10
10
B Ordinary shares of 0.001p each
2,916,667
2,916,667
29
29
C Ordinary shares of 0.001p each
590,000
590,000
3
3
D Ordinary shares of 0.001p each
590,000
590,000
3
3
E1 Ordinary shares of 0.001p each
956,000
772,251
10
8
E2 Ordinary shares of 0.001p each
493,897
493,897
5
5
Ordinary shares of 0.001p each
11,691,274
11,691,274
117
117
Deferred shares of 0.001p each
1,311,000
1,311,000
13
13
19,501,838
19,318,089
190
188
A, B, E1, E2 Ordinary shares and Ordinary shares have full voting, dividend and capital distribution rights. They do not confer any rights of redemption. 183,749 E1 Ordinary shares were issued during the year.
C Ordinary shares have full voting, dividend and capital distribution rights. They are entitled to 50% of the dividend payable on the Ordinary shares. They do not confer any rights of redemption.
D Ordinary shares have no voting but have capital distribution rights. They confer rights to half dividends but do not confer any rights of redemption.
Deferred shares have no voting or dividend rights. They rank behind Ordinary shares on a return of capital. They do not confer any rights of redemption.
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
134,677
133,791
Between two and five years
403,435
492,467
In over five years
10,160
538,112
636,418
Planixs GRP Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
27
19
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
1,204,086
1,137,039
20
Cash absorbed by operations
2024
2023
£
£
Loss for the year after tax
(1,567,958)
(1,640,840)
Adjustments for:
Taxation credited
(449,691)
(1,114,300)
Finance costs
269,309
143,659
Investment income
(21,309)
Depreciation and impairment of tangible fixed assets
11,495
8,622
Equity settled share based payment expense
16,994
18,133
Movements in working capital:
Decrease in debtors
265,845
1,214,735
Increase/(decrease) in creditors
207,277
(236,731)
Cash absorbed by operations
(1,268,038)
(1,606,722)
21
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
3,492,045
(617,651)
2,874,394
Borrowings excluding overdrafts
(2,000,000)
145,455
(1,854,545)
1,492,045
(472,196)
1,019,849
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