Company registration number 07241565 (England and Wales)
SUPADU LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SUPADU LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
SUPADU LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
212,288
Tangible assets
5
5,547
13,573
217,835
13,573
Current assets
Debtors
6
283,653
213,938
Cash at bank and in hand
237,379
240,203
521,032
454,141
Creditors: amounts falling due within one year
7
(434,723)
(382,047)
Net current assets
86,309
72,094
Total assets less current liabilities
304,144
85,667
Creditors: amounts falling due after more than one year
8
(18,225)
(28,289)
Provisions for liabilities
(41,389)
(2,579)
Net assets
244,530
54,799
Capital and reserves
Called up share capital
9
925
925
Share premium account
241,420
241,420
Other reserves
235,567
235,567
Profit and loss reserves
(233,382)
(423,113)
Total equity
244,530
54,799
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
Mr M L Harvie-Watt
Mr H Tokuda
Director
Director
Company registration number 07241565 (England and Wales)
SUPADU LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Share premium account
Capital contribution reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 February 2022
925
241,420
-
(335,013)
(92,668)
Period ended 31 December 2022:
Loss and total comprehensive income for the period
-
-
-
(88,100)
(88,100)
Transfers
-
-
235,567
235,567
Balance at 31 December 2022
925
241,420
235,567
(423,113)
54,799
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
189,731
189,731
Balance at 31 December 2023
925
241,420
235,567
(233,382)
244,530
SUPADU LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Supadu Limited is a private company limited by shares incorporated in England and Wales. The registered office is 10 York Road, London, England, SE1 7ND.
1.1
Reporting period
The current reporting period covers the 12 months to 31st December 2023 to be in line with the ultimate controlling party following the purchase in February 2022. The prior year the accounting period was shortened to a 11 month period. Therefore the comparative amounts are not entirely comparable.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Going concern
The financial statements have been prepared on a going concern basis, which assumes that the company will continue to trade. The validity of this basis is dependent on the continued support of the parent who has provided support throughout the year and to the date of this report. The directors have no reason to believe that this support will not continue or that the group will seek repayment of the amounts currently made available. The financial statements do not include any adjustments that would result from a withdrawal of the support of the parent.true
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.5
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
SUPADU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development costs
33.33% straight line
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% straight line
Computer equipment
33.33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.9
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
SUPADU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.10
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 current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, 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.
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.
1.12
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.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
SUPADU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
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.
1.17
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.
SUPADU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Accounting for R&D claims
R&D claims are recognised within the period they have been approved and the funds have been received by HMRC. This is due to there being an element of uncertainty around the success of the claim until this point.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
20
21
4
Intangible fixed assets
Goodwill
Development costs
Total
£
£
£
Cost
At 1 January 2023
200,000
200,000
Additions
258,539
258,539
At 31 December 2023
200,000
258,539
458,539
Amortisation and impairment
At 1 January 2023
200,000
200,000
Amortisation charged for the year
46,251
46,251
At 31 December 2023
200,000
46,251
246,251
Carrying amount
At 31 December 2023
212,288
212,288
At 31 December 2022
SUPADU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
5
Tangible fixed assets
Fixtures and fittings
Computer equipment
Total
£
£
£
Cost
At 1 January 2023
418
52,801
53,219
Additions
558
558
At 31 December 2023
418
53,359
53,777
Depreciation and impairment
At 1 January 2023
418
39,228
39,646
Depreciation charged in the year
8,584
8,584
At 31 December 2023
418
47,812
48,230
Carrying amount
At 31 December 2023
5,547
5,547
At 31 December 2022
13,573
13,573
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
258,354
188,122
Other debtors
25,299
25,816
283,653
213,938
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,064
9,809
Trade creditors
20,518
57,699
Amounts owed to group undertakings
177,845
150,000
Taxation and social security
36,991
36,683
Other creditors
189,305
127,856
434,723
382,047
During the prior period £150,000 was advanced from the holding company NetGalley UK Limited. The loan is unsecured, no interest and no repayment terms have been agreed. The balance remaining as at 31 December 2023 is £26,987.
SUPADU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
18,225
28,289
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of 0.01p each
6,658,500
6,658,500
666
666
B Ordinary of 0.01p each
2,594,500
2,594,500
259
259
9,253,000
9,253,000
925
925
10
Capital contribution reserve
2023
2022
£
£
At the beginning of the year
235,567
-
Additions
-
235,567
At the end of the year
235,567
235,567
During the prior period an irrevocable contribution was made from the parent company NetGalley UK Limited. Capital contributions are held as distributable reserves.
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Adam Buse ACA
Statutory Auditor:
Fiander Tovell Limited
Date of audit report:
25 September 2024
SUPADU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
12
Parent company
The immediate parent company is NetGalley UK Limited a company incorporated in England and Wales and registered office of Stag Gates House, 63/64 The Avenue, Southampton, Hampshire, United Kingdom, SO17 1XS.
The smallest group for which group accounts are drawn up is for NetGalley LLC, a company incorporated in the United States of America. The registered office and address for correspondence for NetGalley LLC is:
44 Merrimac Street
Newburyport
Massachusetts
United States of America
MA 01950
2023-12-312023-01-01false25 September 2024CCH SoftwareCCH Accounts Production 2024.210No description of principal activityThis audit opinion is unqualifiedMrs M M N Harvie-WattMr M L Harvie-WattMr F Toolan, JRMr H TokudoMr D ShiohamaMs S F H ArbuthnotA Bolefalsefalse072415652023-01-012023-12-31072415652023-12-31072415652022-12-3107241565core:Goodwill2023-12-3107241565core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3107241565core:Goodwill2022-12-3107241565core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3107241565core:FurnitureFittings2023-12-3107241565core:ComputerEquipment2023-12-3107241565core:FurnitureFittings2022-12-3107241565core:ComputerEquipment2022-12-3107241565core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3107241565core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3107241565core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3107241565core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3107241565core:CurrentFinancialInstruments2023-12-3107241565core:CurrentFinancialInstruments2022-12-3107241565core:ShareCapital2023-12-3107241565core:ShareCapital2022-12-3107241565core:SharePremium2023-12-3107241565core:SharePremium2022-12-3107241565core:OtherMiscellaneousReserve2023-12-3107241565core:OtherMiscellaneousReserve2022-12-3107241565core:RetainedEarningsAccumulatedLosses2023-12-3107241565core:RetainedEarningsAccumulatedLosses2022-12-3107241565core:ShareCapital2022-01-3107241565core:SharePremium2022-01-3107241565core:RetainedEarningsAccumulatedLosses2022-01-3107241565core:ShareCapitalOrdinaryShares2023-12-3107241565core:ShareCapitalOrdinaryShares2022-12-3107241565bus:Director22023-01-012023-12-3107241565bus:Director42023-01-012023-12-3107241565core:RetainedEarningsAccumulatedLosses2022-02-012022-12-31072415652022-02-012022-12-3107241565core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3107241565core:Goodwill2023-01-012023-12-3107241565core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3107241565core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3107241565core:FurnitureFittings2023-01-012023-12-3107241565core:ComputerEquipment2023-01-012023-12-3107241565core:Goodwill2022-12-3107241565core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-31072415652022-12-3107241565core:Goodwillcore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3107241565core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3107241565core:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3107241565core:FurnitureFittings2022-12-3107241565core:ComputerEquipment2022-12-3107241565core:WithinOneYear2023-12-3107241565core:WithinOneYear2022-12-3107241565core:Non-currentFinancialInstruments2023-12-3107241565core:Non-currentFinancialInstruments2022-12-3107241565bus:PrivateLimitedCompanyLtd2023-01-012023-12-3107241565bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3107241565bus:FRS1022023-01-012023-12-3107241565bus:Audited2023-01-012023-12-3107241565bus:Director12023-01-012023-12-3107241565bus:Director32023-01-012023-12-3107241565bus:Director52023-01-012023-12-3107241565bus:Director62023-01-012023-12-3107241565bus:Director72023-01-012023-12-3107241565bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP