REGISTERED NUMBER: |
Unaudited Financial Statements |
for the Year Ended 31 December 2023 |
for |
Vee24 Limited |
REGISTERED NUMBER: |
Unaudited Financial Statements |
for the Year Ended 31 December 2023 |
for |
Vee24 Limited |
Vee24 Limited (Registered number: 05504049) |
Contents of the Financial Statements |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
Vee24 Limited |
Company Information |
for the year ended 31 December 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Chartered Accountants |
2 Maple Court |
Davenport Street |
Macclesfield |
Cheshire |
SK10 1JE |
Vee24 Limited (Registered number: 05504049) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CAPITAL AND RESERVES |
Called up share capital | 9 |
Retained earnings | ( |
) | (25,743 | ) |
SHAREHOLDERS' FUNDS | ( |
) |
The director acknowledges his responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
The financial statements were approved by the director and authorised for issue on |
Vee24 Limited (Registered number: 05504049) |
Notes to the Financial Statements |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Vee24 Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of the Financial Reporting Standard FRS 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. |
The following principal accounting policies have been applied: |
GOING CONCERN |
The financial statements have been prepared on a going concern basis which assumes the company will continue to trade for the foreseeable future. In determining the company's ability to continue as a going concern, management are required by FRS 102 to consider a period which is at least, but not limited to 12 months from the date when the financial statements are authorised for issue. |
Substantial progress has been made during the past 12 months, strengthening ties with existing key clients and progressing new proof of concept trials with new customers. Cashflow and the reduced cost base have exceeded projections and bring closer the prospect of breakeven and profit in the year ahead. That said, the company remains reliant on its continuing support from its parent company given that a material uncertainty still exists in the company's ability to continue as a going concern should existing milestones not be achieved or additional funding not be made available. The directors continue to adopt the going concern basis of accounting. No adjustments have been made to the accounts in the event that the going concern basis was not applicable. |
Vee24 Limited (Registered number: 05504049) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
The company generates revenue primarily from three sources: (1) subscriptions; (2) professional services; and (3) hardware product. |
In most instances, revenue from new customer acquisition is generated under sales agreements with multiple elements, comprised of subscription related to: (i) customers accessing the company's on-demand customer engagement suite (ii) account management and/or (iii) call centre service; professional services associated with set up and implementation, training, consulting, project management and engineering services; and hardware. |
The company commences revenue recognition when all of the following conditions are met: |
- There is persuasive evidence of an arrangement; |
- The service is being provided to the customer; |
- The collection of the fees is reasonably assured; and |
- The amount of fees to be paid by the customer is fixed or determinable. |
Subscription Revenues |
Subscription revenue includes fees from customers accessing the company's cloud-based application. Subscription arrangements do not provide the customer with the right to take possession of the software supporting the cloud-based application service at any time.Subscription agreements are typically entered into for a period of one to five years. Subscription revenue is recognised ratably over the contract terms beginning on the date the customer utilises the service in a production environment or the commencement date of the contract. |
Professional Service Revenues |
Professional services and other revenue includes fees generated from set up and implementation, training, consulting, project management and engineering services such as configuration , integration and testing. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue, depending on whether the revenue recognition criteria have been met in line with group policy. |
Product Revenues |
With regard to hardware product revenue is recognised in full upon shipment of those items. |
Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers. |
Deferred Revenue |
Deferred revenue consists of billings or payments received in advance of revenue recognition and is recognised as the revenue recognition criteria are met. The company generally invoices its customers monthly for subscription and support. Accordingly, the deferred revenue balance does not represent total contract value of annual or multi-year, non-cancellable agreements. Deferred revenue that will be recognised during the succeeding twelve month period is recorded as current deferred revenue, and the remaining portion is recorded as non-current deferred revenue. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Vee24 Limited (Registered number: 05504049) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as shown below. |
Depreciation is provided on the following basis: |
Improvements to property - 10% on cost |
Fixtures and fittings - 25% reducing balance |
Computer equipment - 25% reducing balance |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit and loss account. |
Financial instruments |
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks, other third parties and loans to related parties. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of income and retained earnings. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between as asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date. |
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Vee24 Limited (Registered number: 05504049) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Development expenditure is written off to the profit or loss account in the period in which it is incurred, except to the extent that it relates to a clearly defined project where the outcome has been assessed with reasonable certainty and future sales are expected to exceed costs. In this circumstance the development expenditure is deferred until the sales income begins to arise, at which point it is amortised over a period not longer than 5 years. Deferred development expenditure is disclosed in intangible fixed assets. |
Research expenditure is written off to the profit or loss account in the period in which it is incurred. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors |
Short term debtors with no stated interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, cash held with banks and bank overdrafts. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. Bank overdrafts are shown within borrowings in current liabilities. |
Creditors |
Short term creditors with no stated interest rate are recorded at transaction price. Other financial liabilities, including bank loans, are measured subsequently at amortised cost using the effective interest method. |
Share capital |
Ordinary shares are classed as equity. |
Operating leases |
Rentals paid under operating leases are charged to the profit and loss account on a straight- line basis over the lease term. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
Vee24 Limited (Registered number: 05504049) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
4. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
5. | TANGIBLE FIXED ASSETS |
Fixtures |
Improvements | and | Computer |
to property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Trade debtors |
Other debtors |
Tax |
Prepayments |
Vee24 Limited (Registered number: 05504049) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Social security & other taxes |
VAT |
Other creditors |
Accruals & deferred income |
Amounts owed to group undertakings are repayable on demand and are interest free. |
8. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
as restated |
£ | £ |
Within one year |
9. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
Ordinary | £1 | 28,055 | 28,055 |
10. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |
The company is a wholly owned subsidiary of Vee24 Inc which is the ultimate parent company incorporated in the USA. The registered office of Vee24 Inc is 1 Lincoln Street, Boston, MA 02111. |