Company registration number 09225672 (England and Wales)
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
COMPANY INFORMATION
Directors
D Gasparyan
D M Pickard
(Appointed 7 January 2023)
Company number
09225672
Registered office
Suite A
Floor 2 Avalon
26-32 Oxford Road
Bournemouth
BH8 8EZ
Auditor
UHY Hacker Young Manchester LLP
St James Building
79 Oxford Street
Manchester
M1 6HT
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 23
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of digital marketing services.

 

The principal activity of the group continued to be that of digital marketing services and property construction.

Review of the business

Group turnover increased year on year by £5,070,101 (2022: £7,026,181) which equated to an increase of 27% (2022: 60%). The increase is again due to more scope to trade during the year.

 

 

 

2023

£

2022

£

 

 

 

Gross profit

4,335,869

2,966,539

Gross profit %

18%

16%

 

 

 

Profit before taxation

2,384,294

2,057,261

Depreciation

3,228

2,378

 

 

 

Underlying E.B.I.T.D.A

2,387,522

2,059,639

 

Principal risks and uncertainties

The management of the business and the nature of the company's strategy are subject to certain risks. The directors have set out below the principal risks facing the business.

 

Business risk

The group continues to manage potential risks which include:

 

 

Market risk

The markets which the group operates in are growing in competition and complexity, therefore the group continues to invest in new products, processes and routes to market.

 

Credit risk

The groups principal credit risk is the collection of accounts receivable from clients. The group has strict procedures in place to ensure the risk of overdue receivables are minimal.

On behalf of the board

D Gasparyan
Director
27 September 2024
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D Gasparyan
D M Pickard
(Appointed 7 January 2023)
Auditor

UHY Hacker Young Manchester LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

T DOT UK LIMITED AND SUBSIDIARY COMPANIES
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
D Gasparyan
Director
27 September 2024
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF T DOT UK LIMITED AND SUBSIDIARY COMPANIES
- 4 -
Opinion

We have audited the financial statements of T Dot UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:

Basis for opinion

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 group and parent 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 group's and parent 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.

Other information

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

T DOT UK LIMITED AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF T DOT UK LIMITED AND SUBSIDIARY COMPANIES
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent 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 parent 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we considered the following:

T DOT UK LIMITED AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF T DOT UK LIMITED AND SUBSIDIARY COMPANIES
- 6 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified those with the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

Our procedures to respond to risks identified included the following:

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.

Other matters which we are required to address

In the previous accounting period the directors of the company took advantage of audit exemption under s477 of the Companies Act. Therefore the prior period financial statements were not subject to audit.

Use of our report

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.

Ryan Wear BSc ACA (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young Manchester LLP
27 September 2024
Chartered Accountants
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Year
Year
ended
ended
31 December
30 September
2023
2022
Notes
£
£
Turnover
3
23,712,537
18,642,436
Cost of sales
(19,376,668)
(15,675,897)
Gross profit
4,335,869
2,966,539
Administrative expenses
(1,988,141)
(930,559)
Operating profit
4
2,347,728
2,035,980
Interest receivable and similar income
7
36,566
21,281
Profit before taxation
2,384,294
2,057,261
Tax on profit
(502,597)
(399,903)
Profit for the financial year
15
1,881,697
1,657,358
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
31 December 2023
30 September 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
2,015,821
612,813
Current assets
Debtors
11
3,575,750
3,414,631
Cash at bank and in hand
812,632
878,696
4,388,382
4,293,327
Creditors: amounts falling due within one year
12
(660,904)
(1,044,538)
Net current assets
3,727,478
3,248,789
Net assets
5,743,299
3,861,602
Capital and reserves
Called up share capital
14
1
1
Profit and loss reserves
15
5,743,298
3,861,601
Total equity
5,743,299
3,861,602

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 27 September 2024 and are signed on its behalf by:
D Gasparyan
Director
Company registration number 09225672 (England and Wales)
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
COMPANY BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
31 December 2023
30 September 2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
8
1,952
5,180
Investments
9
3,161,144
2,357,529
3,163,096
2,362,709
Current assets
Debtors
11
3,575,887
3,414,631
Cash at bank and in hand
660,352
668,854
4,236,239
4,083,485
Creditors: amounts falling due within one year
12
(1,533,249)
(2,536,916)
Net current assets
2,702,990
1,546,569
Net assets
5,866,086
3,909,278
Capital and reserves
Called up share capital
14
1
1
Profit and loss reserves
15
5,866,085
3,909,277
Total equity
5,866,086
3,909,278

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,956,808 (2022 - £1,704,400 profit).

These financial statements have been prepared 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 27 September 2024 and are signed on its behalf by:
D Gasparyan
Director
Company registration number 09225672 (England and Wales)
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 30 September 2022:
Balance at 1 October 2021
1
2,204,243
2,204,244
Year ended 30 September 2022:
Profit and total comprehensive income
-
1,657,358
1,657,358
Balance at 30 September 2022
1
3,861,601
3,861,602
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,881,697
1,881,697
Balance at 31 December 2023
1
5,743,298
5,743,299
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 30 September 2022:
Balance at 1 October 2021
1
2,204,877
2,204,878
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
1,704,400
1,704,400
Balance at 30 September 2022
1
3,909,277
3,909,278
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,956,808
1,956,808
Balance at 31 December 2023
1
5,866,085
5,866,086
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
2,857,342
526,198
Income taxes (paid)/refunded
(1,330,287)
291,923
Net cash inflow from operating activities
1,527,055
818,121
Investing activities
Purchase of tangible fixed assets
(1,406,236)
(609,649)
Proceeds from disposal of subsidiaries, net of cash disposed
-
190,000
Repayment of loans
(223,449)
(665,311)
Interest received
36,566
21,281
Net cash used in investing activities
(1,593,119)
(1,063,679)
Net decrease in cash and cash equivalents
(66,064)
(245,558)
Cash and cash equivalents at beginning of year
878,696
1,124,254
Cash and cash equivalents at end of year
812,632
878,696
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

T Dot UK Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Suite A, Floor 2 Avalon, 26-32 Oxford Road, Bournemouth, BH8 8EZ.

 

The group consists of T Dot UK Limited and all of its subsidiaries.

1.1
Reporting period

The reporting period covers 15 months from 1 October 2022 to 31 December 2023. Accordingly the prior period financial statements and related notes are not an entirely comparable period due to being for a 12 month period.

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.

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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company T Dot UK Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

T DOT UK LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised with fulfilment of the identified performance obligations.

The company's services consist of the technological and financial settlement between the two parties; merchants and affiliates.

 

Turnover from contracts for the provision of services is recognised at the time a transaction occurs and are valued as a function of the transaction price and the agreed fee payable to the company by the merchant.

Expenses for initiating contracts with customers are not significant and are recognised immediately in the Statement of Comprehensive Income for simplification.

1.6
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
Computers
25% straight line

Assets in the course of construction are not depreciated.

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 recognised in the profit and loss account.

1.7
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

1.9
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.

T DOT UK LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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 group 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 group after deducting all of its liabilities.

T DOT UK LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
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 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 group’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 if, and only if, there is 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.

1.12
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.

T DOT UK LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful lives of intangible assets

The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments and economic utilisation.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales of services
23,712,537
18,642,436
2023
2022
£
£
Other revenue
Interest income
36,566
21,281

All turnover arose within the UK.

T DOT UK LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Exchange losses
37,827
34,223
Fees payable to the group's auditor for the audit of the group's financial statements
25,000
-
Depreciation of owned tangible fixed assets
3,228
2,378
Operating lease charges
12,400
15,065
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
7
4
7
4

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
520,797
223,046
518,355
221,768
Social security costs
55,636
21,980
54,031
21,547
Pension costs
10,129
3,955
10,129
3,955
586,562
248,981
582,515
247,270
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
97,177
-
Company pension contributions to defined contribution schemes
1,565
-
98,742
-

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 0).

T DOT UK LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
36,566
21,281
8
Tangible fixed assets
Group
Assets under construction
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 October 2022
607,633
5,879
5,311
618,823
Additions
1,406,236
-
-
1,406,236
At 31 December 2023
2,013,869
5,879
5,311
2,025,059
Depreciation and impairment
At 1 October 2022
-
2,911
3,099
6,010
Depreciation charged in the year
-
1,697
1,531
3,228
At 31 December 2023
-
4,608
4,630
9,238
Carrying amount
At 31 December 2023
2,013,869
1,271
681
2,015,821
At 30 September 2022
607,633
2,968
2,212
612,813
Company
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 October 2022 and 31 December 2023
5,879
5,311
11,190
Depreciation and impairment
At 1 October 2022
2,911
3,099
6,010
Depreciation charged in the year
1,697
1,531
3,228
At 31 December 2023
4,608
4,630
9,238
Carrying amount
At 31 December 2023
1,271
681
1,952
At 30 September 2022
2,968
2,212
5,180
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
9
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
10
-
-
3,161,144
2,357,529
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2022
2,357,529
Additions
803,615
At 31 December 2023
3,161,144
Carrying amount
At 31 December 2023
3,161,144
At 30 September 2022
2,357,529
10
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
% Held
Direct
Belvik LLC
67 Hanrapetutyan str, Yerevan, 0010, Armenia
100.00
11
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,518,596
943,197
1,518,595
943,197
Corporation tax recoverable
135,864
-
135,864
-
0
Other debtors
1,921,290
2,471,434
1,921,428
2,471,434
3,575,750
3,414,631
3,575,887
3,414,631
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
571,511
329,399
571,511
329,399
Amounts owed to group undertakings
-
-
901,669
1,492,535
Corporation tax payable
-
691,826
-
0
691,826
Other taxation and social security
4,875
8,560
4,875
8,560
Other creditors
59,518
14,753
30,194
14,596
Accruals and deferred income
25,000
-
25,000
-
0
660,904
1,044,538
1,533,249
2,536,916
13
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
10,129
3,955

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

14
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
100
100
1
1
15
Profit and loss reserves

This includes all current and prior period retained earnings.

16
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
3,700
4,340
3,700
4,340
3,700
4,340
3,700
4,340
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
17
Related party transactions

The group had taken advantage of the exemption, under FRS102 section 33, from disclosing transactions

with other 100% owned group entities.

 

At the year end Opal Solutions Inc, who is part of the same group, owed the group £693,902 (2022: £759,278), Interest at 1.12% is charge on this balance per annum.

 

At the year end the group owed Phonexa Ltd, who is part of the same group, £5,950 (2022: £434,132 owed from).

 

At the year end Zero Parrallel LLC, who is part of the same group, owed the group £81,402 (2022: £392,262), Interest at 1.12% is charge on this balance per annum.

18
Directors' transactions

During the year, the company paid consultancy fees of £277,180 (2022: £153,784) to D Pickard, a director of

the company.

 

D Gasparyan owed £888,760 (2022: £665,312) to the company at the year end. Interest of 2.5% in charged.

The loan is repayable on demand.

19
Controlling party

The ultimate controlling party is D Gasparyan by virtue of his control of Plusify LLC.

20
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,881,697
1,657,358
Adjustments for:
Taxation charged
502,597
399,903
Investment income
(36,566)
(21,281)
Depreciation and impairment of tangible fixed assets
3,228
2,378
Movements in working capital:
Decrease/(increase) in debtors
198,194
(1,119,431)
Increase/(decrease) in creditors
308,192
(392,729)
Cash generated from operations
2,857,342
526,198
21
Analysis of changes in net funds - group
1 October 2022
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
878,696
(66,064)
812,632
T DOT UK LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
22
Prior period adjustment
Changes to the balance sheet - company
As previously reported
Adjustment
As restated at 30 Sep 2022
Notes
£
£
£
Fixed assets
Investments
1,2
665,298
1,692,231
2,357,529
Current assets
Debtors due within one year
2
3,614,327
(199,696)
3,414,631
Creditors due within one year
Other creditors
1
(343,995)
(1,492,535)
(1,836,530)
Net assets
3,909,278
-
3,909,278
Capital and reserves
Total equity
3,909,278
-
3,909,278
Changes to the profit and loss account - company
As previously reported
Adjustment
As restated
Period ended 30 September 2022
£
£
£
Profit after taxation
1,704,400
-
1,704,400
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
1,704,400
Profit as adjusted
1,704,400
Notes to reconciliation
1
Investment in subsidiary - relates party balance

The full cost of the investment in Belvik LLC was not disclosed in the prior year accounts. An adjustment was needed to increase the investment and recognise a related party balance.

2
Investment in subsidiary - directors balance

One of the directors paid an element of the investment to the subsidiary. An adjustment was needed to disclose this within the directors account.

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