CIRATA LTD

Company Registration Number:
06612293 (England and Wales)

Unaudited statutory accounts for the year ended 31 December 2023

Period of accounts

Start date: 1 January 2023

End date: 31 December 2023

CIRATA LTD

Contents of the Financial Statements

for the Period Ended 31 December 2023

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

CIRATA LTD

Directors' report period ended 31 December 2023

The directors present their report with the financial statements of the company for the period ended 31 December 2023

Principal activities of the company

The principal activity of Cirata Ltd (the “Company” or “Cirata”) continues to be the development of global collaboration software and provision of support services to the software development industry.

Company policy on disabled employees

The Directors recognise the importance of the Company’s employees to its success and future development and are committed to providing an environment that will attract, motivate and reward high quality employees. The Company continues to invest in a range of internal and external initiatives to promote employee development. Employees are kept informed of matters affecting them as employees and factors affecting the performance of the Company through regular employee meetings and briefings. The Company’s policy is to provide, wherever possible, employment opportunities for disabled people, to care for employees who become disabled whilst employed by the Company, and to make the best possible use of their skills and potential.



Directors

The directors shown below have held office during the period of
1 January 2023 to 3 April 2023

Mr D Richards
Mr E Miller


The director shown below has held office during the period of
3 April 2023 to 31 December 2023

Mr L Webster


The director shown below has held office during the period of
30 March 2023 to 31 December 2023

Mr K Lever


The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
27 September 2024

And signed on behalf of the board by:
Name: Mr L Webster
Status: Director

CIRATA LTD

Profit And Loss Account

for the Period Ended 31 December 2023

2023 2022


£

£
Turnover: 1,677,715 3,393,983
Cost of sales: ( 310,881 ) ( 302,548 )
Gross profit(or loss): 1,366,834 3,091,435
Administrative expenses: ( 14,703,120 ) ( 17,119,670 )
Operating profit(or loss): (13,336,286) (14,028,235)
Interest receivable and similar income: 1,862 14,517
Profit(or loss) before tax: (13,334,424) (14,013,718)
Tax: ( 46,987 ) 174,551
Profit(or loss) for the financial year: (13,381,411) (13,839,167)

CIRATA LTD

Balance sheet

As at 31 December 2023

Notes 2023 2022


£

£
Fixed assets
Tangible assets: 3 93,934 359,934
Total fixed assets: 93,934 359,934
Current assets
Debtors: 4 1,063,893 1,756,729
Cash at bank and in hand: 209,177 1,074,153
Total current assets: 1,273,070 2,830,882
Creditors: amounts falling due within one year: 5 ( 64,364,221 ) ( 53,743,938 )
Net current assets (liabilities): (63,091,151) (50,913,056)
Total assets less current liabilities: (62,997,217) ( 50,553,122)
Provision for liabilities: ( 3,400 ) ( 3,400 )
Total net assets (liabilities): (63,000,617) (50,556,522)
Capital and reserves
Called up share capital: 1 1
Other reserves: 23,132,089 22,194,773
Profit and loss account: (86,132,707 ) (72,751,296 )
Total Shareholders' funds: ( 63,000,617 ) (50,556,522)

The notes form part of these financial statements

CIRATA LTD

Balance sheet statements

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

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 27 September 2024
and signed on behalf of the board by:

Name: Mr L Webster
Status: Director

The notes form part of these financial statements

CIRATA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    Turnover represents the sale of software licenses and maintenance and support contracts to third party customers. (i) Software licences Sales of software licences are recognised once the licence has been granted and the customer has been provided with access to the software. (ii) Support subscriptions Sales of support subscriptions are recognised on a straight-line basis over the period of the contract. (iii) Maintenance, training and other services Sales of maintenance, training and other services are recognised on a straight-line basis over the period of the contract. (iv) Royalties Royalties are accounted for on an accruals basis in accordance with the substance of the relevant agreement when it is probable that economic benefits associated with the transaction will flow to the entity and the amount of turnover can be measured reliably. (v) Multi-element Where there are multiple components in a single transaction, the revenue recognition criteria is applied to the separately identifiable components in order to reflect the substance of the transaction.

    Tangible fixed assets depreciation policy

    Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets, for example land is treated separately from buildings. Leases in which the Company assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. All other leases are classified as operating leases. Leased assets acquired by way of finance lease are stated on initial recognition at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, including any incremental costs directly attributable to negotiating and arranging the lease. At initial recognition a finance lease liability is recognised equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. Lease payments are accounted for as described at 1.11 below. The Company assesses at each reporting date whether tangible fixed assets (including those leased under a finance lease) are impaired. Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of each part of an item of tangible fixed assets. Leased assets are depreciated over the shorter of the lease term and their useful lives. The estimated useful lives are as follows: - Leasehold improvements 5 years - Computer equipment 3 years - Fixtures and fittings 3 years Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the Company expects to consume an asset’s future economic benefits.

    Other accounting policies

    1.8 Government grants Government grants are included within accruals and deferred income in the balance sheet and credited to the profit and loss account over the expected useful lives of the assets to which they relate or in periods in which the related costs are incurred. 1.9 Employee benefits Defined contribution plans and other long-term employee benefits A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees. 1.11 Operating lease Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense. 1.12 Interest receivable and Interest payable Interest receivable and similar income include interest receivable on tax refunds. Interest payable and similar charges include interest payable and are recognised in the profit and loss account. Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method. 1.13 Taxation Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing differences are not provided for: differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense. Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 1.14 Equity settled share-based payments The grant date fair value of equity-settled share-based payment arrangements granted to employees is recognised as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market-based performance conditions at the vesting date. For sharebased payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes. Recharges from the parent company for the use of options over the parent company shares are deducted from equity. 1.15 Key estimates and judgements In preparing these financial statements, management has made judgements and estimates that affect the application of the Company’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. - Note 2 – revenue recognition - allocation of maintenance and support in a subscription arrangement. - Note 1.14 - share-based payments – measurement of fair values.

CIRATA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 2. Employees

    2023 2022
    Average number of employees during the period 104 116

CIRATA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2023

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 January 2023 360,070 48,691 971,962 1,380,723
Additions 3,495 42,187 45,682
Disposals ( 299,298 ) ( 15,922 ) ( 267,513 ) ( 582,733 )
Revaluations
Transfers
At 31 December 2023 60,772 36,264 746,636 843,672
Depreciation
At 1 January 2023 250,118 42,161 728,510 1,020,789
Charge for year 57,594 4,092 164,250 225,936
On disposals ( 246,940 ) ( 12,986 ) ( 237,061 ) ( 496,987 )
Other adjustments
At 31 December 2023 60,772 33,267 655,699 749,738
Net book value
At 31 December 2023 0 2,997 90,937 93,934
At 31 December 2022 109,952 6,530 243,452 359,934

CIRATA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2023

4. Debtors

2023 2022
£ £
Trade debtors 119,973
Prepayments and accrued income 219,799 271,939
Other debtors 724,121 1,484,790
Total 1,063,893 1,756,729

CIRATA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2023

5. Creditors: amounts falling due within one year note

2023 2022
£ £
Trade creditors 171,742 344,422
Accruals and deferred income 395,949 960,835
Other creditors 63,796,530 52,438,681
Total 64,364,221 53,743,938