ANNOTATE SOFTWARE LIMITED

Company Registration Number:
SC294230 (Scotland)

Unaudited statutory accounts for the year ended 31 March 2024

Period of accounts

Start date: 1 April 2023

End date: 31 March 2024

ANNOTATE SOFTWARE LIMITED

Contents of the Financial Statements

for the Period Ended 31 March 2024

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

ANNOTATE SOFTWARE LIMITED

Directors' report period ended 31 March 2024

The directors present their report with the financial statements of the company for the period ended 31 March 2024

Principal activities of the company

The principal activity of the company is that of computer software development

Additional information

Small companies provision statement This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.



Directors

The directors shown below have held office during the whole of the period from
1 April 2023 to 31 March 2024

Fred Howell
Robert Cannon


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
15 October 2024

And signed on behalf of the board by:
Name: Robert Cannon
Status: Director

ANNOTATE SOFTWARE LIMITED

Profit And Loss Account

for the Period Ended 31 March 2024

2024 2023


£

£
Turnover: 774,879 2,993,826
Cost of sales: ( 47,803 ) ( 62,042 )
Gross profit(or loss): 727,076 2,931,784
Distribution costs: 0 0
Administrative expenses: ( 1,903,844 ) ( 2,931,784 )
Other operating income: 0 0
Operating profit(or loss): (1,176,768) 0
Interest receivable and similar income: 0 0
Interest payable and similar charges: 0 0
Profit(or loss) before tax: (1,176,768) 0
Tax: 0 ( 125,038 )
Profit(or loss) for the financial year: (1,176,768) (125,038)

ANNOTATE SOFTWARE LIMITED

Balance sheet

As at 31 March 2024

Notes 2024 2023


£

£
Called up share capital not paid: 0 0
Fixed assets
Intangible assets: 3 0 1,276,563
Tangible assets: 4 0 93,369
Investments:   0 0
Total fixed assets: 0 1,369,932
Current assets
Stocks:   0 0
Debtors: 5 0 13,850,544
Cash at bank and in hand: 117,595 961,249
Investments:   0 0
Total current assets: 117,595 14,811,793
Prepayments and accrued income: 0 0
Creditors: amounts falling due within one year: 6 ( 117,148 ) ( 15,756,894 )
Net current assets (liabilities): 447 (945,101)
Total assets less current liabilities: 447 424,831
Creditors: amounts falling due after more than one year:   0 0
Provision for liabilities: 0 ( 327,838 )
Accruals and deferred income: 0
Total net assets (liabilities): 447 96,993
Capital and reserves
Called up share capital: 1 100
Share premium account: 0 0
Other reserves: 0 0
Profit and loss account: 446 96,893
Total Shareholders' funds: 447 96,993

The notes form part of these financial statements

ANNOTATE SOFTWARE LIMITED

Balance sheet statements

For the year ending 31 March 2024 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 15 October 2024
and signed on behalf of the board by:

Name: Robert Cannon
Status: Director

The notes form part of these financial statements

ANNOTATE SOFTWARE LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

  • 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

    Tangible fixed assets depreciation policy

    Depreciation Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows: Asset class Depreciation method and rate Leasehold improvements 20% straight line Computer equipment 33.3% straight line Office equipment 25% straight line Plant & machinery 25% reducing balance

    Intangible fixed assets amortisation policy

    Amortisation Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows: Asset class Amortisation method and rate Development 5 years straight line Domain name 5 years straight line

    Other accounting policies

    Statement of compliance These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime). Basis of preparation These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. These financial statements have been presented in Pounds Sterling as this is the company’s functional currency, being the currency of the primary economic environment in which the company operates. Going concern The company's trade and assets were transferred to a fellow group undertaking during the year. Not withstanding this, the directors have received written confirmation that the wider group of which the company is part will provide any liquidity required to meet the company's liabilities as they fall due to the extent that the company does not have the financial resources to meet them itself. Having reviewed the financial position of the wider group, the directors have a reasonable expectation that such support can be provided and, therefore, that the company has adequate resources to continue to meet its liabilities as they fall due for the foreseeable future. Consequently, the directors continue to adopt the going concern basis in preparing these financial statements. Revenue recognition Revenue is recognised from the sale of goods and services from the company’s ordinary activities. Revenue is stated after sales discounts and other sales taxes, and is net of VAT. Revenue for the sale of services is recognised when the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will be received by the company and the stage of completion at the balance sheet date can be measured reliably. Foreign currency transactions and balances Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated. Tax The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or subsequently enacted by the balance sheet date in the countries where the company operates and generates income. Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation. A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse. Deferred tax assets and liabilities are not discounted. Tangible assets Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. Intangible assets Intangible assets comprise development expenditure, and domain name licenses. Intangible assets are initially recognised at cost, which is the purchase price plus any directly attributable costs. Subsequently intangible assets are measured at cost less any accumulated amortisation and impairment losses. The Company recognises an intangible asset in respect of development expenditure when it can demonstrate: a) the technical feasibility of completing the intangible asset so that it will be available for use or sale; b) its intention to complete the intangible asset and use or sell it; c) its ability to use or sell the intangible asset; d) how the intangible asset will generate probable future economic benefits. Among other things, the company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and f) its ability to measure reliably the expenditure attributable to the intangible asset during its development. All expenditure not meeting the criteria set out above is expensed in the period in which it is incurred. Intangible assets are tested for impairment where indication of impairment exists at the reporting date. Dividends Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared. Defined contribution pension obligation A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. Financial instruments Financial assets and liabilities are recognised when the company becomes party to the contractual provisions of the financial instrument. The company holds only basic financial instruments, which comprise cash and cash equivalents, trade and other debtors, amounts due from and to fellow group undertakings and trade and other creditors. Cash and cash equivalents including cash in hand, deposits held with banks, other short-term highly liquid investments with original maturities of three months or less. Trade and other debtors are initially recognised at the transaction price, including any transaction costs, and are subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount of the amount expected to be receivable, net of any impairment. At the end of each reporting year, the company assesses whether there is objective evidence that any financial asset amount may be impaired. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the financial assets. The amount of the provision is the difference between the asset’s carrying amount and the present value of the estimated future cash flows. The amount of the provision is recognised immediately in profit or loss. Trade and other creditors are initially measured at the transaction price, including any transaction costs, and are subsequently measured at amortised cost using the effective interest method. Amounts that are payable within one year are measured at the undiscounted amount of the amount expected to be payable.

ANNOTATE SOFTWARE LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

  • 2. Employees

    2024 2023
    Average number of employees during the period 34 40

ANNOTATE SOFTWARE LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

3. Intangible assets

Goodwill Other Total
Cost £ £ £
At 1 April 2023 2,313,662 2,313,662
Additions 1,214,980 1,214,980
Disposals ( 3,528,642 ) ( 3,528,642 )
Revaluations
Transfers
At 31 March 2024 0 0
Amortisation
At 1 April 2023 1,037,099 1,037,099
Charge for year 438,532 438,532
On disposals ( 1,475,631 ) ( 1,475,631 )
Other adjustments
At 31 March 2024 0 0
Net book value
At 31 March 2024 0 0
At 31 March 2023 1,276,563 1,276,563

ANNOTATE SOFTWARE LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

4. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 April 2023 249,676 11,661 94,451 355,788
Additions
Disposals ( 249,676 ) ( 11,661 ) ( 94,451 ) ( 355,788 )
Revaluations
Transfers
At 31 March 2024 0 0 0 0
Depreciation
At 1 April 2023 171,764 11,118 79,537 262,419
Charge for year 31,265 102 7,863 39,230
On disposals ( 203,029 ) ( 11,220 ) ( 87,400 ) ( 301,649 )
Other adjustments
At 31 March 2024 0 0 0 0
Net book value
At 31 March 2024 0 0 0 0
At 31 March 2023 77,912 543 14,914 93,369

ANNOTATE SOFTWARE LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

5. Debtors

2024 2023
£ £
Trade debtors 0 80,373
Prepayments and accrued income 0 10,440
Other debtors 0 13,759,731
Total 0 13,850,544

ANNOTATE SOFTWARE LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

6. Creditors: amounts falling due within one year note

2024 2023
£ £
Trade creditors 15,171
Taxation and social security 79,336
Accruals and deferred income 150,855
Other creditors 117,148 15,511,532
Total 117,148 15,756,894

ANNOTATE SOFTWARE LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

7. Financial Commitments

Glas Trust Corporation Limited has security over the assets and trade of Annotate Software Limited in relation to the loan held in Midcap Invest UK 1 Bidco Limited