Company Registration No. 10509140 (England and Wales)
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
LB GROUP
Ground Floor
Swift House
18 Hoffmanns Way
Chelmsford
CM1 1GU
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
COMPANY INFORMATION
Director
Mr M Tamminen
Company number
10509140
Registered office
45 Albemarle Street
3rd Floor
London
England
W1S 4JL
Auditor
LB Group Limited (Chelmsford)
Ground Floor
Swift House
18 Hoffmanns Way
Chelmsford
CM1 1GU
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Director's responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 26
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

Business Model and Overview

 

Quantanite UK Limited offer companies a personalised, high-tech approach to delivering exceptional full-lifecycle customer engagement and supporting back office digital services faster, better, and at a more cost-effective engagement. Our core strategy is to provide advanced data-driven solutions globally, enabling businesses to make informed decisions and create outstanding outcomes.

 

We're certified by the highest level of industry compliance standards and operational excellence.

 

In 2023, we achieved a turnover of £17.17 million. Operational efficiency led to an operating profit of £3.3 million, reflecting our ability to scale effectively while managing costs.

 

Key Strategic Developments

 

Expansion of Technological Capabilities

 

We invested in business in 2023, focusing on enhancing our Generative AI development, enabling us to deliver sophisticated solutions to our current and potential clients for their customer experience management.

 

Geographic and Market Diversification

 

In 2023, we expanded our client base in the United Kingdom and the United States, with US intercompany revenue growing by 111% to £5.1 million-nearly 30% of total turnover. We also identified opportunities with a view to diversifying our footprint and reducing reliance on any single market.

 

Strengthening Operational Resilience

 

To enhance resilience, we improved our financial position, boosted liquidity, and managed foreign exchange exposure by implementing a strategic hedging policy to mitigate US dollar fluctuations. Operational improvements centred on cost reduction while maintaining service quality.

Principal risks and uncertainties

Technological Disruption

 

The rapid pace of innovation requires continuous investment. We mitigate this risk through ongoing R&D and strategic business partnership to access the latest technologies.

 

Regulatory Compliance

 

Compliance with regulations, such as GDPR, is a priority amid growing scrutiny around data privacy and AI ethics. Our compliance teams actively monitor developments to ensure readiness for regulatory changes.

 

Economic and Market Volatility

 

Economic downturns in key markets could impact client spending. We mitigate this risk by diversifying our client base and offering mission-critical services that are less likely to be cut during economic uncertainty.

 

Foreign Exchange Risk

 

Significant international revenue exposes us to currency fluctuations, which we address through careful internal hedging strategies.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators
Future Outlook

We are well-positioned to capitalise on the growing demand for AI-powered solutions across industries. Our strategy is to expand geographically, while enhancing our AI offerings.

 

We will continue investing in technological capabilities. Despite potential economic and regulatory challenges, we are confident in our ability to adapt, innovate, and deliver long-term value.

On behalf of the board

Mr M Tamminen
Director
23 October 2024
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of provision of data analytics applying Generative Artificial Intelligence systems.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends was paid amounting to £332,000 and a further £410,000 of dividends was declared during the year.

Director

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

Mr M Tamminen
Financial instruments

The company's financial instruments at the balance sheet comprise cash and liquid resources. The main purpose of these financial instruments are to provide finance for the company's operations. The company has various other financial instruments such as trade debtors and trade creditors, that arise directly from its operations.

 

The main risks arising from the company's financial instruments are foreign currency, interest and liquidity risk.

Liquidity risk

We are exposed to liquidity risk in the ordinary course of doing business due to sudden economic downturn, client bankruptcies, or unexpected contract terminations could disrupt our cash flow. We ensure to meet short-term financial obligations like payroll or operational expenses, as it could lead to service disruptions, employee attrition, and reputational damage. Maintaining sufficient cash reserves and diversified client base is crucial to mitigate liquidity risks and ensure business continuity.

Other risk

Our debt exposes us to market risk from changes in interest rates. We perform a sensitivity analysis to determine the effect of interest rate fluctuations on our interest expense. A 100 basis point change in interest rates, with all other variables held constant, would have an immaterial effect on our reported interest expense.

We are exposed to foreign currency exchange rate risk in the ordinary course of doing business as we transact or hold a portion of our funds in foreign currencies. Accordingly, we periodically evaluate the need for hedging strategies.

Borrowing facilities

The company has committed borrowing facilities.

Auditor

LB Group Limited (Chelmsford) were appointed as auditor to the company 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 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 company’s auditor 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 company’s auditor is aware of that information.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption

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

On behalf of the board
Mr M Tamminen
Director
23 October 2024
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
- 6 -
Opinion

We have audited the financial statements of Quantanite UK Limited (Formerly Taskeater UK Limited) (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 director's 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 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 director 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 director is 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:

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the company or to cease operations, or has 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.

 

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.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
- 8 -
The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including

fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including

obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures

which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and

regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations

to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they

may involve deliberate concealment or 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

The comparative figures for the period ended 31 December 2022 were not audited.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
- 9 -

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.

Michael Warman
Senior Statutory Auditor
For and on behalf of LB Group Limited (Chelmsford)
24 October 2024
Chartered Accountants
Statutory Auditor
Ground Floor
Swift House
18 Hoffmanns Way
Chelmsford
CM1 1GU
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Unaudited
Notes
£
£
Turnover
3
17,172,267
16,363,188
Cost of sales
(9,413,982)
(9,573,662)
Gross profit
7,758,285
6,789,526
Administrative expenses
(4,945,804)
(3,645,456)
Exceptional item
4
512,722
-
0
Operating profit
5
3,325,203
3,144,070
Interest receivable and similar income
9
5,874
541
Interest payable and similar expenses
10
(94,357)
(72,131)
Loss on disposal of investments
(1)
-
Profit before taxation
3,236,719
3,072,480
Tax on profit
11
(771,119)
(586,158)
Profit for the financial year
2,465,600
2,486,322

The profit and loss account has been prepared on the basis that all operations are continuing operations.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Unaudited
£
£
Profit for the year
2,465,600
2,486,322
Other comprehensive income
-
-
Total comprehensive income for the year
2,465,600
2,486,322
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Unaudited
Notes
£
£
£
£
Fixed assets
Tangible assets
13
27,920
28,091
Investments
14
-
0
1
27,920
28,092
Current assets
Debtors
15
6,522,962
4,950,521
Cash at bank and in hand
1,607,527
1,906,165
8,130,489
6,856,686
Creditors: amounts falling due within one year
16
(2,373,873)
(2,594,617)
Net current assets
5,756,616
4,262,069
Total assets less current liabilities
5,784,536
4,290,161
Creditors: amounts falling due after more than one year
17
(423,788)
(653,013)
Provisions for liabilities
Deferred tax liability
19
5,337
5,337
(5,337)
(5,337)
Net assets
5,355,411
3,631,811
Capital and reserves
Called up share capital
21
125
125
Profit and loss reserves
5,355,286
3,631,686
Total equity
5,355,411
3,631,811

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

The financial statements were approved and signed by the director and authorised for issue on 23 October 2024
Mr M  Tamminen
Director
Company registration number 10509140 (England and Wales)
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
125
1,595,364
1,595,489
Year ended 31 December 2022:
Profit and total comprehensive income
-
2,486,322
2,486,322
Dividends
12
-
(450,000)
(450,000)
Balance at 31 December 2022
125
3,631,686
3,631,811
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,465,600
2,465,600
Dividends
12
-
(742,000)
(742,000)
Balance at 31 December 2023
125
5,355,286
5,355,411
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Unaudited
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,041,852
791,653
Interest paid
(94,357)
(72,131)
Income taxes (paid)/refunded
(299,196)
5,189
Net cash inflow from operating activities
648,299
724,711
Investing activities
Purchase of tangible fixed assets
(8,983)
(7,453)
Proceeds from disposal of tangible fixed assets
1,222
-
0
Proceeds from disposal of subsidiaries
1
(1)
Interest received
5,873
541
Net cash used in investing activities
(1,887)
(6,913)
Financing activities
Repayment of bank loans
(203,050)
(120,584)
Dividends paid
(742,000)
(450,000)
Net cash used in financing activities
(945,050)
(570,584)
Net (decrease)/increase in cash and cash equivalents
(298,638)
147,214
Cash and cash equivalents at beginning of year
1,906,165
1,758,951
Cash and cash equivalents at end of year
1,607,527
1,906,165
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Quantanite UK Limited (Formerly Taskeater UK Limited) is a private company limited by shares incorporated in England and Wales. The registered office is 45 Albemarle Street, 3rd Floor, London, England, W1S 4JL.

1.1
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.

1.2
Going concern

The director has prepared detailed financial projections for the period ending 31 December 2025. These projections are based on assumptions that the directors consider to be reasonable and achievable.true

 

After considering the above matters and current trading, the director believe that the company will have adequate resources to meet its liabilities as they fall due and so to operate as a going concern for at least twelve months following the date of approval of these financial statements. The director therefore consider it appropriate to continue to apply the going concern for preparing the financial statements.

1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates and value added tax.

 

Turnover is attributable to the analysis of a wide range of data applying Generative Artificial Intelligence systems.

 

Quantanite services revenue is derived from data analytics applying Generative Artificial Intelligence systems recognised at the point of delivery.

 

Managed services and support contracts income (Growthonics ongoing service) are recognised evenly over the period of the contract.

1.4
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:

Plant and machinery
20% reducing balance

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.

1.5
Fixed asset investments

Investments in subsidiary undertakings are recognised at cost.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

1.7
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.

1.8
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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 company 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 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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 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.

1.11
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.

1.12
Retirement benefits

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

1.13
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.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

Bad debt provision

In order to monitor potential credit losses, we perform ongoing credit evaluations of our customer's' financial condition. An allowance for doubtful accounts is maintained for potential credit losses based upon management's assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed periodically to assess the adequacy of the allowance.

Impairment of group loans

The Company makes an estimate of the recoverable value of group loans. When assessing the impairment of group loans management considers whether there is objective evidence of impairment including:

3
Turnover and other revenue
2023
2022
Unaudited
£
£
Turnover analysed by class of business
Quantanite Services
11,176,668
11,147,424
Growthonics Ongoing Services
890,951
2,800,805
Intercompany revenue from US
5,104,648
2,414,959
17,172,267
16,363,188
2023
2022
Unaudited
£
£
Turnover analysed by geographical market
United Kingdom
4,663,181
5,932,350
Europe
487,639
996,517
United States
11,795,012
9,129,486
Rest of the World
226,435
304,835
17,172,267
16,363,188
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 20 -
2023
2022
Unaudited
£
£
Other revenue
Interest income
5,874
541
4
Exceptional item
2023
2022
Unaudited
£
£
Expenditure
Amounts written off related party loans
(512,722)
-

The exceptional item relates to the impairment loss in respect of the loan due from the connected company under the common control written off during the year.

5
Operating profit
2023
2022
Unaudited
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
93,499
(88,080)
Research and development costs
85,250
43,786
Depreciation of owned tangible fixed assets
7,932
6,812
Operating lease charges
3,404
30,695
6
Auditor's remuneration
2023
2022
Unaudited
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,000
-
0
7
Employees

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

2023
2022
Number
Number
12
17
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

2023
2022
Unaudited
£
£
Wages and salaries
1,652,770
1,551,674
Social security costs
209,242
170,743
Pension costs
59,473
68,235
1,921,485
1,790,652
8
Director's remuneration
2023
2022
Unaudited
£
£
Remuneration for qualifying services
16,498
18,910
Company pension contributions to defined contribution schemes
23,512
39,996
40,010
58,906

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

9
Interest receivable and similar income
2023
2022
Unaudited
£
£
Interest income
Interest on bank deposits
5,874
541
2023
2022
Unaudited
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
5,874
541
10
Interest payable and similar expenses
2023
2022
Unaudited
£
£
Interest on financial liabilities
Other interest on financial liabilities
94,357
72,131
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
11
Taxation
2023
2022
Unaudited
£
£
Current tax
UK corporation tax on profits for the current period
771,119
586,158

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
Unaudited
£
£
Profit before taxation
3,236,719
3,072,480
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
760,629
583,771
Tax effect of expenses that are not deductible in determining taxable profit
10,490
2,387
Taxation charge for the year
771,119
586,158
12
Dividends
2023
2022
Unaudited
£
£
Final paid
742,000
450,000
QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Tangible fixed assets
Plant and machinery
£
Cost
At 1 January 2023
48,031
Additions
8,983
Disposals
(1,614)
At 31 December 2023
55,400
Depreciation and impairment
At 1 January 2023
19,940
Depreciation charged in the year
7,932
Eliminated in respect of disposals
(392)
At 31 December 2023
27,480
Carrying amount
At 31 December 2023
27,920
At 31 December 2022
28,091
14
Fixed asset investments
2023
2022
Unaudited
Notes
£
£
Investments in subsidiaries
-
0
1
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
1
Disposals
(1)
At 31 December 2023
-
Carrying amount
At 31 December 2023
-
At 31 December 2022
1

In the year ended 31 December 2022, the shares in Quantanite South Africa Pty Limited and Quantanite USA Inc were transferred from Quantanite UK Limited to Quantanite Holdings Limited in 2022.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
15
Debtors
2023
2022
Unaudited
Amounts falling due within one year:
£
£
Trade debtors
4,319,929
3,437,928
Amounts owed by group undertakings
1,831,763
1,367,470
Prepayments and accrued income
371,270
145,123
6,522,962
4,950,521

All balances held within amounts owed by group undertakings are interest free and repayable on demand.

16
Creditors: amounts falling due within one year
2023
2022
Unaudited
Notes
£
£
Bank loans
18
229,621
203,446
Trade creditors
390,390
1,050,413
Corporation tax
1,057,933
586,010
Other taxation and social security
165,066
204,725
Deferred income
22,229
120,849
Other creditors
58,625
56,706
Accruals and deferred income
450,009
372,468
2,373,873
2,594,617
17
Creditors: amounts falling due after more than one year
2023
2022
Unaudited
Notes
£
£
Bank loans and overdrafts
18
423,788
653,013
18
Loans and overdrafts
2023
2022
Unaudited
£
£
Bank loans
653,409
856,459
Payable within one year
229,621
203,446
Payable after one year
423,788
653,013

The long-term loans are secured by fixed charges over the assets of the company as security for the bank loans.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Unaudited
Balances:
£
£
Accelerated capital allowances
5,337
5,337
There were no deferred tax movements in the year.
20
Retirement benefit schemes
2023
2022
Unaudited
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
59,473
68,235

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
125
125
125
125
22
Related party transactions

The company has taken advantage of exemptions, under the terms of Financial Reporting Standards 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclosure related party transactions with wholly owned subsidiaries within the group.

23
Ultimate controlling party

The immediate parent company is Quantanite Holdings Limited incorporated in Jersey by virtue of 100% ownership of the issued ordinary share capital of the company.

 

The ultimate controlling party of the company during the year is Mr M. Tamminen by virtue of his controlling ownership of the issued ordinary share capital in the group.

QUANTANITE UK LIMITED (FORMERLY TASKEATER UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
24
Cash generated from operations
2023
2022
Unaudited
£
£
Profit for the year after tax
2,465,600
2,486,322
Adjustments for:
Taxation charged
771,119
586,158
Finance costs
94,357
72,131
Investment income
(5,874)
(541)
Depreciation and impairment of tangible fixed assets
7,932
6,812
Loss on disposal of investments
1
-
Movements in working capital:
Increase in debtors
(1,572,441)
(1,939,700)
Decrease in creditors
(620,222)
(312,982)
Decrease in deferred income
(98,620)
(106,547)
Cash generated from operations
1,041,852
791,653
25
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,906,165
(298,638)
1,607,527
Borrowings excluding overdrafts
(856,459)
203,050
(653,409)
1,049,706
(95,588)
954,118
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