REGISTERED NUMBER: 01397386 (England and Wales) |
ACULAB PLC |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
REGISTERED NUMBER: 01397386 (England and Wales) |
ACULAB PLC |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Profit and Loss Account | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
ACULAB PLC |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors, Chartered Tax Advisers |
and Chartered Certified Accountants |
Broad House |
1 The Broadway |
Old Hatfield |
Hertfordshire |
AL9 5BG |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
Turnover fell in the year by £537,500, or 10.3%, to £4.7m, due to the effect of a decrease in software and hardware sales. The gross profit margin fell by 1%, to 82%. The net effect of lower turnover and lower margin resulted in an decrease of £505,400 in gross profits, to just under £3.84m. With regard to administrative costs, these fell by £550,000, to just over £4.59m. After including other income of £2,000 (2023: £10,000) together with bank deposit interest of £77,000, pre-tax losses of £674,000 are reported, which is an favourable movement of £60,000 from the result in 2023. The group will again benefit from repayable research and development tax credits and so is showing post-tax losses of £535,000 (2023: £643,000). |
After paying dividends of £540,000 the group's retained earnings fell by £1,074,000 (2023: £403,000), with the balance sheet showing net assets of just over £1.57m at the year-end. Net current assets fell by £1.02m, to £2.26m, while cash decreased by £0.8m, to £1.99m. |
The group continues to invest substantially in new and innovative products, and the directors are confident that the group is well placed to take advantage of the opportunities expected to arise in the computer-telephony market. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The success of the group will depend on its ability to continue to develop and sell new and desirable products in an ever-advancing technological environment. Although the outlook is positive, sales are monitored closely, and contingency plans maintained, in case action needs to be taken in response to financial pressures. |
RESEARCH AND DEVELOPMENT |
Research and development is essential to the group's long-term success and, during the year, £1.1m (2023: £0.77m) was spent in this area. |
FUTURE DEVELOPMENTS |
The directors intend to continue to develop the business' core product areas and to explore new opportunities, both in the UK and overseas. |
ON BEHALF OF THE BOARD: |
22 November 2024 |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the design, manufacture and sale of computer-telephony products. |
DIVIDENDS |
Interim dividends of £540,000 (2023: £512,000) were paid during the year; no final dividend is recommended. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
PRINCIPAL RISK AND UNCERTAINTIES |
The group's principal financial instruments comprise bank balances, trade debtors and creditors, and taxes payable or recoverable. In respect of these financial instruments, the group's objective is to maximise the cash resources available to fund operations, while minimising related risks. The group's policies for managing relevant financial risks are outlined below. |
Due to the nature of the financial instruments used by the group, there is no exposure to price risk. However, since the group operates internationally, it is exposed to currency risk; the group receives most of its income in US Dollars but incurs the majority of its costs in Pounds Sterling. To mitigate currency risk, sales in foreign currencies are used, where possible, to fund expenditure denominated in the same foreign currency, but the risk cannot be eliminated. The group monitors financial markets and seeks to obtain the best possible rates of exchange for foreign currency. |
In respect of creditors, liquidity risk is managed by cash flow forecasting, which helps ensure that sufficient funds are available to settle liabilities as they fall due. In respect of trade debtors, cash flow and credit risk are managed through credit control procedures that aim to ensure that debts are collected promptly and in full. Where appropriate, the group makes use of professional advisers to assist with managing credit and currency risks. At the balance sheet date, the group's excess cash was held in instant-access deposit accounts. |
DISCLOSURE IN THE STRATEGIC REPORT |
As permitted by the Companies Act, the group has provided a review of the business and disclosed research and development activities and the future development of the business in the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Keelings Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
BY ORDER OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACULAB PLC |
Opinion |
We have audited the financial statements of Aculab plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2024 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACULAB PLC |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates and considered the risk of acts by management which were contrary to applicable laws and regulations, including fraud. These included,but were not limited to, compliance with Financial Reporting Framework FRS 102, Companies Act 2006, General Data Protection Regulations and applicable Health and Safety and Employment Legislation. We made enquiries of the directors of the group to obtain further understanding of the risks of non-compliance. We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to: |
- agreeing the financial statement disclosures to underlying supporting documentation; |
- enquiring of management about known or suspected instances of non-compliance with laws and regulations; |
- reviewing minutes of board meetings throughout the year; and |
- obtaining an understanding of the control environment in place to prevent and detect irregularities. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring from fraud, rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACULAB PLC |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors, Chartered Tax Advisers |
and Chartered Certified Accountants |
Broad House |
1 The Broadway |
Old Hatfield |
Hertfordshire |
AL9 5BG |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
CONSOLIDATED PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 | 4,670,214 | 5,207,695 |
Cost of sales | 830,744 | 862,825 |
GROSS PROFIT | 3,839,470 | 4,344,870 |
Administrative expenses | 4,592,017 | 5,141,839 |
(752,547 | ) | (796,969 | ) |
Other operating income | 5 | 1,661 | 10,093 |
OPERATING LOSS | 7 | (750,886 | ) | (786,876 | ) |
Interest receivable and similar income | 76,707 | 52,731 |
LOSS BEFORE TAXATION | (674,179 | ) | (734,145 | ) |
Tax on loss | 9 | (139,487 | ) | (91,263 | ) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Loss attributable to: |
Owners of the parent | (534,692 | ) | (642,882 | ) |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
LOSS FOR THE YEAR | (534,692 | ) | (642,882 | ) |
OTHER COMPREHENSIVE INCOME |
Foreign exchange differences on |
translation of net investments in |
overseas subsidiaries | 742 | (5,711 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
742 |
(5,711 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(533,950 |
) |
(648,593 |
) |
Total comprehensive income attributable to: |
Owners of the parent | (533,950 | ) | (648,593 | ) |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
CONSOLIDATED BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | - | - |
Tangible assets | 13 | 35,615 | 77,362 |
Investments | 14 | - | - |
35,615 | 77,362 |
CURRENT ASSETS |
Stocks | 15 | 382,246 | 316,160 |
Debtors | 16 | 707,664 | 1,143,336 |
Cash at bank and in hand | 1,992,815 | 2,788,895 |
3,082,725 | 4,248,391 |
CREDITORS |
Amounts falling due within one year | 17 | 824,699 | 974,079 |
NET CURRENT ASSETS | 2,258,026 | 3,274,312 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,293,641 |
3,351,674 |
CREDITORS |
Amounts falling due after more than one year |
18 |
(433,195 |
) |
(488,318 |
) |
PROVISIONS FOR LIABILITIES | 20 | (288,970 | ) | (217,930 | ) |
NET ASSETS | 1,571,476 | 2,645,426 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 100,000 | 100,000 |
Retained earnings | 1,471,476 | 2,545,426 |
SHAREHOLDERS' FUNDS | 1,571,476 | 2,645,426 |
The financial statements were approved by the Board of Directors and authorised for issue on 22 November 2024 and were signed on its behalf by: |
Dr L Baghai-Ravary - Director |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
COMPANY BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Stocks | 15 |
Debtors | 16 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (717,225 | ) | (635,895 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 | 100,000 | 3,706,019 | 3,806,019 |
Changes in equity |
Dividends | - | (512,000 | ) | (512,000 | ) |
Total comprehensive income | - | (648,593 | ) | (648,593 | ) |
Balance at 30 June 2023 | 100,000 | 2,545,426 | 2,645,426 |
Changes in equity |
Dividends | - | (540,000 | ) | (540,000 | ) |
Total comprehensive income | - | (533,950 | ) | (533,950 | ) |
Balance at 30 June 2024 | 100,000 | 1,471,476 | 1,571,476 |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 June 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 June 2024 |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (794,745 | ) | (995,450 | ) |
Tax paid | 465,226 | (135,930 | ) |
Net cash from operating activities | (329,519 | ) | (1,131,380 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (3,731 | ) | (24,784 | ) |
Sale of tangible fixed assets | 44 | - |
Interest received | 76,707 | 52,731 |
Net cash from investing activities | 73,020 | 27,947 |
Cash flows from financing activities |
Amount introduced by directors | 393,761 | 1,154 |
Amount withdrawn by directors | (394,083 | ) | - |
Equity dividends paid | (540,000 | ) | (512,000 | ) |
Net cash from financing activities | (540,322 | ) | (510,846 | ) |
Decrease in cash and cash equivalents | (796,821 | ) | (1,614,279 | ) |
Cash and cash equivalents at beginning of year |
2 |
2,788,895 |
4,408,785 |
Effect of foreign exchange rate changes | 741 | (5,611 | ) |
Cash and cash equivalents at end of year | 2 | 1,992,815 | 2,788,895 |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Loss before taxation | (674,179 | ) | (734,145 | ) |
Depreciation charges | 45,203 | 75,243 |
Loss on disposal of fixed assets | 232 | - |
Finance income | (76,707 | ) | (52,731 | ) |
(705,451 | ) | (711,633 | ) |
(Increase)/decrease in stocks | (66,086 | ) | 93,610 |
Decrease/(increase) in trade and other debtors | 109,933 | (112,297 | ) |
Decrease in trade and other creditors | (133,141 | ) | (265,130 | ) |
Cash generated from operations | (794,745 | ) | (995,450 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 1,992,815 | 2,788,895 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 2,788,895 | 4,408,785 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,788,895 | (796,080 | ) | 1,992,815 |
2,788,895 | (796,080 | ) | 1,992,815 |
Total | 2,788,895 | (796,080 | ) | 1,992,815 |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Aculab plc is a public company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention. |
Basis of consolidation |
These financial statements consolidate the results of Aculab plc and its subsidiary, Aculab Inc. The consolidated financial statements present the results of the group as if it were a single entity. The entities that comprise the group have been consolidated on a line-by-line basis. On consolidation, investments in subsidiary undertakings, balances between group companies and transactions between group companies have been eliminated. All group entities have adopted uniform accounting policies and have the same balance sheet date. |
Significant judgements and estimates |
In preparing these financial statements, the directors have exercised judgement in the following principal areas: |
- In assessing the net realisable value of the group's stocks. Factors taken into consideration in reaching a decision include the rate of technological advance in fields in which the stock could be used, sales in the previous year and forecasts for the coming year. |
- In determining whether there are indicators of impairment of the group's tangible fixed assets. Factors taken into consideration in reaching a decision include the economic viability and expected future financial performance of the asset and, where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. |
- In determining the depreciation rates of tangible fixed assets, which are depreciated over their useful lives, taking into account residual values. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
- In estimating the quantum of doubtful debts when collection of the full amount is no longer probable. The directors' best estimate is based on the period the debt has been outstanding and the difficulties experienced and anticipated in pursuing collection. |
- In estimating the amount required to cover dilapidations in respect of the leased premises occupied by the company. The directors' best estimate is based on the unexpired period the lease, the alterations made to the properties by the group, the general condition of the properties, any correspondence received from the landlords and the estimated costs of restoration.. |
Estimates and judgements include the likely outcome of future events; these are made after reviewing historical data and assessing other pertinent information. |
It is possible that new information could come to light that might result in material adjustments to the items above. |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Revenue is derived from the sale of computer-telephony hardware, software and related services. It excludes discounts, rebates and value added tax and is recorded at the value of the consideration received or receivable. |
Revenue from: |
i) the sale of hardware is recognised when shipped to customers; |
ii) the sale of software is recognised when customers can access the software; |
iii) the provision of computer-telephony services over the Cloud is recognised as they are used; |
iv) support contracts is recognised evenly over the term of the contract; at the balance sheet date, income pertaining to the unexpired portions of contracts is deferred; and |
v) the provision of other services is recognised according to the stage of completion. |
Intangible assets |
Intangible assets represent computer software acquired from third parties, which is initially measured at cost. After initial recognition, computer software is stated at cost less accumulated amortisation. Computer software is amortised evenly over its estimated useful life, which is generally five years from the date it is first brought into use. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Tangible fixed assets are stated at cost less accumulated depreciation and provisions for impairment. |
Impairment of fixed assets |
Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit ('CGU') to which the asset has been allocated) is reviewed. An impairment loss is recognised of the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value, less costs to sell, and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may need to be adjusted. |
Stocks |
Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete, slow moving and defective items. Cost represents the direct cost of materials, services and labour, plus an attributable proportion of manufacturing overheads based on normal levels of activity. |
Taxation |
Current tax, including UK corporation tax and foreign tax, is included at the amount expected to be recoverable (or payable) using tax rates and laws that have been enacted, or substantially enacted, by the balance sheet date. As indicated in Note 7, some of the group's research and development activities qualify for enhanced tax relief in the United Kingdom. Claims for enhanced relief by the group usually give rise to a tax loss and the group generally takes advantage of an option that permits it to exchange these losses for cash. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more, or less, tax in the future have occurred by the balance sheet date. Timing differences are differences between the group's taxable profits and its accounting profits in so far as they arise from the inclusion of gains and losses in tax assessments for periods that differ from the periods for which those same items are included in the financial statements. Unrelieved losses and other deferred tax assets are recognised only to the extent that they are believed to be recoverable, based on all available evidence. |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
The financial statements are presented in Pounds Sterling ('Sterling'), which is the functional currency of the company. Foreign currency transactions and balances have been translated into Sterling on the following bases: |
a. Group companies that use Sterling as their functional currency translate transactions in foreign currencies at the rate of exchange on the date the transaction occurred. Monetary assets and liabilities denominated in other currencies are translated at the rate prevailing at the balance sheet date. All differences are taken to the Consolidated Income Statement. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated. |
b. The results of group companies that do not use Sterling as their functional currency are consolidated as follows: assets and liabilities are translated into Sterling at the rates of exchange prevailing at the balance sheet date; revenue and expenditure items are translated into Sterling using average rates of exchange for the period; exchange differences that arise during consolidation are reported as 'other comprehensive income' in the statement of Consolidated Other Comprehensive Income. |
Employee benefits |
Short-term employee benefits, including entitlements to holiday pay, are recognised as expenses in the period in which they are incurred. |
The obligations to make contributions to defined contribution schemes are recognised as expenses in the period they are incurred. The assets of these schemes are held separately from those of the group, in independently administered funds. |
Provisions |
Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, it is probable that the group will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation. |
The amount recognised as a provision is the best estimate of the amount needed to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Estimates of related cash outflows are included at present value when the effect of the time value of money is material. |
Measurement of financial instruments |
Trade and other debtors: |
Trade and other debtors are recognised initially at the transaction value and thereafter at transaction value less provisions for bad and doubtful debts. If the effect of discounting is material, the debtor is stated at its amortised value using the effective interest method, less provisions for bad and doubtful debts. |
Trade and other creditors: |
Trade and other creditors are recognised initially at the transaction value, unless the effect of discounting is material, in which case the creditor is stated at its amortised value using the effective interest method. |
4. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Sale of goods | 610,763 | 1,016,131 |
Sale of services | 4,059,451 | 4,191,564 |
4,670,214 | 5,207,695 |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
4. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
Sales - UK | 1,014,113 | 871,115 |
Sales - EC (excluding UK) | 374,394 | 458,514 |
Sales - Non-EC | 3,281,707 | 3,878,066 |
4,670,214 | 5,207,695 |
5. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Government grants | 1,661 | 10,093 |
Government grants relate to funds received under the Kickstart Scheme and were applied towards payroll costs. |
6. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,761,724 | 2,862,426 |
Social security costs | 218,012 | 248,971 |
Other pension costs | 265,748 | 452,989 |
3,245,484 | 3,564,386 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Research & development | 31 | 28 |
Production | 6 | 12 |
Sales | 10 | 13 |
Office & management | 14 | 14 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 22,340 | 21,300 |
Compensation to director for loss of office | 24,500 | - |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
7. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 45,202 | 54,822 |
Loss on disposal of fixed assets | 232 | - |
Computer software amortisation | - | 20,357 |
Foreign exchange differences | (9,447 | ) | 16,904 |
Operating lease charges - land and buildings | 285,260 | 288,377 |
Research & development | 175,282 | 768,046 |
8. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
15,050 |
10,400 |
Total audit fees | 15,050 | 10,400 |
Taxation compliance services | 3,400 | 7,500 |
Other non-audit services | 6,750 | 2,110 |
Total non-audit fees | 10,150 | 9,610 |
Total fees payable | 25,200 | 20,010 |
9. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
Repayable research and development tax credits | (175,282 | ) | (227,193 | ) |
Overseas subsidiary taxation | 35,795 | 135,930 |
Tax on loss | (139,487 | ) | (91,263 | ) |
UK corporation tax has been charged at 25 % (2023 - 20.50 %). |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
9. | TAXATION - continued |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Loss before tax | (674,179 | ) | (734,145 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 20.500 %) |
(168,545 |
) |
(150,500 |
) |
Effects of: |
Expenses not deductible for tax purposes | 5,390 | - |
Depreciation in excess of capital allowances | 8,453 | 8,418 |
Enhanced tax relief for research and development expenditure | (228,033 | ) | (187,365 | ) |
Encashment of research and development tax credits | 262,035 | 117,879 |
Effect of overseas rates of tax that differ from the UK rate of tax | (18,787 | ) | 37,663 |
Effect of under/(over) provision for overseas tax in earlier years | - | 71,834 |
Unrelieved loss in year | - | 10,808 |
Total tax credit | (139,487 | ) | (91,263 | ) |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Foreign exchange differences on |
translation of net investments in |
overseas subsidiaries | 742 | - | 742 |
742 | - | 742 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Foreign exchange differences on |
translation of net investments in |
overseas subsidiaries | (5,711 | ) | - | (5,711 | ) |
(5,711 | ) | - | (5,711 | ) |
The group spends significantly on research and development activities and qualifies for enhanced tax relief in the United Kingdom. For the year under review, the group made a taxable loss and the directors have decided to exchange as much of this loss as possible with HMRC for cash. For the year, the repayment will amount to £174,690 (2023: £227,000). The group expects to benefit from the availability of enhanced tax relief on qualifying research and development activities for the foreseeable future. |
Aculab plc has unrelieved tax losses available to reduce the tax payable on future trading profits. At 30 June 2024, these tax losses amounted to approximately £1.4m (2023: £1.4m), which could reduce future tax liabilities by approximately £360,000 (2023: £360,000). The directors are not able to forecast future profits with certainty and consequently feel it would not be prudent to recognise the tax losses as a deferred tax asset. |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
10. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim | 540,000 | 512,000 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
software |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 132,608 |
AMORTISATION |
At 1 July 2023 |
and 30 June 2024 | 132,608 |
NET BOOK VALUE |
At 30 June 2024 | - |
At 30 June 2023 | - |
Company |
Computer |
software |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
AMORTISATION |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | Plant and | and | Computer |
leasehold | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 | 633,372 | 629,599 | 389,420 | 2,799,521 | 4,451,912 |
Additions | - | - | - | 3,731 | 3,731 |
Disposals | (178,588 | ) | (9,842 | ) | (25,799 | ) | (15,454 | ) | (229,683 | ) |
At 30 June 2024 | 454,784 | 619,757 | 363,621 | 2,787,798 | 4,225,960 |
DEPRECIATION |
At 1 July 2023 | 606,204 | 629,416 | 389,089 | 2,749,841 | 4,374,550 |
Charge for year | 12,279 | 183 | 104 | 32,636 | 45,202 |
Eliminated on disposal | (178,588 | ) | (9,842 | ) | (25,572 | ) | (15,405 | ) | (229,407 | ) |
At 30 June 2024 | 439,895 | 619,757 | 363,621 | 2,767,072 | 4,190,345 |
NET BOOK VALUE |
At 30 June 2024 | 14,889 | - | - | 20,726 | 35,615 |
At 30 June 2023 | 27,168 | 183 | 331 | 49,680 | 77,362 |
Company |
Fixtures |
Short | Plant and | and | Computer |
leasehold | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
14. | FIXED ASSET INVESTMENTS |
Company |
Unlisted |
investments |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The company directly owns the entire issued share capital of Aculab Inc and has no other fixed asset investments. Aculab Inc is incorporated in the USA and provides local sales and marketing services to its parent. The results of Aculab Inc have been consolidated with those of the company. |
The address of the registered office of Aculab Inc is 85 Astor Avenue, Suite 2, Norwood, MA 02062, USA. |
15. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Component stock | 225,565 | 180,635 |
Work in process | 16,015 | 29,780 |
Finished goods | 140,666 | 105,745 |
382,246 | 316,160 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 242,851 | 309,660 |
Amounts owed by group undertakings | - | - |
Other debtors | 54 | (335 | ) | ( |
) |
Repayable research and development tax credits |
174,690 |
500,429 |
VAT | - | 23,605 |
Prepayments and accrued income | 290,069 | 309,977 |
707,664 | 1,143,336 |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 93,303 | 87,281 |
Social security and other taxes | 44,972 | 60,477 |
VAT | 25,147 | - | 24,311 | - |
Other creditors | 63,026 | 2,479 |
Directors' current accounts | 1,139 | 1,461 | 1,139 | 1,461 |
Accrued expenses |
and deferred income | 597,112 | 822,381 |
824,699 | 974,079 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred income | 433,195 | 488,318 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 260,700 | 277,285 |
Between one and five years | - | 252,656 |
260,700 | 529,941 |
Company |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
20. | PROVISIONS FOR LIABILITIES |
The company has a contractual obligation to make good its leasehold premises when these are vacated. The lease for the premises is due to expire in 2025 and the cost of the dilapidations will not be known until a decision has been taken to vacate the premises and the necessary work agreed with the landlord. Nonetheless, the directors have assessed the obligation for dilapidations at the balance sheet date and have increased the previous year's provision for dilapidations by £71,040, to £288,970 (2023: £217,930). |
ACULAB PLC (REGISTERED NUMBER: 01397386) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 80,000 | 80,000 |
Ordinary B | £1 | 20,000 | 20,000 |
100,000 | 100,000 |
22. | PENSION COMMITMENTS |
The group contributes to a number of personal pension schemes for the benefit of its employees (including directors). Payments made into these schemes are charged immediately against revenue. The schemes operate on the money purchase principle, which ensures that their liabilities cannot exceed their assets. For the year, contributions of £265,748 (2023: £452,989) were payable by the group; at the balance sheet date, the group owed pension contributions of £58,759 (2023: £2,479), which have been paid since the year-end. |
23. | ULTIMATE CONTROLLING PARTY |
The company is controlled by Mr A Pound. |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of the exemption provided by Financial Reporting Standard 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly-owned subsidiaries. |
During the year, the company: |
i) paid dividends totalling £540,000 (2023: £512,000) to two directors; |
ii) repaid £322 to (2023: borrowed £1,154 from) a director; at the balance sheet date, this director was owed £1,139 (2023: £1,461); and |
iii) was charged £318,500 (2023: £360,000) for software development services by a company in which a director and close family members of both directors have interests. |