Registration number:
Prepared for the registrar
for the
Year Ended 30 September 2024
Wavex Technology Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Wavex Technology Limited
Company Information
Directors |
G Russell E Bullard A Hajialexandrou S Flouri |
Registered office |
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Auditors |
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Wavex Technology Limited
(Registration number: 04258498)
Balance Sheet as at 30 September 2024
Note |
2024 |
2023 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
27,915 |
27,915 |
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Share premium reserve |
44,585 |
44,585 |
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Retained earnings |
2,965,932 |
2,914,537 |
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Shareholders' funds |
3,038,432 |
2,987,037 |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
Director
Wavex Technology Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The company has adopted Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', taking advantage of the small company exemptions to produce reduced disclosure accounts under section 1A of FRS 102.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Going concern
The directors have prepared forecasts for the next 12 months and beyond. After reviewing those forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Key sources of estimation uncertainty
Development costs
The company has capitalised development costs that they believe will bring a future economic inflow to the company. These costs relate to the cost of software, borrowing costs up until the point that the software was ready to use and the costs of developing the software, which is done by estimating the time spent on the project.
The carrying amount is £319,665 (2023 - £314,767).
Judgements
No significant judgements have been made by management in preparing these financial statements.
Wavex Technology Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
2 |
Accounting policies (continued) |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The company recognises revenue when: The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using the tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current and future taxable profits.
Intangible assets
Development costs
Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortised in line with the expected future sales from the related project.
Website Costs
Website expenditure incurred on development for use internally can be carried forward when it can be reasonable to assume that it will be useful to staff. Any expenditure carried forward is amortised over a straight line basis of five years.
Software Costs
Software development costs incurred for internal use are capitalised when it is reasonably certain that the software will provide future economic benefits to the staff. Capitalised software costs are amortised on a straight-line basis over a period of five years
Wavex Technology Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
2 |
Accounting policies (continued) |
Amortisation
Amortisation is provided on development costs so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Development costs |
5 years |
Website costs |
5 years |
Software costs |
5 years |
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction, over their estimated useful lives as follows:
Asset class |
Depreciation method and rate |
Leasehold improvements |
Straight-line over the length of the lease |
Fixtures and fittings |
25% straight line |
IT equipment |
33% reducing balance |
Trade debtors
Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable or receivable under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
Wavex Technology Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
2 |
Accounting policies (continued) |
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.
Share based payments
The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
Wavex Technology Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
2 |
Accounting policies (continued) |
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Wavex Technology Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Intangible assets |
Development costs |
Website costs |
Software Costs |
Total |
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Cost |
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At 1 October 2023 |
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|
- |
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Additions acquired separately |
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- |
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Disposals |
- |
( |
- |
( |
At 30 September 2024 |
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- |
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Amortisation |
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At 1 October 2023 |
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|
- |
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Amortisation charge |
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Amortisation eliminated on disposals |
- |
( |
- |
( |
At 30 September 2024 |
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- |
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Carrying amount |
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At 30 September 2024 |
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- |
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At 30 September 2023 |
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- |
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Wavex Technology Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Tangible assets |
IT Equipment |
Fixtures and fittings |
Total |
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Cost |
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At 1 October 2023 |
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Additions |
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- |
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Disposals |
- |
( |
( |
At 30 September 2024 |
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- |
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Depreciation |
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At 1 October 2023 |
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Charge for the year |
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Eliminated on disposal |
- |
( |
( |
At 30 September 2024 |
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- |
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Carrying amount |
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At 30 September 2024 |
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- |
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At 30 September 2023 |
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Debtors |
2024 |
2023 |
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Trade debtors |
|
557,866 |
Amounts owed by related parties |
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2,427,381 |
Other debtors |
|
15,400 |
Prepayments |
|
221,537 |
Accrued income |
|
92,445 |
Deferred tax assets |
|
21,313 |
Corporation tax asset |
- |
41,798 |
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3,377,740 |
Creditors |
2024 |
2023 |
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Due within one year |
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Trade creditors |
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Taxation and social security |
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Outstanding defined contribution pension costs |
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Other creditors |
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Accrued expenses |
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Deferred income |
536,014 |
426,040 |
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Wavex Technology Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
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No. |
£ |
No. |
£ |
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|
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27,915 |
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27,915 |
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
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Not later than one year |
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Later than one year and not later than five years |
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The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Share-based payments |
Scheme details and movements
IT Services Livonia Limited, the parent of Wavex Technology Limited, operates equity-settled share-based remuneration schemes for employees of Wavex Technology Limited which are Enterprise Management Incentive ("EMI") schemes. Options granted in December 2013 are to be settled by way of issue of A Ordinary shares, options granted in March 2016 are to be settled by way of issue of C Ordinary shares, options granted in February 2017 are to be settled by way of issue of B Ordinary shares, options granted in April 2022 are to be settled by way of issue of B Ordinary shares, options granted in December 2022 are to be settled by way of issue of B Ordinary shares and options granted in December 2023 are to be settled by way of issue of B Ordinary shares.
The options have no vesting period, but cannot be exercised until the Group is listed on an exchange or the shares in the Group are sold such that control of the Group changes.
The fair value of the equity instruments granted was determined using the Black Scholes Model. This model was selected as it is a industry standard model. The share-remuneration expense for the year is not considered to be material and has not been recognised.
The entity is part of a group share-based payment scheme and it recognises and measures its share-based payment expense on the basis of a reasonable allocation of the expense recognised for the group. Expenses are allocated to Wavex Technology Limited, the company that receives the employee services.
The movements in the number of share options during the year were as follows:
2024 |
2023 |
|
Outstanding, start of period |
341,500 |
274,500 |
Granted during the period |
25,000 |
67,000 |
Expired during the period |
(29,000) |
- |
Outstanding, end of period |
337,500 |
341,500 |
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Wavex Technology Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
10 |
Share-based payments (continued) |
The movements in the weighted average exercise price of share options during the year were as follows:
2024 |
2023 |
|
Outstanding, start of period |
0.50 |
0.56 |
Granted during the period |
0.50 |
0.27 |
Expired during the period |
(0.95) |
- |
Outstanding, end of period |
0.51 |
0.50 |
|
During the financial year, the company granted share-based payments. However, this was highly trivial and there was no impact to note on the profit and loss account for the period.
Related party transactions |
Summary of transactions with parent
Parent and ultimate parent undertaking |
The company's immediate and ultimate parent is
Audit report |