Company Registration No. 07388340 (England and Wales)
CHAMELEON TECHNOLOGY (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CHAMELEON TECHNOLOGY (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Director's responsibilities statement
6
Independent auditor's report
7 - 11
Statement of comprehensive income
12
Balance sheet
13 - 14
Statement of changes in equity
15
Statement of cash flows
16
Notes to the financial statements
17 - 35
CHAMELEON TECHNOLOGY (UK) LIMITED
COMPANY INFORMATION
Director
W E Higgins
Company number
07388340
Registered office
1st Floor, Central House
Otley Road
Beckwith Knowle
Harrogate
HG3 1UF
Accountants
TC Group
15 Banksde
The Watermark
Gateshead
England
NE11 9SY
Auditor
Counting North Limited
Salvus House
Aykley Heads
Durham
England
DH1 5TS
Business address
1st Floor, Central House
Otley Road
Beckwith Knowle
Harrogate
HG3 1UF
CHAMELEON TECHNOLOGY (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.

 

Principal Activity

 

The principal activities of the company are:

Review of the business and future developments

UK Smart Meter Programme

Demand from the UK Smart Metering Programme remained at normalised levels during the first half of the year but then saw a decline in the second half with several large suppliers citing a slow-down in installations resulting in overstocking situations. This appears to have been industry-wide as we largely maintained our market share leadership throughout 2023, maintaining 100% on-time supply to all customers.

Whilst volume demand fluctuated, the post-pandemic, punitive, effects on the supply chain for key components were also still being felt for the majority of FY23 as prices were slow to return to anything like the pre-pandemic levels. However, the improved international logistics conditions and the revision of certain commercial terms by Chameleon through the course of the previous year at both customer and product level supported a modest improvement to margins during the year.

Energy Policy Landscape

The Ukraine conflict continued to create real concern for the country’s energy security as well and maintained the unprecedented pressure on energy bills. The domestic energy price cap continued to offer some protection to consumers against the spiralling costs of electricity and gas but despite this, consumer energy debt reached almost £3Bn by the end of 2023. Meanwhile, the year saw yet more adverse climate impacts with new records being set once again for temperatures around the globe. Despite the combination of these major factors creating a perfect storm scenario whereby energy security, the need to adopt energy saving solutions in the home and to acknowledge the need to act against the climate emergency should have kept the Government’s energy policy to deliver Net Zero at the top of the political agenda, the prospect of a general election in 2024 and a growing populist backlash against the reported costs of achieving Net Zero created some uncertainty.

CHAMELEON TECHNOLOGY (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Innovation Projects

During the year the company made progress with the NZIP funded research and development projects delivering over £1.2m of revenue. Key learnings from the areas covered by the projects: intelligent electric vehicle charging, the use of smart meter data to calculate the thermal energy efficiency rating of properties and the development of a home energy management system (HEMS), will all form an important contribution to the optimisation of decarbonised heating and transport systems required to achieve the Government’s Net Zero ambitions.

In addition to the government grant-funded projects, the company also commenced a number of new hardware projects aimed at enabling the collection of energy, environmental and water data from other territories and geographies with associated data services. These are expected to come online in late 2024.

ivie

The company continued to support and develop its direct to consumer capabilities via ivie.

Subscriber numbers remained steady at around 50,000 reflecting our decision to maintain at this level and use this cohort of engaged users to help us further refine our data insights on energy consumption as well as tips and recommendations on how to save energy. ivie consumers can see a breakdown of where energy is being consumed in the home and also a calculation of their carbon footprint and over 20,000 of them took the option to receive live energy data into the app by installing the ivie Bud, wi-fi connected in-home display. Through 2024, the app and associated services will continue to evolve its functionality and its power to provide actionable insights and tailored advice particularly in the areas of solar and storage and the decarbonisation of domestic heating.

We took the difficult decision to withdraw the ivie EV Charger from sale due to a lack of sales reflecting the wider EV Charger industry in the UK and we focussed instead on making the ivie App compatible with as wide a range of other OEM chargers as possible.

The evolution of the ivie connected energy system will continue with further significant updates planned going forward.

Summary

The continued return to pre-COVID volume levels in half 1 was welcome after enduring such a protracted period of suppressed demand but the unprecedented drop in forecast which occurred in the second half severely impacted our top line recovery and caused the company to constrain some spending on R&D projects and remove the EV Charger product line from sale.

Nevertheless, the company was able to continue the development of a number of new innovations in line with its strategic plan and vision for the future and is positioned well for further acceleration in the coming reporting period.

CHAMELEON TECHNOLOGY (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Principal risks and uncertainties

 

Post-COVID hangover affecting supply chain costs

As noted above, supply chain cost were slow to recover and had not returned to pre-pandemic levels by the year end. The expectation is for that this position will continue to normalise, providing further margin recovery during FY24.

Geopolitical Tensions

Our view on the geopolitical landscape and the potential for further conflict escalation remains unchanged from previous reports. We continue to monitor all situations and retain a capability to relocate manufacturing to alternative geographic locations if deemed necessary; but, the original source of key components is out of our direct control and we would be subject to the same risks as other industry participants and adjacent sectors.

Forex

The Company maintains a well established hedging strategy, geared towards protecting downside risk, along with the forex adjustment corridor mechanism implemented in the majority of our customer supply contracts, to mitigate the impact of foreign exchange fluctuations during the year.

Key performance indicators

Revenue decreased by 16% from £30,038,702 to £25,279,851. Gross profit decreased from £5,927,530 to £5,520,878 which represents an actual increase of 2% in gross margin.

Delivered volumes decreased by over 21% to just under 1.3 million units in the year.

On behalf of the board

W E Higgins
Director
24 January 2025
CHAMELEON TECHNOLOGY (UK) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The director presents her annual report and financial statements for the year ended 31 December 2023.
Going concern

The directors have a reasonable expectation that the Company has adequate resources to achieve its financial objectives over the foreseeable future and therefore continue to adopt the going concern basis in preparing the annual financial statements.

Further details regarding the adoption of the going concern basis can be found in the Statement of accounting policies in the financial statements.

Results and dividends

The results for the year are set out on page 12.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

M E Woodhall
(Resigned 26 July 2024)
W E Higgins
Financial instruments
Liquidity, interest rate and credit risks

We have suitable financial facilities in place which have been enhanced during the year to support our growth and to ensure we are minimising any potential liquidity risk.

Research and development

We continue to invest and develop our core IHD and CAD business divisions as well as the cloud-based services which have both seen significant growth and interest from across the UK and wider global market places.

Auditor

In accordance with the company's articles, a resolution proposing that Counting North Limited be reappointed as auditor of the company 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.

CHAMELEON TECHNOLOGY (UK) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
On behalf of the board
W E Higgins
Director
24 January 2025
CHAMELEON TECHNOLOGY (UK) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

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.

CHAMELEON TECHNOLOGY (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHAMELEON TECHNOLOGY (UK) LIMITED
- 7 -
Opinion

We have audited the financial statements of Chameleon Technology (UK) Limited (the 'company') for the year ended 31 December 2023 which comprise 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.

CHAMELEON TECHNOLOGY (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHAMELEON TECHNOLOGY (UK) LIMITED
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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, outline 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:

CHAMELEON TECHNOLOGY (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHAMELEON TECHNOLOGY (UK) LIMITED
- 9 -
Identifying and assessing potential risks related to irregularities

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations we considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud.

 

In common with all audits under ISA's (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, focussing on provisions of those laws and regulations that:

 

CHAMELEON TECHNOLOGY (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHAMELEON TECHNOLOGY (UK) LIMITED
- 10 -
Audit resonse to risks identified

 

As a result of performing the above procedures, we identified the key matters related to the potential risk of fraud. Our procedures to respond to the risks identified included the following:

 

 

We also communicated the relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Through these procedures, we did not become aware of any material misstatement or any actual or suspected non-compliance with laws and regulations impacting on the company.

We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the financial statements. The more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of any 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.

 

The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve concealment, collusion, forgery, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

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.

 

CHAMELEON TECHNOLOGY (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHAMELEON TECHNOLOGY (UK) LIMITED
- 11 -

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.

Gerald Henderson FCA FCCA
(Senior Statutory Auditor)
For and on behalf of Counting North Limited
Statutory Auditor
24 January 2025
Salvus House
Aykley Heads
Durham
England
DH1 5TS
CHAMELEON TECHNOLOGY (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
Turnover
3
25,279,851
30,038,702
Cost of sales
(19,758,974)
(24,111,172)
Gross profit
5,520,877
5,927,530
Administrative expenses
(7,310,936)
(5,339,073)
Other operating income
-
0
8,534
Operating (loss)/profit
7
(1,790,059)
596,991
Interest receivable and similar income
6
1,017
-
0
Interest payable and similar expenses
9
(191,298)
(155,850)
Amounts written off investments
8
(878,100)
-
Fair value gains and losses on foreign exchange contracts
(106,696)
60,053
(Loss)/profit before taxation
(2,965,136)
501,194
Tax on (loss)/profit
11
364,104
(157,047)
(Loss)/profit for the financial year
(2,601,032)
344,147

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

CHAMELEON TECHNOLOGY (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
14
6,565,496
7,010,863
Tangible assets
15
873,175
865,752
Investments
12
500,541
978,641
7,939,212
8,855,256
Current assets
Stocks
17
3,060,997
6,535,232
Debtors
18
6,247,221
8,372,833
Cash at bank and in hand
49,646
361,470
9,357,864
15,269,535
Creditors: amounts falling due within one year
19
(8,951,988)
(12,994,402)
Net current assets
405,876
2,275,133
Total assets less current liabilities
8,345,088
11,130,389
Provisions for liabilities
Deferred tax liability
21
1,087,579
1,271,848
(1,087,579)
(1,271,848)
Net assets
7,257,509
9,858,541
Capital and reserves
Called up share capital
24
177
177
Share premium account
1,256,788
1,256,788
Profit and loss reserves
6,000,544
8,601,576
Total equity
7,257,509
9,858,541

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

CHAMELEON TECHNOLOGY (UK) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 14 -
The financial statements were approved by the board of directors and authorised for issue on 24 January 2025 and are signed on its behalf by:
W E Higgins
Director
Company registration number 07388340 (England and Wales)
CHAMELEON TECHNOLOGY (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
177
1,256,788
8,257,429
9,514,394
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
344,147
344,147
Balance at 31 December 2022
177
1,256,788
8,601,576
9,858,541
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(2,601,032)
(2,601,032)
Balance at 31 December 2023
177
1,256,788
6,000,544
7,257,509
CHAMELEON TECHNOLOGY (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
2,244,935
(594,965)
Interest paid
(191,298)
(155,850)
Income taxes refunded
194,267
-
0
Net cash inflow/(outflow) from operating activities
2,247,904
(750,815)
Investing activities
Purchase of intangible assets
(986,637)
(1,024,680)
Purchase of tangible fixed assets
(346,233)
(287,430)
Interest received
1,017
-
0
Net cash used in investing activities
(1,331,853)
(1,312,110)
Financing activities
Repayment of borrowings
(1,227,875)
2,300,216
Net cash (used in)/generated from financing activities
(1,227,875)
2,300,216
Net (decrease)/increase in cash and cash equivalents
(311,824)
237,291
Cash and cash equivalents at beginning of year
361,470
124,179
Cash and cash equivalents at end of year
49,646
361,470
CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

Chameleon Technology (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, Central House, Otley Road, Beckwith Knowle, Harrogate, HG3 1UF. The registered number is 07388340.

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.

The company has taken advantage of the exemption under section 205 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the only three subsidiary companies are, individually and collectively, not material for a true and fair view of the group position. The financial statements therefore present information about the company as an individual entity and not about its group.

1.2
Business combinations

The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

 

The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.

 

Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

 

The company, under section 479a of the Companies Act 2006, is providing audit exemption for a subsidiary company to its subsidiary company, Gengame Ltd.

CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.3
Going concern

Despite the downturn in results in FY23 and the continued protraction experienced in the mandate IHD market during FY24, at the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.true

Communications with our customer base and with the Department for Energy Security and Net Zero indicate that the smart meter roll-out is fully expected to be mandated beyond the original 2025 end date and that demand for smart meters and IHD’s will stabilise and start to grow in the coming few years. Added to this, new product launches announced during Q4 FY24 and still to come during H1 FY25 have already generated significant interest and commercial traction with current customers and new customers in adjacent markets, and we anticipate this to continue to grow throughout FY25.

During Q4 FY24, significant new funds were committed by existing funders and shareholders, providing the working capital support required to deliver the FY25 business plan.

On this basis, the director considers it appropriate to prepare the financial statements on a going concern basis.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually at the point of delivery of the goods to the customer), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets other than goodwill

Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets comprise software costs and development costs. Development cost are internally generated assets relating to the development of new products for which:

 

- the technical feasibility of the product has been established

- there is an intention and ability to sell the product

- there is a demonstrable market for the product from which future economic benefits are probable

- adequate technical, financial and other resources are available to complete the development of the

product

- the company can reliably identify and measure the costs attributable to development of the product

 

Such assets are defined as having a finite useful life and the costs are amortised over the anticipated product life. Assets under construction are not depreciated until they are brought into use.

CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Development Costs
Amortised over the estimated number of units to be supplied over the anticipated life of the product.

Software assets are not amortised until they are brought into use.

1.6
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:

Leasehold improvements
over the 10 year lease
Plant and machinery
5-8 years straight line basis
Fixtures, fittings & equipment
4-5 years straight line basis
Computer equipment
4-5 years straight line basis

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.

Assets under construction are depreciated once they are brought into use.

1.7
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials costs only.

CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
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.

1.11
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.

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.

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.

CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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.

Derecognition of financial liabilities

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

1.12
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.

CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.13
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.14
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.

 

1.15
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.

1.16
Retirement benefits

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

CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.17
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

Schemes granted before the transition date for FRS102 have taken advantage of the transition exemptions available and no liability is recorded for these options.

1.18
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.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.20
Research and development

Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits. These intangible assets are amortised over an estimated number of units to be supplied over the anticipated life of the completed product or project.

 

Deferred research and development costs are reviewed annually and, where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the profit and loss account.

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.

CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Development cost product life

Development costs, as detailed in note 10, are amortised over an estimated number of units to be supplied over the anticipated life of the completed project. Due to the technological nature of the product it can be difficult to identify the number of units that can be sold of each product. The directors review the current projected sales for each product at each year end and adjust the amortisation accordingly.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
In Home Displays
24,073,922
30,038,702
Government grants
1,205,929
-
25,279,851
30,038,702
2023
2022
£
£
Turnover analysed by geographical market
UK
24,888,503
30,038,702
Europe
391,348
-
25,279,851
30,038,702
2023
2022
£
£
Other revenue
Interest income
1,017
-
CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
4
Employees

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

2023
2022
Number
Number
Directors and management
2
2
Sales
8
8
Finance and admin
3
3
Research and development
37
29
Production
3
3
Total
53
45

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,474,693
2,006,298
Social security costs
319,099
309,212
Pension costs
88,175
55,640
2,881,967
2,371,150
5
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
285,046
391,580
Company pension contributions to defined contribution schemes
39,769
30,826
324,815
422,406

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Director's remuneration
(Continued)
- 26 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
190,313
172,474
Company pension contributions to defined contribution schemes
33,448
28,625
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
1,017
-
0
7
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(343)
(77,810)
Fees payable to the company's auditor for the audit of the company's financial statements
18,500
15,500
Depreciation of owned tangible fixed assets
262,298
224,337
Loss on disposal of tangible fixed assets
76,513
-
Amortisation of intangible assets
1,432,004
1,623,519
Operating lease charges
200,161
211,607
8
Amounts written off investments
2023
2022
£
£
Amounts written off current loans
(400,000)
-
Impairment of group investments
(478,100)
-
(878,100)
-
CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
191,298
155,850
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Fixed asset investments
12
478,100
-
Recognised in:
Amounts written off investments
478,100
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(179,835)
(51,417)
Deferred tax
Origination and reversal of timing differences
(184,269)
208,464
Total tax (credit)/charge
(364,104)
157,047
CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 28 -

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

2023
2022
£
£
(Loss)/profit before taxation
(2,965,136)
501,194
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(741,284)
95,227
Tax effect of expenses that are not deductible in determining taxable profit
279,838
9,471
Tax effect of utilisation of tax losses not previously recognised
561,159
67,374
Permanent capital allowances in excess of depreciation
(92,829)
(75,379)
Depreciation
423,576
351,093
Capitalised expenses deductible for tax purposes
(449,588)
(447,786)
Research and development enhancement
(179,835)
(51,417)
Profit on disposals
19,128
-
0
Deferred Tax
(184,269)
208,464
Taxation (credit)/charge for the year
(364,104)
157,047
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
13
500,000
978,100
Unlisted investments
541
541
500,541
978,641
CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
978,100
541
978,641
Valuation changes
(478,100)
-
(478,100)
At 31 December 2023
500,000
541
500,541
Carrying amount
At 31 December 2023
500,000
541
500,541
At 31 December 2022
978,100
541
978,641
13
Subsidiaries

Group accounts are not prepared because the subsidiaries are considered, individually and collectively, not to be material to the financial results and position of the group.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Chameleon Technology (HK) Ltd
Hong Kong
Ordinary Shares
100.00
Chameleon Smart Energy PTY Ltd
Australia
Ordinary Shares
100.00
GenGame Ltd
United Kingdom
Ordinary Shares
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Chameleon Technology (HK) Ltd
1
-
Chameleon Smart Energy PTY Ltd
65
-
0
GenGame Ltd
(916,446)
(198,257)

The investments in subsidiaries are stated at the lower of cost or net realisable value.

CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
14
Intangible fixed assets
Development Costs
£
Cost
At 1 January 2023
12,573,810
Additions - internally developed
986,637
At 31 December 2023
13,560,447
Amortisation and impairment
At 1 January 2023
5,562,947
Amortisation charged for the year
1,432,004
At 31 December 2023
6,994,951
Carrying amount
At 31 December 2023
6,565,496
At 31 December 2022
7,010,863
15
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
148,089
1,283,265
198,043
84,196
1,713,593
Additions
40,838
149,363
104,976
51,056
346,233
Disposals
(148,089)
-
0
-
0
-
0
(148,089)
Transfers
-
0
-
0
23,446
(23,446)
-
0
At 31 December 2023
40,838
1,432,628
326,465
111,806
1,911,737
Depreciation and impairment
At 1 January 2023
67,874
599,823
166,425
13,718
847,840
Depreciation charged in the year
6,369
193,171
31,880
30,878
262,298
Eliminated in respect of disposals
(71,576)
-
0
-
0
-
0
(71,576)
At 31 December 2023
2,667
792,994
198,305
44,596
1,038,562
Carrying amount
At 31 December 2023
38,171
639,634
128,160
67,210
873,175
At 31 December 2022
80,215
683,441
31,618
70,478
865,752
CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
16
Financial instruments
2023
2022
£
£
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
256,658
149,963
17
Stocks
2023
2022
£
£
Raw materials and consumables
1,372,815
1,290,075
Finished goods and goods for resale
1,688,182
5,245,157
3,060,997
6,535,232
18
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,350,050
5,943,903
Corporation tax recoverable
231,252
245,684
Amounts owed by group undertakings
2,327,071
1,982,853
Other debtors
14,649
23,269
Prepayments and accrued income
324,199
177,124
6,247,221
8,372,833
19
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
20
2,477,577
3,705,452
Trade creditors
4,778,586
7,321,098
Taxation and social security
881,979
1,557,263
Derivative financial instruments
256,658
149,963
Other creditors
54,483
23,951
Accruals and deferred income
502,705
236,675
8,951,988
12,994,402
CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
20
Loans and overdrafts
2023
2022
£
£
Other loans
2,477,577
3,705,452
Payable within one year
2,477,577
3,705,452

Other loans includes an invoice factoring agreement which is secured by a fixed and floating charge on the assets of the company. The rate of interest is 2%.

 

21
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
208,751
164,245
Tax losses
(671,775)
(560,204)
Other
1,550,603
1,667,807
1,087,579
1,271,848
2023
Movements in the year:
£
Liability at 1 January 2023
1,271,848
Credit to profit or loss
(184,269)
Liability at 31 December 2023
1,087,579

The deferred tax liability set out above is expected to reverse within 5 years and relates to accelerated capital allowances, development costs and tax losses that are expected to mature within the same period.

CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
88,175
55,640

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.

24
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
17,748
17,748
160
160
Deferred of 1p each
-
-
17
17
17,748
17,748
177
177
25
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
261,961
87,146
Between two and five years
827,909
43,638
In over five years
848,065
-
0
1,937,935
130,784
26
Ultimate controlling party

The company's Parent Company is Chameleon Technology Holdings Limited, 1st Floor, Central House, Otley Road, Harrogate, HG3 1UF.

CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
27
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
530,487
615,457

 

Other information

One director has provided the bank with a guarantee of £25,000 and the factoring creditor with a guarantee of £300,000.

 

The company has provided cross-guarantees as security on borrowings in its parent company, Chameleon Technology Holdings Ltd.

 

The company is exempt from disclosing related party transactions with either its immediate parent company or its subsidiaries under FRS102 Section 33 'Related Party Disclosures' as all companies within the group are wholly owned.

 

28
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
361,470
(311,824)
49,646
Borrowings excluding overdrafts
(3,705,452)
1,227,875
(2,477,577)
(3,343,982)
916,051
(2,427,931)
CHAMELEON TECHNOLOGY (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
29
Cash generated from/(absorbed by) operations
2023
2022
£
£
(Loss)/profit for the year after tax
(2,601,032)
344,147
Adjustments for:
Taxation (credited)/charged
(364,104)
157,047
Finance costs
191,298
155,850
Investment income
(1,017)
-
0
Loss on disposal of tangible fixed assets
76,513
-
Fair value loss/(gain) on foreign exchange contracts
106,696
(60,053)
Amortisation and impairment of intangible assets
1,432,004
1,623,519
Depreciation and impairment of tangible fixed assets
262,298
224,337
Other gains and losses
878,100
-
Movements in working capital:
Decrease/(increase) in stocks
3,474,235
(317,246)
Decrease/(increase) in debtors
1,711,180
(5,286,871)
(Decrease)/increase in creditors
(2,921,236)
2,564,305
Cash generated from/(absorbed by) operations
2,244,935
(594,965)
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