Company registration number 04978723 (England and Wales)
AVID TECHNOLOGY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
AVID TECHNOLOGY LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
AVID TECHNOLOGY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
65,532
77,478
Tangible assets
4
1,145,145
1,216,083
1,210,677
1,293,561
Current assets
Stocks
1,176,531
1,403,974
Debtors
5
1,759,937
1,852,896
Cash at bank and in hand
299,286
224,292
3,235,754
3,481,162
Creditors: amounts falling due within one year
6
(10,938,698)
(8,835,758)
Net current liabilities
(7,702,944)
(5,354,596)
Total assets less current liabilities
(6,492,267)
(4,061,035)
Creditors: amounts falling due after more than one year
7
(21,667)
(31,667)
Net liabilities
(6,513,934)
(4,092,702)
Capital and reserves
Called up share capital
8
398,212
398,212
Capital redemption reserve
14,901,452
14,901,452
Profit and loss reserves
(21,813,598)
(19,392,366)
Total equity
(6,513,934)
(4,092,702)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
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:
S Hornyak
Director
Company registration number 04978723 (England and Wales)
AVID TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Avid Technology Limited is a private company limited by shares incorporated in England and Wales. The registered office is Turntide Drives, Eighth Avenue, Team Valley Trading Estate, Gateshead, England, NE11 0QA.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 financial statements of the company are consolidated in the financial statements of Turntide Transport Limited. These consolidated financial statements are available from its registered office, Turntide Drives Eighth Avenue, Team Valley Trading Estate, Gateshead, United Kingdom, NE11 0QA.
1.2
Going concern
The financial statements have been prepared on the going concern basis. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, subject to the continued support of the UK Group headed by Turntide Transport Ltd, and ultimate parent company, Turntide Technologies Inc (“TT Inc”). true
The ultimate parent company’s strategy has been to accelerate technological investments in select markets to ensure its long-term success. Since its inception, TT Inc has incurred net losses and negative cash flows from operations. In order to be able to be able to support the parent company and group, the ultimate parent company will require additional liquidity to meet its 12 months working capital requirement. TT Inc plans to continue financing its operations through revenues from future sales, debt, and equity financing; whilst also reducing the cash burden through efficiencies achieved in operations.
Having assessed the expected funding requirements of the company for the next 12 months, the directors are confident that the current cash levels of the TT Inc group and the measures outlined above mitigate the risk of going concern uncertainty and will ensure that TT Inc is able to continue to provide sufficient support for at least twelve months from date of approval of these financial statements.
The directors of Turntide Technologies Inc and Turntide Transport Ltd have confirmed that it will provide the support to allow the company to continue as a going concern for at least twelve months from date of approval of these financial statements. As such the financial statements have been prepared on a going concern basis.
1.3
Turnover
Turnover represents the amounts derived from the sale of EV water pumps, fans and motors to customers net of value added tax and trade discounts.
Revenue from the sale of EV water pumps, fans and motors are recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), 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.
AVID TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Patents & licences
10% straight line
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 land and buildings
6-10% straight line
Plant and equipment
10-50% straight line
Fixtures and fittings
33% straight line
Motor vehicles
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
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).
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
AVID TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.9
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.
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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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.
AVID TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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, if considered material to the financial statements.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
48
56
AVID TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
3
Intangible fixed assets
Patents & licences
£
Cost
At 1 January 2023 and 31 December 2023
119,463
Amortisation and impairment
At 1 January 2023
41,985
Amortisation charged for the year
11,946
At 31 December 2023
53,931
Carrying amount
At 31 December 2023
65,532
At 31 December 2022
77,478
4
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
261,327
2,460,385
500,331
38,973
3,261,016
Additions
10,367
135,834
2,519
148,720
Disposals
(33,417)
(33,417)
At 31 December 2023
271,694
2,562,802
502,850
38,973
3,376,319
Depreciation and impairment
At 1 January 2023
105,464
1,407,159
493,337
38,973
2,044,933
Depreciation charged in the year
25,575
162,747
5,242
193,564
Eliminated in respect of disposals
(7,323)
(7,323)
At 31 December 2023
131,039
1,562,583
498,579
38,973
2,231,174
Carrying amount
At 31 December 2023
140,655
1,000,219
4,271
1,145,145
At 31 December 2022
155,863
1,053,226
6,994
1,216,083
AVID TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
691,935
1,111,259
Corporation tax recoverable
460,735
227,600
Amounts owed by group undertakings
135,662
141,031
Other debtors
471,605
373,006
1,759,937
1,852,896
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,000
10,000
Trade creditors
605,639
673,103
Amounts owed to group undertakings
9,843,609
7,514,867
Taxation and social security
57,545
69,961
Other creditors
421,905
567,827
10,938,698
8,835,758
Bank loans include amounts of £10,000 (2022 - £10,000) which are unsecured and are repayable over 6 years in monthly instalments. Interest of 2.5% is charged on these loan amounts.
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
21,667
31,667
Bank loans include amounts of £21,667 (2022 - £31,667) which are unsecured and are repayable over 6 years in monthly instalments. Interest of 2.5% is charged on these loan amounts.
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
2,198,100
2,198,100
21,981
21,981
Deferred shares of 1p each
36,623,130
36,623,130
376,231
376,231
38,821,230
38,821,230
398,212
398,212
The deferred shares carry no voting rights.
AVID TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Total commitments
118,002
276,059
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Stephen Slater
Statutory Auditor:
Sumer Auditco Limited
Date of audit report:
28 January 2025
11
Parent company
The company's parent undertaking is Avid Technology Group Limited, a company incorporated in England and Wales.
The company's ultimate UK parent undertaking is Turntide Transport Limited, a company incorporated in England and Wales and its registered office is Turntide Drives Eighth Avenue, Team Valley Trading Estate, Gateshead, United Kingdom, NE11 0QA.