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Macat International Limited

Annual Report and Unaudited Financial Statements
Year Ended 31 December 2023

Registration number: 06842711

 

Macat International Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Accountants' Report

4

Income Statement

5

Statement of Comprehensive Income

6

Statement of Financial Position

7 to 8

Statement of Changes in Equity

9

Statement of Cash Flows

10

Notes to the Unaudited Financial Statements

11 to 23

 

Macat International Limited

Company Information

Directors

Mr S A Y Khalil

Mr M R Anderson

Mr S D Lebus

Dr A A Von Davier

Registered office

Uncommon Fulham
126 New Kings Road
London
SW6 4LZ

Solicitors

Foot Anstey
Salt Quay House
4 North East Quay
Sutton Harbour
Plymouth
PL4 0BN

Bankers

Barclays Bank plc
Notting Hill Gate
Kensington
London
W11 3JQ

Accountants

Francis Clark LLP
Chartered Accountants
Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

 

Macat International Limited

Strategic Report

Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Principal Activity

Macat's principal activity continues to be focused on assessing and teaching 21st century skills, predominantly critical thinking and most recently creativity. MACAT intends to extend its offering to the assessment and teaching of communication and collaboration with machines.

Macat's core value proposition lies in its specialization and its methodology that underpins the assessment and fostering of these skills. MACAT does this via PACIER, which is an acronym for a propriety model that defines critical thinking as the component skills of problem solving, analysis, creative thinking, interpretation, revaluation and reasoning. Macat also developed the PACIER Method, which builds on the PACIER model to offer an end-to-end solution that helps people Test, Train and Track their critical thinking skills.

The PACIER Method of "Test, Train and Track" is delivered by the PACIER Products that include: PACIER Assessments, PACIER Library and PACIER Masterclasses (Domain-Agnostic and Domain-Specific).

Fair review of the business

The company has made a loss of £958,363 (2022: profit £207,418) it continues to invest in the development of its PACIER Products and grow its sales channels.

Principal risks and uncertainties

The principal risks relate to the rate of take up of Macat's PACIER Products and its ability to fund the business in the meantime. Another risk lies in collecting the current accounts receivables which is mitigated by a provision for bad debts. The Directors judge these to be manageable risks.

Key financial and other performance indicators

The company's key financial and other performance indicators during the year are as follows: Cash flow and cash burn; and revenue.

 

Approved by the board on 27 January 2025 and signed on its behalf by:
 

.........................................
Mr S A Y Khalil
Director

 

Macat International Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the unaudited financial statements for the year ended 31 December 2023.

Directors' of the company

The directors, who held office during the year, were as follows:

Mr S A Y Khalil

Mr M R Anderson

Mrs F Dada (ceased 24 June 2024)

Lord J P Knight (ceased 8 December 2023)

Mr S D Lebus

Dr A A Von Davier


Turnover

Turnover for the year under review was £116,177 (2022: £850,432)

Financial instruments

The directors are responsible for setting objectives and policies in relation to financial instruments, details of which can be found in note 17.

Going concern and liquidity risk

Reducing cash-burn through cost optimisation and outsourcing.

In 2023 Macat launched a rights issues that secured funding. The need for funding continues to be manageable as a result of the efforts to reduce cash burn while increasing income. Additionally, the transformation of many fixed cost items into variable costs related to revenue generation has made a positive contribution to such efforts. Management is looking to raise significant funding in the future.
 

Political donations

During the year the company made no political donations (2022 - £Nil).

Charitable donations

During the year the company made charitable donations totalling £1,030 (2022 - £Nil).

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Approved by the board on 27 January 2025 and signed on its behalf by:
 

.........................................
Mr S A Y Khalil
Director

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Macat International Limited
for the Year Ended 31 December 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Macat International Limited for the year ended 31 December 2023 set out on pages 5 to 23 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Macat International Limited, as a body, in accordance with the terms of our engagement letter dated 15 August 2023. Our work has been undertaken solely to prepare for your approval the accounts of Macat International Limited and state those matters that we have agreed to state to them, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Macat International Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Macat International Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Macat International Limited. You consider that Macat International Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Macat International Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Francis Clark LLP
Chartered Accountants
Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

27 January 2025

 

Macat International Limited

Income Statement

Year Ended 31 December 2023

Note

2023
£

2022
£

Revenue

3

116,110

847,793

Administrative expenses

 

(1,070,819)

(628,972)

Other operating income

4

67

2,639

Other losses

5

(1)

-

Operating (loss)/profit

6

(954,643)

221,460

Finance income

 

923

55

Finance costs

 

(4,643)

(14,097)

Net finance cost

7

(3,720)

(14,042)

(Loss)/profit before tax

 

(958,363)

207,418

(Loss)/profit for the year

 

(958,363)

207,418

The above results were derived from continuing operations.

 

Macat International Limited

Statement of Comprehensive Income

Year Ended 31 December 2023

2023
£

2022
£

(Loss)/profit for the year

(958,363)

207,418

Total comprehensive income for the year

(958,363)

207,418

 

Macat International Limited

Statement of Financial Position

31 December 2023

Note

31 December
2023
£

31 December
2022
£

Assets

Non-current assets

 

Property, plant and equipment

10

4,733

9,997

Intangible assets

11

1,294,878

1,067,456

Investments in subsidiaries, joint ventures and associates

2

3

Other non-current financial assets

3,331,709

3,331,709

 

4,631,322

4,409,165

Current assets

 

Trade and other receivables

13

385,754

970,403

Cash and cash equivalents

14

24,489

35,890

 

410,243

1,006,293

Total assets

 

5,041,565

5,415,458

Equity and liabilities

Equity

 

Share capital

15

(39,903)

(34,489)

Share premium

 

(22,275,548)

(21,843,304)

Retained earnings

 

18,118,016

17,159,653

Total equity

 

(4,197,435)

(4,718,140)

Non-current liabilities

 

Loans and borrowings

16

(17,348)

(30,959)

Current liabilities

 

Trade and other payables

17

(809,787)

(652,648)

Loans and borrowings

16

(13,678)

(13,711)

Income tax liability

 

(3,317)

-

 

(826,782)

(666,359)

Total liabilities

 

(844,130)

(697,318)

Total equity and liabilities

 

(5,041,565)

(5,415,458)

 

Macat International Limited

Statement of Financial Position

31 December 2023

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Approved by the board and authorised for use on 27 January 2025 and signed on its behalf by:

.........................................

Mr S A Y Khalil

Director

Company registration number: 06842711

 

Macat International Limited

Statement of Changes in Equity

Year Ended 31 December 2023

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 January 2022 (as restated)

34,489

21,843,304

(17,367,071)

4,510,722

Profit for the year

-

-

207,418

207,418

Total comprehensive income

-

-

207,418

207,418

At 31 December 2022 (as restated)

34,489

21,843,304

(17,159,653)

4,718,140

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 January 2023

34,489

21,843,304

(17,159,653)

4,718,140

Loss for the year

-

-

(958,363)

(958,363)

Total comprehensive income

-

-

(958,363)

(958,363)

New share capital subscribed

5,414

432,244

-

437,658

At 31 December 2023

39,903

22,275,548

(18,118,016)

4,197,435

 

Macat International Limited

Statement of Cash Flows

Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

(Loss)/profit for the year

 

(958,363)

207,418

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

167,837

147,249

Loss from disposals of investments

5

1

-

Finance income

7

(923)

(55)

Finance costs

7

4,643

14,097

 

(786,805)

368,709

Working capital adjustments

 

Decrease/(increase) in trade and other receivables

13

584,649

(490,669)

Increase in trade and other payables

17

157,139

325,486

Cash generated from operations

 

(45,017)

203,526

Income taxes received

9

3,317

-

Net cash flow from operating activities

 

(41,700)

203,526

Cash flows from investing activities

 

Interest received

7

923

55

Acquisition of intangible assets

11

(389,995)

(143,388)

Net cash flows from investing activities

 

(389,072)

(143,333)

Cash flows from financing activities

 

Interest paid

7

(1,087)

(6,300)

Proceeds from issue of ordinary shares, net of issue costs

 

437,658

-

Repayment of bank borrowing

 

(8,487)

(7,778)

Payments to finance lease creditors

 

(5,524)

(5,523)

Foreign exchange losses

7

(3,196)

(7,437)

Net cash flows from financing activities

 

419,364

(27,038)

Net (decrease)/increase in cash and cash equivalents

 

(11,408)

33,155

Cash and cash equivalents at 1 January

 

35,830

2,675

Cash and cash equivalents at 31 December

 

24,422

35,830

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated and domiciled in England and Wales.

The address of its registered office is:
Uncommon Fulham
126 New Kings Road
London
SW6 4LZ

Information on the company's ultimate controlling party is presented in note 18.

2

Accounting policies

Statement of compliance

The company financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations adopted by the UK ("adopted IFRS's").

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.

Basis of preparation

The financial statements have been prepared in accordance with adopted IFRSs and under historical cost accounting rules.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies.

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future such estimates and assumptions which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modifies as appropriate in the year in which the circumstances change.

Exemption from preparing group accounts

Under provision of section 398 of the Companies Act 2006 the company is exempt from preparing consolidated accounts and has not done so; therefore the accounts show information about the company as an individual entity.

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

Revenue recognition

Revenue 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. Revenue is shown net of
sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

Critical accounting estimates and judgements

The company makes certain estimates and assumptions regarding the future. As a start-up, the company has limited historical experience but takes a view of future events based on continual evaluation of its potential product offering in the marketplace based on discussions with independent third parties. The estimates and assumptions that have a significant risk of causing a material adjustment of carrying amounts of assets and liabilities within the next financial year are discussed below.

Power to exercise significant influence

Management's assessment of going concern is based on the company having won a number of contracts with book distributors within the financial year and after the balance sheet date, and also the aim of winning further contracts in the future. In the event of this trading being pushed back, or fewer contracts being won than anticipated, the company will manage its working capital to ensure no shortages in cash occur. The shareholders are expected to inject the necessary funds into the business if required to continue trading as a solvent entity.

Going concern

Macat International Limited is a start-up company that is challenging the way Critical Thinking skills are being developed, the provision of educational services in this area, and the way in which they are being evaluated and monitored. This is being delivered in a new, innovative way and, as with anything new and innovative, there is a significant amount of risk associated with delivering a successful outcome.

The directors have prepared a cash flow forecast up to 2023 which shows that future discounted cash flows exceed the carrying value of the non-current assets at the balance sheet date. The forecast contains certain assumptions about the performance of the business including the successful implementation of a number of signed contracts with international book distributors, the successful signing of further contracts with other distributors, and the cost model, margins and discount rate used. In the next 12 months, the most critical assumptions are those concerning the growth of the business. The directors are aware of the risks and uncertainties facing the business as it continues to win contracts with book distributors but the assumptions used are the directors’ best estimate of the future development of the business, taking into account the current status of contract negotiation and successful implementation of the first signed contract.

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

After considering the forecasts and the risks, the directors believe that, whilst these risks exist, they can successfully deliver this growth, and have the backing of the shareholders who have provided financial support to the company. In addition, as the technology and intellectual property is new, the directors are considering different ways to monetise these assets and add new revenue streams, some of which have started to generate revenue in 2021 and 2022. The directors believe that the shareholders will continue to support the company for the foreseeable future and, as a result, they believe that it is appropriate to continue to prepare the accounts on a going concern basis. However, beyond the next 12 months the company will need either to have substantially increased its revenues or taken actions to ensure it remains sufficiently funded. As with any start-up company, there is always an inherent risk over the ability to continue as a going concern if forecasts are not met and cash resources are not adequate. The financial statements do not include any adjustments that would result from an inability to continue as a going concern.

Based on a detailed review of future cash flows, existing and planned customer contracts and the anticipated completion of a current issue of convertible loan notes, the Board of Directors is satisfied that the business is a going concern.

Tax

Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date.

Deferred income tax is provided, using the liability method, on temporary differences between tax bases of assets and liabilities and their carrying amounts, in the financial statements. Deferred income tax assets relating to the carry-forward of unused tax losses are recognised to the extent that it is probable that future tax profit will be available against which the unused tax losses can be utilised.

Current and deferred income tax assets and liabilities are offset when the income taxes are levied by the same taxation authority and when there is a legally enforceable right to offset them.

Property, plant and equipment

Property, plant and equipment are initially recorded at cost of purchase or construction and are depreciated on a straight line basis, except for land, which is not depreciated.

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

Computer equipment

33% straight line

Furniture, fittings and office equipment

33% straight line

Repairs and maintenance costs are recognised as expenses as incurred. Borrowing costs are not capitalised. There are no leases assets.

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

Intangible assets

Expenditure on internally developed products is capitalised if it can be demonstrated that:

- it is technically feasible to develop the product for it to be sold
- adequate resources are available to complete the development
- there is an intention to complete and sell the product
- the company is able to sell the product
- sale of the product will generate future economic benefits, and
- expenditure on the project can be measured reliably

Capitalised development costs will be amortised over the periods the company expects to benefit from selling the products developed. The amortisation expense will be included within the cost of sales line in the statement of financial position.

Development expenditure not satisfying the above criteria and expenditure on the research phase of internal projects are recognised in the statement of comprehensive income as incurred.

Amortisation

Amortisation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Amortisation method and rate

Software

10-20% reducing balance

Investments

Investments in securities are classified on initial recognition as available-for-sale and are carried at fair value, except where their fair value cannot be measured reliably, in which case they are carried at cost, less any impairment.

Unrealised holding gains and losses other than impairments are recognised in other comprehensive income. On maturity or disposal, net gains and losses previously deferred in accumulated other comprehensive income are recognised in income.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Financial instruments

Financial instruments are recognised when the company becomes party to the contracts that gives rise to them and they are derecognised on settlement. They are measured initially at fair value, normally being the transaction price.

The subsequent accounting treatment depends on the classification of an instrument as set out below.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

Trade receivables

Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.

Trade receivables 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 receivables 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 payables

Trade payables 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 payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Foreign currency transactions and balances

Transaction in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the end of the reporting period. All differences are taken to the statement of profit or loss.

Borrowings

All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in finance costs.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

The contributions are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as an asset.

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods and services

116,110

847,793

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

67

2,639

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2023
£

2022
£

Gain or loss from disposals of investments

(1)

-

6

Operating (loss)/profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

5,264

5,264

Amortisation expense

162,573

141,985

Operating lease expense - Rent of property

11,885

6,247

Bad debts written off

609,091

203,253

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

7

Finance income and costs

2023
£

2022
£

Finance income

Interest income on bank deposits

923

55

Finance costs

Interest on obligations under finance leases and hire purchase contracts

(360)

(360)

Interest expense on other financing liabilities

(1,087)

(6,300)

Foreign exchange losses

(3,196)

(7,437)

Total finance costs

(4,643)

(14,097)

Net finance costs

(3,720)

(14,042)

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

-

38,261

Social security costs

-

1,247

Pension costs, defined contribution scheme

-

21

-

39,529

The average number of employees during the year was 0 (2022: 1)

9

Income tax

2023
£

2022
£

(Loss)/profit before tax

(958,363)

207,418

Corporation tax at standard rate

(175,117)

39,409

Tax decrease from utilisation of tax losses

-

(39,409)

Increase from effect of unrelieved tax losses carried forward

175,117

-

Total tax charge/(credit)

-

-

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

Deferred tax

There are £16,927,484 of unused tax losses (2022 - £15,770,131) for which no deferred tax asset is recognised in the statement of financial position since the directors do not currently foresee profits in the future to offset these against.

10

Property, plant and equipment

Furniture, fittings and office equipment
£

Computer equipment
£

Total
£

Cost or valuation

At 1 January 2022

51,359

87,191

138,550

At 31 December 2022

51,359

87,191

138,550

At 1 January 2023

51,359

87,191

138,550

At 31 December 2023

51,359

87,191

138,550

Depreciation

At 1 January 2022

51,359

71,930

123,289

Charge for year

-

5,264

5,264

At 31 December 2022

51,359

77,194

128,553

At 1 January 2023

51,359

77,194

128,553

Charge for the year

-

5,264

5,264

At 31 December 2023

51,359

82,458

133,817

Carrying amount

At 31 December 2023

-

4,733

4,733

At 31 December 2022

-

9,997

9,997

At 1 January 2022

-

15,261

15,261

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

11

Intangible assets

Software
£

Total
£

Cost or valuation

At 1 January 2022

1,954,930

1,954,930

Additions

143,388

143,388

At 31 December 2022 and 1 January 2023

2,098,318

2,098,318

Additions

389,995

389,995

At 31 December 2023

2,488,313

2,488,313

Amortisation

At 1 January 2022

888,877

888,877

Amortisation charge

141,985

141,985

At 31 December 2022 and 1 January 2023

1,030,862

1,030,862

Amortisation charge

162,573

162,573

At 31 December 2023

1,193,435

1,193,435

Carrying amount

At 31 December 2023

1,294,878

1,294,878

At 31 December 2022

1,067,456

1,067,456

12

Investments

Subsidiaries

£

Cost or valuation

At 1 January 2023

3

Disposals

(1)

At 31 December 2023

2

Provision

At 1 January 2023

-

At 31 December 2023

-

Carrying amount

At 31 December 2023

2

At 1 January 2022

3

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

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

Name of subsidiary
 

Principal activity
 

Country of incorporation and principal place of business
 

Proportion of ownership interest and voting rights held
2023

2022

Mouseion Professors Limited

Intellectual property holding company

England and Wales

100%

100%

Macat USA Inc

Dormant

United States of America

100%

100%

Macat Arabic Limited (Dissolved)

Technical and vocational secondary education

England and Wales

51%

51%

13

Trade and other receivables

Current

31 December
2023
£

31 December
2022
£

Trade receivables

4,200

813,011

Provision for impairment of trade receivables

-

(203,253)

Net trade receivables

4,200

609,758

Prepayments

18,189

10,640

Other receivables

363,365

350,005

 

385,754

970,403

Details of non-current trade and other receivables

£3,331,709 (2022 - £3,331,709 ) of receivables from related parties is classified as non current.

14

Cash and cash equivalents

31 December
2023
£

31 December
2022
£

Cash on hand

200

200

Cash at bank

3,907

5,964

Short-term deposits

18

49

Other cash and cash equivalents

20,364

29,677

24,489

35,890

Bank overdrafts

(67)

(60)

Cash and cash equivalents in statement of cash flows

24,422

35,830

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

15

Share capital

Allotted, called up and fully paid shares

 

31 December
2023

31 December
2022

 

No.

£

No.

£

Ordinary shares of £0.01 each

3,990,274

39,903

3,448,919

34,489

         

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
(a) each share entitles the holder to receive notice, attend, speak and to one vote at any general meeting;
(b) each share is entitled to participate pari passu in dividend payments or other distributions;
(c) each share is entitled to participate pari passu in any distribution arising from a return of capital, liquidation, capital reduction or winding up of the company; and
(d) the shares do not confer any rights of redemption.

16

Loans and borrowings

31 December
2023
£

31 December
2022
£

Non-current loans and borrowings

Bank borrowings

17,348

26,225

Other borrowings

-

4,734

17,348

30,959

31 December
2023
£

31 December
2022
£

Current loans and borrowings

Bank borrowings

8,877

8,488

Bank overdrafts

67

60

HP and finance lease liabilities

4,734

5,163

13,678

13,711

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

17

Trade and other payables

31 December
2023
£

31 December
2022
£

Trade payables

269,443

122,155

Accrued expenses

12,414

12,564

Other payables

527,930

517,929

809,787

652,648

18

Parent and ultimate parent undertaking

There is no ultimate controlling party in the year due to there being no majority shareholder.

19

Related party transactions

Income and receivables from related parties

At the year end £5,081,709 (2022 - £5,081,709) was owed by a subsidiary undertaking, Mouseion Professors Limited. There is a £1,750,000 (2022 - £1,750,000) bad debt provision against this balance. The net of £3,331,709 (2022 - £3,331,709) is recognised in related party receivables.

20

Financial instruments

Financial instruments give rise to liquidity, credit, interest rate and foreign currency risks. The directors review and agree policies for managing these risks. Financial instruments are not used for speculative activity and complex financial instruments are avoided. Information about how these risks are managed is set out below.

Liquidity risk

Liquidity risk arises from ongoing financial obligation. Currently the company has no revenues and incurs liabilities in funding its subsidiary, Mouseion Professors Limited, as well as outsiders.

Its current funding has been provided by its shareholders and its future funding requirements will be met by raising more capital from its shareholders.

Based on current projections and support from shareholders management of cash flows is considered adequate to finance variations in forecast working capital.

 

Macat International Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2023

Credit risk

The company is in start-up mode and as such has no significant revenues. The major receivable is from its wholly owned subsidiary Mouseion Professors Limited which is responsible for developing the content component of the digital library.

While Mouseion is dependent on it's funding from Macat, the latter will continue to support it.

2023

2022

£000

£000

Total

3,332

3,332

As Mouseion Professors Limited owns the Intellectual Property in the content which is an essential component of the Macat library Macat International Limited will continue to support the subsidiary, and management is of the view that there is no specific exposure.

Interest rate risk

As the company has no credit lines in place and as the interest earned is not material management is of the view that there is no significant interest rate risk.

Foreign currency risk

Costs are mainly incurred in pounds sterling although there are some US Dollar and Euro costs. These are unhedged.