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Brain-in-Hand Limited

Annual Report and Financial Statements
Year Ended 30 September 2024

Registration number: 06971006

 

Brain-in-Hand Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 8

 

Brain-in-Hand Limited

Company Information

Directors

M S Gumienny

L M Morpeth

S R Page

E Rooth

Registered office

Broadwalk House
Southernhay West
Exeter
Devon
EX1 1TS

Auditors

PKF Francis Clark
Statutory Auditor
Centenary House
Peninsula Park
Rydon Lane
Exeter
Devon
EX2 7XE

 

Brain-in-Hand Limited

Balance Sheet

30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

5

30,631

60,989

Current assets

 

Debtors

6

1,573,215

1,643,955

Cash at bank and in hand

 

1,940,849

1,668,117

 

3,514,064

3,312,072

Creditors: Amounts falling due within one year

7

(1,302,691)

(829,892)

Net current assets

 

2,211,373

2,482,180

Total assets less current liabilities

 

2,242,004

2,543,169

Deferred Income

(4,443,739)

(3,734,993)

Net liabilities

 

(2,201,735)

(1,191,824)

Capital and reserves

 

Called up share capital

8

2,420

2,420

Share premium reserve

4,358,638

4,358,638

Profit and loss account

(6,562,793)

(5,552,882)

Shareholders' deficit

 

(2,201,735)

(1,191,824)

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 9 December 2024 and signed on its behalf by:
 

.........................................
S R Page
Director

Company Registration Number: 06971006

 

Brain-in-Hand Limited

Notes to the Financial Statements

Year Ended 30 September 2024

1

General information

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

The address of its registered office is:
Broadwalk House
Southernhay West
Exeter
Devon
EX1 1TS

These financial statements were authorised for issue by the Board on 9 December 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

Going concern

At the balance sheet date the Company had net liabilities of £2.20m (2023: net liabilities of £1.19m). This reflects the losses incurred in the year as a result of continued investment in Research and Development. It is the Company's policy to expense all such expenditure to the Statement of Income and Retained Earnings when it is incurred. Alongside this, billings payments received are held in the Balance Sheet as Deferred Income and totals £4.44m this year (2023: £3.73m).

As at 30 September 2024, the Company had net current assets of £2.21m, including cash of £1.94m. The directors have prepared forecasts and projections, which take into account growth in user numbers, the cost base to support this growth and Innovate grant funding awarded. Based on these forecasts and having made all necessary enquiries, the directors are satisfied that the Company is expected to maintain sufficient cash balances to meet working capital requirements for a period of at least twelve months from the date of approval of these financial statements. Accordingly, the directors continue to adopt the going concern basis of presentation.

 

Brain-in-Hand Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, refunds and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Revenue is recognised over the period for which the software and service subscription are provided.

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102.

Grants of a revenue nature are recognised in 'other income' within the Statement of Income and Retained Earnings in the same period as the related expenditure.

Tax

Tax is recognised in the statement of income and retained earnings except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Any research and development tax credits are recognised on a cash received basis.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures,fittings and equipment

25% straight line or over the life of the lease

Leasehold improvements

Over the life of the lease term

Research and development

Research and development costs are recognised as an expense in the Statement of Income and Retained Earnings when it is incurred.

 

Brain-in-Hand Limited

Notes to the Financial Statements

Year Ended 30 September 2024

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 the statement of income and retained earnings on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the statement of income and retained earnings and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Share based payments

Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share payments is expensed on a straight-line basis over the vesting period, based on the company's estimate of the number of shares that will eventually vest.

The fair value of share options is measured using the Black-Scholes model on the grounds there are no market related vesting conditions.

 

Brain-in-Hand Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.


 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 123 (2023 - 146).

4

Loss before tax

Arrived at after charging/(crediting)

2024
£

2023
£

Research and development expense

1,808,442

1,751,350

 

Brain-in-Hand Limited

Notes to the Financial Statements

Year Ended 30 September 2024

5

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 October 2023

176,120

176,120

Additions

8,498

8,498

At 30 September 2024

184,618

184,618

Depreciation

At 1 October 2023

115,131

115,131

Charge for the year

38,856

38,856

At 30 September 2024

153,987

153,987

Carrying amount

At 30 September 2024

30,631

30,631

At 30 September 2023

60,989

60,989

6

Debtors

2024
£

2023
£

Trade debtors

1,401,859

1,316,447

Prepayments

50,333

310,964

Other debtors

121,023

16,544

1,573,215

1,643,955

 

Brain-in-Hand Limited

Notes to the Financial Statements

Year Ended 30 September 2024

7

Creditors

Creditors: amounts falling due within one year

2024
£

2023
£

Due within one year

Trade creditors

286,252

75,604

Taxation and social security

573,810

472,240

Other creditors

37,623

40,567

Accruals

405,006

241,481

1,302,691

829,892

8

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary shares of £0.0067 each

362,788

2,420

362,788

2,420

         

9

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was Neil Hitchings, who signed for and on behalf of PKF Francis Clark on 10 December 2024.