Company Registration No. 12839687 (England and Wales)
Xiatech Holdings Limited
Annual report and
group financial statements
for the year ended 30 September 2024
Xiatech Holdings Limited
Company information
Directors
Mr J M Summerfield
Mr M P Moran
Mr D W Chislett
Company number
12839687
Registered office
71 Queen Victoria Street
London
EC4V 4BE
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Xiatech Holdings Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
Xiatech Holdings Limited
Strategic report
For the year ended 30 September 2024
1

The directors present the strategic report for the year ended 30 September 2024.

Review of the business

The principal activity of the Group continued to be that of the provision of an integration platform and data analytics. The client base includes several retailers in the UK, Europe and Scandinavia as well as clients in gaming, business to business services and the charity sector.

 

The Group experienced further growth in the year, albeit at a slower rate than in recent years primarily due to economic conditions. The onward development of the platform resulted in an investment of £2m in the year and has brought enhanced functionality. It is expected that investment will continue at the lower level of £1.25m in order to simplify the implementation of the platform and build further connectors.

Principal risks and uncertainties

The principal risk is the uncertainty of the global economy. Whilst digital transformation projects remain a high priority, there is an increased caution in the commitment to large multi-year projects by organisations. This is resulting in an increase in pilots and the Group scales its business operations accordingly. Despite the increased requests for pilots we are seeing these convert to long term arrangements in recognition of the value we bring to clients. 

Results and performance

The results of the Group for the year, as set out on page 9, show a loss on ordinary activities before tax of £2,601,804 (2023: £1,323,564).

 

The shareholders’ funds of the Group total £2,741,454 (2023: £5,096,011).

 

The performance of the Group during the financial year 2024 has produced encouraging results, despite a backdrop of challenging trading conditions. Delays in moving customers from pilots to full implementation of the platform impacted margins in the first part of the financial year. Significant customer wins in the final quarter of the year saw a 30% growth in revenue from the same quarter in 2023. 

Key performance indicators

We have made significant progress throughout the year in relation to key elements of our strategy. The Board monitors the progress of the Group by reference to the following KPIs:

 

KPI

2024

2023

Growth in Revenue

7%

10%

Gross Profit Margin

49%

55%

Earnings Before Interest, Tax, Depreciation and Amortisation*

£1.08m

£1.60m

 

*The Directors also exclude governance and non-recurring costs when calculating their KPI.

Strategy

The Group's success is dependent upon continuing to provide an exceptional service to our clients to enable them to be data driven in driving the performance of their business. Our commitment to invest in our platform to further enhance functionality and speed of implementation provides the opportunity to increase our market share within the retail sector and to enter into other sectors.

 

Xiatech Holdings Limited
Strategic report (continued)
For the year ended 30 September 2024
2

On behalf of the board

Mr J M Summerfield
Director
5 March 2025
Xiatech Holdings Limited
Directors' report
For the year ended 30 September 2024
3

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the Group continued to be that of the provision of an integration platform and data analytics.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mr J M Summerfield
Mr M P Moran
Mr D W Chislett
Auditor

In accordance with the company's articles, a resolution proposing that Saffery LLP be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of its principal risks and uncertainties, and review of the business.

Xiatech Holdings Limited
Directors' report (continued)
For the year ended 30 September 2024
4
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr J M Summerfield
Director
5 March 2025
Xiatech Holdings Limited
Independent auditor's report
To the members of Xiatech Holdings Limited
5
Opinion

We have audited the financial statements of Xiatech Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 directors' 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 group's and parent 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. 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.

Xiatech Holdings Limited
Independent auditor's report (continued)
To the members of Xiatech Holdings Limited
6

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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 directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine 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 directors are responsible for assessing the parent 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 directors either intend to liquidate the parent company or to cease operations, or have 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.

Xiatech Holdings Limited
Independent auditor's report (continued)
To the members of Xiatech Holdings Limited
7

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.

 

Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

 

There are inherent limitations in the audit procedures described above and the further 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 it. Also, 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Xiatech Holdings Limited
Independent auditor's report (continued)
To the members of Xiatech Holdings Limited
8

Use of our report

This report is made solely to the parent 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 parent company's members those matters we are required to state to them in an auditors 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Jamie Cassell
Senior Statutory Auditor
For and on behalf of Saffery LLP
6 March 2025
Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Xiatech Holdings Limited
Group statement of comprehensive income
For the year ended 30 September 2024
9
2024
2023
Notes
£
£
Turnover
3
10,072,076
9,441,104
Cost of sales
(5,131,488)
(4,251,614)
Gross profit
4,940,588
5,189,490
Administrative expenses
(7,224,123)
(6,191,960)
Operating loss
4
(2,283,535)
(1,002,470)
Interest receivable and similar income
8
1,261
-
0
Interest payable and similar expenses
9
(319,530)
(321,094)
Loss before taxation
(2,601,804)
(1,323,564)
Tax on loss
10
263,583
111,045
Loss for the financial year
(2,338,221)
(1,212,519)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Xiatech Holdings Limited
Group statement of financial position
As at 30 September 2024
10
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,137,486
2,112,472
Other intangible assets
11
4,862,102
4,727,494
Total intangible assets
5,999,588
6,839,966
Tangible assets
12
33,040
47,154
6,032,628
6,887,120
Current assets
Debtors
15
3,120,374
2,450,280
Cash at bank and in hand
116,259
1,274,260
3,236,633
3,724,540
Creditors: amounts falling due within one year
16
(2,298,643)
(1,393,241)
Net current assets
937,990
2,331,299
Total assets less current liabilities
6,970,618
9,218,419
Creditors: amounts falling due after more than one year
17
(3,040,475)
(2,996,471)
Provisions for liabilities
Deferred tax liability
19
1,172,232
1,125,937
(1,172,232)
(1,125,937)
Net assets
2,757,911
5,096,011
Capital and reserves
Called up share capital
22
51,866
51,745
Share premium account
7,392,835
7,392,835
Profit and loss reserves
(4,686,790)
(2,348,569)
Total equity
2,757,911
5,096,011

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

The financial statements were approved by the board of directors and authorised for issue on 5 March 2025 and are signed on its behalf by:
05 March 2025
Mr J M Summerfield
Director
Company registration number 12839687 (England and Wales)
Xiatech Holdings Limited
Company statement of financial position
As at 30 September 2024
30 September 2024
11
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
8,306,462
8,306,462
Current assets
Debtors
15
1,403,119
1,229,493
Cash at bank and in hand
10,117
59,484
1,413,236
1,288,977
Creditors: amounts falling due within one year
16
(443,797)
(19,287)
Net current assets
969,439
1,269,690
Total assets less current liabilities
9,275,901
9,576,152
Creditors: amounts falling due after more than one year
17
(3,040,475)
(2,996,471)
Net assets
6,235,426
6,579,681
Capital and reserves
Called up share capital
22
51,866
51,745
Share premium account
7,392,835
7,392,835
Profit and loss reserves
(1,209,275)
(864,899)
Total equity
6,235,426
6,579,681

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £344,375 (2023 - £350,230 loss).

These financial statements have been prepared 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 5 March 2025 and are signed on its behalf by:
05 March 2025
Mr J M Summerfield
Director
Company registration number 12839687 (England and Wales)
Xiatech Holdings Limited
Group statement of changes in equity
For the year ended 30 September 2024
12
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
43,217
5,272,363
(1,136,050)
4,179,530
Year ended 30 September 2023:
Loss and total comprehensive income
-
-
(1,212,519)
(1,212,519)
Issue of share capital
22
8,528
2,120,472
-
2,129,000
Balance at 30 September 2023
51,745
7,392,835
(2,348,569)
5,096,011
Year ended 30 September 2024:
Loss and total comprehensive income
-
-
(2,338,221)
(2,338,221)
Issue of share capital
22
121
-
0
-
121
Balance at 30 September 2024
51,866
7,392,835
(4,686,790)
2,757,911
Xiatech Holdings Limited
Company statement of changes in equity
For the year ended 30 September 2024
13
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
43,217
5,272,363
(514,669)
4,800,911
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
-
(350,230)
(350,230)
Issue of share capital
22
8,528
2,120,472
-
2,129,000
Balance at 30 September 2023
51,745
7,392,835
(864,899)
6,579,681
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
(344,376)
(344,376)
Issue of share capital
22
121
-
0
-
121
Balance at 30 September 2024
51,866
7,392,835
(1,209,275)
6,235,426
Xiatech Holdings Limited
Group statement of cash flows
For the year ended 30 September 2024
14
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
398,377
1,516,125
Interest paid
(275,526)
(277,090)
Income taxes refunded
369,034
565,540
Net cash inflow from operating activities
491,885
1,804,575
Investing activities
Purchase of intangible assets
(2,040,446)
(2,232,860)
Purchase of tangible fixed assets
(35,822)
(22,940)
Interest received
1,261
-
0
Net cash used in investing activities
(2,075,007)
(2,255,800)
Financing activities
Proceeds from issue of shares
121
2,129,000
Proceeds/(repayment) of bank loans
425,000
(809,723)
Net cash generated from financing activities
425,121
1,319,277
Net (decrease)/increase in cash and cash equivalents
(1,158,001)
868,052
Cash and cash equivalents at beginning of year
1,274,260
406,208
Cash and cash equivalents at end of year
116,259
1,274,260
Xiatech Holdings Limited
Notes to the group financial statements
For the year ended 30 September 2024
15
1
Accounting policies
Company information

Xiatech Holdings Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 71 Queen Victoria Street, London, EC4V 4BE.

 

The group consists of Xiatech Holdings Limited and all of its subsidiaries.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, 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. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

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.

Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
16
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Xiatech Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

Xiatech Holdings Limited was incorporated on 26 August 2020 and obtained the share capital of Xiatech Limited, creating the group.

 

All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have prepared forecasts for the 12 months from the date of signing the financial statements which have been sensitised on the key assumptions that have been used in the forecasts. The forecasts show that they have adequate resources to continue in operational existence for the foreseeable future. Also, the shareholders of the parent company have confirmed their continued support for the company for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
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.

Turnover from contracts which include a pre-agreed pricing structure for the provision of non-recurring integration and data services is recognised by reference to stage of completion. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates as a proportion of total costs.

 

Turnover from contracts for the provision of recurring integration and data services is spread over the term of the contract.

 

Subscription turnover is spread over the term of the contract.

 

Hosting turnover is recognised in line with the costs incurred to date.

 

Platform implementation turnover is recognised when the service is incurred.

 

Professional services turnover is recognised on a time and material basis, invoiced monthly in arrears.

1.6
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.

Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
17
1.7
Intangible fixed assets - goodwill

Goodwill arising on the acquisition of subsidiary undertakings represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
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:

Development costs
5 years
1.9
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:

Plant and equipment
15% Straight Line
Fixtures and fittings
25% Straight Line
Computers
50% 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 recognised in the income statement.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
18

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

1.11
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
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.

1.13
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
19
Basic financial assets

Basic financial assets, which include debtors, 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.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 group 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.

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 group after deducting all of its liabilities.

Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
20
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 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 group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
21
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

1.16
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.

1.17
Retirement benefits

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

1.18
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 using the Black-scholes model. 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.

 

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately. The share-based payment is immaterial for the financial statements.

 

 

 

Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
22
1.19
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 leased asset are consumed.

1.20
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.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Research and development

The directors are required to judge the viability of the research and development expenditure capitalised, to ensure that it will generate future economic benefit and also qualify for R&D tax credits. Research and development costs are based on timesheets, with the directors allocating time to research, development or cost of sales based on their experience in the industry. It is expected that all intangible assets capitalised will generate future economic benefit. Management have also determined that the useful economic life of intangible assets is 5 years, and accordingly intangible assets are amortised over this period. At each period end management perform a review to determine whether an impairment is required, and that the intangible assets are still generating economic benefit.

Goodwill impairment

The carrying value of goodwill is assessed at each year end for indicators of impairment. The directors review the the balance with regards to the underlying performance of the asset generating the goodwill, expected future performance and any other external factors.

Shared based payments

The Group operates an equity-settled option scheme. Equity-settled share-based payments are measured at fair value at the date of grant. Fair value is measured by use of the Black-Scholes model. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.

Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
23
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Subscription and hosting fees
2,267,247
1,652,867
Integration and data services
6,630,235
6,090,168
Platform implementation
1,017,840
1,278,346
Professional services
21,877
391,910
Other services
134,877
27,813
10,072,076
9,441,104
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
5,938,831
4,811,879
Europe
4,074,541
3,742,897
Rest of World
58,704
886,328
10,072,076
9,441,104
2024
2023
£
£
Other revenue
Interest income
1,261
-
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging:
Exchange losses
29,568
24,988
Depreciation of owned tangible fixed assets
49,936
54,092
(Profit)/loss on disposal of tangible fixed assets
-
2,243
Amortisation of intangible assets
2,723,811
2,303,962
Loss on disposal of intangible assets
157,013
-
Operating lease charges
214,513
257,930
Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
24
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,580
9,300
Audit of the financial statements of the company's subsidiaries
18,540
18,000
28,120
27,300
For other services
Taxation compliance and advisory services
4,890
4,750
All other non-audit services
5,665
5,500
10,555
10,250
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales
49
42
-
-
Administration
19
23
2
2
Total
68
65
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,650,492
1,587,461
47,000
47,000
Social security costs
747,244
662,135
3,976
4,006
Pension costs
149,330
122,524
-
0
-
0
2,547,066
2,372,120
50,976
51,006
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
313,978
282,503
Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
7
Directors' remuneration (continued)
25
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
266,978
235,503
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
1,261
-
9
Interest payable and similar expenses
2024
2023
£
£
Interest on invoice finance arrangements
44,004
59,281
Other interest
275,526
261,813
Total finance costs
319,530
321,094
Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
26
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(309,878)
(369,033)
Adjustments in respect of prior periods
-
0
44,763
Total current tax
(309,878)
(324,270)
Deferred tax
Origination and reversal of timing differences
46,295
187,708
Changes in tax rates
-
0
25,517
Total deferred tax
46,295
213,225
Total tax credit
(263,583)
(111,045)

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

2024
2023
£
£
Loss before taxation
(2,601,804)
(1,323,564)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
(650,451)
(291,290)
Tax effect of expenses that are not deductible in determining taxable profit
2,230
2,612
Change in unrecognised deferred tax assets
86,094
86,845
Adjustments in respect of prior periods
-
0
44,763
Research and development tax credit
464,817
294,301
Other permanent differences
243,915
216,065
Additional deduction for R&D expenditure
(410,188)
(479,465)
Remeasurement of deferred tax for changes in tax rates
-
0
15,124
Taxation credit
(263,583)
(111,045)
Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
27
11
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 October 2023
4,874,937
7,581,047
12,455,984
Additions
-
0
2,040,446
2,040,446
Disposals
-
0
(425,170)
(425,170)
At 30 September 2024
4,874,937
9,196,323
14,071,260
Amortisation and impairment
At 1 October 2023
2,762,465
2,853,553
5,616,018
Amortisation charged for the year
974,986
1,748,825
2,723,811
Disposals
-
0
(268,157)
(268,157)
At 30 September 2024
3,737,451
4,334,221
8,071,672
Carrying amount
At 30 September 2024
1,137,486
4,862,102
5,999,588
At 30 September 2023
2,112,472
4,727,494
6,839,966
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
12
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
82,120
5,637
41,803
69,342
198,902
Additions
-
0
6,306
29,516
-
0
35,822
Disposals
-
0
-
0
(26,834)
-
0
(26,834)
At 30 September 2024
82,120
11,943
44,485
69,342
207,890
Depreciation and impairment
At 1 October 2023
61,590
1,409
19,407
69,342
151,748
Depreciation charged in the year
12,318
6,110
31,508
-
0
49,936
Eliminated in respect of disposals
-
0
-
0
(26,834)
-
0
(26,834)
At 30 September 2024
73,908
7,519
24,081
69,342
174,850
Carrying amount
At 30 September 2024
8,212
4,424
20,404
-
0
33,040
At 30 September 2023
20,530
4,228
22,396
-
0
47,154
Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
12
Tangible fixed assets (continued)
28
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
8,306,462
8,306,462
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
8,306,462
Carrying amount
At 30 September 2024
8,306,462
At 30 September 2023
8,306,462
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Xiatech Limited
71 Queen Victoria Street, London, United Kingdom, EC4V 4BE
Ordinary
100
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,569,643
1,719,052
-
0
-
0
Corporation tax recoverable
309,878
369,034
-
0
1
Amounts owed by group undertakings
-
-
1,402,998
1,229,492
Other debtors
35,341
45,161
121
-
0
Prepayments and accrued income
205,512
317,033
-
0
-
0
3,120,374
2,450,280
1,403,119
1,229,493
Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
29
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
425,000
-
0
425,000
-
0
Trade creditors
748,602
561,603
38
34
Other taxation and social security
479,277
196,936
10,462
9,706
Other creditors
31,121
25,429
-
0
-
0
Accruals and deferred income
614,643
609,273
8,297
9,547
2,298,643
1,393,241
443,797
19,287
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Loans and loan notes
18
3,040,475
2,996,471
3,040,475
2,996,471

 

18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Loans and loan notes
3,465,475
2,996,471
3,465,475
2,996,471
Payable within one year
425,000
-
0
425,000
-
0
Payable after one year
3,040,475
2,996,471
3,040,475
2,996,471

The long-term loans are secured by a charge over the company's assets including fixed, floating, and negative pledge charges.

For £950,000 of Senior Facility Agreement loans the repayment date is 8 December 2025, and the interest rate is 8% per annum. For £304,250 of Mezzanine debt the repayment date is 8 December 2025, and the interest rate is 10% per annum. For £200,000 of Junior Loan Notes the repayment date is 8 December 2025, and the interest rate is 5% per annum. For £667,663 of Secured Loan Notes and £87 of unsecured loan notes, the repayment date is 8 December 2025, and the interest rate is 10% per annum. For £278,000 of Secured Senior Loan Notes, the repayment date is 8 December 2025, and the interest rate is 8% per annum. On 16 December 2022, the company entered into a 5% secured loan note agreement of £291,789 repayable in 2025.

 

On 28 March 2022, the company entered into a £1m revolving credit facility with Clydesdale bank. Under the revolving credit facility agreement, there is an outstanding loan of £425,000 at the year end, with interest charged at the Bank of England base rate plus margin.

Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
30
19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,175,145
1,129,145
Short term timing differences
(2,913)
(3,208)
1,172,232
1,125,937
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
1,125,937
-
Charge to profit or loss
46,295
-
Liability at 30 September 2024
1,172,232
-
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
149,330
122,524

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

Pension contributions recognised as a liability at the balance sheet date were £29,255 (2023: £23,433).

Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
31
21
Share-based payment transactions

During the year the Group operated an equity-settled option scheme over a maximum term of 10 years with a vesting period of 4 years from the grant date. The scheme is based on an exit event.

Group and company
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 October 2023
296,264
233,893
0.08
0.01
Granted
19,055
62,371
0.03
0.35
Exercised
(12,127)
-
-
-
Outstanding at 30 September 2024
303,192
296,264
0.11
0.08
Exercisable at 30 September 2024
-
-
-
-

The options outstanding at 30 September 2024 had an exercise price ranging from £0.01 to £0.35, and a remaining contractual life between 7 and 9 years.

The weighted average fair value of options granted in the year was determined using the Black-Scholes option pricing model. The Directors have reviewed the value of the options and based on the conditions of the agreement any option charge is considered immaterial. The Black-Scholes model is considered to apply the most appropriate valuation method due to the relatively short contractual lives of the options and the requirement to exercise within a short period after the employee becomes entitled to the shares (the “vesting date”).

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
192,312
180,185
1,923
1,802
A Ordinary shares of 1p each
1,288,084
1,288,084
12,881
12,881
B Ordinary shares of 1p each
2,650,376
2,650,376
26,503
26,503
C Ordinary shares of 1p each
971,740
971,740
9,717
9,717
D Ordinary shares of 1p each
84,212
84,212
842
842
5,186,724
5,174,597
51,866
51,745
Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
22
Share capital (continued)
32
12,127 Ordinary shares were issued as part of a share option exercise on 30 January 2024 at £0.01 per share with an aggregate value of £121.

Ordinary shares, A Ordinary shares, C Ordinary shares and D Ordinary shares have attached to them full voting, dividend and capital distribution rights. Ordinary B shares have attached to them dividend and capital distribution rights, although voting rights are limited to votes regarding amendments to the rights attaching to B shares.
23
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
207,855
211,320
-
-
Between two and five years
17,295
17,610
-
-
225,150
228,930
-
-
24
Related party transactions
Transactions with related parties

Payments of £123,083 (2023: £121,967) have been made to Entreux Partners, a company with a Director in common. At the year end £24,671 (2023: £12,579) remains outstanding.

 

Payments of £Nil (2023: £250) have been made to a family member of a Director. At the year end £Nil (2023: £Nil) remains outstanding.

 

Payments of £31,683 (2023: £29,748) have been made to a shareholder. At the year end £Nil (2023: £Nil) remains outstanding.

Other information

The company has taken advantage of the exemption available under section 33 not to disclose details of transactions between wholly owned subsidiaries of the group.

25
Controlling party

In the opinion of the directors, the company's ultimate controlling party is considered to be Jonathan Summerfield.

Xiatech Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
33
26
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(2,338,221)
(1,212,519)
Adjustments for:
Taxation credited
(263,583)
(111,045)
Finance costs
319,530
321,094
Investment income
(1,261)
-
0
(Gain)/loss on disposal of tangible fixed assets
-
2,243
Loss on disposal of intangible assets
157,013
-
Amortisation and impairment of intangible assets
2,723,811
2,303,962
Depreciation and impairment of tangible fixed assets
49,936
54,092
Movements in working capital:
(Increase)/decrease in debtors
(729,250)
293,739
Increase/(decrease) in creditors
480,402
(135,441)
Cash generated from operations
398,377
1,516,125
27
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,274,260
(1,158,001)
116,259
Borrowings excluding overdrafts
(2,996,471)
(469,004)
(3,465,475)
(1,722,211)
(1,627,005)
(3,349,216)
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