Company registration number 10660835 (England and Wales)
XYZ REALITY LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
XYZ REALITY LIMITED
COMPANY INFORMATION
Directors
D J Mitchell
N J Kingsbury
H Kanji
R Hunt
Company number
10660835
Registered office
338-346 Goswell Road
Clerkenwell
London
United Kingdom
EC1V 7LQ
Auditor
Azets Audit Services
2nd Floor
Regis House
45 King William Street
London
United Kingdom
EC4R 9AN
XYZ REALITY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 34
XYZ REALITY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Principal activities
The principal activity continued to be the development of a construction-grade AR-platform; a fully integrated cloud-based solution delivering real time data and solution on the construction-site. Holosite plugs into the Atom proprietary AR Head-Mounted Display (HMD) that overlays the 3D design-model onto the construction-site with millimetre-precision.
Business Review
During the year, the focus of the business has been on delivering the best service to existing customers and to explore opportunities from working with them. Through sales and marketing events, the group is beginning to penetrate different markets and has partnered with a contract manufacturer in the UK to help scale production activities for future sales demand.
Turnover increased by 75% in the year, rising to £4.7m from £2.7m in the prior year. Management have forecast continued improvement and expect to be profitable in future years.
Principal risks and uncertainties
The group's operations expose it to a variety of financial risks that include the effects of market risk (including currency risk and price risk), credit risk and liquidity risk.
The group's overall risk management strategy seeks to minimise adverse effects from the unpredictability of financial markets on the group's financial performance. The group uses sound management principles to protect against certain financial risk exposure.
The directors are responsible for setting the objectives and underlying principles of financial risk management for the group. The senior management team then establishes the detailed policies such as authority levels, oversight responsibilities, risk identification and measurement, exposure limits and hedging strategies. The policies set by the board of directors are implemented by the group's finance department.
Currency risk
Currency risk arises when transactions are denominated in foreign currencies. To manage the currency risk, the directors periodically will authorise limited foreign currency planning to mitigate the relevant foreign exchange exposure.
Price risk
The group is exposed to commodity price risk as a result of its operations. However, given the size of the group's operations, the costs of managing exposure to commodity price risk exceeds any potential benefits.
The directors will revisit the appropriateness of this policy should the group's operations change in size or nature.
Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group. For the trade receivables, the group performs ongoing credit valuations of its customers and maintains an allowance on doubtful accounts which, when realised, have been within the range of management’s expectations.
For other financial assets, the group adopts the policy of dealing only with high credit quality counterparts. Credit exposure to an individual counterparty is restricted by credit limits that are approved based on ongoing credit evaluation. The counterparty’s payment profile and credit exposure is continuously monitored by management.
Liquidity risk
The liquidity risk is usually assessed by comparing liquid assets and short-term liabilities. The group manages the liquidity risk by using cash flow forecasts which enables the group to monitor its working capital and make remedial action when necessary.
XYZ REALITY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
D J Mitchell
Director
6 March 2025
XYZ REALITY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
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 dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D J Mitchell
N J Kingsbury
H Kanji
R Hunt
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
D J Mitchell
Director
6 March 2025
XYZ REALITY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
XYZ REALITY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF XYZ REALITY LIMITED
- 5 -
Opinion
We have audited the financial statements of XYZ Reality Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2024 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
XYZ REALITY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF XYZ REALITY LIMITED
- 6 -
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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
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.
XYZ REALITY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF XYZ REALITY LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
Management had identified instances of fraud prior to our appointment as auditors. We discussed with them the nature and circumstances of the fraud and the procedures undertaken to establish the full extent of the fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including using data analytics to identify journal entries considered to be of greater risk and then testing the journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Performing enhanced testing on expenditure to ensure expenses and payments made were for genuine business purposes.
From the specific and targeted procedures performed on areas considered susceptible to fraud given our knowledge of the instances that occurred during the year, we did not identify any additional transactions that met the risk criteria.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
XYZ REALITY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF XYZ REALITY LIMITED
- 8 -
Toby Mason (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
7 March 2025
Chartered Accountants
Statutory Auditor
2nd Floor
Regis House
45 King William Street
London
United Kingdom
EC4R 9AN
XYZ REALITY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
as restated
Notes
£
£
Turnover
3
4,666,505
2,667,675
Cost of sales
(1,333,226)
(1,456,071)
Gross profit
3,333,279
1,211,604
Administrative expenses
(16,154,908)
(10,946,317)
Operating loss
5
(12,821,629)
(9,734,713)
Interest receivable and similar income
9
108,538
50,078
Interest payable and similar expenses
10
(890)
(33,457)
Loss before taxation
(12,713,981)
(9,718,092)
Tax on loss
11
2,209,226
1,223,417
Loss for the financial year
25
(10,504,755)
(8,494,675)
Other comprehensive income
Currency translation (loss)/gain arising in the year
(2,655)
10,973
Total comprehensive income for the year
(10,507,410)
(8,483,702)
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.
XYZ REALITY LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
12
334,288
261,307
Tangible assets
13
1,207,263
971,827
1,541,551
1,233,134
Current assets
Stocks
16
3,328,728
2,736,214
Debtors
17
3,300,900
717,993
Cash at bank and in hand
2,465,371
4,427,224
9,094,999
7,881,431
Creditors: amounts falling due within one year
18
(1,337,051)
(1,107,636)
Net current assets
7,757,948
6,773,795
Total assets less current liabilities
9,299,499
8,006,929
Provisions for liabilities
Provisions
19
60,000
60,000
(60,000)
(60,000)
Net assets
9,239,499
7,946,929
Capital and reserves
Called up share capital
23
3
3
Share premium account
24
38,649,811
26,849,831
Other reserves
8,318
10,973
Profit and loss reserves
25
(29,418,633)
(18,913,878)
Total equity
9,239,499
7,946,929
The financial statements were approved by the board of directors and authorised for issue on 6 March 2025 and are signed on its behalf by:
06 March 2025
D J Mitchell
Director
Company registration number 10660835 (England and Wales)
XYZ REALITY LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
12
334,288
261,307
Tangible assets
13
1,207,263
971,827
Investments
14
6,757
6,757
1,548,308
1,239,891
Current assets
Stocks
16
3,328,728
2,736,214
Debtors
17
4,222,190
986,392
Cash at bank and in hand
2,400,158
4,278,505
9,951,076
8,001,111
Creditors: amounts falling due within one year
18
(1,314,877)
(1,087,875)
Net current assets
8,636,199
6,913,236
Total assets less current liabilities
10,184,507
8,153,127
Provisions for liabilities
Provisions
19
60,000
60,000
(60,000)
(60,000)
Net assets
10,124,507
8,093,127
Capital and reserves
Called up share capital
23
3
3
Share premium account
24
38,649,811
26,849,831
Profit and loss reserves
25
(28,525,307)
(18,756,707)
Total equity
10,124,507
8,093,127
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 £9,768,600 (2023 - £8,145,355 loss).
The financial statements were approved by the board of directors and authorised for issue on 6 March 2025 and are signed on its behalf by:
06 March 2025
D J Mitchell
Director
Company registration number 10660835 (England and Wales)
XYZ REALITY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Share premium account
Currency translation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
3
26,349,881
(10,419,203)
15,930,681
Year ended 31 March 2023:
Loss for the year
-
-
-
(8,494,675)
(8,494,675)
Other comprehensive income:
Currency translation differences
-
-
10,973
10,973
Total comprehensive income
-
-
10,973
(8,494,675)
(8,483,702)
Issue of share capital
23
499,950
-
-
499,950
Balance at 31 March 2023
3
26,849,831
10,973
(18,913,878)
7,946,929
Year ended 31 March 2024:
Loss for the year
-
-
-
(10,504,755)
(10,504,755)
Other comprehensive income:
Currency translation differences
-
-
(2,655)
(2,655)
Total comprehensive income
-
-
(2,655)
(10,504,755)
(10,507,410)
Issue of share capital
23
11,799,980
-
-
11,799,980
Balance at 31 March 2024
3
38,649,811
8,318
(29,418,633)
9,239,499
XYZ REALITY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
3
26,349,881
(10,611,352)
15,738,532
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(8,145,355)
(8,145,355)
Issue of share capital
23
499,950
-
499,950
Balance at 31 March 2023
3
26,849,831
(18,756,707)
8,093,127
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
(9,768,600)
(9,768,600)
Issue of share capital
23
11,799,980
-
11,799,980
Balance at 31 March 2024
3
38,649,811
(28,525,307)
10,124,507
XYZ REALITY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(15,335,523)
(10,436,109)
Interest paid
(890)
(33,457)
Income taxes refunded
2,222,791
1,209,852
Net cash outflow from operating activities
(13,113,622)
(9,259,714)
Investing activities
Purchase of intangible assets
(91,418)
(135,012)
Purchase of tangible fixed assets
(662,676)
(796,126)
Interest received
108,538
50,078
Net cash used in investing activities
(645,556)
(881,060)
Financing activities
Proceeds from issue of shares
11,799,980
499,950
Net cash generated from financing activities
11,799,980
499,950
Net decrease in cash and cash equivalents
(1,959,198)
(9,640,824)
Cash and cash equivalents at beginning of year
4,427,224
14,057,757
Effect of foreign exchange rates
(2,655)
10,291
Cash and cash equivalents at end of year
2,465,371
4,427,224
XYZ REALITY LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
29
(15,254,090)
(10,482,238)
Interest paid
(31,360)
Income taxes refunded
2,222,395
1,209,852
Net cash outflow from operating activities
(13,031,695)
(9,303,746)
Investing activities
Purchase of intangible assets
(91,418)
(135,012)
Purchase of tangible fixed assets
(662,676)
(796,126)
Proceeds from disposal of subsidiaries
(61)
Interest received
107,462
50,710
Net cash used in investing activities
(646,632)
(880,489)
Financing activities
Proceeds from issue of shares
11,799,980
499,950
Net cash generated from financing activities
11,799,980
499,950
Net decrease in cash and cash equivalents
(1,878,347)
(9,684,285)
Cash and cash equivalents at beginning of year
4,278,505
13,962,790
Cash and cash equivalents at end of year
2,400,158
4,278,505
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
1
Accounting policies
Company information
XYZ Reality Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 338-346 Goswell Road, Clerkenwell, London, United Kingdom, EC1V 7LQ.
The group consists of XYZ Reality 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.
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.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company XYZ Reality Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 March 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 a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors recognise the challenges of the current economic environment, particularly for start-ups, and various strategies have been implemented which has led to business improving.
Since the year end, the company has issued additional share capital which raised funds of £6.1m and forecasts show there is sufficient cash levels for the group to remain operational for at least the next 12 months.
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
1.7
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 comprise primarily patents and licenses used in the development of the product and service supplied by XYZ. These have finite useful lives depending on the grant date and expiry date. Amortisation is charged over this period of time.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
Over useful life
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
5 years straight line
Plant and equipment
5 years straight line
Fixtures and fittings
3 years straight line
Finished components
2 years straight line when asset is in use
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 profit and loss account.
1.9
Fixed asset investments
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.
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.
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.10
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.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
Cost is calculated using the weighted average cost method. Work-in-progress is valued using unit cost and a proportion of production labour.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its net realisable value is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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 balance sheet 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
Other financial liabilities
Derivatives 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.
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.16
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
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.
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
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.21
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.
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
2
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 critical judgements that the directors have made in the process of applying the group's accounting policies and that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Recoverability of debtors
The entity establishes a provision for debtors that are estimated not to be recoverable. When assessing recoverability, the directors have considered factors such as the aging of the debtors, past experience of recoverability, and the credit profile of individual or groups of customers.
Determining residual values and useful economic lives of property, plant and equipment
The entity depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on variety of factors, including technological innovation, product life cycles and maintenance programmes. Judgement is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value, management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Revenue from services
4,666,505
2,667,675
2024
2023
£
£
Other revenue
Interest income
108,538
50,078
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 22 -
The majority of turnover was from the UK and Europe (£4.5 million) with the remaining from the USA. In the prior year, all of the turnover was from the UK and Europe (£2.7 million).
4
Exceptional item
2024
2023
£
£
Expenditure
Cost of fraudulent activity
598,566
-
A sophisticated fraud involving the misappropriation of funds was uncovered shortly after the financial year end in April 2024. This was perpetrated by a member of the senior management team. The individual was immediately dismissed.
External advisers were engaged, and a full investigation was undertaken giving the Board comfort as to the final extent of the fraud and confirming our view that only one perpetrator was involved. Immediate changes were made in both personnel and systems to ensure this will be an incident in isolation only.
To date nearly half of the funds has been recovered. Internal control around Financial & Operational processes have been reviewed and implemented by the new Finance team with professional suggestions. A significant amount of investigation costs and legal fees have incurred in this recovery.
5
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging:
Exchange losses
43,390
31,164
Research and development costs
148,197
118,845
Depreciation of owned tangible fixed assets
427,240
208,374
Amortisation of intangible assets
18,437
5,556
Operating lease charges
688,841
479,584
6
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
39,880
33,004
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
7
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
77
61
72
61
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
8,465,870
4,958,714
7,846,576
5,007,190
Social security costs
617,788
480,177
617,788
480,177
Pension costs
137,824
94,144
122,447
87,120
9,221,482
5,533,035
8,586,811
5,574,487
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
120,000
251,054
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
251,054
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
108,538
50,078
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
10
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
890
2,097
Other finance costs:
Other interest
-
31,360
Total finance costs
890
33,457
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(2,222,395)
(1,209,852)
Deferred tax
Origination and reversal of timing differences
13,169
(13,565)
Total tax credit
(2,209,226)
(1,223,417)
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
(12,713,981)
(9,718,092)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(3,178,495)
(2,429,523)
Tax effect of expenses that are not deductible in determining taxable profit
188,885
2,541
Adjustments in respect of prior years
406,269
Depreciation on assets not qualifying for tax allowances
139
Research and development tax credit
(2,222,395)
(1,209,852)
Other permanent differences
3,155
Movement in deferred tax not recognised
2,999,485
2,007,148
Taxation credit
(2,209,226)
(1,223,417)
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
12
Intangible fixed assets
Group
Patents & licences
£
Cost
At 1 April 2023
286,125
Additions
91,418
At 31 March 2024
377,543
Amortisation and impairment
At 1 April 2023
24,818
Amortisation charged for the year
18,437
At 31 March 2024
43,255
Carrying amount
At 31 March 2024
334,288
At 31 March 2023
261,307
Company
Patents & licences
£
Cost
At 1 April 2023
286,125
Additions
91,418
At 31 March 2024
377,543
Amortisation and impairment
At 1 April 2023
24,818
Amortisation charged for the year
18,437
At 31 March 2024
43,255
Carrying amount
At 31 March 2024
334,288
At 31 March 2023
261,307
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
13
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Finished components
Total
£
£
£
£
£
Cost
At 1 April 2023
100,791
610,589
122,517
554,516
1,388,413
Additions
34,045
222,434
97,404
308,793
662,676
At 31 March 2024
134,836
833,023
219,921
863,309
2,051,089
Depreciation and impairment
At 1 April 2023
51,682
247,388
30,786
86,730
416,586
Depreciation charged in the year
33,733
146,480
62,896
184,131
427,240
At 31 March 2024
85,415
393,868
93,682
270,861
843,826
Carrying amount
At 31 March 2024
49,421
439,155
126,239
592,448
1,207,263
At 31 March 2023
49,109
363,201
91,731
467,786
971,827
Company
Leasehold improvements
Plant and equipment
Fixtures and fittings
Finished components
Total
£
£
£
£
£
Cost
At 1 April 2023
100,791
610,589
122,517
554,516
1,388,413
Additions
34,045
222,434
97,404
308,793
662,676
At 31 March 2024
134,836
833,023
219,921
863,309
2,051,089
Depreciation and impairment
At 1 April 2023
51,682
247,388
30,786
86,730
416,586
Depreciation charged in the year
33,733
146,480
62,896
184,131
427,240
At 31 March 2024
85,415
393,868
93,682
270,861
843,826
Carrying amount
At 31 March 2024
49,421
439,155
126,239
592,448
1,207,263
At 31 March 2023
49,109
363,201
91,731
467,786
971,827
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
6,757
6,757
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
6,757
Carrying amount
At 31 March 2024
6,757
At 31 March 2023
6,757
15
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
XYZ Reality Denmark ApS
Denmark
Ordinary
100.00
XYZ Reality US Inc
United States of America
Ordinary
100.00
XYZ Reality Canada Inc
Canada
Ordinary
100.00
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
2,209,257
2,286,657
2,209,257
2,286,657
Work in progress
1,119,471
449,557
1,119,471
449,557
3,328,728
2,736,214
3,328,728
2,736,214
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
760,705
221,469
760,705
221,469
Amounts owed by group undertakings
-
-
932,612
289,854
Other debtors
2,540,195
482,959
2,528,873
475,069
3,300,900
704,428
4,222,190
986,392
Deferred tax asset (note 20)
13,565
3,300,900
717,993
4,222,190
986,392
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Debtors
(Continued)
- 28 -
Other debtors includes the 2022/23 and 2023/24 R&D tax claims that have been submitted to HMRC. The 2022/23 claim has been approved.
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
449,507
585,583
438,182
658,110
Other creditors
525,766
246,932
514,917
154,644
Accruals and deferred income
361,778
275,121
361,778
275,121
1,337,051
1,107,636
1,314,877
1,087,875
19
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Dilapidation provision
60,000
60,000
60,000
60,000
Movements on provisions:
Dilapidation provision
Group
£
Dilapidation provision
60,000
Company
£
Dilapidation provision
60,000
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Assets
Assets
2024
2023
Group
£
£
Accelerated capital allowances
-
13,565
The company has no deferred tax assets or liabilities.
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
20
Deferred taxation
(Continued)
- 29 -
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 April 2023
(13,565)
-
Charge to profit or loss
13,565
-
Asset at 31 March 2024
-
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
137,824
94,144
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.
22
Share-based payment transactions
Group and company
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 April 2023
60,734
52,994
0.87
0.87
Granted
80,957
7,740
0.87
0.87
Forfeited
(430)
-
0.87
-
Outstanding at 31 March 2024
141,261
60,734
0.87
0.87
Exercisable at 31 March 2024
64,762
45,377
0.87
0.87
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A1 Ordinary of 0.000001p each
662,987
-
1
-
A2 Ordinary of 0.000001p each
354,353
-
-
-
Deferred of 0.000001p each
57,699
57,699
-
-
Ordinary of 0.000001p each
1,157,690
1,157,690
1
1
Seed A of 0.000001p each
520,074
520,074
1
1
A Ordinary of 0.000001p each
-
662,986
-
1
2,752,803
2,398,449
3
3
During the period the following changes were made to the share capital:
1 A1 Ordinary share was allotted on 26 May 2023, £33.30 paid per share.
240,239 A2 Ordinary shares were allotted on 26 May 2023, £10.28 paid per share.
Ordinary A shares were designated to 662,986 A1 Ordinary on 26 May 2023.
74,174 A2 Ordinary shares were allotted on 30 May 2023, £33.30 paid per share.
24,024 A2 Ordinary shares were allotted on 13 July 2023, £0.000001 paid per share.
15,916 A2 Ordinary shares were allotted on 27 July 2023, £0.000001 paid per share.
24
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
26,849,831
26,349,881
26,849,831
26,349,881
Issue of new shares
11,799,980
499,950
11,799,980
499,950
At the end of the year
38,649,811
26,849,831
38,649,811
26,849,831
25
Profit and loss reserves
Group
Company
2024
2023
2024
2023
as restated
as restated
£
£
£
£
At the beginning of the year
(18,561,245)
(10,419,203)
(18,404,074)
(10,611,352)
Prior year adjustment
(352,633)
-
(352,633)
-
As restated
(18,913,878)
(10,419,203)
(18,756,707)
(10,611,352)
Loss for the year
(10,504,755)
(8,494,675)
(9,768,600)
(8,145,355)
At the end of the year
(29,418,633)
(18,913,878)
(28,525,307)
(18,756,707)
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
26
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
781,200
1,105,548
390,600
552,774
Between two and five years
241,176
283,610
120,588
141,805
1,022,376
1,389,158
511,188
694,579
27
Subsequent event
Since the year end, loan notes of $8m were issued and have been converted into 542,320 'New Shares'. The New Shares have a nominal value of £0.000001 and have full voting, dividend and capital distribution rights.
28
Cash absorbed by group operations
2024
2023
£
£
Loss for the year after tax
(10,504,755)
(8,494,675)
Adjustments for:
Taxation credited
(2,209,226)
(1,223,417)
Finance costs
890
33,457
Investment income
(108,538)
(50,078)
Amortisation and impairment of intangible assets
18,437
5,556
Depreciation and impairment of tangible fixed assets
427,240
208,374
Movements in working capital:
Increase in stocks
(592,514)
(426,977)
Increase in debtors
(2,596,472)
(49,359)
Increase/(decrease) in creditors
229,415
(438,990)
Cash absorbed by operations
(15,335,523)
(10,436,109)
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
29
Cash absorbed by operations - company
2024
2023
£
£
Loss for the year after tax
(9,768,600)
(8,145,355)
Adjustments for:
Taxation credited
(2,222,395)
(1,209,852)
Finance costs
31,360
Investment income
(107,462)
(50,710)
Amortisation and impairment of intangible assets
18,437
5,556
Depreciation and impairment of tangible fixed assets
427,240
208,374
Movements in working capital:
Increase in stocks
(592,514)
(426,977)
Increase in debtors
(3,235,798)
(466,672)
Increase/(decrease) in creditors
227,002
(427,962)
Cash absorbed by operations
(15,254,090)
(10,482,238)
30
Analysis of changes in net funds - group
1 April 2023
Cash flows
Exchange rate movements
31 March 2024
£
£
£
£
Cash at bank and in hand
4,427,224
(1,959,198)
(2,655)
2,465,371
31
Analysis of changes in net funds - company
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
4,278,505
(1,878,347)
2,400,158
32
Prior period adjustment
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
32
Prior period adjustment
(Continued)
- 33 -
Reconciliation of changes in equity - group
1 April
31 March
2022
2023
£
£
Adjustments to prior year
Correction to VAT recoverable balance at 31 March 2023
-
49,992
Correction to accounting treatment of assets
-
49,882
Correction to recognise expenditure omitted from the prior period
-
(168,790)
Recognition of dilapidation provision
-
(60,000)
Correction to quantity of stock held at 31 March 2023
-
(223,717)
Total adjustments
-
(352,633)
Equity as previously reported
-
8,299,562
Equity as adjusted
-
7,946,929
Analysis of the effect upon equity
Profit and loss reserves
-
(352,633)
Reconciliation of changes in loss for the previous financial period
2023
£
Adjustments to prior year
Correction to VAT recoverable balance at 31 March 2023
49,992
Correction to accounting treatment of assets
49,882
Correction to recognise expenditure omitted from the prior period
(168,790)
Recognition of dilapidation provision
(60,000)
Correction to quantity of stock held at 31 March 2023
(223,717)
Total adjustments
(352,633)
Loss as previously reported
(8,142,042)
Loss as adjusted
(8,494,675)
XYZ REALITY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
32
Prior period adjustment
(Continued)
- 34 -
Reconciliation of changes in equity - company
1 April
31 March
2022
2023
£
£
Adjustments to prior year
Correction to VAT recoverable balance at 31 March 2023
-
49,992
Correction to accounting treatment of assets
-
49,882
Correction to recognise expenditure omitted from the prior period
-
(168,790)
Recognition of dilapidation provision
-
(60,000)
Correction to quantity of stock held at 31 March 2023
-
(223,717)
Total adjustments
-
(352,633)
Equity as previously reported
-
8,445,760
Equity as adjusted
-
8,093,127
Analysis of the effect upon equity
Profit and loss reserves
-
(352,633)
Reconciliation of changes in loss for the previous financial period
2023
£
Adjustments to prior year
Correction to VAT recoverable balance at 31 March 2023
49,992
Correction to accounting treatment of assets
49,882
Correction to recognise expenditure omitted from the prior period
(168,790)
Recognition of dilapidation provision
(60,000)
Correction to quantity of stock held at 31 March 2023
(223,717)
Total adjustments
(352,633)
Loss as previously reported
(7,792,722)
Loss as adjusted
(8,145,355)
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