The notes on pages 2 to 6 form part of these financial statements.
Akkroo Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3 Waterfront Business Park, Dudley Road, Brierley Hill, Birmingham, DY5 1LX.
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 company remains in a net liability position at the reporting date and is reliant on continued support from the wider group, in respect of the operations of its subsidiary company, Integrate (Europe) Ltd. The directors have received a signed legally enforceable letter of support from a fellow group company confirming that for a period of not less than one year following the approval of these financial statements it will:
provide financial support as required to enable to company to continue operations; and
not demand repayment of the intercompany creditor balance.
However, the fellow group company has also incurred losses, remains in a net liability position, and is dependent on further equity funding in order to remain a going concern.
The directors consider that such funding will be forthcoming, and therefore the financial statements have been prepared on a going concern basis. However, due to the uncertainty in outcome of any equity fundraising, the directors consider this to constitute a material uncertainty which may cast doubt on the company's ability to continue as a going concern. No adjustments have been made in respect of this.
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
Basic financial assets, which include 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.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including amounts owed to group undertakings and other 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.
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.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The average monthly number of persons (including directors) employed by the company during the year was:
In the year ended 31 December 2022, following the identification of indicators of impairment, the company undertook an impairment review. Following a review of the future economic benefit expected to be realised from these assets, the fixed asset investments balance was fully impaired.
All amounts owed to group undertakings are unsecured, interest free and repayable on demand.
All shares rank equally, except with regards to the payment of dividends. The declaration of a dividend on one class of shares shall not automatically confer the right to the declaration of a dividend on the holders of any other class of shares.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.
The auditor's report is unqualified and includes the following:
Material uncertainty related to going concern
We draw attention to note 1.2 in the financial statements, which indicates that the company remains in a net liability position at the reporting date and is reliant on continued support from the wider group, in respect of the operations of its subsidiary company, Integrate (Europe) Ltd. The directors have received a signed legally enforceable letter of support from a fellow group company confirming that for a period of not less than one year following the approval of these financial statements it will:
provide financial support as required to enable to company to continue operations; and
not demand repayment of the intercompany creditor balance.
However, the fellow group company has also incurred losses, remains in a net liability position, and is dependent on further equity funding in order to remain a going concern. The directors consider that such funding will be forthcoming, and therefore the financial statements have been prepared on a going concern basis. However, due to the uncertainty in outcome of any equity fundraising, the directors consider this to constitute a material uncertainty which may cast doubt on the company's ability to continue as a going concern. No adjustments have been made in respect of this.
As stated in note 1.2, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The company has taken advantage of the exemption under FRS 102, para 1AC.35, stating that details need not be given in respect of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly-owned by such a member.