Company registration number 13898372 (England and Wales)
NORMATIVE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
NORMATIVE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 10
NORMATIVE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
72,243
43,229
Current assets
Debtors
5
959,969
680,852
Cash at bank and in hand
119,974
69,330
1,079,943
750,182
Creditors: amounts falling due within one year
6
(710,852)
(607,299)
Net current assets
369,091
142,883
Total assets less current liabilities
441,334
186,112
Provisions for liabilities
(5,361)
(4,507)
Net assets
435,973
181,605
Capital and reserves
Called up share capital
8
1
1
Capital contribution reserve
130,600
62,204
Profit and loss reserves
305,372
119,400
Total equity
435,973
181,605
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered 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 27 March 2025 and are signed on its behalf by:
Mr S Blanc
Director
Company Registration No. 13898372
NORMATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Normative Limited is a private company limited by shares incorporated in England and Wales. The registered office is Metal Box Factory, Great Guildford Street, Unit Gg 112-4, London, England, SE1 0HS. The company registration number is 13898372.
1.1
Reporting period
The financial statements have been prepared for a 12-month period from 1 January 2023 to 31 December 2023, however the comparative amounts relate to an 8-month period from the date of incoporation to 31 December 2022 and therefore not comparable.
1.2
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
1.3
Going concern
The accompanying financial statements have been prepared on the basis that the Company will continue as a going concern. The Company is a wholly-owned subsidiary of Normative AB and its operations are wholly dependent on the financial support of its parent company. At the date of signing these financial statements, Normative AB has made operating losses since its incorporation, however its forecast to break-even on a cashflow basis in 2026 subject to a further cash injection which the directors plan to achieve through an issue of capital.true
Normative AB has committed to providing the necessary financial support to enable the Company to meet its financial obligations as they become due and to continue its operations for the foreseeable future. Whilst management believes that the continued financial support from the parent company will provide the Company with the ability to continue as a going concern, there is a fundamental uncertainty in respect of Normative AB's continued ability to support the Company if further cash injections are not received.
1.4
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. Revenue is recognised in the period to which it relates.
1.5
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:
Fixtures and fittings
20% Reducing Balance
Computers
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 credited or charged to profit or loss.
NORMATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of fixed assets
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.
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.
1.7
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.
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
NORMATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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 company 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 company after deducting all of its liabilities.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
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.
NORMATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.10
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 company’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 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 an appropriate pricing model prepared by an external valuer. 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.
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.
NORMATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.14
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 leases asset are consumed.
1.15
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
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
33
14
NORMATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
47,889
Additions
43,756
Disposals
(73)
At 31 December 2023
91,572
Depreciation and impairment
At 1 January 2023
4,660
Depreciation charged in the year
14,689
Eliminated in respect of disposals
(20)
At 31 December 2023
19,329
Carrying amount
At 31 December 2023
72,243
At 31 December 2022
43,229
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
as restated
Other debtors
243,608
207,858
Prepayments and accrued income
716,361
472,994
959,969
680,852
6
Creditors: amounts falling due within one year
2023
2022
£
£
as restated
Trade creditors
56,076
45,780
Amounts owed to group undertakings
110,000
362,645
Corporation tax
94,124
37,013
Other creditors
212,690
15,045
Accruals and deferred income
237,962
146,816
710,852
607,299
NORMATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
7
Share-based payment transactions
The company operates an HMRC-approved EMI share option scheme for its employees. In accordance with the provisions of the scheme, employees may be granted options to purchase common shares within the parent company, Normative AB, which vest at graded stages up to four years and must be exercised within ten years from the date of the grant. The EMI options granted are personal to the option holder and are not transferrable, assignable or chargeable. Vesting conditions of the options dictate that the employees must remain in the employment of the company for the whole vesting period to qualify, and all the options are equity settled.
The reconciliation of share options movements over the year to 31 December 2023 is shown below:
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 January
8,212
0.08
Outstanding at 31 December
8,361
8,212
0.08
0.08
Exercisable at 31 December
2,193
50
0.08
0.08
The options outstanding at the year end had an excercise price of £0.08 (equivalent to SEK1.00), and a weighted average remaining contractual life of 8.38 years.
The fair value of share options granted is determined at the date of grant using a Monte Carlo simulation, taking into account the terms and conditions upon which the options have been granted.
During the year, the company recognised share-based payment expenses of £105,500 (2022: £106,359) which related to equity share-based payment transactions. For the year ended 31 December 2023, the total amount recognised in capital contribution reserve in respect to these transactions is £130,600 (2022: £62,204).
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1
1
1
1
NORMATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
9
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Dec 2022
£
£
£
Current assets
Debtors due within one year
611,272
69,580
680,852
Creditors due within one year
Taxation
(23,793)
(13,220)
(37,013)
Net assets
125,245
56,360
181,605
Capital and reserves
Share capital
1
-
1
Capital contribution reserve
-
62,204
62,204
Profit and loss reserves
125,244
(5,844)
119,400
Total equity
125,245
56,360
181,605
Reconciliation of changes in equity
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Irrecoverable VAT written off
-
(15,996)
Recognition of share based payment charge
-
(106,359)
Recognition of inter-group recharge
-
85,576
Increase in corporation tax charge
-
(13,220)
Increase in capital contribution reserve
-
106,359
Total adjustments
-
56,360
Equity as previously reported
-
125,245
Equity as adjusted
-
181,605
Analysis of the effect upon equity
Capital contribution reserve
-
62,204
Profit and loss reserves
-
(5,844)
-
56,360
Notes to reconciliation
During the current financial year, it was identified that a material share-based payment charge amounting to £106,359 and associated inter-group recharges of £85,576 were not recognised in the financial statements for the period ended 31 December 2022. To correct this error, the financial statements for the prior year have been restated and now accurately reflect the share-based payment charge in accordance with FRS102. This adjustment ensures compliance with the relevent accounting standards and provides a true and fair view of the company's financial position and performance.
NORMATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
40,000
189,200
11
Related party transactions
During the financial year Normative AB advanced funds to Normative Limited, to support its operational activities. This advance is intended to be settled through future invoicing for services rendered. At 31 December 2023, the balance owed by the company to Normative AB, its immediate and ultimate parent undertaking, was £110,000 (2022: £362,645). This balance is disclosed within note 7.
12
Parent company
The company's immediate and ultimate parent undertaking is Normative AB, a company registered in Sweden. The registered office address of Normative AB is Folkungagatan 44, 118 26, Stockholm, Sweden.
13
Audit report information
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 was unqualified.
Senior Statutory Auditor:
Kara Williams BSc BFP FCA
Statutory Auditor:
Ellis Lloyd Jones Audit Limited
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