REGISTERED NUMBER: |
Technia Limited |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 31st December 2024 |
REGISTERED NUMBER: |
Technia Limited |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 31st December 2024 |
Technia Limited (Registered number: 04286171) |
Contents of the Financial Statements |
for the Year Ended 31st December 2024 |
Page |
Company information | 1 |
Strategic report | 2 | to | 3 |
Report of the directors | 4 | to | 5 |
Report of the independent auditors | 6 | to | 8 |
Income statement | 9 |
Statement of other comprehensive income | 10 |
Balance sheet | 11 |
Statement of changes in equity | 12 |
Cash flow statement | 13 |
Notes to the financial statements | 14 | to | 25 |
Technia Limited |
Company Information |
for the Year Ended 31st December 2024 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
Statutory Auditors |
Northampton |
United Kingdom |
Technia Limited (Registered number: 04286171) |
Strategic Report |
for the Year Ended 31st December 2024 |
The directors present their strategic report for the year ended 31st December 2024. |
Summary |
The business performed inline with budget for 2024. As expected, 2024 saw challenges in the EV and hydrogen automative industries with a number of previously scaling new entrants failing to secure further funding resulting in liquidations. Despite those challenges and the reduction in associated revenues TECHNIA's recurring business recovered and grew. |
There were positive contributions during the year from the remaining EV players supported through collaboration with our partner Dassault Systemes. We also had strong demand from our motorsport customers in both Formula 1 and Formula E. |
Dassault Systemes' transition to SaaS and Cloud based solutions was supported by strategic campaigns which helped a number of our longer term On Premise customers engage with the 3D Experience platform. We also saw continued opportunity in the broader technologies including specialisms in Simulation and advanced Design tools. |
TECHNIA as a Group hosted a multi-location Innovation Forum connecting key accounts and prospects in the UK, Sweden and Germany. We hosted a Customer Advisory Board as an extension of the event with global key accounts providing their input regarding their ongoing needs from TECHNIA. Of the key messages the market shows that our customers need our help to lead them on through their digital journey. As a result we have invested heavily in our teams this year including development programs for Solution Architects, Business Consultants as well as professional selling skills. |
Given the solid performance against budget and our ongoing relationship with our Partner Dassault Systemes we were awarded Platinum Partner status and Preferred Educational Partner. TECHNIA was one of the few large Partners in the Dassault ecosystem to be awarded at this level. |
The combined result of this is that the business has delivered turnover of £22.90m, down from £25.97m with profit after taxation of £1.69m down from £3.01m. Net assets have decreased from £6.03m to £4.22m. |
Outlook |
The outlook for 2025 has a level of uncertainty given the overall economic conditions particularly around Automotive. Despite that we have number of strategic initiatives underway to develop our organisational capability in line with the feedback from our customers. This coupled with developing capability to forensically identify and pursue market opportunity we are opening up opportunities in adjacent industries and are investing in Business Development capability to drive new business. |
2025 may not show the immediate results of this activity but we expect to show the results in the mid-term and expand our industry coverage in a consistent manner. |
Technia Limited (Registered number: 04286171) |
Strategic Report |
for the Year Ended 31st December 2024 |
Principal risks and uncertainties |
The board has a proactive approach to risk management with the aim of protecting its employees and customers and safeguarding the interests of company and its shareholders. The company has specific policies to ensure that risks are properly evaluated and managed at appropriate levels in the business. |
The company's financial instruments comprise cash, trade debtors and creditors that arise directly from its operations. It has been the policy of the company throughout the year under review that no trading in financial instruments shall be undertaken. There are no significant risks arising directly from the company's financial instruments and the directors have specially considered the risk in the following areas. |
Liquidity risk |
The company does not have any significant liquidity exposure. Cash is managed on a daily basis to ensure that the company has sufficient funds available to meet its needs. |
Credit risk |
The company has policies that require appropriate financial checks on potential customers before sales are made. |
Interest rate risk |
The company is not exposed to any interest rate risk by reason of its substantial cash balances. |
Foreign currency risk |
The company is exposed to a limited extent to currency fluctuations. It does not enter into forward exchange transactions. |
Financial key performance indicators |
The company has made profit before taxation of £2,209,652 (2023 - £3,839,641). |
The company has net current assets of £4,190,497 (2023 - £5,982,244) and net assets of £4,221,835 (2023 - £6,031,299). |
The directors have taken advantage of the exemption for medium sized companies not to disclose non financial key performance indicators under S. 417 (7) of the Companies Act 2006. |
On behalf of the board: |
Technia Limited (Registered number: 04286171) |
Report of the Directors |
for the Year Ended 31st December 2024 |
The directors present their report with the financial statements of the company for the year ended 31st December 2024. |
Principal activity |
The principal activity of the company in the year under review was that of the sale and support of engineering software in the United Kingdom. |
Dividends |
The profit for the year, after taxation, amounted to £1,690,536 (2023 - £3,006,202). |
Dividends of £3,500,000 (2023 - NIL) have been paid in the year. |
Directors |
The directors shown below have held office during the whole of the period from 1st January 2024 to the date of this report. |
Post balance sheet events |
The directors have not identified any post balance sheet events. |
Matters disclosed in the strategic report |
The directors have omitted certain items, including an indication of likely future developments, from the Directors' Report because it is shown in the Strategic Report instead under S.414C (11) of the Companies Act 2017. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic report, the Report of the directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and of the profit or loss of the company 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Technia Limited (Registered number: 04286171) |
Report of the Directors |
for the Year Ended 31st December 2024 |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Auditors |
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP. |
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Technia Limited |
Opinion |
We have audited the financial statements of Technia Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Statement of Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in the preparation of the company's financial statements 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 Company's affairs as at 31 December 2024 and of the Company's profit 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. |
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 Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the 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 ethical responsibilities in accordance with those 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 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 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 the audit: |
Report of the Independent Auditors to the Members of |
Technia Limited |
- 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. |
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. |
Matters on which we are required to report by exception |
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, or returns adequate for our audit have not been received by branches not visited by us; or |
- the 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 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 Company or to cease operations, or have no realistic alternative but to do so. |
Auditor 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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 is detailed below: |
- Enquiry of management, those charged with governance around actual and potential litigation and claims; |
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- Performing audit work over the risk of management override of controls, including testing of 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 bias; |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
Report of the Independent Auditors to the Members of |
Technia Limited |
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the financial statements is located on the FRC's website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor's report. |
Use of our report |
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. |
for and on behalf of |
Statutory Auditors |
Northampton |
United Kingdom |
MHA is the trading name of MHA Audit Services LLP, a limited liability |
partnership in England and Wales (registered number OC455542). |
Technia Limited (Registered number: 04286171) |
Income Statement |
for the Year Ended 31st December 2024 |
2024 | 2023 |
Notes | £ | £ |
Turnover | 4 |
Cost of sales |
Gross profit |
Administrative expenses |
934,112 | 2,598,130 |
Other operating income |
Operating profit | 6 |
Interest receivable and similar income | 8 |
Profit before taxation |
Tax on profit | 9 |
Profit for the financial year |
Technia Limited (Registered number: 04286171) |
Statement of other |
comprehensive income |
for the Year Ended 31st December 2024 |
2024 | 2023 |
Notes | £ | £ |
Profit for the year |
Other comprehensive loss |
Translation reserve | ( |
) |
Income tax relating to other comprehensive loss |
Other comprehensive loss for the year, net of income tax |
( |
) |
Total comprehensive income for the year |
Technia Limited (Registered number: 04286171) |
Balance Sheet |
31st December 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
Fixed assets |
Intangible assets | 11 |
Tangible assets | 12 |
Current assets |
Work-in-progress | 13 |
Debtors | 14 |
Cash at bank |
Creditors |
Amounts falling due within one year | 15 |
Net current assets |
Total assets less current liabilities |
Provisions for liabilities | 17 |
Net assets |
Capital and reserves |
Called up share capital | 18 |
Retained earnings | 19 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
Technia Limited (Registered number: 04286171) |
Statement of Changes in Equity |
for the Year Ended 31st December 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31st December 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2024 |
Technia Limited (Registered number: 04286171) |
Cash Flow Statement |
for the Year Ended 31st December 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 23 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
24 |
7,494,039 |
Cash and cash equivalents at end of year |
24 |
8,784,427 |
10,979,294 |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements |
for the Year Ended 31st December 2024 |
1. | Statutory information |
Technia Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Accounting policies |
Basis of preparing the financial statements |
These financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006. |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3). |
The following principal accounting policies have been applied. |
Going concern |
The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The Directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios and current economic pressures. This analysis also considers the effectiveness of available measures to assist in mitigating any impacts. |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2024 |
2. | Accounting policies - continued |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised. |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the company has transferred the significant risks and rewards of ownership to the buyer; |
- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the company will receive the consideration due under the transaction; |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Rendering of services |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- the amount of revenue can be measured reliably; |
- it is probable that the company will receive the consideration due under the contract; |
- the stage of completion of the contract at the end of the reporting period can be measured reliably, and; |
- the costs incurred and the costs to complete the contract can be measured reliably. |
Intangible assets |
Intangible fixed assets comprise software licences and are measured at cost less accumulated amortisation and any accumulated impairment losses and is amortised on a straight line basis over 3 years. |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2024 |
2. | Accounting policies - continued |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Income Statement during the period in which they are incurred. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using straight-line method. |
Depreciation is provided on the following basis: |
Computers and office equipment - 20% - 33% per annum |
The assets residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within "other operating income" in the Statement of Income and Retained Earnings. |
Work in progress |
Work in progress is valued at the lower of cost and net realisable value. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing work-in-progress to their present location and condition. |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2024 |
2. | Accounting policies - continued |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
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 change in value. |
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management. |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2024 |
2. | Accounting policies - continued |
Taxation |
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except that a change attributable to an item of income and expense recognised as other comprehensive income or directly in equity respectively. |
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income. |
Deferred tax |
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that: |
- The recognition of deferred tax assets is limited to the extent that is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currency translation |
Functional and presentation currency |
The company's functional and presentation currency is GBP. |
Transactions and balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement except when deferred in other comprehensive income as qualifying cash flow hedges. |
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Income Statement within "finance income and costs". All other foreign exchange gains and losses are presented in the Income Statement with "other operating income". |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2024 |
2. | Accounting policies - continued |
Defined contribution pension plan |
The company operates a defined contribution plan for its employees. A defined contribution pension plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. |
The contributions are recognised as an expense in the Income Statement when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds. |
Interest income |
Interest income is recognised in the Income Statement using the effective method. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable. |
3. | Critical accounting judgements and key sources of estimation uncertainty |
In application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not really apparent from other sources. The estimates and underlying 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 and if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. |
Fixed assets |
In determining the depreciation rate, management's best estimate of the expected useful economic life of each asset class has been used in determining the rate applied. |
Impairment of trade debtors |
The company makes an estimate of the recoverable value of trade debtors. When assessing the impairment of trade debtors, management considers factors including the ageing profile of debtors and historical experience. |
4. | Turnover |
The whole of the turnover is attributable to the principal business activity, that of the sale and support of engineering software in the United Kingdom. |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2024 |
5. | Employees and directors |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management and administration | 14 | 14 |
Technical and support | 60 | 59 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Only company directors are considered to be key management personnel. Employers National Insurance for key management personnel amounted to £24,749 (2023 - £26,053). |
6. | Operating profit |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Patents and licences amortisation |
Foreign exchange differences |
Research and development expenditure |
Operating leases |
7. | Auditors' remuneration |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
20,500 |
19,500 |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2024 |
8. | Interest receivable and similar income |
2024 | 2023 |
£ | £ |
Deposit account interest |
Other loan interest |
9. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: | 2024 | 2023 |
£ | £ |
Current tax: | 548,462 | 826,340 |
Prior year adjustment | (34,434 | ) | 6,644 |
Total current tax | 514,028 | 832,984 |
Deferred tax arising on the origination and reversal of timing differences | 5,088 | 455 |
Tax on profit | 519,116 | 833,439 |
Reconciliation of the total tax charge included in the Income Statement |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. |
The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 2,209,652 | 3,839,641 |
Profit multiplied by 25% (2023 - 23.52%) | 552,413 | 903,084 |
Adjustments to tax charge in respect of previous periods | (34,434 | ) | 6,644 |
Expenses not deductible for tax purposes | 1,137 | 569 |
Adjustment in research and development tax credit leading to a decrease in the tax charge | (76,116 | ) |
Adjustment in respect of foreign taxes | 33 |
Other timing differences | (775 | ) |
Total tax charge | 519,116 | 833,439 |
10. | Dividends |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2024 |
11. | Intangible fixed assets |
Patents |
and |
licences |
£ |
Cost |
At 1st January 2024 |
and 31st December 2024 |
Amortisation |
At 1st January 2024 |
Amortisation for year |
At 31st December 2024 |
Net book value |
At 31st December 2024 |
At 31st December 2023 |
12. | Tangible fixed assets |
Computer |
and |
office |
equipment |
£ |
Cost |
At 1st January 2024 |
Additions |
At 31st December 2024 |
Depreciation |
At 1st January 2024 |
Charge for year |
At 31st December 2024 |
Net book value |
At 31st December 2024 |
At 31st December 2023 |
13. | Work-in-progress |
2024 | 2023 |
£ | £ |
Work-in-progress |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2024 |
14. | Debtors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments and accrued income |
Amounts to be billed to |
customers | 395,658 | 54,821 |
15. | Creditors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other |
taxation |
Other creditors |
Accruals and deferred income |
16. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
17. | Provisions for liabilities |
2024 | 2023 |
£ | £ |
Deferred tax | 6,076 | 988 |
Deferred |
tax |
£ |
Balance at 1st January 2024 |
Provided during year |
Balance at 31st December 2024 |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2024 |
17. | Provisions for liabilities - continued |
The deferred tax liability at the balance sheet date of £6,076 (2023 - £988) is split between a liability relating to accelerated capital allowances of £6,076 (2023 - £8,514) and an asset relating to an unpaid pension provision of £NIL (2023 - £7,526). |
18. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 101 | 101 |
19. | Reserves |
Retained earnings |
The retained earnings reserve includes all current and prior period retained profit and losses. |
20. | Pension commitments |
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £158,952 (2023 - £145,105). contributions totalling £NIL (2023 - £30,103) were payable to the fund at the balance sheet date. |
21. | Related party disclosures |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
22. | Controlling party |
The ultimate controlling company is Addnode Group AB, Hudiksvallsagatan 4B, SE113 30 Stockholm, Sweden which is the parent undertaking of the smallest and largest group to consolidate these financial statements. Consolidated accounts can be obtained from the ultimate controlling company’s address. The directors consider that there is no controlling party. |
Technia Limited (Registered number: 04286171) |
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2024 |
23. | Reconciliation of profit before taxation to cash generated from operations |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Exchange adjustment | - | (23,412 | ) |
Finance income | (459,289 | ) | (417,884 | ) |
1,781,445 | 3,426,642 |
Decrease/(increase) in work-in-progress | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
24. | Cash and cash equivalents |
The amounts disclosed on the Cash flow statement in respect of cash and cash equivalents are in respect of these Balance sheet amounts: |
Year ended 31st December 2024 |
31/12/24 | 1/1/24 |
£ | £ |
Cash and cash equivalents | 8,784,427 | 10,979,294 |
Year ended 31st December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 10,979,294 | 7,494,039 |
25. | Analysis of changes in net funds |
At 1/1/24 | Cash flow | At 31/12/24 |
£ | £ | £ |
Net cash |
Cash at bank | 10,979,294 | (2,194,867 | ) | 8,784,427 |
10,979,294 | ( |
) | 8,784,427 |
Total | 10,979,294 | (2,194,867 | ) | 8,784,427 |