Company registration number 08209876 (England and Wales)
CHECKOUT SMART LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 JULY 2024
PAGES FOR FILING WITH REGISTRAR
CHECKOUT SMART LTD
CONTENTS
Page
Company information
1
Balance sheet
2 - 3
Statement of changes in equity
4
Notes to the financial statements
5 - 14
CHECKOUT SMART LTD
COMPANY INFORMATION
- 1 -
Directors
Mr Paul Lees
Mr Chris Howarth
Mr Tim Gibson
Mr Mark Rubin
Company number
08209876
Registered office
6 Snow Hill
London
England
EC1A 2AY
Accountants
TC Group
The Granary
Hones Yard
1 Waverley Lane
Farnham
Surrey
GU9 8BB
CHECKOUT SMART LTD
BALANCE SHEET
- 2 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
4
566,194
551,573
Tangible assets
3
40,430
64,346
Investments
5
41
41
606,665
615,960
Current assets
Debtors
6
554,543
1,048,966
Cash at bank and in hand
754,791
401,156
1,309,334
1,450,122
Creditors: amounts falling due within one year
7
(1,754,515)
(926,120)
Net current (liabilities)/assets
(445,181)
524,002
Total assets less current liabilities
161,484
1,139,962
Creditors: amounts falling due after more than one year
8
(1,091,638)
Net assets
161,484
48,324
Capital and reserves
Called up share capital
10
18
18
Share premium account
2,620,729
2,620,729
Profit and loss reserves
(2,459,263)
(2,572,423)
Total equity
161,484
48,324
CHECKOUT SMART LTD
BALANCE SHEET (CONTINUED)
- 3 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 July 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
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 23 April 2025 and are signed on its behalf by:
Mr Paul Lees
Director
Company Registration No. 08209876
CHECKOUT SMART LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 July 2023:
Balance at 1 August 2022
18
2,620,729
(2,725,340)
(104,593)
Year ended 31 July 2023:
Profit and total comprehensive income for the year
-
-
152,917
152,917
Balance at 31 July 2023
18
2,620,729
(2,572,423)
48,324
Year ended 31 July 2024:
Profit and total comprehensive income for the year
-
-
113,160
113,160
Balance at 31 July 2024
18
2,620,729
(2,459,263)
161,484
CHECKOUT SMART LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 5 -
1
Accounting policies
Company information
Checkout Smart Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 6 Snow Hill, London, England, EC1A 2AY.
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 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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
1.3
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.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
10% Straight Line
Development costs
25% Straight Line
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.
CHECKOUT SMART LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 6 -
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:
Computers
33% 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.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Impairment of fixed assets
At each reporting period end date, the company 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.
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.
1.8
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.
CHECKOUT SMART LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 7 -
1.9
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.
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.
1.10
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
CHECKOUT SMART LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 8 -
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.
1.12
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.
1.13
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.
1.14
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.
CHECKOUT SMART LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
15
17
3
Tangible fixed assets
Computer Equipment
£
Cost
At 1 August 2023
214,369
Additions
9,661
At 31 July 2024
224,030
Depreciation and impairment
At 1 August 2023
150,023
Depreciation charged in the year
33,577
At 31 July 2024
183,600
Carrying amount
At 31 July 2024
40,430
At 31 July 2023
64,346
CHECKOUT SMART LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
4
Intangible fixed assets
Patents & licences
Development costs
Total
£
£
£
Cost
At 1 August 2023
11,458
2,339,044
2,350,502
Additions
1,152
286,685
287,837
At 31 July 2024
12,610
2,625,729
2,638,339
Amortisation and impairment
At 1 August 2023
1,382
1,797,547
1,798,929
Amortisation charged for the year
1,223
271,993
273,216
At 31 July 2024
2,605
2,069,540
2,072,145
Carrying amount
At 31 July 2024
10,005
556,189
566,194
At 31 July 2023
10,076
541,497
551,573
CHECKOUT SMART LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
41
41
The amount of £41 (2023: £41) relates to Checkout Smart Inc a company incorporated in the United States of America.
At the balance sheet date the company owned 5,000 shares in Checkout Smart Inc which represents 100% of the total issued share capital.
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
439,367
928,378
Amounts owed by group undertakings
5,309
4,497
Other debtors
44,534
56,917
489,210
989,792
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
65,333
59,174
Total debtors
554,543
1,048,966
CHECKOUT SMART LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
8,070
33,916
Taxation and social security
123,564
195,545
Other creditors
1,622,881
696,659
1,754,515
926,120
Included in other creditors is an intercompany loan of £850,000 has been provided by Maple Syrup Group Ltd at a fixed interest rate of 4% per annum (if certain drawdown conditions are met). The loan and any accrued interest being fully repayable by 30 September 2024.
Interest accrued to the balance sheet date was £275,732 (2023: 241,638).
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
1,091,638
Included in other creditors is an intercompany loan of £850,000 has been provided by Maple Syrup Group Ltd at a fixed interest rate of 4% per annum (if certain drawdown conditions are met). The loan and any accrued interest being fully repayable by 30 September 2024.
Interest accrued to the balance sheet date was £275,732 (2023: 241,638).
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(10,108)
(16,086)
Tax losses
75,000
75,000
Retirement benefit obligations
441
260
65,333
59,174
CHECKOUT SMART LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
9
Deferred taxation
(Continued)
- 13 -
2024
Movements in the year:
£
Asset at 1 August 2023
(59,174)
Credit to profit or loss
(6,159)
Asset at 31 July 2024
(65,333)
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 0.1p each
18,057
18,057
18
18
11
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:
2024
2023
£
£
30,000
34,406
12
Related party transactions
During the year there were transactions with:
Checkout Smart Inc a company that is 100% owned by Checkout Smart Ltd.
At the balance sheet date there was a debit balance owing of £5,309 (2023: £4,497). This amount is interest free, unsecured and repayable on demand.
13
Prior period adjustment
Interest expense in the period ending July 2023 was understated by £241,638. 2023 interest expense was originally reported as £nil.
Creditors due after one year as at July 2023 was understated by £241,638. 2023 creditors due after one year was originally reported as £850,000.
CHECKOUT SMART LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
13
Prior period adjustment
(Continued)
- 14 -
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Jul 2023
£
£
£
Creditors due after one year
Other creditors
(850,000)
(241,638)
(1,091,638)
Capital and reserves
Profit and loss reserves
(2,330,785)
(241,638)
(2,572,423)
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 July 2023
£
£
£
Interest payable and similar expenses
-
(241,638)
(241,638)
Profit for the financial period
394,555
(241,638)
152,917
Reconciliation of changes in equity
1 August
31 July
2022
2023
£
£
Adjustments to prior year
2023 Interest expense understated
-
(241,638)
Equity as previously reported
(104,593)
289,962
Equity as adjusted
(104,593)
48,324
Analysis of the effect upon equity
Profit and loss reserves
-
(241,638)
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
2023 Interest expense understated
(241,638)
Profit as previously reported
394,555
Profit as adjusted
152,917
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