Company Registration No. 08972946 (England and Wales)
Fractal Labs Ltd
Unaudited accounts
for the year ended 31 December 2024
Fractal Labs Ltd
Unaudited accounts
Contents
Fractal Labs Ltd
Company Information
for the year ended 31 December 2024
Directors
Sameer Altaf
Ashar Nazim
Company Number
08972946 (England and Wales)
Registered Office
3rd Floor 86-90 Paul Street
London
EC2A 4NE
England
Accountants
Ebrahim & Ebrahim Chartered Accountants
11 Lynwood Road
London
W51JQ
Fractal Labs Ltd
Statement of financial position
as at 31 December 2024
Intangible assets
1,935
2,150
Cash at bank and in hand
4,562
2,598
Creditors: amounts falling due within one year
(344,987)
(369,363)
Net current liabilities
(335,384)
(359,466)
Total assets less current liabilities
(333,449)
(357,070)
Creditors: amounts falling due after more than one year
(678,178)
(480,764)
Net liabilities
(1,011,627)
(837,834)
Called up share capital
162
162
Share premium
2,326,474
2,309,316
Revaluation reserve
13,682
13,682
Profit and loss account
(3,351,945)
(3,160,994)
Shareholders' funds
(1,011,627)
(837,834)
For the year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities. The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2025 and were signed on its behalf by
Sameer Altaf
Director
Company Registration No. 08972946
Fractal Labs Ltd
Notes to the Accounts
for the year ended 31 December 2024
Fractal Labs Ltd is a private company, limited by shares, registered in England and Wales, registration number 08972946. The registered office is 3rd Floor 86-90 Paul Street, London, EC2A 4NE, England.
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Compliance with accounting standards
The accounts have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities. There were no material departures from that standard.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
The accounts have been prepared under the historical cost convention.
Functional and Presentation currency
The financial statements are presented in pound sterling (£), which is the company’s functional currency, and figures are rounded to the nearest whole pound.
The financial statements have been prepared on the going concern basis. The company incurred losses during the year, however the directors believe that the company has sufficient financial resources to be able to meet its obligations, if and when, they become due, and that the company can continue in operational existence for a period of at least 12 months from the statement of financial position date. On this basis, the directors are of the opinion that they should continue to adopt the going concern basis in preparing the annual financial statements.
Judgements and key sources of estimation uncertainty
Share-based payments as set out in the notes to the financial statements have been made to employees and advisors of the company. The fair value of any vested share options is recognised in the income statement. The fair value of share options is estimated with the use of a Black-scholes model. The fair value of the ordinary shares in issue at the date of granting the options is used as an input into the model.
There have been no other significant judgements or estimates applied to the numbers contained within
these financial statements.
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue from rendering of services
Revenue from the rendering of services is recognised by reference to the stage of completion of the transaction providing that; the amount of revenue associated with the transaction can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company, the stage of completion of the transaction can be measured reliably and the costs incurred or to be incurred in respect of completing the transaction can be measured reliably.
Rentals payable under operating leases are charged to the profit or loss account on a straight-line basis over the period of the lease.
Fractal Labs Ltd
Notes to the Accounts
for the year ended 31 December 2024
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to income statement in the period to which they relate.
Share Based Payments
The company operates an equity-settled compensation plan. The fair value of the services received in exchange for the grant of the options is recognised as an expense in the income statement. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted, excluding the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. At each statement of financial position date, the entity revises its estimates of the number of options that are expected to vest. It recognises the impact of the revision to original estimates, if any, in the income statement. The credit entry is taken to reserves because the share options are equity-settled.
Defined contribution pension plan
The company operates a pension plan for the benefit of its employees. Contributions are recognised as expenses as they become payable. Differences between contributions payable in the year and those actually paid are recognised as either prepayments or accruals in the statement of financial position. The assets of the defined contribution pension scheme are held separately from those of the company in an independently administered fund.
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each reporting 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 the period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.
Taxation for the year comprises current tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.
Tax credits shown on the income statement represent tax credits received or receivable from HMRC as a result of claims made under HMRC’s R&D tax relief schemes.
Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Fractal Labs Ltd
Notes to the Accounts
for the year ended 31 December 2024
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Amortisation is included in 'administrative expenses' in the profit and loss account.
Revenue expenditure on research and development is written off in the period in which it is incurred.
The company has made claims under HMRC's R&D tax relief schemes. Tax credits arising from claims under the SME R&D tax relief scheme are reflected 'below the line' as a reduction in the Corporation Tax charge or, if loss making, as a Corporation Tax credit. Tax credits arising from claims under the RDEC scheme are subject to Corporation Tax. Gross tax credits are therefore reflected 'above the line' in Other Income with the corresponding charge to Corporation Tax reflected as an increase in the Corporation Tax charge. Tax credits receivable from R&D claims are recognised in the reporting period in which the qualifying expenditure is incurred.
Tangible fixed assets and depreciation
Tangible assets are included at cost less depreciation and impairment. Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives:
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value.
Trade and other creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Fractal Labs Ltd
Notes to the Accounts
for the year ended 31 December 2024
The Company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of 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 debtors and creditors, 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 debtors and creditors, are measured, initially and subsequently,at the undiscounted amount of the 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 the 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 and liabilities are offset and the net amount reported in the Statement of Financial Position 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.
Government grants or assistance
Other operating income includes grant income. Grant income was received during the period and has been accounted for under the accruals basis. The initial receipt of grant funds is recognised in the statement of financial position as deferred income. The deferred grant income is released to revenue in the periods in which the expenditure, for which the grant is intended to compensate, is incurred.
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Intangible fixed assets
Other
Fractal Labs Ltd
Notes to the Accounts
for the year ended 31 December 2024
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Tangible fixed assets
Fixtures & fittings
Computer equipment
Total
Cost or valuation
At cost
At cost
At 1 January 2024
1,193
233
1,426
Disposals
(1,193)
(233)
(1,426)
At 1 January 2024
947
233
1,180
Charge for the year
246
-
246
On disposals
(1,193)
(233)
(1,426)
At 31 December 2023
246
-
246
Amounts falling due within one year
Accrued income and prepayments
1,048
1,175
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Creditors: amounts falling due within one year
2024
2023
Trade creditors
110,484
115,724
Taxes and social security
105,913
137,195
Other creditors
128,590
116,444
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Creditors: amounts falling due after more than one year
2024
2023
Amounts owed to group undertakings and other participating interests
167,354
-
Other creditors
166,949
166,949
Non-equity preference shares
343,875
313,815
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Average number of employees
During the year the average number of employees was 2 (2023: 2).