RAPID ADDITION LIMITED


Directors	GAY, Colin Andrew Francis
	HOUSTOUN, Kevin Jon
	MACKEOWN, William Patrick John
	POWELL, Mike Edward


Registered Address	4th Floor, 95 Chancery Lane
	London
	WC2A 1DT


Registered Number	04942863 (England and Wales)

Notes to the Financial Statements
for the period ended 31 December 2024

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Statement of compliance
	These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable inthe UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applic able 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.

Statement of compliance

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable inthe UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applic able 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.

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Going concern
	The company made a loss for the year. At the time of approving the financial statements, the directors have reviewed projections and cashflow forecasts and have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors are confident that the company can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Going concern

The company made a loss for the year. At the time of approving the financial statements, the directors have reviewed projections and cashflow forecasts and have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors are confident that the company can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

	Judgements and key sources of estimation uncertainty
	In the application of the company’s accounting policies, the directors are 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. Critical judgements Carrying value of intangible assets Management assess whether there are any indicators of impairment on an annual basis. Where there are indicators of impairment, management estimate the recoverable amount of each asset based on expected future cash flows and using an appropriate discount rate to discount these. There were no indications of impairment. Assumptions are made on the useful life of an intangible asset and if shortened, would increase the amortisation charge recognised in the income statement. There are a number of assumptions in estimating the present value of future cash flows including management's expectation of future revenue, renewals rates for customers, costs, timing and quantum of future capital expenditure. long term growth rates and discount rates. Loans and receivables Management assess the recoverability of intercompany debtors and record a provision to the extent they are not considered recoverable. To assess impairment, the recoverable amount is assessed by reviewing the net asset position, operating results and future plans. Judgement is used in the assessment of future prospects. Deferred tax asset Deferred tax assets are recognised only to the extent that is is probable future taxable profits will be available against which the temporary diﬀerences can be utilised. Management have determined that it is not appropriate to recognise a deferred tax asset at this point.

Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are 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.

Critical judgements
Carrying value of intangible assets
Management assess whether there are any indicators of impairment on an annual basis. Where there are indicators of impairment, management estimate the recoverable amount of each asset based on expected future cash flows and using an appropriate discount rate to discount these. There were no indications of impairment.
Assumptions are made on the useful life of an intangible asset and if shortened, would increase the amortisation charge recognised in the income statement. There are a number of assumptions in estimating the present value of future cash flows including management's expectation of future revenue, renewals rates for customers, costs, timing and quantum of future capital expenditure. long term growth rates and discount rates.

Loans and receivables
Management assess the recoverability of intercompany debtors and record a provision to the extent they are not considered recoverable. To assess impairment, the recoverable amount is assessed by reviewing the net asset position, operating results and future plans. Judgement is used in the assessment of future prospects.

Deferred tax asset
Deferred tax assets are recognised only to the extent that is is probable future taxable profits will be available against which the temporary diﬀerences can be utilised. Management have determined that it is not appropriate to recognise a deferred tax asset at this point.

	Turnover policy
	Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The company licences its software on an annual licence fee basis or perpetual licence fee basis. Revenue from the provision of recurring licences, maintenance and support is assessed against the performance obligations and seperate identifiable components of the transaction, and recognised on a straight line basis over the contract term, unless another method better reflects the stage of completion. Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staﬀ rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Turnover policy

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT.

The company licences its software on an annual licence fee basis or perpetual licence fee basis. Revenue from the provision of recurring licences, maintenance and support is assessed against the performance obligations and seperate identifiable components of the transaction, and recognised on a straight line basis over the contract term, unless another method better reflects the stage of completion.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staﬀ rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

	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.

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.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

	Current taxation
	Current tax represents the amount of tax payable (receivable) in respect of taxable profit (loss) for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid (recovered) using the tax rates and laws which have been enacted, or substantively enacted, by the balance sheet date. Where payments to HM Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable.

Current taxation

Current tax represents the amount of tax payable (receivable) in respect of taxable profit (loss) for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid (recovered) using the tax rates and laws which have been enacted, or substantively enacted, by the balance sheet date. Where payments to HM Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable.

	Deferred tax
	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.

Deferred tax

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.

	Intangible assets
	Intangible assets relate to software development costs. Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised so as to write oﬀ the cost of assets less their residual values over their useful lives on the following bases: Development costs 10 years straight line

	Research and development
	All research costs are expensed. Costs related to the development of products are capitalised when they meet the criteria stated in FRS 102, Section 18 Intangible assets other than Goodwill. All other development expenditure is recognised as an expense in the period in which it is incurred.

	Tangible fixed assets and depreciation
	Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. 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 the profit and loss.


		Reducing balance (%)
	Office Equipment	33

	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 bas is 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 and loans from fellow group companies, 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.

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 bas is 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 and loans from fellow group companies, 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.

2.	Average number of employees


		2024		2024
	Average number of employees during the year	17		14

3.	Intangible assets

		Total
		£
	Cost or valuation
	At 01 April 24	1,989,804
	At 31 December 24	1,989,804
	Amortisation and impairment
	At 01 April 24	1,250,729
	Charge for year	149,235
	At 31 December 24	1,399,964
	Net book value
	At 31 December 24	589,840
	At 31 March 24	739,075

4.	Tangible fixed assets

		Total
		£
	Cost or valuation
	At 01 April 24	330,936
	Additions	7,788
	Disposals	(194,236)
	At 31 December 24	336,451
	Depreciation and impairment
	At 01 April 24	204,696
	Charge for year	52,789
	On disposals	(194,236)
	At 31 December 24	255,212
	Net book value
	At 31 December 24	81,239
	At 31 March 24	126,239

5.	Debtors: amounts due within one year

	2024	2024
	£	£
Trade debtors / trade receivables	480,553	27,390
Amounts owed by group undertakings	929,140	613,292
Other debtors	(75,824)	209,420
Prepayments and accrued income	164,695	79,532
Total	1,498,564	929,634

6.	Creditors: amounts due within one year

	2024	2024
	£	£
Trade creditors / trade payables	807,285	332,611
Amounts owed to related parties	-	1,163,674
Taxation and social security	38,545	-
Other creditors	247,578	276,233
Accrued liabilities and deferred income	2,280,060	3,290,135
Total	3,373,468	5,062,653


	The bank loans and overdraft are secured by fixed and floating charges covering all the property and undertakings of the company.

7.	Related party transactions
	During the period the company made payments of £27,000 (2023: £36,000) to a company owned by a director and shareholder.

8.	Controlling party
	The immediate and ultimate parent company is Rapid Addition Holdings Limited. Its registered oﬃce address is 4th Floor, 95 Chancery Lane, London, WC2A 1DT.

	Notes	31 Dec 2024		31 Mar 2024
		£	£	£	£
Fixed assets
Intangible assets	3		589,840		739,075
Tangible assets	4		81,239		126,239
			671,079		865,314
Current assets
Debtors	5	1,498,564		929,634
Cash at bank and on hand		280,006		1,300,818
		1,778,570		2,230,452
Creditors amounts falling due within one year	6	(3,373,468)		(5,062,653)
Net current assets (liabilities)			(1,594,898)		(2,832,201)
Total assets less current liabilities			(923,819)		(1,966,887)
Creditors amounts falling due after one year			(82,097)		(150,676)
Net assets			(1,005,916)		(2,117,563)
Capital and reserves
Called up share capital			3,050		3,050
Share premium			869,950		869,950
Other reserves			74,289		74,289
Profit and loss account			(1,953,205)		(3,064,852)
Shareholders' funds			(1,005,916)		(2,117,563)