E-Crunch Ltd Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 06014477

E-CRUNCH LTD

FILLETED UNAUDITED FINANCIAL STATEMENTS

31 March 2025

E-CRUNCH LTD

STATEMENT OF FINANCIAL POSITION

31 March 2025

	2025		2024
Note	£	£	£

Fixed assets

Intangible assets	5	3,965,282	3,721,781
Tangible assets	6	104,027	80,223
Investments	7	209	209
		-------------	-------------
		4,069,518	3,802,213

Current assets

Debtors	8	470,125	1,129,405
Cash at bank and in hand		390,833	114,135
		----------	-------------
		860,958	1,243,540

Creditors: amounts falling due within one year	9	1,588,034		1,761,604
		-------------		-------------
Net current liabilities			727,076	518,064
			-------------	-------------
Total assets less current liabilities			3,342,442	3,284,149
			-------------	-------------
Net assets			3,342,442	3,284,149
			-------------	-------------

Capital and reserves

Called up share capital	328,501	328,501
Share premium account	2,060,513	2,060,513
Capital redemption reserve	2,268	2,268
Profit and loss account	951,160	892,867
	-------------	-------------
Shareholders funds	3,342,442	3,284,149
	-------------	-------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- 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 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

E-CRUNCH LTD

STATEMENT OF FINANCIAL POSITION (continued)

31 March 2025

These financial statements were approved by the board of directors and authorised for issue on 14 November 2025 , and are signed on behalf of the board by:

Mr D J Fell

Director

Company registration number: 06014477

E-CRUNCH LTD

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 86-90 Paul Street, London, EC2A 4NE, England.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

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.

Going concern

The directors have a reasonable expectation that Crunch and the Group as a whole have adequate resources to continue its operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in the accounts. Crunch and the Group's activities, together with factors likely to affect its future development, performance, and position are considered by the directors on an ongoing basis. The directors continue to monitor the impact of world events with particular regard to the well-being of their people and their ability to design, develop software and support clients. The directors have performed stress testing of cash flow forecasts to take account of events that could impact the financial position of the Group. As such, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Cash at bank

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 risk of 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.

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.

Share based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Statement of Financial Position so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Consolidation

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Judgements and key sources of estimation uncertainty

In applying the company’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised, if the revision affects only that year, or in the year of the revision and future years, if the revision affects both current and future years. Critical judgements in applying the company's accounting policies The critical judgements that the directors have made in the process of applying the company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below. (i) Assessing indicators of impairment In assessing whether there have been any indicators of impairment, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year. (ii) Useful life and impairment of intangible assets The useful life of intangible assets are assessed with reference to past experience and current development of the continuously evolving software platform developed by the company. Management assesses the useful life on an ongoing basis and considers new developments when determining the useful life of previously recognised assets which useful lives are impacted by improvements. A regular assessment is performed to determine whether there are any indicators of impairment to the intangible assets held. {iii) Assessing the recoverability of R&D tax credit receivable Management estimation is required to determine the amount of research and development tax credit that can be recognised, based upon likely returns. Key sources of estimation uncertainty Indicators of impairment are subject to estimations about future trading levels, which are estimated with reference to past activity levels and future plans. Discount rates are estimated with reference to recent transactions in a similar market for similar assets.

Revenue recognition

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover 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 turnover is recognised: Rendering of services Turnover 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 turnover 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. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset. Amortisation is applied from the following year the costs were incurred.

Software	-	5 years
Intellectual property	-	10 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold improvements	-	over 10 years
Fixtures and fittings	-	20% straight line
Office equipment	-	25% reducing balance

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2025	2024
	No.	No.
Production staff	92	93
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2025	2024
	£	£
Wages and salaries	4,076,817	3,808,197
Social security costs	410,380	351,717
Other pension costs	134,996	135,266
	-------------	-------------
	4,622,193	4,295,180
	-------------	-------------

5. Intangible assets

	Software	Intellectual property	Total
	£	£	£
Cost
At 1 April 2024	15,357,958	297,642	15,655,600
Additions	1,733,715	–	1,733,715
	---------------	----------	---------------
At 31 March 2025	17,091,673	297,642	17,389,315
	---------------	----------	---------------
Amortisation
At 1 April 2024	11,720,311	213,508	11,933,819
Charge for the year	1,463,086	27,128	1,490,214
	---------------	----------	---------------
At 31 March 2025	13,183,397	240,636	13,424,033
	---------------	----------	---------------
Carrying amount
At 31 March 2025	3,908,276	57,006	3,965,282
	---------------	----------	---------------
At 31 March 2024	3,637,647	84,134	3,721,781
	---------------	----------	---------------

6. Tangible assets

	Long leasehold property	Equipment	Total
	£	£	£
Cost
At 1 April 2024	37,751	310,273	348,024
Additions	–	56,293	56,293
	---------	----------	----------
At 31 March 2025	37,751	366,566	404,317
	---------	----------	----------
Depreciation
At 1 April 2024	37,751	230,050	267,801
Charge for the year	–	32,489	32,489
	---------	----------	----------
At 31 March 2025	37,751	262,539	300,290
	---------	----------	----------
Carrying amount
At 31 March 2025	–	104,027	104,027
	---------	----------	----------
At 31 March 2024	–	80,223	80,223
	---------	----------	----------

7. Investments

	Shares in group undertakings
	£
Cost
At 1 April 2024 and 31 March 2025	209
	----
Impairment
At 1 April 2024 and 31 March 2025	–
	----

Carrying amount
At 31 March 2025	209
	----
At 31 March 2024	209
	----

Subsidiaries, associates and other investments

	Registered office	Class of share	Percentage of shares held
Subsidiary undertakings
Crunch Academy Ltd		Ordinary	100
Crunch Investments and Pensions Ltd		Ordinary	100
Crunch Umbrella Ltd		Ordinary	100
Crunch Ltd		Ordinary	100
Crunch Bookkeeping Ltd		Ordinary	100
Crunch One Ltd		Ordinary	100
Crunch International Ltd	9 Bond Street, St Helier	Ordinary	100
	Jersey, JE2 3NP
Crunch Project Ltd		Ordinary	100

All subsidiary undertakings are incorporated in England and Wales with a registered office of The Knoll Business Centre, 325-327 Old Shoreham Road, Hove, East Sussex, BN3 7GS except for Crunch International Ltd which is incorporated and registered in Jersey. The following are the principal activities of the subsidiary undertakings: Crunch Academy Ltd - Accountancy education Crunch Investments and Pensions Ltd - Dormant Crunch Umbrella Ltd - Employment services Crunch Ltd - Dormant Cruch Bookkeeping Ltd - Dormant Crunch One Ltd - Dormant Crunch International Ltd - Accountancy software Crunch Project Ltd - Dormant

8. Debtors

	2025	2024
	£	£
Trade debtors	120,452	167,569
Amounts owed by group undertakings	100,225	189,076
Prepayments and accrued income	61,637	42,829
Other debtors	187,811	729,931
	----------	-------------
	470,125	1,129,405
	----------	-------------

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

9. Creditors: amounts falling due within one year

	2025	2024
	£	£
Bank loans and overdrafts	–	357,133
Trade creditors	98,526	252,286
Amounts owed to group undertakings	33,441	–
Accruals and deferred income	565,074	249,032
Social security and other taxes	502,772	526,479
Other creditors	388,221	376,674
	-------------	-------------
	1,588,034	1,761,604
	-------------	-------------

The bank loan is secured by a cross guarantee and debenture between the company, its subsidiaries Crunch Academy Ltd, Crunch Umbrella Ltd and Crunch Accounting Ltd, a Company related by common directorships and shareholders. It is further secured by a guarantee for £100,000 from Darren James Fell, a director of the Company, in favour of Barclays Bank plc.

The loan was repaid during the year ended 31st March 2025. The final payment was completed on 24th January 2025.

10. Share based payments

The Company has a share incentive scheme by which it grants options to certain staff members to subscribe to shares in the Company at a predetermined price at a future date. At the year end the options outstanding are as follows:

	Weighted average exercise price (pence) 2025	Number 2025	Weighted average exercise price (pence) 2024	Number 2024
		£	£	£
Outstanding at the beginning of the year	123	55,090	123	55,090
Outstanding at the end of the year	123	55,090	123	55,090

	Black Scholes 2025	Black Scholes 2024
	£	£
Option pricing model used

Exercise price (pence)	35	35
Weighted average contractual life (days)	3	3
Expected volatility	48	48
Expected dividends	1	1
Risk-free interest rate	1	1

Total (income)/expense for the year £nil (2024: £nil).

11. Pension commitments

Contributions totalling £29,755 (2024: £25,189) were payable to the scheme at the end of the year and are included within other creditors.

12. Related party transactions

All transactions are carried out at arm's length. Crunch Accounting Ltd - provision accounting services from/to Crunch Accounting Ltd, which, at the year end, has common shareholders. Purchases: £1,565,292 (2024: £1,202,301). As at 31 March 2025, £84,893 (2024: £105,671) was due to Crunch Accounting Ltd. Prism Strategy & Management Limited - provided services to the board and charged £15,272 (2024: £8,417.) Renatus Moolenaar director of Prism Strategy & Management Limited is a shareholder and became a Non-Executive Director from 21 July 2023. Le Roi Investments Limited - provided services to the board and charged £13,210 (2024: £424.) Ben King director of Le Roi Investments Limited became a Director from 30 August 2023. Crunch Umbrella Ltd owed £64,174 (2024: £63,752) to E-Crunch Ltd. Crunch Academy Ltd owed £36,051 (2024: £36,051) to E-Crunch Ltd. Crunch International Ltd was owed £33,441 (2024: £89,273 owed to E-Crunch Ltd). Employees - As part of the investment raise a number of employees invested in E-Crunch Ltd using the Seedrs platform. Seedrs Nominee hold these shares on their behalf.