1.
General Information
Vivacity Labs Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
09924516
. The registered office is 3 Haberdasher Street, London, N1 6ED.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2.
Going Concern Disclosure
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.
2.3.
Turnover
Turnover represents the value, net of VAT and discounts, of goods provided to customers and work carried outin respect of services provided to customers.
The company has a revenue recognition policy which consists of three main income streams:
- Sensor revenue. The revenue arising from the installation of hardware is recognised upfront upon installation of the sensor.
- Software as a service, data and sensor leasing income is recognised evenly across the contract term.
- Consultancy and project management income is recognised as the work is conducted and by reference to the stage of completion of the project.
2.4.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
| Leasehold |
|
| Plant & Machinery |
|
| Fixtures & Fittings |
|
| Computer Equipment |
|
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.
2.5.
Stocks and Work in Progress
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Vivacity Labs Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
2.6.
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 statement of financial position 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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
2.7.
Foreign Currencies
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.
2.8.
Taxation
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 income statement, 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.
Vivacity Labs Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
2.9.
Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
2.10.
Share based payments
The company has EMI and unapproved share option schemes in place. Options vest based upon a variety of conditions including over time, based on performance conditions and on exit only. All options are settled by equity upon exercise.
At the period end there were 157,149 options in issue, with 28,523 being exercisable at the end of the period. The company has entered a debit of £10,962 through the profit and loss account, being the estimated fair value of the net movement in share options this year.
The number and weighted average exercise prices for the options are as follows:
|
Company
|
Number of share options
|
Weighted average exercise price
|
||
|
2025 number
|
2024 number
|
2025 £
|
2024 £
|
|
|
Outstanding at 1 January 2025
|
196,642
|
146,366
|
0.27
|
0.30
|
|
Granted
|
76,550
|
105,502
|
0.18
|
0.18
|
|
Forfeited
|
(83,584)
|
(17,691)
|
0.35
|
0.44
|
|
Exercised
|
(35,374)
![1](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 2" preserveAspectRatio="none"> <line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/> </svg>){kind=small}
|
(37,535)
|
0.24
![1](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 5" preserveAspectRatio="none"> <line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/> <line x1="0" y1="4" x2="80" y2="4" stroke="black" shape-rendering="crispEdges"/> </svg>){kind=small}
|
0.07
|
|
Outstanding as at 31 December 2025
|
157,149
|
196,642
|
0.19
|
0.27
|
|
Exercisable as at 31 December 2025
|
28,523
|
43,572
|
0.18
|
0.18
|
2.11.
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.
2.12.
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.
3.
Average Number of Employees
Average number of employees, including directors, during the year was: 65 (2024: 98)
4.
Tangible Assets
| Land & Property | |||||
|---|---|---|---|---|---|
| Leasehold | Plant & Machinery | Fixtures & Fittings | Computer Equipment | Total | |
| £ | £ | £ | £ | £ | |
| Cost | |||||
| As at 1 January 2025 |
|
|
|
|
|
| Additions |
|
|
|
|
|
| As at 31 December 2025 |
|
|
|
|
|
...CONTINUED
Vivacity Labs Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
| Depreciation | |||||
| As at 1 January 2025 |
|
|
|
|
|
| Provided during the period |
|
|
|
|
|
| As at 31 December 2025 |
|
|
|
|
|
| Net Book Value | |||||
| As at 31 December 2025 |
( |
|
|
|
|
| As at 1 January 2025 |
|
|
|
|
|
5.
Investments
| Subsidiaries | |
|---|---|
| £ | |
| Cost or Valuation | |
| As at 1 January 2025 |
|
| As at 31 December 2025 |
|
| Provision | |
| As at 1 January 2025 |
|
| As at 31 December 2025 |
|
| Net Book Value | |
| As at 31 December 2025 |
|
| As at 1 January 2025 |
|
6.
Stocks
| 2025 | 2024 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Stock |
|
|
|
7.
Debtors
| 2025 | 2024 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
|
|
|
| Amounts owed by group undertakings | 2,577,699 | 2,170,417 | |
| Other debtors | 485,490 | 678,228 | |
|
|
|
||
| Due after more than one year | |||
| Other debtors | - | (1,162) | |
|
|
|
||
Vivacity Labs Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
8.
Creditors: Amounts Falling Due Within One Year
| 2025 | 2024 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Trade creditors |
|
|
|
| Other creditors | 4,613,741 | 3,843,448 | |
| Taxation and social security |
|
|
|
|
|
|
||
9.
Creditors: Amounts Falling Due After More Than One Year
| 2025 | 2024 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Other creditors | 3,115,273 | 2,822,201 | |
11.
Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
| 2025 | 2024 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Not later than one year |
|
|
|
| Later than one year and not later than five years |
|
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