Registered number:
03375289
Brandworkz Ltd
Unaudited
Financial statements
Information for filing with the registrar
For the Year Ended
31 December 2021
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Brandworkz Ltd
Chartered Accountants' Report to the Director on the preparation of the Unaudited Statutory Financial Statements of Brandworkz Ltd for the Year Ended 31 December 2021
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Brandworkz Ltd for the year ended 31 December 2021 which comprise the Balance Sheet
and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.
This report is made solely to the director of Brandworkz Ltd in accordance with the terms of our engagement letter dated
13 February 2020. Our work has been undertaken solely
to prepare for your approval the financial statements of Brandworkz Ltd and state those matters that we have agreed to state to the director of Brandworkz Ltd in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Brandworkz Ltd and its director for our work or for this report.
It is your duty to ensure that Brandworkz Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Brandworkz Ltd. You consider that Brandworkz Ltd is exempt from the statutory audit requirement for the year.
We
have not been instructed to carry out an audit or review of the financial statements of Brandworkz Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Kreston Reeves LLP
Chartered Accountants
Springfield House
Springfield Road
Horsham
West Sussex
RH12 2RG
15 June 2022
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Brandworkz Ltd
Registered number:
03375289
Balance Sheet
As at
31 December 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Page 2
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Brandworkz Ltd
Registered number:
03375289
Balance Sheet
(continued)
As at
31 December 2021
The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The
financial statements have been prepared 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 financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
................................................
J Lundgaard
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The notes on pages 4 to 10 form part of these financial statements.
Page 3
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Brandworkz Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2021
Brandworkz Ltd is a private company limited by share capital and incorporated in England and Wales. Its registered office is Suite 118, 22 Highbury Grove, London, N5 2EF.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
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The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis. While the impact of the Covid-19 virus has been assessed by the director, so far as reasonably possible, due to its unprecedented impact on the wider economy, it is difficult to evaluate with any certainty the potential outcomes on the company's trade, its customers and suppliers. However, taking into consideration the UK Government's response and the company's planning, the director has a reasonable expectation that the company will continue in operational existence for the foreseeable future.
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises the revenue for the SaaS (Software as a Service) software licenses on a monthly basis as it has been delivered. The company recognises the revenue for professional services on a quarterly basis in arrears as it has been delivered.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The normal useful life is expected to be 3 years.
Development expenditure that is incurred on specific projects is capitalised when recoverability can be forseen with reasonable certainty and is amortised in relation to anticipated sales arising from such projects.
Page 4
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Brandworkz Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2021
2.
Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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.
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Cash and cash equivalents
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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.
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.
Page 5
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Brandworkz Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2021
2.
Accounting policies (continued)
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 balance sheet date 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.
A separate share option reserve is maintained for such transactions.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Interest income is recognised in profit or loss using the effective interest method.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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The average monthly number of employees, including directors, during the year was
19
(2020 -
19
)
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Page 6
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Brandworkz Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2021
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Internally generated software development costs
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Charge for the year on owned assets
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Page 7
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Brandworkz Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2021
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Charge for the year on owned assets
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Prepayments and accrued income
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Page 8
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Brandworkz Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2021
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Obligations under finance lease
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases
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Accruals and deferred income
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Allotted, called up and fully paid
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784,800
(2020 -
784,800
)
Ordinary A
shares of £
0.01
each
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196,200
(2020 -
196,200
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Ordinary B
shares of £
0.01
each
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Page 9
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Brandworkz Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2021
The Company has granted 2 types of equity arrangements for employees or individuals providing similar services, these are unapproved options and EMI options. There are non-market conditions attached to all including employment and services conditions. There are no market conditions attached. All options are equity settled.
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No. options at 1 January 2021
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Weighted average exercise price (£)
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No. options at 31 December 2021
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Weighted average exercise price (£)
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The total expense recognised in the year was £11,911.
Page 10
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