Company registration number 03986970 (England and Wales)
CLEARDATA UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022
CLEARDATA UK LIMITED
COMPANY INFORMATION
Directors
D A Bryce
R M L Jones
J Cahill
M Liddell
E Young
Secretary
R J Wood
Company number
03986970
Registered office
Innovation House
Coniston Court
Blyth Riverside Business Park
Blyth
Northumberland
NE24 4RP
Auditor
RMT Accountants & Business Advisors Ltd
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
CLEARDATA UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
CLEARDATA UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2022
- 1 -
The directors present the strategic report for the year ended 31 May 2022.
Principal activities
The principal activity of the company is document scanning and archiving services, with digital transformation services such as invoice processing, Digital Mailroom, cloud document management and Robot process automation now making up an important and growing part of the business.
Fair review of the business
Cleardata has undergone substantial growth in most areas of our business with particularly impressive performances in Digital Mailroom, Digital Processing and Scan on Demand archiving services.
This year has seen some excellent wins in the NHS for the digitisation of patient records. This growth has been supported by significant investment in new buildings, offices, and state of the art scanning hardware. In addition to this, consistently strong sales results have further enhanced growth with repeat revenue continuing to rise.
The principle risks facing the business intuitively are the move away from paper to digital, the reality is, however , different and we are seeing double digit growth in most areas including more traditional services like archiving at 25% growth and a 156% growth in large back scanning projects.
This trend is set to continue into the new financial period with some excellent sales performances and we expect our Digital Mailroom offering to continue to go from strength to strength.
Performance highlights include Profits before tax being up 53.6% with turnover growth at 49.5%, coupled with the business being particularly cash generative.
Managing costs in a high inflationary environment, with energy and wage pressures will be one of the key challenges to face the economy and our performance. There are huge opportunities in our digital transformation services such as Robot Process automation and Digital mailroom outsourcing, and we expect growth in both services in our sales pipeline and forecasted revenue.
Key performance indicators
The directors consider turnover and EBITDA (earnings before interest, tax, depreciation, amortisation and exceptional items) to be key measures of the company's performance.
-
Turnover has increased during the year by 49.5% to £7,487,678 (2021 - £5,007,950).
The profit after tax for the period was £823,092 (2021 - £460,651) and the net asset position at period end was £3,310,817 (2021
- £2,487,725).
The director
s
consider the company's results to be satisfactory in light of current
market conditions
.
CLEARDATA UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 2 -
Principal risks and uncertainties
The management of the business and the execution of the company's strategy are subject to a number of risks. The board reviews these risks and puts in place policies to mitigate them.
The key business and financial risks are:
Liquidity risk
The director
s
regularly monitor the financial information to ensure that any risks in this area are considered on a timely basis.
Credit risk
The company monitors credit risk and considers that its current policy of strict credit checks meets its objectives of managing its exposure.
Interest rate risk
The company monitors interest rate risk and considers that its current policy meets its objectives of managing its exposure.
Employees
The company recognises its performance depends largely on its key employees. Employees are remunerated with competitive packages and conditions as well as specific employee incentive schemes
D A Bryce
Director
24 February 2023
CLEARDATA UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2022
- 3 -
The directors present their annual report and financial statements for the year ended 31 May 2022.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D A Bryce
R J Wood
(Resigned 26 October 2022)
R M L Jones
J Cahill
M Liddell
E Young
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Auditor
RMT Accountants & Business Advisors Ltd were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
CLEARDATA UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
D A Bryce
Director
Approved by the board on 24 February 2023
CLEARDATA UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CLEARDATA UK LIMITED
- 5 -
Opinion
We have audited the financial statements of Cleardata UK Limited (the 'company') for the year ended 31 May 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 May 2022 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CLEARDATA UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CLEARDATA UK LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
CLEARDATA UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CLEARDATA UK LIMITED
- 7 -
Capability of the audit in detecting irregularities, including fraud
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
-
Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of legal costs incurred; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters which we are required to address
The prior year financial statements were not subject to audit and therefore the comparative figures in the financial statements are unaudited.
This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Stephen Slater
Senior Statutory Auditor
For and on behalf of RMT Accountants & Business Advisors Ltd
Statutory Auditor
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
27 February 2023
CLEARDATA UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2022
- 8 -
2022
2021 - unaudited
as restated
Notes
£
£
Turnover
3
7,487,678
5,007,950
Cost of sales
(606,327)
(340,288)
Gross profit
6,881,351
4,667,662
Administrative expenses
(6,272,694)
(4,276,592)
Other operating income
290,038
200,950
Operating profit
4
898,695
592,020
Interest receivable and similar income
7
51
Interest payable and similar expenses
8
(41,165)
(33,522)
Profit before taxation
857,581
558,498
Tax on profit
9
(34,489)
(97,847)
Profit for the financial year
823,092
460,651
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CLEARDATA UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2022
- 9 -
2022
2021 - unaudited
as restated
£
£
Profit for the year
823,092
460,651
Other comprehensive income
-
-
Total comprehensive income for the year
823,092
460,651
CLEARDATA UK LIMITED
BALANCE SHEET
- 10 -
2022
2021 - unaudited
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
11
70,726
Tangible assets
12
2,429,308
2,219,195
2,500,034
2,219,195
Current assets
Stocks
13
10,276
Debtors
14
2,455,242
1,601,219
Cash at bank and in hand
841,246
1,386,010
3,306,764
2,987,229
Creditors: amounts falling due within one year
15
(1,637,645)
(1,191,599)
Net current assets
1,669,119
1,795,630
Total assets less current liabilities
4,169,153
4,014,825
Creditors: amounts falling due after more than one year
16
(216,216)
(1,028,888)
Provisions for liabilities
(247,653)
(213,164)
Deferred grants
20
(394,467)
(285,048)
Net assets
3,310,817
2,487,725
Capital and reserves
Called up share capital
22
1,000
1,000
Share premium account
39,600
39,600
Capital redemption reserve
201
201
Profit and loss reserves
3,270,016
2,446,924
Total equity
3,310,817
2,487,725
The financial statements were approved by the board of directors and authorised for issue on 24 February 2023 and are signed on its behalf by:
D A Bryce
Director
Company Registration No. 03986970
CLEARDATA UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2022
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 June 2020
1,000
39,600
201
2,136,273
2,177,074
Year ended 31 May 2021:
Profit and total comprehensive income for the year - as restated
-
-
-
460,651
460,651
Dividends
10
-
-
-
(150,000)
(150,000)
Balance at 31 May 2021 - as restated
1,000
39,600
201
2,446,924
2,487,725
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
-
-
823,092
823,092
Balance at 31 May 2022
1,000
39,600
201
3,270,016
3,310,817
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022
- 12 -
1
Accounting policies
Company information
Cleardata UK Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Innovation House, Coniston Court, Blyth Riverside Business Park, Blyth, Northumberland, NE24 4RP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues
: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Cleardata Limited
. These consolidated financial statements are available from its registered office,
Innovation House, Coniston Court, Blyth Riverside Business Park, Blyth, Northumberland, NE24 4RP.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
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 and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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
.
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 13 -
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
5 Years Straight Line
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
2% on cost
Land and buildings Leasehold
Over the period of the lease
Plant and machinery
25% on cost and 20% on reducing balance
Assets in the course of construction are not depreciated.
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
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8
Stocks
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.
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 14 -
1.10
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 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.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 15 -
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
paymen
ts 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. A
m
ounts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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
profit and loss account
, 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.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 16 -
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 lease
s
asset are consumed.
1.16
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Deferred government grants
Capital grants received are credited to the profit and loss account over the expected useful lives of the assets to which they relate. Training grants are written off to the profit and loss account as they are received. The amount of grants shown in the balance sheet consists of the total grants receivable to date less the amounts credited to the profit and loss account.
2
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
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment in assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Determining residual values and useful economic lives of fixed assets
The group depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management.
Judgement is applied by management when determining the residual values of tangible fixed assets. When determining the residual value management aim to assess the amount that the group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life.
The carrying amount of tangible fixed assets at the reporting date was £2,429,308 (2021 - £2,219,195).
3
Turnover
2022
2021 - unaudited
£
£
Turnover analysed by class of business
UK Sales
7,487,678
5,007,950
2022
2021 - unaudited
£
£
Other revenue
Interest income
51
-
Grants received
283,667
182,657
4
Operating profit
2022
2021 - unaudited
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
53,733
39,733
Government grants
(283,667)
(182,657)
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
Depreciation of owned tangible fixed assets
329,537
191,685
Profit on disposal of tangible fixed assets
(5,083)
Amortisation of intangible assets
7,858
Operating lease charges
200,539
145,831
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021 - unaudited
Number
Number
213
135
Their aggregate remuneration comprised:
2022
2021 - unaudited
as restated
£
£
Wages and salaries
4,490,881
3,084,922
Social security costs
39,244
25,957
Pension costs
173,034
123,252
4,703,159
3,234,131
6
Directors' remuneration
2022
2021 - unaudited
£
£
Remuneration for qualifying services
323,864
248,149
Company pension contributions to defined contribution schemes
27,322
14,809
351,186
262,958
7
Interest receivable and similar income
2022
2021 - unaudited
£
£
Interest income
Interest on bank deposits
51
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 19 -
8
Interest payable and similar expenses
2022
2021 - unaudited
£
£
Interest on bank overdrafts and loans
30,507
27,477
Interest on finance leases and hire purchase contracts
10,658
6,045
41,165
33,522
9
Taxation
2022
2021 - unaudited
£
£
Current tax
UK corporation tax on profits for the current period
(51,805)
Deferred tax
Origination and reversal of timing differences
34,489
149,652
Total tax charge
34,489
97,847
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021 - unaudited
£
£
Profit before taxation
857,581
558,498
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021 - unaudited: 19.00%)
162,940
106,115
Tax effect of expenses that are not deductible in determining taxable profit
111,004
75,483
Tax effect of income not taxable in determining taxable profit
(265,485)
(169,073)
Adjustments in respect of prior years
17,215
Effect of change in corporation tax rate
6,448
52,989
Under/(over) provided in prior years
7,624
6,495
Other
11,958
8,623
Taxation charge for the year
34,489
97,847
10
Dividends
2022
2021 - unaudited
£
£
Final paid
150,000
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 20 -
11
Intangible fixed assets
Software
£
Cost
At 1 June 2021
Additions
78,584
At 31 May 2022
78,584
Amortisation and impairment
At 1 June 2021
Amortisation charged for the year
7,858
At 31 May 2022
7,858
Carrying amount
At 31 May 2022
70,726
At 31 May 2021
12
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Total
£
£
£
£
Cost
At 1 June 2021
1,579,414
233,020
1,856,852
3,669,286
Additions
141,487
398,823
540,310
Disposals
(670)
(670)
At 31 May 2022
1,579,414
374,507
2,255,005
4,208,926
Depreciation and impairment
At 1 June 2021
97,245
145,342
1,207,504
1,450,091
Depreciation charged in the year
31,588
57,454
240,495
329,537
Eliminated in respect of disposals
(10)
(10)
At 31 May 2022
128,833
202,796
1,447,989
1,779,618
Carrying amount
At 31 May 2022
1,450,581
171,711
807,016
2,429,308
At 31 May 2021
1,482,169
87,678
649,348
2,219,195
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 21 -
13
Stocks
2022
2021 - unaudited
£
£
Raw materials and consumables
10,276
14
Debtors
2022
2021 - unaudited
Amounts falling due within one year:
£
£
Trade debtors
1,094,866
534,623
Corporation tax recoverable
51,805
Amounts owed by group undertakings
998,028
752,433
Other debtors
2,425
14,561
Prepayments and accrued income
359,923
247,797
2,455,242
1,601,219
15
Creditors: amounts falling due within one year
2022
2021 - unaudited
as restated
£
£
Bank loans and overdrafts
17
76,194
111,312
Obligations under finance leases
18
24,254
39,206
Trade creditors
464,279
358,049
Other taxation and social security
588,983
445,153
Other creditors
32,224
Accruals and deferred income
451,711
237,879
1,637,645
1,191,599
16
Creditors: amounts falling due after more than one year
2022
2021 - unaudited
£
£
Bank loans and overdrafts
17
216,216
1,004,538
Obligations under finance leases
18
24,350
216,216
1,028,888
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 22 -
17
Loans and overdrafts
2022
2021 - unaudited
£
£
Bank loans
292,410
1,115,850
Payable within one year
76,194
111,312
Payable after one year
216,216
1,004,538
Yorkshire Building Society T/a Norwich and Peterborough Building Society have fixed and floating charges over all properties and undertaking of the company, including a fixed charge over the property at Plot 6, Hawarden Business Park, Hawarden, Flintshire, as security for the bank loans in place.
18
Finance lease obligations
2022
2021 - unaudited
Future minimum lease payments due under finance leases:
£
£
Within one year
24,254
39,206
In two to five years
24,350
24,254
63,556
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021 - unaudited
Balances:
£
£
Accelerated capital allowances
247,653
213,164
2022
Movements in the year:
£
Liability at 1 June 2021
213,164
Charge to profit or loss
34,489
Liability at 31 May 2022
247,653
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 23 -
20
Government grants
2022
2021 - unaudited
£
£
Arising from government grants
394,467
285,048
394,467
285,048
21
Retirement benefit schemes
2022
2021 - unaudited
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
173,034
123,252
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
Included within other creditors due within one year are £4,515 (2021: £Nil) of outstanding pension contributions.
22
Share capital
2022
2021 - unaudited
2022
2021 - unaudited
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares class A of 1p each
15,000
15,000
150
150
Ordinary shares class B of 1p each
47,500
47,500
475
475
Ordinary shares class C of 1p each
34,500
34,500
345
345
Ordinary shares class D of 1p each
3,000
3,000
30
30
100,000
100,000
1,000
1,000
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021 - unaudited
£
£
Within one year
244,722
144,743
Between two and five years
726,466
470,055
971,188
614,798
CLEARDATA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 24 -
24
Ultimate controlling party
Cleardata Limited is the immediate and ultimate parent, and the smallest and largest company for which consolidated accounts including Cleardata UK Limited are prepared. The consolidated accounts of Cleardata Limited are available from its registered office, Innovation House, Coniston Court, Blyth Riverside Business Park, Blyth, Northumberland, NE24 4RP.
Cleardata Limited is under the control of director D A Bryce on the basis of his majority shareholding.
25
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 May 2021
£
£
£
Creditors due within one year
Other creditors
(505,322)
(90,606)
(595,928)
Capital and reserves
Profit and loss reserves
2,537,530
(90,606)
2,446,924
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 May 2021
£
£
£
Administrative expenses
(4,185,986)
(90,606)
(4,276,592)
Profit for the financial period
551,257
(90,606)
460,651
The prior year financial statements have been restated to incorporate the impact of the recognition of a payroll cost accrual.
2022-05-31
2021-06-01
false
CCH Software
CCH Accounts Production 2022.300
No description of principal activity
D A Bryce
R J Wood
R M L Jones
J Cahill
M Liddell
E Young
R J Wood
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