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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31st December 2020 |
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for |
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Simworx Limited |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31st December 2020 |
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for |
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Simworx Limited |
Simworx Limited (Registered number: 05389718) |
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Contents of the Financial Statements |
for the Year Ended 31st December 2020 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 5 |
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Report of the Independent Auditors | 7 |
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Statement of Comprehensive Income | 11 |
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Balance Sheet | 12 |
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Statement of Changes in Equity | 13 |
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Cash Flow Statement | 14 |
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Notes to the Cash Flow Statement | 15 |
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Notes to the Financial Statements | 17 |
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Simworx Limited |
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Company Information |
for the Year Ended 31st December 2020 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
Statutory Auditors |
14a Market Place |
Uttoxeter |
Staffordshire |
ST14 8HP |
Simworx Limited (Registered number: 05389718) |
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Strategic Report |
for the Year Ended 31st December 2020 |
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The directors present their strategic report for the year ended 31st December 2020. |
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PRINCIPAL ACTIVITY |
The principal activity of the company is the design, manufacture and installation of media-based attractions for theme parks, museums and visitors attractions worldwide. The company has a product portfolio of thirteen media based attractions, with a diverse range of experiences, prices and passenger capacities to ensure a wide market reach. |
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BUSINESS REVIEW |
Going into 2020, the company had a very healthy order book, that was put on hold as the pandemic impacted the world. The company utilised government support schemes to ensure that a cash neutral position maintained as clearly revenues were significantly impacted with worldwide trade in the Theme Park and Visitor Attractions industry effectively coming to a halt. From Quarter 3, the company was able to start unlocking those orders and secured three new orders in the final quarter of the year. |
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Enquiries during 2021 have been at high levels and it is forecast that a good level of those enquiries will convert to orders as theme parks have overcome a period of uncertainty. Confidence has been restored to enable them to return to adding new attractions on an annual basis, whilst new park developers will continue with their strategies.launch. |
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Review of 2020 Results: |
Turnover for the financial year reduced by 79% to £3,541,614 (from £17,064,505 in 2019). |
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Whilst Staff Costs reduced by 28% to £1,886,438 vs 2019 given the reduced level of activity, as a percentage of Turnover, it increased from 15.3% in 2019, to 53.3%. |
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Loss before Taxation was £1,405,466 compared to a profit of £2,366,580 for 2019. |
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KEY PERFORMANCE INDICATORS |
The board of directors recognise Key Performance Indicators as an integral part of monitoring the progress of the business, and are identified in the Annual Budget with appropriate targets set. It is the responsibility of the management team to regularly monitor and review these figures and report the results and any corrective actions to the board. |
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The key performance indicators used to monitor the financial performance of the company include Operating Profit/Loss as a % of sales which closed the year on 37.4% loss, decreasing from 14.2% profit in the previous year. |
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As a project-based business the monitoring of the performance of the projects from a commercial, financial, and technical perspective is critical. The profitability of each individual project and the comparison to the expected profitability at the time of contract is closely monitored through a series of project reviews with corrective actions being put in place if required. Project debts are also monitored at these meetings. |
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RESEARCH AND DEVELOPMENT ACTIVITIES |
Enhancements to existing rides within the portfolio, along with new product development is part of the ongoing investment by the company into research and development activities. |
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Simworx Limited (Registered number: 05389718) |
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Strategic Report |
for the Year Ended 31st December 2020 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
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COVID-19 Pandemic |
The theme park and visitor attractions industry was significantly impacted by COVID-19 during 2020 and early 2021. Whilst some territories remain affected particularly the far east, a positive roll out of the vaccine the majority of theme parks and visitor attractions across Europe, Middle East and North America are now fully open and in many instances recording record revenues in 2021 as online bookings, 'staycations' and increases in visitors' secondary spend have become common place. |
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Enquiries during 2021 have been at high levels and it is forecast that a good level of those enquiries will convert to orders as theme parks have overcome a period of uncertainty, and the confidence has been restored to enable them to return to adding new attractions on an annual basis, whilst new park developers will continue with their strategies. Throughout the pandemic, the group had a healthy order book and maintained a strong liquidity position by utilising various government support schemes. |
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The company focussed on releasing projects that were on hold and securing new orders, which it was able to do despite the pandemic. Trade shows have returned to the calendar, two of which the company has successfully participated in; IAAPA Middle East and IAAPA Europe. Current travelling restrictions to the USA are potentially impacting our planned attendance at IAAPA Orlando. |
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Market Competitiveness |
Operating in a competitive market segment, it is important that the portfolio of rides remains market leading. New product development and existing product enhancement is a core activity of the company with significant resources devoted to it. |
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Establishing a proactive sales team to ensure that the group is well placed to secure orders in a truly worldwide market is also key. The group has significantly enhanced its sales network by adding a Global Business Development Manager to support the existing the UK Sales and Marketing Team, who are in turn supported by sales representation in Vietnam, Indonesia, Thailand, Korea, Spain, South America, Russia, and China. |
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Product Build Quality and Customer Satisfaction |
The company focuses on ensuring that its production and safety standards remain of the highest quality which ensures timely delivery of attractions to its customers. Close management of the supply chain along with a multi-sourcing policy ensures the supply of quality components and subassemblies. An in-house quality process together with the involvement of 3rd party safety and quality inspection bodies, such as TUV, further mitigates this risk. |
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Ensuring that the ride sold to the customer meets their specific requirements is a key focus in pre-contract negotiations and is re addressed at regular customer meetings throughout the project. |
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Health and Safety |
Health and Safety is a key focus from board level down with the aim of achieving best practice not merely legal compliance. Specialist 3rd parties are used to support where required. The aim is a safe and healthy workplace for employees and visitors. Risk assessments and workplace training is undertaken in all areas of the business. |
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Brexit |
A project team was appointed to identify the potential implications of Brexit and work to mitigate any potential risks which are viewed as minimal. The company will utilise the expertise of freight forwarding companies when moving rides or components into or out of the EU. |
Simworx Limited (Registered number: 05389718) |
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Strategic Report |
for the Year Ended 31st December 2020 |
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Cyber |
There are clearly external potential threats to critical business systems. Controls over the systems exist with firewalls and virus protection software kept up to date. An In-house IT specialist as well as 3rd party expertise are utilised to support these activities. |
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Other Risks |
Other external risks include global, political and economic conditions, foreign exchange, interest rates, credit risk and business continuity. The company seeks to mitigate exposure to all forms of risk, where practicable, and to transfer risk to insurers, where cost effective. |
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FINANCIAL INSTRUMENTS |
The directors are constantly reviewing the objectives of the business operations to identify areas where it can reduce financial risk without hindrance to the business. |
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Credit |
To counteract the risk of bad debts the business has increased the use of credit checking facilities to assess the risk of contracting with each customer. Letters of Credit are also used for significant milestone payments where this can be negotiated with the customer. |
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Liquidity |
The business has a strong relationship with its providers of Finance. This has been evidenced by their support during the current pandemic. |
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Hedging Forecast Transactions |
A proportion of the company's turnover is denominated in Euros and to a lesser extent US Dollars. This is only partially matched by purchases in these currencies. A significant weakening of the Euro against sterling could materially impact the business's performance. Forward contracts are in place to mitigate this risk. |
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Cash flow |
12-week Cash flow forecasts are prepared weekly. A 12-month Cash Forecast is prepared each month to identify any funding requirements the business may have with a degree of contingency for unforeseen events or potential changes to the assumptions of the forecasts, primarily on the timing of project receipts. |
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FUTURE DEVELOPMENTS |
As stated earlier, enhancements to existing rides within the portfolio, along with new product development is part of the ongoing investment by the company into research and development activities. |
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The company will continue to expand its global sales representation as appropriate. |
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ON BEHALF OF THE BOARD: |
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Simworx Limited (Registered number: 05389718) |
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Report of the Directors |
for the Year Ended 31st December 2020 |
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The directors present their report with the financial statements of the company for the year ended 31st December 2020. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2020. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2020 to the date of this report. |
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Other changes in directors holding office are as follows: |
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DISCLOSURE IN THE STRATEGIC REPORT |
Information regarding financial instruments and future developments is contained within the strategic report included in these financial statements. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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: |
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- | 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. |
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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. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Simworx Limited (Registered number: 05389718) |
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Report of the Directors |
for the Year Ended 31st December 2020 |
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AUDITORS |
The auditors, Rice & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Simworx Limited |
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Opinion |
We have audited the financial statements of Simworx Limited (the 'company') for the year ended 31st December 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31st December 2020 and of its loss 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. |
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Basis for opinion |
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 Auditors' 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. |
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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. |
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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. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, 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 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. |
Report of the Independent Auditors to the Members of |
Simworx Limited |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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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 identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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. |
Report of the Independent Auditors to the Members of |
Simworx Limited |
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Auditors' 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 a Report of the Auditors 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. |
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Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
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We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. |
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In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we performed procedures which included: |
- | Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud. |
- | Reviewing minutes of meetings of those charged with governance. |
- | Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection. |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- | Performing audit work over the risk of management bias and override of controls including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for indicators of potential bias. |
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Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to material misstatement in the financial statements or non-compliance with laws and regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may include collusion, forgery, intentional omissions, misrepresentations, or override of the internal control. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Simworx Limited |
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Use of our report |
This report is made solely to the company's members, as a body, 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 members those matters we are required to state to them in a Report of the Auditors 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 members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Chartered Accountants |
Statutory Auditors |
14a Market Place |
Uttoxeter |
Staffordshire |
ST14 8HP |
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Simworx Limited (Registered number: 05389718) |
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Statement of Comprehensive |
Income |
for the Year Ended 31st December 2020 |
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2020 | 2019 |
Notes | £ | £ |
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TURNOVER | 4 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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(1,604,675 | ) | 1,264,634 |
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Other operating income/expenses | 5 |
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OPERATING (LOSS)/PROFIT | 7 | ( |
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Interest payable and similar expenses | 8 |
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(LOSS)/PROFIT BEFORE TAXATION | ( |
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Tax on (loss)/profit | 9 |
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(LOSS)/PROFIT FOR THE
FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR |
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Simworx Limited (Registered number: 05389718) |
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Balance Sheet |
31st December 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
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Tangible assets | 11 |
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Investments | 12 |
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CURRENT ASSETS |
Debtors | 13 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 14 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
15 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 19 |
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Share premium | 20 |
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Retained earnings | 20 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Simworx Limited (Registered number: 05389718) |
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Statement of Changes in Equity |
for the Year Ended 31st December 2020 |
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Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
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Balance at 1st January 2019 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31st December 2019 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31st December 2020 |
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Simworx Limited (Registered number: 05389718) |
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Cash Flow Statement |
for the Year Ended 31st December 2020 |
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2020 | 2019 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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( |
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Interest paid | ( |
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Interest element of hire purchase or
finance lease rental payments paid |
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( |
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Net cash from operating activities |
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( |
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Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
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Purchase of tangible fixed assets |
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( |
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Purchase of fixed asset investments | - | (100,000 | ) |
Sale of tangible fixed assets |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
New loans in year |
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Hire purchase repayments |
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( |
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Movement in directors' current accounts | (1,447 | ) | 1,585 |
Movement in group loans |
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( |
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Net cash from financing activities |
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Increase/(decrease) in cash and cash equivalents |
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( |
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Cash and cash equivalents at
beginning of year |
2 |
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906,182 |
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Cash and cash equivalents at end of
year |
2 |
2,775,313 |
775,532 |
Simworx Limited (Registered number: 05389718) |
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Notes to the Cash Flow Statement |
for the Year Ended 31st December 2020 |
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1. |
RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED
FROM OPERATIONS |
2020 | 2019 |
£ | £ |
(Loss)/profit before taxation | ( |
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Depreciation charges |
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Profit on disposal of fixed assets | ( |
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Impairment of fixed asset investments | - | 67,000 |
Grants - business interruption payments | (20,645 | ) | - |
Finance costs | 81,541 | 53,318 |
(1,185,429 | ) | 2,749,249 |
Decrease in stocks |
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Decrease/(increase) in trade and other debtors |
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( |
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Decrease in trade and other creditors | ( |
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) |
Cash generated from operations |
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( |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 31st December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 2,775,313 | 775,532 |
Year ended 31st December 2019 |
31.12.19 | 1.1.19 |
£ | £ |
Cash and cash equivalents | 775,532 | 906,182 |
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Simworx Limited (Registered number: 05389718) |
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Notes to the Cash Flow Statement |
for the Year Ended 31st December 2020 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1.1.20 | Cash flow | At 31.12.20 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 775,532 | 1,999,781 | 2,775,313 |
775,532 |
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2,775,313 |
Debt |
Debts falling due within 1 year | (375,000 | ) | (172,562 | ) | (547,562 | ) |
Debts falling due after 1 year | (375,000 | ) | (827,438 | ) | (1,202,438 | ) |
(750,000 | ) | (1,000,000 | ) | (1,750,000 | ) |
Total | 25,532 | 999,781 | 1,025,313 |
Simworx Limited (Registered number: 05389718) |
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Notes to the Financial Statements |
for the Year Ended 31st December 2020 |
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1. | STATUTORY INFORMATION |
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Simworx Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Significant judgements and estimates |
In preparing these financial statements, the directors have had to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets, liabilities, income and expenses. |
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The estimates and associated assumptions are based on historic experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities. Actual results may differ from these estimates. The judgements, estimates and assumptions are: |
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Tangible assets |
Tangible fixed assets are depreciated over their useful economic lives taking into account residual values where appropriate. The actual lives of these assets are assessed annually and may vary depending on a number of factors. In assessing asset lives, factors such as life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values. |
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Trade debtors |
At each reporting date, trade debtors are assessed for recoverability. If there is any evidence of impairment, the carrying amount is reduced to its recoverable amount. The impairment loss is recognised immediately in the statement of comprehensive income. |
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Project accounting |
Project revenue and costs are recognised in the statement of comprehensive income by reference to the stage of completion of the project. At each reporting date, total project costs are projected to allow the correct proportion of profit to be recognised. |
Simworx Limited (Registered number: 05389718) |
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Notes to the Financial Statements - continued |
for the Year Ended 31st December 2020 |
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3. | ACCOUNTING POLICIES - continued |
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Going concern |
The directors have prepared cash flow forecasts up to December 2022 which indicate that the company will have sufficient liquidity to meet it's working capital requirements for a period of at least 12 months from the date of signing these financial statements. These forecasts have been prepared as positive recovery from the impact of the coronavirus pandemic on the industry and the business continues. The key assumptions in the forecasts relate to the timing of contractual cashflows which are made in line with the experience of the business recovery in the months following the end of the financial year. CBILS funding was secured to provide additional security that the company could continue as a going concern. The repayment of these loans within their specified terms is included in the forecasts. |
|
Whilst projects were delayed during 2020 due to the pandemic, several restarted before the year end and as travel restrictions have been lifted, the order book has strengthened. With a growing pipeline of near-term opportunities this indicates that recovery is progressing in line with forecasts. Following the global vaccination program, market confidence is returning as the likelihood of further widespread lockdowns diminishes. Although local, temporary restrictions in some client territories are still impacting final project installation. |
|
The directors of the company have reviewed the overall position and outlook in respect of these matters and are of the opinion that on the basis of the forecasts prepared and actions taken, they are satisfied that the going concern basis is appropriate. |
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These financial statements do not include adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the company not continue as a going concern. |
|
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
|
Turnover in respect of long-term contracts is recognised when a set stage, as specified in the contract for sale, has been completed. |
|
All other turnover is recognised either when goods have been delivered to customers or services completed, such that risks and rewards of ownership have passed to them. |
|
Project contracts |
Project revenue and costs are recognised in the statement of comprehensive income by reference to the stage of completion of the project, to the extent that the project outcome can be estimated reliably. The stage of completion is measured by reference to set stages, as specified in the contract. An expected loss on a project is recognised immediately in the statement of comprehensive income. |
|
Amounts recoverable on contracts are included in debtors and represent revenue recognised in excess of amounts invoiced. Amounts invoiced in excess of revenue recognised and costs recognised in excess of expenses incurred are included in creditors due within one year. |
|
Ride films |
Expenditure incurred on developing new ride films is capitalised in the balance sheet and amortised over its estimated useful life of five years. Amortisation is reported in the statement of comprehensive income under administrative expenses. |
Simworx Limited (Registered number: 05389718) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2020 |
|
3. | ACCOUNTING POLICIES - continued |
|
Development costs |
Expenditure incurred on new products and improvements to the company's products is capitalised in the balance sheet as development costs and amortised over its estimated useful life of five years. Amortisation commences with the commercial introduction of the new product or incorporation of the improvement into the product and is reported in the statement of comprehensive income under administrative expenses. |
|
Tangible fixed assets |
|
Plant and machinery | - |
|
Fixtures and fittings | - |
|
Motor vehicles | - |
|
Office equipment | - |
|
|
Tangible fixed assets are capitalised at historical cost and net book values are reviewed annually to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the statement of comprehensive income. |
|
Government grants |
Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. |
|
Financial instruments |
Fixed asset investments in unlisted shares are initially recognised at cost with any impairment losses being reported in the statement of comprehensive income under administrative expenses. |
|
Derivative financial instruments are recognised at fair value with any gains or losses being reported in the statement of comprehensive income under other operating income/expenses. |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
|
Simworx Limited (Registered number: 05389718) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2020 |
|
3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
|
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the reporting date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
|
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
|
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
|
Rentals paid under operating leases are included in the statement of comprehensive income on a straight line basis over the period of the lease. |
|
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
|
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
|
Creditors |
Short term creditors are measured at 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. |
Simworx Limited (Registered number: 05389718) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2020 |
|
4. | TURNOVER |
|
The turnover and loss (2019 - profit) before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by geographical market is given below: |
|
2020 | 2019 |
£ | £ |
United Kingdom |
|
|
Europe |
|
|
Rest of the World | 1,120,947 | 15,655,490 |
|
|
|
Turnover includes project contract revenue recognised during the financial year of £3,332,820 (2019 - £16,607,646). |
|
5. | OTHER OPERATING INCOME/EXPENSES |
2020 | 2019 |
£ | £ |
Rents receivable |
|
|
Sundry income | 36,000 | 45,477 |
Government grants - coronavirus support |
|
|
Foreign exchange gains/losses | (148,547 | ) | 1,105,827 |
280,750 | 1,155,264 |
|
6. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2020 | 2019 |
|
Directors | 4 | 3 |
Direct | 15 | 25 |
Sales and administration | 14 | 14 |
|
|
Simworx Limited (Registered number: 05389718) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2020 |
|
6. | EMPLOYEES AND DIRECTORS - continued |
|
2020 | 2019 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
2020 | 2019 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
Included in total payroll costs is £49,918 (2019 - £nil) relating to redundancy payments and associated costs. |
|
7. | OPERATING (LOSS)/PROFIT |
|
The operating loss (2019 - operating profit) is stated after charging/(crediting): |
|
2020 | 2019 |
£ | £ |
Depreciation - owned assets |
|
|
Profit on disposal of fixed assets | ( |
) | ( |
) |
Ride films amortisation |
|
|
Development costs amortisation |
|
|
Auditors' remuneration |
|
|
Auditors' remuneration for non audit work |
|
|
Foreign exchange differences |
|
( |
) |
Operating lease payments |
|
|
Impairment of fixed asset investments |
|
|
|
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2020 | 2019 |
£ | £ |
Loan interest |
|
|
Other interest payable |
|
|
Hire purchase interest |
|
|
|
|
Simworx Limited (Registered number: 05389718) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2020 |
|
9. | TAXATION |
|
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31st December 2020 nor for the year ended 31st December 2019. |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2020 | 2019 |
£ | £ |
(Loss)/profit before tax | ( |
) |
|
(Loss)/profit multiplied by the standard rate of corporation tax in
the UK of |
( |
) |
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Depreciation in excess of capital allowances |
|
|
Utilisation of tax losses |
|
( |
) |
Group loss relief | - | (179,407 | ) |
Other timing differences | - | 2,280 |
Research and development tax relief | - | (72,004 | ) |
Losses carried forward | 257,718 | - |
Total tax charge | - | - |
|
10. | INTANGIBLE FIXED ASSETS |
Ride | Development |
Goodwill | films | costs | Totals |
£ | £ | £ | £ |
COST |
At 1st January 2020 |
|
|
|
|
Additions |
|
|
|
|
Reclassification |
|
|
( |
) | ( |
) |
At 31st December 2020 |
|
|
|
|
AMORTISATION |
At 1st January 2020 |
|
|
|
|
Amortisation for year |
|
|
|
|
At 31st December 2020 |
|
|
|
|
NET BOOK VALUE |
At 31st December 2020 |
|
|
|
|
At 31st December 2019 |
|
|
|
|
Simworx Limited (Registered number: 05389718) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2020 |
|
10. | INTANGIBLE FIXED ASSETS - continued |
|
Additions to ride films are externally acquired and additions to development costs are internally generated. |
|
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Office |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st January 2020 |
|
|
|
|
|
Disposals |
|
( |
) | ( |
) |
|
( |
) |
Reclassification |
|
|
|
|
|
At 31st December 2020 |
|
|
|
|
|
DEPRECIATION |
At 1st January 2020 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal |
|
|
( |
) |
|
( |
) |
At 31st December 2020 |
|
|
|
|
|
NET BOOK VALUE |
At 31st December 2020 |
|
|
|
|
|
At 31st December 2019 |
|
|
|
|
|
|
12. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1st January 2020 |
and 31st December 2020 |
|
NET BOOK VALUE |
At 31st December 2020 |
|
At 31st December 2019 |
|
Simworx Limited (Registered number: 05389718) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2020 |
|
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Amounts recoverable on project |
contracts |
|
|
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
|
All amounts shown under debtors fall due for payment within one year. |
|
Impairments of debtors recognised in the income statement during the financial year amounted to £43,320 (2019 - £107,256). |
|
Provisions for bad and doubtful debts at 31st December 2020 amounted to £43,320 (2019 - £3,015). |
|
Included in amounts recoverable on project contracts at 31st December 2020 is £1,753,711 relating to projects which commenced in 2018 but have been delayed during 2020 and 2021 due to the COVID 19 pandemic and other related delays in China. Whilst the client has stated that they intend to restart the projects, the delays suggest that there may be a possibility that this may not happen. In the eventuality of the projects not restarting, the directors anticipate that payments for work carried out to date and any subsequent contract termination fees would result in the company receiving more than the debtor recognised in the financial statements. In the event of non-payment, the directors do not consider that the going concern status of the company would be affected. |
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Loans (see note 16) |
|
|
Project accruals and deferred income |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Directors' current accounts | 138 | 1,585 |
Accruals and deferred income |
|
|
|
|
|
15. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR |
2020 | 2019 |
£ | £ |
Loans (see note 16) |
|
|
Simworx Limited (Registered number: 05389718) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2020 |
|
16. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2020 | 2019 |
£ | £ |
Amounts falling due within one year or on demand: |
Loans |
|
|
|
Amounts falling due between one and two years: |
Loans | 934,614 |
|
|
Amounts falling due between two and five years: |
Loans |
|
|
|
17. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
18. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2020 | 2019 |
£ | £ |
Loans |
|
|
|
Loans amounting to £1,750,000 (2019 - £750,000) are secured by a charge over all assets of the company. |
|
19. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary | 1p | 1,126 | 1,126 |
|
"A" Ordinary | 1p | 1,006 | 1,006 |
2,132 | 2,132 |
Simworx Limited (Registered number: 05389718) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2020 |
|
19. | CALLED UP SHARE CAPITAL - continued |
|
All shares rank pari passu in all respects. |
|
20. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
|
At 1st January 2020 |
|
|
5,804,580 |
Deficit for the year | ( |
) | ( |
) |
At 31st December 2020 |
|
|
4,399,114 |
|
Retained earnings consists of all current and prior period retained profits and losses. |
|
Share premium represents amounts paid for the company's share capital in excess of the nominal value of the corresponding shares. |
|
21. | CONTINGENT LIABILITIES |
|
The company has provided a guarantee over creditors of Media Based Attractions Limited, the company's parent undertaking, amounting to £1,666,000 (2019- £1,666,000). |
|
22. | PARENT AND ULTIMATE PARENT COMPANY |
|
The company's parent and ultimate parent undertaking is Media Based Attractions Limited, a company registered in England and Wales. Consolidated financial statements are prepared for the group controlled by Media Based Attractions Limited and that company's registered office is 37 Second Avenue, The Pensnett Estate, Kingswinford, West Midlands DY6 7UL. |