Company Registration No. 07055592 (England and Wales)
CROWD TECHNOLOGIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
PAGES FOR FILING WITH REGISTRAR
CROWD TECHNOLOGIES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
CROWD TECHNOLOGIES LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2019
31 October 2019
- 1 -
2019
2018
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
4
580,070
386,574
Tangible assets
5
16,217
19,309
596,287
405,883
Current assets
Debtors
6
325,643
236,410
Cash at bank and in hand
19,007
50,712
344,650
287,122
Creditors: amounts falling due within one year
7
(591,596)
(565,188)
Net current liabilities
(246,946)
(278,066)
Total assets less current liabilities
349,341
127,817
Capital and reserves
Called up share capital
9
1,793
1,793
Share premium account
1,348,398
1,348,398
Other reserves
4,174
-
Profit and loss reserves
(1,005,024)
(1,222,374)
Total equity
349,341
127,817
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 October 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
CROWD TECHNOLOGIES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 OCTOBER 2019
31 October 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 31 March 2020 and are signed on its behalf by:
Mr J Leavesley
Director
Company Registration No. 07055592
CROWD TECHNOLOGIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2019
- 3 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
As restated for the period ended 31 October 2018:
Balance at 1 November 2017
1,793
1,348,398
-
(1,529,087)
(178,896)
Prior year adjustment
-
-
-
205,145
205,145
As restated
1,793
1,348,398
-
(1,323,942)
26,249
Year ended 31 October 2018:
Profit and total comprehensive income for the year
-
-
-
101,568
101,568
Balance at 31 October 2018
1,793
1,348,398
-
(1,222,374)
127,817
Year ended 31 October 2019:
Profit and total comprehensive income for the year
-
-
-
217,350
217,350
Share based payments
-
-
4,174
-
4,174
Balance at 31 October 2019
1,793
1,348,398
4,174
(1,005,024)
349,341
CROWD TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
- 4 -
1
Accounting policies
Company information
Crowd Technologies Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
7 Legge Lane, Birmingham, B1 3LD.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
1.2
Prior period adjustment
Due to a change in accounting policy, the accounts have been restated to capitalise development expenditure as an intangible asset on the company's balance sheet. The change has resulted in profit available for distribution at the year ended 31
October
201
8
increasing by £
386,574
.
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
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
.
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.
CROWD TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 5 -
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:
Development costs
Over 5 years
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:
Fixtures and fittings
25% straight line
Computers
33% straight line
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash at bank only.
1.9
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
trade debtors, corporation tax recoverable, other debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
CROWD TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities
Basic financial liabilities, including
trade creditors
,
taxation and social security and other creditors
, 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.
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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
1.11
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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
CROWD TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 7 -
1.14
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using
the Black-Scholes
model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.15
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 18 (2018 - 16).
3
Directors' remuneration and dividends
2019
2018
£
£
Remuneration paid to directors
84,714
114,661
CROWD TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 8 -
4
Intangible fixed assets
Development costs
£
Cost
At 1 November 2018
427,603
Additions
279,017
At 31 October 2019
706,620
Amortisation and impairment
At 1 November 2018
41,029
Amortisation charged for the year
85,521
At 31 October 2019
126,550
Carrying amount
At 31 October 2019
580,070
At 31 October 2018
386,574
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 November 2018
58,525
Additions
8,274
At 31 October 2019
66,799
Depreciation and impairment
At 1 November 2018
39,216
Depreciation charged in the year
11,366
At 31 October 2019
50,582
Carrying amount
At 31 October 2019
16,217
At 31 October 2018
19,309
CROWD TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 9 -
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
247,320
226,698
Corporation tax recoverable
73,379
-
Other debtors
4,944
9,712
325,643
236,410
7
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
40,825
55,385
Taxation and social security
54,543
75,920
Other creditors
496,228
433,883
591,596
565,188
8
Share-based payment transactions
The company has taken advantage of transitional exemptions not to apply FRS102 1A to any share-based payment transactions entered into before the transition date of 1 November 2015.
The total number of options granted prior to transition to FRS102 1A that were exercisable at 31
Octo
ber 201
9
were
43,600
, they had an exercise price ranging from £0.
001
per share to £
0.625
per share and at
October
201
9
had an average remaining contractual life of 6 years.
The following information therefore only discloses information about share-based payment transactions granted on or after 1 November 2015:
Number of share options
Weighted average exercise price
2019
2018
2019
2018
Number
Number
£
£
Outstanding at 1 November 2018
33,672
33,782
0.62
0.62
Expired
(22,388)
(110)
0.62
0.62
Outstanding at 31 October 2019
11,284
33,672
0.62
0.62
Exercisable at 31 October 2019
11,259
33,647
0.62
0.62
The options outstanding at 31 October 2019 had an exercise price ranging from
£0.001
to
£0.625
, and a remaining contractual life of
8
years.
CROWD TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
8
Share-based payment transactions
(Continued)
- 10 -
Inputs were as follows:
2019
2018
Weighted average share price
0.62
0.62
Weighted average exercise price
0.62
0.62
Expected volatility
50.00
50.00
Expected life
10.00
10.00
Risk free rate
1.22
1.22
During the year, the company recognised a charge of £
4,174
(201
8
- £
Nil
) which related to equity settled share based payment transactions.
9
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1,034,575 Ordinary shares of 0.1p each
1,035
1,035
757,680 A ordinary shares of 0.1p each
758
758
1,793
1,793
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
7,500
25,500
CROWD TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 11 -
11
Prior period adjustment
Reconciliation of changes in equity
1 November
31 October
2017
2018
£
£
Adjustments to prior year
2018 development costs capitalised
-
222,458
2018 development amortisation
-
(41,029)
2017 development costs capitalised
205,145
205,145
Total adjustments
205,145
386,574
Equity as previously reported
(178,896)
(258,757)
Equity as adjusted
26,249
127,817
Reconciliation of changes in (loss)/profit for the previous financial period
2018
£
Adjustments to prior year
2018 development costs capitalised
222,458
2018 development amortisation
(41,029)
Total adjustments
181,429
Loss as previously reported
(79,861)
Profit as adjusted
101,568
Notes to reconciliation
Due to a change in accounting policy, the accounts have been restated to capitalise development expenditure as an intangible asset on the company's balance sheet. The change has resulted in profit available for distribution at 3
1 October
2018 increasing by £
386,574
.
2019-10-31
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false
31 March 2020
CCH Software
CCH Accounts Production 2019.301
No description of principal activity
Mr R M George
Mr K Higgs
Mr I A Mackenzie
Mr J Leavesley
Mr M S Harris
Mr J Leavesley
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