Company Registration Number
07932357
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CONSOLIDATED
FINANCIAL STATEMENTS
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EXUS SOFTWARE LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditors
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EXUS SOFTWARE LIMITED
CONTENTS
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Directors' Responsibilities Statement
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Independent Auditors' Report
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Consolidated Statement of Income and Retained Earnings
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Notes to the Financial Statements
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EXUS SOFTWARE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors present their report and the financial statements for the year ended 31 December 2019.
The principal activity of the group throughout the current and previous year was the supply and implementation of software products, primarily selling to customers in the rest of Europe and the Middle East, serviced from the company in the UK, which includes the Exus Software Branch located in Athens, and Exus Software M.E.P.E, a subsidiary of the company also located in Athens.
The directors who served during the year were:
Disclosure of information to auditors
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Each of the persons who are
directors at the time when this Directors' Report is approved has confirmed that:
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so far as the director is aware, there is no relevant audit information of which the company and the Group's auditors are unaware, and
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the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the Group's auditors are aware of that information.
Post balance sheet events
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Subsequent to the year end, the COVID-19 virus pandemic struck globally. Following Government advice in both the UK and Greece territories, the group had to temporarily stop all onsite installations due to restrictions on movement to limit the spread of the virus.
The group has had access to technology which facilitates remote installation of its software, and as a result they have been able to continue to provide its services to its customers, albeit behind schedule.
Once the restrictions have fully eased, the group should be able to resume its growth strategy as the nature of the ‘debt collection’ software will be more sought after should there be a worldwide recession. No contracts have been lost during the lockdown period. However there is some revenue reduction risk due to delays in execution of projects as well as due to customers requesting discounts.
Please see accounting policy 2.3 to the accounts where the directors have outlined the financial implications of COVID-19 on the group, and why they deem the group a going concern.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
Page 1
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EXUS SOFTWARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
This report was approved by the board and signed on its behalf.
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EXUS SOFTWARE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors are responsible for preparing the Directors' Report and the
consolidated
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 1A ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
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select suitable accounting policies for the Group's financial statements and then apply them consistently;
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make judgements and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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EXUS SOFTWARE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EXUS SOFTWARE LIMITED
We have audited the financial statements of Exus Software Ltd (the ‘Parent company’) and its subsidiaries (the ‘Group’) for the year ended 31st December 2019 which comprise of the Consolidated statement of income and retained earnings, the Company and Consolidated statements of financial position and 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 Reporting Standard 102 section 1a
The Financial Reporting Standard applicable to small entities in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements of the company:
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Give a true and fair view of the state of the Group and Parent company’s affairs as at 31st December 2019 and of the Group profit for the year then ended;
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The Group and Parent company’s financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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Have been prepared in accordance with the requirement 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 Auditors’ Responsibilities for the Audit of our report. We are independent of the Group and Parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (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.
Other matters
The comparative financial statements are unaudited.
Conclusions relating to going concern
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We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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The directors’ use of going concern basis of accounting in preparation of financial statements is not appropriate; or
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The directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group or Parent company’s ability to continue to adopt the going concern basis of accounting for period of at least twelve months from the date when the financial statements are authorised for issue.
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EXUS SOFTWARE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EXUS SOFTWARE LIMITED (CONTINUED)
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, our responsibility is to read the 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 there is a material misstatement in the financial statements or a material misstatement of this other information, we are required to report that fact.
We have nothing to report in respect of these matters.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
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The information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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The Directors' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
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:
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Adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
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The parent company financial statements are not in agreement with the accounting records and returns; or
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Certain disclosures of directors
' remuneration specified by law are not made; or
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We have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the directors’ responsibilities statement, 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.
In preparing the financial statements, the directors are responsible for assessing the Group and Parent 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.
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EXUS SOFTWARE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EXUS SOFTWARE LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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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 auditors’ 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.
A further description for the audit of financial statements is located on the FRCs website at: www.frc.org.uk/auditorsresponsibilities. The description forms part of our auditor’s report.
This report is made solely to the Group and Parent 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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Rakesh Shaunak
(Senior Statutory Auditor)
for and on behalf of
MHA Macintyre Hudson
Statutory Auditors
6th Floor
2 London Wall Place
London
EC2Y 5AU
30 September 2020
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EXUS SOFTWARE LIMITED
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Interest payable and expenses
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Retained earnings at the beginning of the year attributable to the owners of the parent
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Profit for the year attributable to the owners of the parent
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Retained earnings at the end of the year attributable to the owners of the parent
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Non-controlling interest at the beginning of the year
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Profit for the year attributable to the non-controlling interest
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Non-controlling interest at the end of the year
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There were no recognised gains and losses for 2019 or 2018 other than those included in the consolidated statement of income and retained earnings.
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The notes on pages 12 to 24 form part of these financial statements.
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EXUS SOFTWARE LIMITED
REGISTERED NUMBER:
07932357
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Page 8
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EXUS SOFTWARE LIMITED
REGISTERED NUMBER:
07932357
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
31 DECEMBER 2019
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Equity attributable to owners of the parent company
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Non-controlling interests
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The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
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The notes on pages 12 to 24 form part of these financial statements.
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EXUS SOFTWARE LIMITED
REGISTERED NUMBER:
07932357
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Page 10
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EXUS SOFTWARE LIMITED
REGISTERED NUMBER:
07932357
COMPANY STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
31 DECEMBER 2019
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Profit and loss account brought forward
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Profit and loss account carried forward
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The company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 12 to 24 form part of these financial statements.
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Exus Software Ltd (the company) is a private company limited by shares incorporated and domiciled in England & Wales, its company registration number is 07932357. Its registered office is Tower 42, 25 Old Broad Street, London, EC2N 1PB.
The principal activity of the group throughout the current and previous year was the supply and implementation of software products, primarily selling to customers in the rest of Europe and the Middle East, serviced from the company in the UK, which includes the Exus Software Branch located in Athens, and Exus Software M.E.P.E, a subsidiary of the company also located in Athens.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
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The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
On 11 March 2020 the World Health Organisation declared Covid-19, a strain of the coronavirus, a world pandemic. The UK Government enforced a stop on non-essential trade and travel, and on 21 March 2020 the group had to adapt operationally. Severe restrictions in movement in both the UK and Greece meant that the group had to utilise technology to facilitating remote working and installations in order to continue trade.
The group has net current assets of €1,909k and net assets of €1,126k, following a consolidated profit in the period of €579k.
The group was successful in its growth strategy in the year to 31 December 2019 as consolidated revenue increased by €1,069k to €6,355k. This was largely due to increased popularity of the software in the Asian markets and the Middle East. Whilst the global pandemic has presented barriers to implementation, the group has still been able to service these existing clients via remote technology.
The directors have revised their cash flow forecasts for the group, prudently removing the majority of the forecasted growth, but given that the nature of the software is to improve debt recovery it is likely to be in demand should these economies enter a recession. As previously discussed, remote installation technology has also enabled the group to continue to trade during the lockdown period, reducing the impact during the restrictive period.
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The group's functional and presentational currency is Euro. The exchange rate at the reporting date was €1.1342 for every £1 (2018 - €1.1335).
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Software products and implementation services
The group offers to its customers the products and services through the following models/contracts:
a.
Subscription model
: This involves (i) the annual/quarterly/monthly subscription fee for the license to use the software and the support and maintenance services and (ii) the fees for the project implementation services.
b.
Perpetual license model
: This involves (i) the license fee to use the software, (ii) the fees for the project implementation services, and (iii) the annual fees for support and maintenance
Beyond the above models, customers may order ad-hoc services that may include training, consulting, implementation of change requests etc.
Subscription fees are recognised on a pro-rata basis.
Perpetual licence fees are recognised as revenue upon product shipment, provided a signed agreement is in place, fees are fixed or determinable, no significant vendor obligations remain and collection of the resulting debt is deemed probable. Fees from licences sold together with consulting services are generally recognised upon shipment provided that the above criteria have been met and payment of the licence fees are not dependent on the performance of the consulting services. In instances where a significant vendor obligation exists, revenue recognition is delayed until the obligation has been satisfied. No revenue is recognised for multiple deliveries or multiple element products if an element of the contract remains undelivered and is essential to the functionality of the elements already delivered.
Where these criteria are not met, both the licence and consulting fees are recognised under the percentage completion method of accounting.
Implementation and customisation fees are recognised as revenue on a percentage of completion basis over the period from delivery of the product to customer acceptance. The degree of completion of a contract is measured using the costs incurred to date or milestones reached, depending upon the nature of the individual contract and the most appropriate measure of the percentage of
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
completion. Losses on contracts are recognised as soon as a loss is foreseen by reference to the estimated costs of completion.
Maintenance fees generally call for the group to provide technical support to customers. Revenue on technical support is recognised on a pro-rata basis over the contract period. Payments for maintenance fees are generally made in advance and are non-refundable.
Revenue from other services that may be ordered by a customer, eg: training, change requests, consulting, etc is recognised as the services are performed.
Revenue also includes, where applicable, the expenses and disbursements recoverable from customers.
Grant-funded development income
Grant-funded development income is accounted for under the accrual model. Revenue is recognised when the grant has been earned, it can be matched with corresponding development expenditure, which is recognised as an expense when incurred and there is no liklihood that the income will be refundable at any time. Income received not meeting these criteria is included in current and non-current liabiities.
Sale of rights
The group owns and develops intellectual property and revenue from the sale of intellectual property is recognised upon electronic delivery to the customer, provided a signed agreement is in place.
Market research
The group conducts market research for its own use and for sale. Revenue from these sales is recognised when the research has been concluded.
Cost of sales represents payroll and other employee expenses and amounts payable for services rendered directly related to software supply and implementation services, and grant funded development income.
Administration expenses, which are recognised on an accruals basis, include all indirect payroll costs and related employee expenses and general administration expenses which cannot be allocated directly to software sales and implementation services or grant funded development expenditure.
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Operating leases: the Group as lessee
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Rentals paid under operating leases are charged to the Consolidated Statement of Income and Retained Earnings on a straight line basis over the lease term.
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Interest income is recognised in the Consolidated Statement of Income and Retained Earnings using the effective interest method.
Finance costs are charged to the Consolidated Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Income and Retained Earnings, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
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The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
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Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
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Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the methods detailed below.
Depreciation is provided on the following basis:
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2 year straight line / 20% reducing balance
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Income and Retained Earnings.
Investments in subsidiaries are measured at cost less accumulated impairment.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated Statement of Income and Retained Earnings in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are:
Impairment of debtors - the group makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Implementation and customisation fees - these are recognised as revenue on a percentage of completion basis over the period from delivery of the product to customer acceptance. The degree of completion of a contract is measured using the costs incurred to date or milestones reached, depending upon the nature of the individual contract and the most appropriate measure of the percentage of completion. Losses on contracts are recognised as soon as a loss is foreseen by reference to the estimated costs of completion.
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The average number of employees, including directors, in respect of the Group during the year was 59 (2018 - 56).
The average number of employees, including directors, in respect of the company during the year was 48 (2018 - 56)
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Page 18
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Charge for the year on owned assets
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Charge for the year on owned assets
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Page 19
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
6.
Tangible assets (continued)
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Charge for the year on owned assets
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Page 20
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Investments in subsidiary companies
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At 1 January 2019 (as previously stated)
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At 1 January 2019 (as restated)
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Investments in subsidiary companies relates to a 100% shareholding (100 Ordinary shares of €60 each) in Exus Software M.E.P.E, a company incorporated in Greece, its registered office address being Estias 1 & Mesogeion Ave 73-75, 115 26 Athens, Greece. The subsidiary has been included within the consolidation and was acquired to hold non-executive rights to the company's altaguest source code.
During the year the Group disposed of a wholly owned dormant subsidiary that was incorporated in Cyprus.
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Page 21
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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Page 22
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Charged to profit or loss
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Charged to profit or loss
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Accelerated capital allowances
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Tax losses carried forward
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Within the parent company figures the Branch and Head Office balances were incorrectly recorded in 2017 resulting in an additional charge to profit of €279,000. The reserves bought forward in 2018 have been increased by €279,000 to reinstate this balance.
Furthermore there has been a reclassification of the 2018 figures to move €35,000 on the company Statement of Financial Position, previously included as an investment in Exus Software M.E.P.E, to other debtors. This has had no effect on the profit at 31 December 2018 nor the opening reserve balance at 1 January 2019.
Finally, the 2018 company deferred tax balance has been restated to correct a calculation error. This has reduced liabilities and increased profit at 31 December 2018 by €42,785, subsequently opening reserves at 1 January 2019 have increased by this amount also.
Page 23
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EXUS SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
The parent company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the parent company in an independently administered fund. The pension cost charge represents contributions payable by the parent company to the fund and amounted to €1,416 (2018 - €339). No contributions were payable to the fund at the reporting date (2018 - same).
14.
Commitments under operating leases
At 31 December 2019 the company had future minimum lease payments under non-cancellable operating leases totalling €15,563 (2018 - €35,869).
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Related party transactions
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There were no related party transactions not conducted at arms length.
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Post balance sheet events
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Subsequent to the year end, the COVID-19 virus pandemic struck globally. Following government advice in both the UK and Greece territories, the group had to temporarily stop all onsite installations due to restrictions on movement to limit the spread of the virus.
The group has had access to technology which facilitates remote installation of its software, and as a result they have been able to continue to provide its services to its customers, albeit behind schedule.
When government restrictions start to ease in the key Markets of SE Asia and the Middle East, the group will return to on-site implementation in addition to providing its remote services
Piraeus Bank S.A. owns 49.9% of the parent company's issued share capital and Paveway Enterprises Limited (a special purpose entity incorporated in Cyprus) owns 50.1% of the parent company's issued shared capital. There is no controlling shareholding in Paveway Enterprises Limited, whose registered office address is Akadimias, 21, Kema Building, Floor 9, Aglantzia 2107, Lefkosia, Cyprus.
The directors consider
Paveway Enterprises Limited
to be the ultimate parent undertaking and the ultimate controlling party on the basis of control.
Page 24
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