Company Registration No. 09123710 (England and Wales)
SWITCHEE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
PAGES FOR FILING WITH REGISTRAR
SWITCHEE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
SWITCHEE LIMITED
BALANCE SHEET
AS AT
30 APRIL 2022
30 April 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
3
12,059
13,942
Tangible assets
4
5,426
9,092
17,485
23,034
Current assets
Stocks
236,344
377,051
Debtors
5
1,294,025
548,077
Cash at bank and in hand
676,811
1,263,468
2,207,180
2,188,596
Creditors: amounts falling due within one year
6
(1,608,998)
(930,326)
Net current assets
598,182
1,258,270
Total assets less current liabilities
615,667
1,281,304
Creditors: amounts falling due after more than one year
7
(31,148)
(40,833)
Net assets
584,519
1,240,471
Capital and reserves
Called up share capital
9
10,128
10,125
Share premium account
5,239,999
4,651,612
Profit and loss reserves
(4,665,608)
(3,421,266)
Total equity
584,519
1,240,471
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 22 February 2023 and are signed on its behalf by:
Mr Thomas George Robins
Director
Company Registration No. 09123710
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
- 2 -
1
Accounting policies
Company information
Switchee Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Sandbox London Bridge Office 7.11, Sandbox London Bridge 46-48 Red Lion Court, Park Street, London, SE1 9EQ.
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
Going concern
During the year ended 30 April 2022, the company incurred a loss of £1,244,342. It is forecast to make further losses in the next financial year as it continues to invest in its product offering and its value chain. The directors are confident that this investment will result in the company generating revenues and profits going forward.
true
A
t the time of approving the financial statements
, sufficient funding of has been put in place through equity investments from fundraising rounds. On 16 August 2022 the company issued 453,821 series A Shares for a total consideration of £5,699,991 and 67,190 A ordinary shares for total consideration of £675,260. As a result, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have therefore adopted the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT
.
Turnover relating to the sale of smart thermostats is recognised at the point of installation. Receipts in respect of uninstalled units are taken to deferred income.
Turnover relating to data analytics services and maintenance/service contracts is recognised over the period to which such services relate to. Receipts obtained in advance are taken to deferred income.
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.
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Patent
10% Straight line
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 3 -
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings and equipment
33.33% Straight line
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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises
of
direct materials.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
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.
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including
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.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.12
Taxation
The tax expense represents the tax currently payable.
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.
1.13
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
.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
expense
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 asset are consumed.
1.16
Grant income
Grant income
are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
24
23
3
Intangible fixed assets
Patent
£
Cost
At 1 May 2021 and 30 April 2022
24,258
Amortisation and impairment
At 1 May 2021
10,316
Amortisation charged for the year
1,883
At 30 April 2022
12,199
Carrying amount
At 30 April 2022
12,059
At 30 April 2021
13,942
4
Tangible fixed assets
Fixtures, fittings and equipment
£
Cost
At 1 May 2021
47,448
Additions
6,206
At 30 April 2022
53,654
Depreciation and impairment
At 1 May 2021
38,356
Depreciation charged in the year
9,872
At 30 April 2022
48,228
Carrying amount
At 30 April 2022
5,426
At 30 April 2021
9,092
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 6 -
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,268,415
437,408
Corporation tax recoverable
397
78,520
Other debtors
17,358
389
Prepayments and accrued income
7,855
31,760
1,294,025
548,077
6
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
10,000
9,167
Trade creditors
268,596
97,879
Taxation and social security
246,043
76,339
Other creditors
64,029
23,922
Accruals and deferred income
1,020,330
723,019
1,608,998
930,326
7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans
31,148
40,833
8
Share-based payment transactions
Number of share options
Weighted average exercise price
2022
2021
2022
2021
Number
Number
£
£
Outstanding at 1 May 2021
332,905
108,449
0.0001
0.0001
Granted
29,959
266,916
0.0001
0.0001
Exercised
(22,542)
(14,052)
0.0001
0.0001
Expired
(36,663)
(28,408)
0.0001
0.0001
Outstanding at 30 April 2022
303,659
332,905
0.0001
0.0001
Exercisable at 30 April 2022
303,659
332,905
0.0001
0.0001
The options outstanding at 30 April 2022 had an exercise price of £0.0001 and a remaining contractual life of 7-10 years.
SWITCHEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 7 -
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 0.01p each
2,174,027
2,091,328
217
209
Deferred shares of 0.01p each
99,105,190
99,162,911
9,911
9,916
101,279,217
101,254,239
10,128
10,125
Ordinary A shares
Carry full voting and distribution (by way of dividends and capital) rights on a pro rata basis to the number of Ordinary A Shares held. They are not redeemable. During the year 24,978 ordinary shares were issued for a consideration of £588,388.
Deferred shares
Do not carry voting rights or any entitlement to a dividend. On a distribution of assets, a liquidation or a return of capital (other than a conversion, redemption or purchase of shares) the holders of Deferred Shares are entitled to receive a total of £1 for the entire class of Deferred Shares. May be redeemed at the option of the Company. During the year 57,721 Deferred shares were redesignated Ordinary A shares.
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Gilles Siow.
The auditor was HW Fisher LLP.
11
Events after the reporting date
On 16 August 2022 the company issued 453,821 series A Shares for a total consideration of £5,699,992 and 67,190 A ordinary shares for total consideration of £675,260.