Bud Financial Limited
Financial Statements
For Filing with Registrar
For the year ended 30 November 2019
Company Registration No. 09651629 (England and Wales)
Bud Financial Limited
Company Information
Directors
E Maslaveckas
G Dunning
R Warlop
(Appointed 27 January 2020)
S Fink
(Appointed 3 October 2019)
R Bhatia
(Resigned and reappointed 27 January 2020)
Company number
09651629
Registered office
First Floor The Bower
207 Old Street
London
England
EC1V 9NR
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Bud Financial Limited
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
Bud Financial Limited
Balance Sheet
As at 30 November 2019
30 November 2019
Page 1
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
4
186,733
142,049
Current assets
Debtors
5
1,855,953
1,044,753
Cash at bank and in hand
5,857,416
8,024,238
7,713,369
9,068,991
Creditors: amounts falling due within one year
6
(513,053)
(1,288,522)
Net current assets
7,200,316
7,780,469
Total assets less current liabilities
7,387,049
7,922,518
Capital and reserves
Called up share capital
8
1,496
1,265
Share premium account
17,771,691
10,697,876
Profit and loss reserves
(10,386,138)
(2,776,623)
Total equity
7,387,049
7,922,518
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 13 March 2020 and are signed on its behalf by:
E Maslaveckas
Director
Company Registration No. 09651629
Bud Financial Limited
Statement of Changes in Equity
For the year ended 30 November 2019
Page 2
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Period ended 30 November 2018:
Loss and total comprehensive income for the year
-
-
(2,134,257)
(2,134,257)
Issue of share capital
8
302
8,733,007
-
8,733,309
Credit to equity for equity settled share-based payments
7
-
-
277,484
277,484
Redemption of shares
8
(18)
-
-
(18)
Balance at 30 November 2018
1,265
10,697,876
(2,776,623)
7,922,518
Period ended 30 November 2019:
Loss and total comprehensive income for the year
-
-
(8,538,941)
(8,538,941)
Issue of share capital
8
231
7,073,815
-
7,074,046
Credit to equity for equity settled share-based payments
7
-
-
929,426
929,426
Balance at 30 November 2019
1,496
17,771,691
(10,386,138)
7,387,049
Bud Financial Limited
Notes to the Financial Statements
For the year ended 30 November 2019
Page 3
1
Accounting policies
Company information
Bud Financial Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office
is First Floor The Bower, 207 Old Street, London, EC1V 9NR.
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 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 pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company made a loss after taxation in the year of £8,538,941 (2018: £2,134,257) but had net assets as at 30 November 2019 of £7,387,049 (2018: £7,922,518). The company is forecast to make further losses in the year ended 30 November 2020 as it invests in the development of its technology.
The Directors are currently in discussions with certain current shareholders to provide additional funds for investment and whilst there can be no certainty in this respect, the directors are confident that this additional funding will be able to be obtained.
In the event that further funding is unable to be obtained, the directors would seek to reduce the cost base of the Company. The Directors have prepared cash flow forecasts which show that the Company has sufficient cash flow to continue trading for at least twelve months from the date of signing of these accounts in the event either that further funding is obtained or the cost base of the company can be reduced. As a result the financial statements have been prepared on the going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
, and
is shown net of VAT
.
The fair value of consideration takes into account trade discounts.
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 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 are recoverable.
Bud Financial Limited
Notes to the Financial Statements (Continued)
For the year ended 30 November 2019
1
Accounting policies
(Continued)
Page 4
1.4
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:
Leasehold improvements
Over UEL of lease
Office equipment
3 years straight line
Other equipment
1 year 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
.
1.5
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measures at fair value.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
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.
Bud Financial Limited
Notes to the Financial Statements (Continued)
For the year ended 30 November 2019
1
Accounting policies
(Continued)
Page 5
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.
1.9
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Share-based payments
The fair value
of equity-settled share based payments to employees is determined at the date of grant and
is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest.
1.12
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income 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.
1.13
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 are included in the profit and loss account for the period.
1.14
Research and development costs
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
.
Bud Financial Limited
Notes to the Financial Statements (Continued)
For the year ended 30 November 2019
Page 6
2
Exceptional costs
2019
2018
£
£
Redundancy costs
329,120
-
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 82 (2018 - 34).
4
Tangible fixed assets
Leasehold improvements
Office equipment
Other equipment
Total
£
£
£
£
Cost
At 1 December 2018
30,431
164,138
-
194,569
Additions
-
138,127
8,424
146,551
Disposals
-
(6,596)
(2,832)
(9,428)
At 30 November 2019
30,431
295,669
5,592
331,692
Depreciation and impairment
At 1 December 2018
9,536
42,984
-
52,520
Depreciation charged in the year
10,447
84,236
4,384
99,067
Eliminated in respect of disposals
-
(5,314)
(1,314)
(6,628)
At 30 November 2019
19,983
121,906
3,070
144,959
Carrying amount
At 30 November 2019
10,448
173,763
2,522
186,733
At 30 November 2018
20,895
121,154
-
142,049
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
421,200
180,000
Corporation tax recoverable
984,218
327,314
Other debtors
450,535
537,439
1,855,953
1,044,753
Bud Financial Limited
Notes to the Financial Statements (Continued)
For the year ended 30 November 2019
Page 7
6
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
135,791
624,089
Other taxation and social security
189,493
114,806
Other creditors
187,769
549,627
513,053
1,288,522
Bud Financial Limited
Notes to the Financial Statements (Continued)
For the year ended 30 November 2019
Page 8
7
Share-based payment transactions
Options are granted to UK employees for equity shares in the company. These were as follows.
Number of share options
Weighted average exercise price
2019
2018
2019
2018
Number
Number
£
£
Outstanding at 1 December 2018
171,361
125,337
7.78
6.91
Granted
121,642
54,538
30.89
8.66
Forfeited
(153,691)
-
8.54
-
Expired
-
(8,514)
-
6.53
Outstanding at 30 November 2019
139,312
171,361
30.89
7.52
Exercisable at 30 November 2019
120,661
47,902
-
6.39
The options outstanding at 30 November 2019 had an exercise price ranging from £1.56 to £7.25, and a remaining contractual life of 3 years.
At the balance sheet date, directors hold 53,768 (2018: 52,808) share options issued in the period. The average weighted market value of these options at the grant date was £30.89 and they have an average weighted exercise price of £1.56.
The weighted average fair value of options granted during the year was £29.36. Fair value was measured using the Black-Scholes option pricing model.
Inputs were as follows:
2019
2018
Weighted average share price
30.89
6.96
Weighted average exercise price
1.56
6.96
Expected volatility
0.54
0.62
Expected life
3.00
3.00
Risk free rate
0.70
0.71
Bud Financial Limited
Notes to the Financial Statements (Continued)
For the year ended 30 November 2019
Page 9
8
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
500,019 Ordinary A shares of 0.1p each
500
500
312,560 Ordinary B shares of 0.1p each
312
312
812
812
Preference share capital
Issued and fully paid
165,517 Preference C shares of 0.1p each
166
166
375,123 Preference D shares of 0.1p each
375
287
143,146 Preference D2 shares of 0.1p each
143
-
684
453
9
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
:
Our audit report refers to a material uncertainty regarding going concern and draws attention to note 1.2 of the accounts which indicates that the company is seeking additional funding from certain shareholders. Whilst the directors are confident
funding will be able to be
obtained, there can be no certainty in this respect and in the event funding is not obtained the directors will
need to seek to reduce the company’s cost base.
These events or conditions, along with other matters set out
in note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability
to continue as a going concern. Our opinion is not modified in respect of this matter.
The senior statutory auditor was Valerie Cazalet.
The auditor was Moore Kingston Smith LLP.
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
£
£
Within one year
348,156
269,260
Between two and five years
-
99,666
348,156
368,926
2019-11-30
2018-12-01
false
16 March 2020
CCH Software
CCH Accounts Production 2020.100
No description of principal activity
This audit opinion is unqualified
E Maslaveckas
G Dunning
R Bhatia
R Warlop
S Fink
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