Company Registration No. 09906028 (England and Wales)
IOVATION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
IOVATION LIMITED
COMPANY INFORMATION
Directors
W Flynn
(Appointed 1 January 2021)
J M Cannon
(Appointed 1 January 2021)
Company number
09906028
Registered office
29/30 Fitzroy Square
London
United Kingdom
W1T 6LQ
Auditor
Goodman Jones LLP
29-30 Fitzroy Square
London
W1T 6LQ
IOVATION LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 17
IOVATION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 1 -
The directors present their annual report and financial statements for the year to 31 December 2020.
Principal activities
The principal activity of the Company is that of marketing hosted software services. These services allow customers to identify and prevent online fraud and abuse. These services also provide flexible user identification and multi-factor authentication solutions at various touch points. Most of the Company’s customers operate in the online financial services, gambling, retail, gaming, and social networking industries.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D C Shafer
(Resigned 31 December 2020)
G J Pierson
(Resigned 31 December 2020)
W Flynn
(Appointed 1 January 2021)
J M Cannon
(Appointed 1 January 2021)
Results and dividends
The results for the year are set out on page 6.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Going concern
In the annual review of the Company’s going concern, the Directors have considered the immediate and longer
term
impact of the Covid-19 pandemic.
Although
the
government officially declared a country wide lockdown on 23 March 2020, the Company has not been severely effected and has remained at normal trading levels. Due to the nature of the industry, volumes have increased as many services have now moved online.
The Directors are committed to carrying out regular reviews of the Company’s cash flows to monitor
the ongoing situation and take further steps as required.
Auditor
The auditor, Goodman Jones LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
IOVATION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
W Flynn
Director
30 September 2021
IOVATION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF IOVATION LIMITED
- 3 -
Opinion
We have audited the financial statements of iovation Limited (the 'company') for the year ended 31 December 2020 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its loss for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
IOVATION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF IOVATION LIMITED
- 4 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 is 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 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried. These procedures included:
IOVATION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF IOVATION LIMITED
- 5 -
-
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
-
Reading minutes of meetings of those charged with governance;
-
Obtaining and reading correspondence from legal and regulatory bodies including HMRC;
-
Identifying and testing journal entries;
-
Challenging assumptions and judgements made by management in their significant accounting estimates.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member 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 member for our audit work, for this report, or for the opinions we have formed.
Amit Sharma (Senior Statutory Auditor)
For and on behalf of Goodman Jones LLP
1 October 2021
Chartered Accountants
Statutory Auditor
29-30 Fitzroy Square
London
W1T 6LQ
IOVATION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020
- 6 -
2020
2019
Notes
£
£
Turnover
2
3,067,654
2,914,654
Administrative expenses
(3,096,734)
(2,777,789)
(Loss)/profit before taxation
(29,080)
136,865
Tax on (loss)/profit
6
(27,228)
(28,740)
(Loss)/profit for the financial year
(56,308)
108,125
The profit and loss account has been prepared on the basis that all operations are continuing operations.
IOVATION LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2020
31 December 2020
- 7 -
2020
2019
Notes
£
£
£
£
Current assets
Debtors
7
61,222
159,407
Cash at bank and in hand
438,752
144,123
499,974
303,530
Creditors: amounts falling due within one year
8
(167,102)
(86,467)
Net current assets
332,872
217,063
Creditors: amounts falling due after more than one year
9
(253,921)
(81,804)
Net assets
78,951
135,259
Capital and reserves
Called up share capital
11
100
100
Profit and loss reserves
78,851
135,159
Total equity
78,951
135,259
The financial statements were approved by the board of directors and authorised for issue on 30 September 2021 and are signed on its behalf by:
W Flynn
Director
Company Registration No. 09906028
IOVATION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
- 8 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2019
100
27,034
27,134
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
108,125
108,125
Balance at 31 December 2019
100
135,159
135,259
Year ended 31 December 2020:
Loss and total comprehensive income for the year
-
(56,308)
(56,308)
Balance at 31 December 2020
100
78,851
78,951
IOVATION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 9 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
14
321,641
172,655
Income taxes paid
(27,012)
(28,532)
Net cash inflow from operating activities
294,629
144,123
Net increase in cash and cash equivalents
294,629
144,123
Cash and cash equivalents at beginning of year
144,123
Cash and cash equivalents at end of year
438,752
144,123
IOVATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 10 -
1
Accounting policies
Company information
iovation Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
29/30 Fitzroy Square, London, United Kingdom, W1T 6LQ.
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.
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
The global outbreak of the COVID-19 virus and the related public safety measures have had a major impact on the wider economy. However, with the UK company having a cost plus arrangement with the parent company iovation Inc, there are no concerns with profitability. The performance of iovation Inc is continually monitored and as such there are no going concern issues. Trade volume has increased during the lockdown period and as such COVID-19 has not negatively impacted the company.
true
The company has sufficient resources available through its existing reserves. Cashflow forecasts indicate positive cash movement for the company. The directors therefore consider that there is no material uncertainty in relation to the going concern position of the company and the director's continue to adopt the going concern basis of accounting in preparing the annual 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 and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates
.
All turnover is generated within the group.
1.4
Cash at bank and in hand
Cash and cash equivalents
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.
1.5
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.
IOVATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 11 -
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
IOVATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
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.
IOVATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 13 -
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.
1.8
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
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. 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.
1.10
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.
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2020
2019
£
£
Turnover analysed by class of business
Software services
3,067,654
2,914,654
2020
2019
£
£
Turnover analysed by geographical market
United Kingdom
3,067,654
2,914,654
IOVATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 14 -
3
Operating (loss)/profit
2020
2019
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
64,049
80,043
Fees payable to the company's auditor for the audit of the company's financial statements
5,500
5,195
Share-based payments
172,199
(28,570)
4
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
5,500
5,195
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Employees
23
22
23
22
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
1,751,459
1,408,320
Social security costs
249,104
212,620
2,000,563
1,620,940
6
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
27,228
27,012
Adjustments in respect of prior periods
1,728
Total current tax
27,228
28,740
IOVATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
6
Taxation
(Continued)
- 15 -
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2020
2019
£
£
(Loss)/profit before taxation
(29,080)
136,865
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
(5,525)
26,004
Tax effect of expenses that are not deductible in determining taxable profit
32,753
442
Adjustments in respect of prior years
2,294
Taxation charge for the year
27,228
28,740
7
Debtors
2020
2019
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
36,580
123,681
Prepayments and accrued income
24,642
35,726
61,222
159,407
8
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
12,290
Corporation tax
27,228
27,012
Other taxation and social security
9,843
2,762
Accruals and deferred income
117,741
56,693
167,102
86,467
9
Creditors: amounts falling due after more than one year
2020
2019
Notes
£
£
Liability for share based payments
10
253,921
81,804
The amount in other creditors represents the liability arising in relation to equity settled share based payment transactions during the year.
IOVATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 16 -
10
Share-based payment transactions
Three employees were granted 15,073 Performance Share Units under the TransUnion 2015 Omnibus Incentive Plan on 30 June 2018. This is a Restricted Stock Scheme. Share units are granted at the end of the period, once performance metrics are met and expired on 31 December 2020. There is no exercise price. These options did not vest before expiry.
Three employees were granted 4,000 Restricted Stock Units on 7 August 2019. These are granted at the end of the period once service metrics are met and expire on 1 February 2021. There is no exercise price.
During the year, the company recognised total share-based payment expenses of £172,199 (2019: £28,570 credit) which related to equity settled share based payment transactions. The awards granted in 2018 were not expected to vest therefore the previous expense has been reversed and a credit was recognised during 2019.
11
Share capital
2020
2019
Ordinary share capital
£
£
Issued and fully paid
100 Ordinary shares of £1 each
100
100
12
Related party transactions
The company has taken advantage of not disclosing transactions between wholly owned group companies, in accordance with the Financial Reporting Standard.
13
Ultimate controlling party
The intermediary parent company is iovation Inc. The ultimate controlling party is TransUnion LLC, a publicly traded company in the US.
14
Cash generated from operations
2020
2019
£
£
(Loss)/profit for the year after tax
(56,308)
108,125
Adjustments for:
Taxation charged
27,228
28,740
Equity settled share based payment expense
172,199
(28,570)
Movements in working capital:
Decrease in debtors
98,185
54,786
Increase in creditors
80,337
9,574
Cash generated from operations
321,641
172,655
IOVATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 17 -
15
Analysis of changes in net funds
1 January 2020
Cash flows
31 December 2020
£
£
£
Cash at bank and in hand
144,123
294,629
438,752
2020-12-31
2020-01-01
false
CCH Software
CCH Accounts Production 2021.200
D C Shafer
G J Pierson
W Flynn
J M Cannon
09906028
2020-01-01
2020-12-31
09906028
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2020-01-01
2020-12-31
09906028
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2020-01-01
2020-12-31
09906028
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2020-01-01
2020-12-31
09906028
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2020-01-01
2020-12-31
09906028
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2020-01-01
2020-12-31
09906028
2020-12-31
09906028
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2019-12-31
09906028
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2019-01-01
2019-12-31
09906028
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2020-01-01
2020-12-31
09906028
2019-12-31
09906028
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2020-12-31
09906028
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2019-12-31
09906028
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2020-12-31
09906028
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2019-12-31
09906028
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2020-12-31
09906028
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2019-12-31
09906028
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2020-12-31
09906028
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2019-12-31
09906028
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2020-12-31
09906028
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2019-12-31
09906028
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09906028
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2018-12-31
09906028
2018-12-31
09906028
2019-12-31
09906028
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2020-01-01
2020-12-31
09906028
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2019-01-01
2019-12-31
09906028
core:Non-currentFinancialInstruments
1
2020-12-31
09906028
core:Non-currentFinancialInstruments
1
2019-12-31
09906028
bus:PrivateLimitedCompanyLtd
2020-01-01
2020-12-31
09906028
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2020-01-01
2020-12-31
09906028
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2020-01-01
2020-12-31
09906028
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2020-01-01
2020-12-31
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