Registration number:
Witt Limited
for the Period from 1 September 2017 to 30 August 2018
Witt Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Witt Limited
Company Information
Chairman |
Sir J M Burnell-Nugent |
Chief executive |
R D Cowley |
Directors |
E J Strang R D Cowley W Corr M J Wickett M B Wickett Sir J M Burnell-Nugent |
Registered office |
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Accountants |
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Page 1 |
Witt Limited
(Registration number: 06348505)
Balance Sheet as at 30 August 2018
Note |
2018 |
(As restated) |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Profit and loss account |
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Total equity |
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Page 2 |
Witt Limited
(Registration number: 06348505)
Balance Sheet as at 30 August 2018
For the financial period ending 30 August 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
Chairman
Page 3 |
Witt Limited
Notes to the Financial Statements for the Period from 1 September 2017 to 30 August 2018
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
C11 Cyber and Digital Centre
Gloucestershire Science and Technology Park
Berkeley Green
Gloucestershire
GL13 9FB
England and Wales
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The directors believe that the company will be able to attract sufficient investment and support to enable it to pay its debts as they fall due and accordingly have prepared the financial statements on a going concern basis.
Page 4 |
Witt Limited
Notes to the Financial Statements for the Period from 1 September 2017 to 30 August 2018
Prior period errors
In previous accounting periods, research and development expenditure that met the criteria for development phase expenditure was incorrectly classified as research phase expenditure. The qualifying development expenditure should have been capitalised as an intangible fixed asset but was instead written off to the profit and loss account. These errors have been corrected in the current period as follows:
In the year ended 31 August 2017, the total error in this respect was £234,057. Had the error not occurred, other intangible assets would have been higher than previously stated by this amount. The corresponding reductions in profit and loss items would have shown cost of sales to be reduced by £195,907 and administrative expenses to be reduced by £38,150.
In the previous years up to 31 August 2016, the cumulative total error in this respect was £204,599. Had the error not occurred, other intangible assets would have been higher than previously stated by this amount. The corresponding reductions in profit and loss items would have shown cost of sales to be reduced by £146,831 and administrative expenses to be reduced by £57,768.
Revenue recognition
Income is measured at the fair value of the conseration received or receivable. The policies adopted for the recognition of income are as follows:
Grants received and receivable
Foreign currency transactions and balances
transaction. At the end of each reporting period, foreign currency monetary items are translated at the closing
rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 operates and generates taxable income.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the
company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively
enacted by the reporting date.
The carrying amount of deferred tax assets is reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profits.
Page 5 |
Witt Limited
Notes to the Financial Statements for the Period from 1 September 2017 to 30 August 2018
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
25% reducing balance |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Research and development
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. Provision is made for any impairment.
Any expenditure carried forward will be amortised in line with the expected sales from the related project over the period of expected benefit. Amortisation shall commence once the asset has been fully developed and is ready for commercial production.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
20% straight line |
Investments in subsidiaries
Investments are initially recognised at cost, which is normally the transaction price excluding transaction costs. Subsequently, they are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Page 6 |
Witt Limited
Notes to the Financial Statements for the Period from 1 September 2017 to 30 August 2018
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including directors) during the period, was
Page 7 |
Witt Limited
Notes to the Financial Statements for the Period from 1 September 2017 to 30 August 2018
Intangible assets |
Goodwill |
Other intangible assets |
Total |
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Cost or valuation |
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At 1 September 2017 |
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Additions acquired separately |
- |
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At 30 August 2018 |
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Amortisation |
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At 1 September 2017 |
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- |
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Amortisation charge |
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- |
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At 30 August 2018 |
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- |
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Carrying amount |
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At 30 August 2018 |
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At 31 August 2017 |
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The aggregate amount of research and development expenditure recognised as an expense during the period is £
Page 8 |
Witt Limited
Notes to the Financial Statements for the Period from 1 September 2017 to 30 August 2018
Tangible assets |
Plant and machinery |
Total |
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Cost or valuation |
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At 1 September 2017 |
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Additions |
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At 30 August 2018 |
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Depreciation |
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At 1 September 2017 |
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Charge for the period |
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At 30 August 2018 |
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Carrying amount |
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At 30 August 2018 |
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At 31 August 2017 |
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Investments |
2018 |
2017 |
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Investments in subsidiaries |
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Subsidiaries |
£ |
Cost or valuation |
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At 1 September 2017 |
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Provision |
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Carrying amount |
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At 30 August 2018 |
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At 31 August 2017 |
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Debtors |
2018 |
2017 |
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Other debtors |
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Prepayments and accrued income |
11,464 |
1,491 |
Total current trade and other debtors |
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Page 9 |
Witt Limited
Notes to the Financial Statements for the Period from 1 September 2017 to 30 August 2018
Creditors |
Creditors: amounts falling due within one year
Note |
2018 |
2017 |
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Due within one year |
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Trade creditors |
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Amounts owed to group undertakings |
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Taxation and social security |
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Other creditors |
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Accruals and deferred income |
225,873 |
202,288 |
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Creditors include secured other loans. At the period end, these totalled £nil (2017 - £200,000).
Share capital |
Allotted, called up and fully paid shares
2018 |
2017 |
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No. |
£ |
No. |
£ |
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14,091.01 |
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14,091.01 |
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1,476.52 |
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1,476.52 |
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A Ordinary shares carry voting rights and rank pari passu for dividends and on a return of capital. Shares are not redeemable.
B Investment shares are non-voting but rank pari passu for dividends and on a return of capital. Shares are not redeemable.
Page 10 |
Witt Limited
Notes to the Financial Statements for the Period from 1 September 2017 to 30 August 2018
Share-based payments |
During the period, the company continued to offer various equity-settled share options to employees and others providing similar services, which have been aggregated here as they are considered to be substantially similar in type.
The options become exercisable subject to various vesting conditions, including employee length of service, and various performance-related conditions. The options expire after a period of between 10 and 20 years, depending on the employee or similar person.
A total of 1,556,753 share options were outstanding at the beginning of the period, with a weighted average exercise price of £0.35 per share. During the period, the company granted a total of 155,675 share options with a weighted average exercise price of £0.57 per share. No options were forfeited or exercised during the period and no options expired during the period. At the end of the period, there were a total of 1,712,428 share options outstanding with a weighted average share price of £0.37 per share, of which 233,512 were exercisable at the reporting date.
The directors believe that the intrinsic value of each option is £nil (being the exercise price over each option less the value of each share). Any option value would only arise from the volatility associated with the shares. Since for a pre-revenue private company this is highly subjective, no formal valuation has been commissioned. Accordingly, no expense has been recognised in profit or loss for these share-based payments for the period (2017 - £nil).
Page 11 |
Witt Limited
Notes to the Financial Statements for the Period from 1 September 2017 to 30 August 2018
Related party transactions |
During the year the company continued to receive interest free loans from wholly owned subsidiaries which are repayable on demand. At the period end, the amount owed by the company was £3,000 (2017 - £3,000).
Summary of transactions with key management
Mr and Mrs Wickett have provided personal guarantees against company borrowings of £nil (2017 - £200,000).
During the period the directors continued to provide the company with interest-free loans which are repayable on demand. At the balance sheet date, the total amount owed to the directors was £8,567 (2017 - £7,493).
Directors' remuneration
The directors' remuneration for the period was as follows:
2018 |
(As restated) |
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Remuneration |
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Contributions paid to money purchase schemes |
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168,688 |
164,078 |
Page 12 |