COMPANY REGISTRATION NO. 07902511 (England and Wales)
TRAKCEL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
TRAKCEL LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
TRAKCEL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
3
2,540,374
3,418,782
Tangible assets
4
199,534
172,712
2,739,908
3,591,494
Current assets
Debtors
5
1,156,413
803,574
Cash at bank and in hand
302,555
780,623
1,458,968
1,584,197
Creditors: amounts falling due within one year
6
(947,207)
(3,641,503)
Net current assets/(liabilities)
511,761
(2,057,306)
Total assets less current liabilities
3,251,669
1,534,188
Creditors: amounts falling due after more than one year
7
-
(6,900)
Net assets
3,251,669
1,527,288
Capital and reserves
Called up share capital
4,562
4,562
Share premium account
7,356,593
7,356,593
Profit and loss reserves
(4,109,486)
(5,833,867)
Total equity
3,251,669
1,527,288
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 30 September 2020 and are signed on its behalf by:
Mr R Nalliah
Director
Company Registration No. 07902511
TRAKCEL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Note
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2018
4,562
7,356,593
(3,300,867)
4,060,288
Year ended 31 December 2018:
Loss and total comprehensive income for the year
-
-
(2,533,000)
(2,533,000)
Balance at 31 December 2018
4,562
7,356,593
(5,833,867)
1,527,288
Year ended 31 December 2019:
Loss and total comprehensive income for the year
-
-
(5,127,065)
(5,127,065)
Capital contribution
10
-
-
6,851,446
6,851,446
Balance at 31 December 2019
4,562
7,356,593
(4,109,486)
3,251,669
TRAKCEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
1
Accounting policies
Company information
Trakcel Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
10-11 Raleigh Walk Waterfront 2000, Brigantine Place, Cardiff, CF10 4LN.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
At 31 December 2019, the Company had a cash equivalent position of £302,555, with no bank debt. TrakCel is currently undertaking a ‘Series D’ investment round
true
. At the date of signing these financial statements, the Company has raised 73% of the intended target.
The Series D funding has and will be received as share capital in the Company’s immediate parent, TrakCel Holding Company Inc (the “Parent Company”). Trakcel Limited has access to these funds to support its day to day operations by virtue of a parental letter of support. Trakcel Limited is the only subsidiary of the Parent Company.
During the year, Trakcel Limited received a capital contribution of £6,
851,446
from the Parent Company, being the amount owed to the Parent Company at the date of the contribution. The contribution has been reflected as a credit to reserves.
In March 2020, the World Health Organisation declared a global pandemic caused by COVID-19, a coronavirus. The Directors have considered the impact that this is likely to have on the Company’s financial performance and have concluded that they will continue to monitor the situation closely and take appropriate steps to mitigate against any financial impact.
The Directors have prepared detailed monthly forecasts and projected cash flows for the remainder of the December 2020 financial year, including any likely impact of COVID-19, and for the full year ended December 2021. After due consideration, the Directors have concluded that based on their forecasts and the continued support of their main shareholder there is a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
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 and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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 and materials, 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
it is probable will be
recover
ed
.
TRAKCEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
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 or valuation of assets less their residual values over their useful lives on the following bases:
Software
3 years
Development costs
3 to 10 years
Assets under development
See below
Assets under development are stated at cost. These assets are not amortised until they become available for use.
1.6
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
40% straight line
Fixtures and fittings
25% straight line and reducing balance
Computer equipment
20% straight line and reducing balance
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
.
1.7
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. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
TRAKCEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash and cash equivalents
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.
1.9
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.
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.
1.10
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.
TRAKCEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 6 -
1.11
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.
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Government grants
Government grants 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.
1.15
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.
TRAKCEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
108
74
3
Intangible fixed assets
Software
Development costs
Assets under development
Total
£
£
£
£
Cost
At 1 January 2019
68,096
4,149,044
88,684
4,305,824
Additions - internally developed
48,056
1,134
698,511
747,701
Disposals
(382)
-
-
(382)
Transfers
-
444,706
(444,706)
-
At 31 December 2019
115,770
4,594,884
342,489
5,053,143
Amortisation and impairment
At 1 January 2019
12,199
874,843
-
887,042
Amortisation charged for the year
31,961
962,005
-
993,966
Impairment losses
-
631,772
-
631,772
Disposals
(11)
-
-
(11)
At 31 December 2019
44,149
2,468,620
-
2,512,769
Carrying amount
At 31 December 2019
71,621
2,126,264
342,489
2,540,374
At 31 December 2018
55,897
3,274,201
88,684
3,418,782
TRAKCEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
4
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2019
43,975
32,066
180,639
256,680
Additions
48,119
22,941
41,017
112,077
Disposals
-
(233)
(8,588)
(8,821)
At 31 December 2019
92,094
54,774
213,068
359,936
Depreciation and impairment
At 1 January 2019
6,913
9,091
67,964
83,968
Depreciation charged in the year
33,405
11,490
36,973
81,868
Eliminated in respect of disposals
-
(15)
(5,419)
(5,434)
At 31 December 2019
40,318
20,566
99,518
160,402
Carrying amount
At 31 December 2019
51,776
34,208
113,550
199,534
At 31 December 2018
37,062
22,975
112,675
172,712
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
528,447
279,894
Corporation tax recoverable
299,842
102,461
Other debtors
328,124
421,219
1,156,413
803,574
6
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans
1,008
22,727
Trade creditors
225,229
116,796
Amounts owed to group undertakings
-
2,938,825
Taxation and social security
141,988
113,103
Other creditors
578,982
450,052
947,207
3,641,503
The amount owed to group undertakings was forgiven during the year by way of a capital contribution.
TRAKCEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
7
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
-
6,900
8
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 Mr John Griffiths.
The auditor was UHY Hacker Young.
9
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
101,952
93,000
Between two and five years
28,202
106,750
130,154
199,750
10
Capital contribution
During the year, the parent company made capital contribution
s
totalling
£6,
851,446
. The contribution
s
ha
ve
been reflected as
credit
s
to reserves.
11
Related party transactions
During the year, Trakcel Limited was invoiced £60,000 (2018: £60,000) in rent from Corvette Properties Limited. Corvette Properties Limited is a related party by virtue of common directors. The balance outstanding at the year end was £Nil (2018: £17,840).
During the year Trakcel Limited was invoiced £7,398 (2018: £3,521) for services provided by its controlling party, Telegraph Hill Partners. The balance outstanding at year end was £Nil (2018: £Nil).
TRAKCEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
12
Parent company
The immediate parent company is Trakcel Holding Company Inc., incorporated in the United State
s
of America.
T
he ultimate controlling parties are the members of Telegraph Hill Partners
,
a private equity fund based in the United
S
tate
s
of America.
2019-12-31
2019-01-01
false
30 September 2020
CCH Software
CCH Accounts Production 2020.200
No description of principal activity
This audit opinion is unqualified
Mr R C Hart
Mr J M Mackowski
Mr R Nalliah
Mr P J Roberts
Ms J Welsh
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