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REGISTERED NUMBER:
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 SEPTEMBER 2017 |
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FOR |
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ENIGMA DIGITAL LIMITED |
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REGISTERED NUMBER:
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 SEPTEMBER 2017 |
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FOR |
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ENIGMA DIGITAL LIMITED |
ENIGMA DIGITAL LIMITED (REGISTERED NUMBER: 07788522) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 30 September 2017 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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ENIGMA DIGITAL LIMITED |
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COMPANY INFORMATION |
For The Year Ended 30 September 2017 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditors |
No 3 Caroline Court |
13 Caroline Street |
St Pauls Square |
Birmingham |
West Midlands |
B3 1TR |
ENIGMA DIGITAL LIMITED (REGISTERED NUMBER: 07788522) |
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BALANCE SHEET |
30 September 2017 |
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2017 | 2016 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Stocks |
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Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
8 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 11 |
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Share premium |
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Retained earnings | ( |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors on
by: |
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ENIGMA DIGITAL LIMITED (REGISTERED NUMBER: 07788522) |
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NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 30 September 2017 |
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1. | STATUTORY INFORMATION |
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Enigma Digital Limited is a
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company's registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Significant judgements and estimates |
In the application of the company's accounting policies the directors are required to make judgements, estimates |
and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other |
sources. The estimates and associated assumptions are based on historical experience and other factors that are |
considered to be relevant. Actual results may differ from these estimates. |
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The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates |
are recognised in the period in which the estimate is revised if the revision effects only that period, or in the |
period of revision and future periods if the revision effects both current and future periods. |
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In preparing these financial statements, the directors have made the following judgements: |
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The company reviews the carrying value of all assets for indications of impairment at each period. If indicators |
of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying |
value exceeds it recoverable amount. This process will usually involve the estimation of future cash flows |
which are likely to be generated by the asset. |
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A provision is recognised when the company has a present legal or constructive obligation as a result of a past |
event for which it is probable that an outflow of resources will be required to settle the obligation and the |
amount can be reliably estimated. If the effect is material, provisions are determined by discounting the |
expected future cash flows at a rate that reflects the time value of money and the risk specific to the liability. |
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Whether a present obligation is probable or not requires judgement. The nature and type of risks for these |
provisions differ and management's judgement is applied regarding the nature and extent of obligations in |
deciding if an outflow of resources is probable or not. |
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The directors have reviewed the asset lives and associated residual values of all fixed assets classes. In |
re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance |
programmes are taken into account. Residual value assessments consider issues such as future market |
conditions, the remaining life of the asset and projects disposal values. |
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The directors do not believe there to be any significant estimates made in the preparation of these financial |
statements. |
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Turnover |
Turnover represents net invoiced sales of services, excluding value added tax. |
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Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2012, is being amortised |
evenly over its estimated useful life of five years, except where the Directors consider the value to be |
permanently impaired in which case the net book value is written down to what is considered to be the impaired |
value. |
ENIGMA DIGITAL LIMITED (REGISTERED NUMBER: 07788522) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2017 |
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2. | ACCOUNTING POLICIES - continued |
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Intangible fixed assets |
Intangible assets are initially measured at cost,and are then measured at cost less any accumulated amortisation |
and any accumulated impairment losses. Amortisation is provided at the following annual rates in order to write |
off each asset over its estimated useful life. |
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Software development - 25% on cost |
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Tangible fixed assets |
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Fixtures and fittings | - |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow |
moving items. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to |
the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or |
substantively enacted by the balance sheet date. |
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Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from |
those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws |
that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of |
the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they |
will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension |
scheme are charged to profit or loss in the period to which they relate. |
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Grant income |
Grants received in respect of capital expenditure are credited to the profit and loss account over the same period |
as the expected useful life of the related capital item. The element of the grant not yet released to the profit and |
loss account is treated as deferred income at the year end. |
ENIGMA DIGITAL LIMITED (REGISTERED NUMBER: 07788522) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2017 |
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2. | ACCOUNTING POLICIES - continued |
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Impairment of assets |
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet |
date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss. |
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For non-financial assets, the asset is impaired where there is objective evidence that, as a result of one or more |
events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The |
recoverable amount of the asset is the higher of its fair value less costs to sell and its value in use. |
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For financial assets carried at amortised costs, the amount of an impairment is the difference between the asset's |
carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original |
effective interest rate. |
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For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's |
carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at |
the reporting date. |
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Where indicators exist for the decrease in impairment loss, and the decrease can be related objectively to an |
event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. |
An impairment loss is reversed on an individual impaired financial asset to the extent that the revised |
recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment |
been recognised. |
ENIGMA DIGITAL LIMITED (REGISTERED NUMBER: 07788522) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2017 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
(i) Cash and cash equivalents |
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Cash and cash equivalents are basic financial instruments 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. |
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(ii) Financial assets and liabilities |
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All financial assets and liabilities are recognised when the company becomes party to the contractual provisions |
of the instrument. |
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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 its liabilities. |
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All financial assets and liabilities are initially measured at transaction price (including transaction costs), except |
for those financial assets classified as at fair value through profit and loss, which are initially measured at fair |
value unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing |
transaction, the financial asset or liability is measured at the present value of the future payments discounted at a |
market rate of interest for a similar debt instrument. |
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Financial assets and liabilities are only offset at the balance sheet date when, and only when there exists a |
legally enforceable right to set off the recognised amounts and the company intends either to settle on a net |
basis, or to realise the asset and settle the liability simultaneously. |
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Debt instruments that have no stated interest rate and are classified as payable or receivable within one year are |
initially measured at an undiscounted amount of the cash or other consideration expected to be paid or received, |
net of impairment. Other debt instruments not meeting these conditions are measure at fair value through profit |
and loss. |
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Commitments to make or receive loans which meet the conditions mentioned above are measure at cost less |
impairment. |
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Financial asset are derecognised when and only when the contractual rights to the cash flows for the financial |
asset expire or are settled, when the company transfers to another party substantially all the risks and rewards of |
ownership of the financial asset, or the company, despite having retained some, but not all, significant risks and |
rewards of ownership, has transferred control of the asset to another party. |
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Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled |
or expires. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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ENIGMA DIGITAL LIMITED (REGISTERED NUMBER: 07788522) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2017 |
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4. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 October 2016 |
and 30 September 2017 |
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AMORTISATION |
At 1 October 2016 |
and 30 September 2017 |
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NET BOOK VALUE |
At 30 September 2017 |
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At 30 September 2016 |
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5. | TANGIBLE FIXED ASSETS |
Fixtures |
and |
fittings |
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COST |
At 1 October 2016 |
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Additions |
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At 30 September 2017 |
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DEPRECIATION |
At 1 October 2016 |
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Charge for year |
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At 30 September 2017 |
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NET BOOK VALUE |
At 30 September 2017 |
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At 30 September 2016 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Trade debtors |
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Other debtors |
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VAT |
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Prepayments |
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ENIGMA DIGITAL LIMITED (REGISTERED NUMBER: 07788522) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2017 |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Other loans |
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Trade creditors |
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Social security and other taxes |
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Other creditors |
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Directors' current accounts | 2,597 | 7,489 |
Accrued expenses |
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Deferred grant income |
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8. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2017 | 2016 |
£ | £ |
Other loans - 1-2 years |
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9. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2017 | 2016 |
£ | £ |
Within one year |
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Between one and five years |
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10. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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2017 | 2016 |
£ | £ |
Other loans | 12,659 | 23,993 |
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11. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2017 | 2016 |
value: | £ | £ |
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Ordinary | £0.01 | 1,443 | 1,359 |
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"A" Ordinary | £0.01 | 786 | 655 |
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"Growth" | £0.01 | 128 | - |
2,357 | 2,014 |
ENIGMA DIGITAL LIMITED (REGISTERED NUMBER: 07788522) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 September 2017 |
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11. | CALLED UP SHARE CAPITAL - continued |
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During the year, the company issued 8,395 Ordinary £0.01 shares for a consideration of £64,055, 13,106 "A" |
Ordinary £0.01 shares for a consideration of £100,000 and 12,804 "Growth" £0.01 shares for a consideration of |
£128. |
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12. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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13. | RELATED PARTY DISCLOSURES |
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During the year, loan accounts existed with the directors L Parry, A Porter, R Leaver and J Costley. At the year |
end, L Parry was owed £642 (2016: £3,157), A Porter was owed £1,080 (2016: £4,33), R Leaver was owed £10 |
(2016: £Nil) and J Costley was owed £865 (2016: £Nil). No interest is accruing on these loans and there are no |
formal repayment terms in place. |
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During the year, Fabius Limited, a company in which J Costley is a director, charged the company £14,700 in |
respect of consultancy services. At the year end, the company owed Fabius Limited £2,520 (2016: £Nil). |
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14. | ULTIMATE CONTROLLING PARTY |
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There is no overall controlling party. |
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15. | SHARE-BASED PAYMENT TRANSACTIONS |
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During the period, 2,250 (2016: 2,740) share options for Ordinary £0.01 shares were granted to employees on |
condition of length of service. During the period, 2,240 share options for Ordinary £0.01 shares had lapsed. As |
at the period end a total of 18,550 (2016: 18,540) share options had been granted of which 16,120 (2016: |
13,056) had vested but none had been exercised. The options are exercisable on the occurrence of an Exit |
Event, being either a change in control of the company, an assets sale or a listing on a recognised stock |
exchange. Where an Exit Event does not occur within 10 years from the date of the options being granted, then |
those options will lapse. The exercise price for 15,800 (2016: 15,800) of the options is £0.01 and for 2,750 |
(2016: 2,740) of the options is £1.93 (2016: £1.93). As at the period end the fair value of these options was |
considered by the Directors to be immaterial and hence no value in respect of them has been recorded in the |
financial statements. |
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16. | GOING CONCERN |
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In the year to 30 September 2017 the company made a pre-tax loss of £165,574 and at the year end had negative |
profit and loss reserves of £858,809. The Directors consider that the company remains a going concern given |
that revenues improved significantly in the year and these are expected to increase further in 2018 further to a |
new product, which has been under development for the past 12 months, being due for release in the early part |
of that year. These factors are forecast to bring the company into monthly profit from March 2018 onwards. |
Hence, the Directors consider the going concern basis to remain appropriate for the preparation of these |
financial statements. |