Company Registration No. 09554552 (England and Wales)
ALLAY LOGIC LTD
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2019
PAGES FOR FILING WITH REGISTRAR
ALLAY LOGIC LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
ALLAY LOGIC LTD
BALANCE SHEET
AS AT
30 JUNE 2019
30 June 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
3
28,210
40,006
Tangible assets
4
167,629
111,021
195,839
151,027
Current assets
Debtors
5
80,777
4,944
Cash at bank and in hand
1,387
123,980
82,164
128,924
Creditors: amounts falling due within one year
6
(713,384)
(521,577)
Net current liabilities
(631,220)
(392,653)
Total assets less current liabilities
(435,381)
(241,626)
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
(435,481)
(241,726)
Total equity
(435,381)
(241,626)
The director of the company has 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 and signed by the director and authorised for issue on
29 September 2020
S P Bell
Director
Company Registration No. 09554552
ALLAY LOGIC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2019
- 2 -
1
Accounting policies
Company information
Allay Logic Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Generator Studios, Trafalgar Street, Newcastle upon Tyne, NE1 2LA.
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. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
- Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ - Carrying amounts.
The financial statements of the company are consolidated in the financial statements of Allay (UK) Ltd, the ultimate parent company. These consolidated financial statements are available from its registered office, 3rd Floor Generator Studios, Trafalgar Street,
Newcastle upon Tyne, NE
1 2LA
.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he director has a reasonable expectation that the
company
has
access to
adequate resources
across the group
to continue in operational existence for the foreseeable future.
The shareholder and parent company has confirmed it can and will support the company if required.
Thus
t
he director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The reporting period in the prior period was shortened to
6
months
and 5 days
ended
5 July 2018
for commercial reasons. Therefore the prior
year
financial statements (including the related notes) are not entirely comparable.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable
for services rendered stated net of discounts and Value Added Tax.
1.5
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
.
ALLAY LOGIC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 3 -
1.6
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.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably.
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
33.3% straight line
Development costs
33.3% straight line
1.7
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:
Plant and equipment
33.3% straight line
Fixtures and fittings
15% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.8
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).
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.
ALLAY LOGIC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 4 -
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 and loans from
fellow group, 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
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, if considered material to the financial statements.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2019
2018
Number
Number
Total
3
5
ALLAY LOGIC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2019
- 5 -
3
Intangible fixed assets
Software
Development costs
Total
£
£
£
Cost
At 6 July 2018
5,528
66,710
72,238
Additions - internally developed
7,830
-
7,830
At 30 June 2019
13,358
66,710
80,068
Amortisation and impairment
At 6 July 2018
3,779
28,453
32,232
Amortisation charged for the period
3,151
16,475
19,626
At 30 June 2019
6,930
44,928
51,858
Carrying amount
At 30 June 2019
6,428
21,782
28,210
At 5 July 2018
1,749
38,257
40,006
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 6 July 2018
80,321
58,349
21,695
160,365
Additions
116,793
13,155
-
129,948
Disposals
(728)
-
-
(728)
At 30 June 2019
196,386
71,504
21,695
289,585
Depreciation and impairment
At 6 July 2018
34,400
10,385
4,559
49,344
Depreciation charged in the period
56,394
11,480
5,219
73,093
Eliminated in respect of disposals
(481)
-
-
(481)
At 30 June 2019
90,313
21,865
9,778
121,956
Carrying amount
At 30 June 2019
106,073
49,639
11,917
167,629
At 5 July 2018
45,921
47,964
17,136
111,021
ALLAY LOGIC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2019
- 6 -
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
200
-
Amounts owed by group undertakings
80,577
-
Other debtors
-
4,944
80,777
4,944
6
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
-
4,410
Amounts owed to group undertakings
664,608
476,426
Taxation and social security
26,678
28,932
Other creditors
22,098
11,809
713,384
521,577
ALLAY LOGIC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2019
- 7 -
7
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
8
Related party transactions
Transactions with related parties
During the period the company entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
2019
2018
Amounts due to related parties
£
£
Companies under common control
21,228
6,304
The following amounts were outstanding at the reporting end date:
Other information
The company is a wholly owned subsidiary and has taken advantage of the exemption permitted by Section 33 Related Party Disclosures not to provide disclosures of transactions entered into with other wholly owned members of the group.
9
Parent company
The company's ultimate parent undertaking is
Allay (UK)
L
td,
a company incorporated in England and Wales.
ALLAY LOGIC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2019
- 8 -
10
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 Paul Gainford.
The auditor was RMT Accountants & Business Advisors Ltd.