Iken Business Ltd Company accounts

COMPANY REGISTRATION NUMBER: 02776536

IKEN BUSINESS LTD

UNAUDITED FINANCIAL STATEMENTS

31 March 2021

IKEN BUSINESS LTD

FINANCIAL STATEMENTS

Year ended 31 March 2021

CONTENTS	PAGE

Officers and professional advisers	1

Directors' report	2

Chartered accountants report to the board of directors on the preparation of the unaudited statutory financial statements	3

Profit and loss account	4

Balance sheet	5

Notes to the financial statements	7

The following pages do not form part of the financial statements

Detailed profit and loss account	15

IKEN BUSINESS LTD

OFFICERS AND PROFESSIONAL ADVISERS

The board of directors	Dr A Chester
	Mr J L Pemberton
	Miss T J Corsie
	Mr S P W Wanless

Company secretary	Dr A Chester

Registered office	3rd Floor Suite B
	One George Square
	Bath Street
	Bristol
	BS1 6BA

Accountants	Kilsby & Williams LLP
	Chartered Accountants
	Cedar House
	Hazell Drive
	Newport
	NP10 8FY

Bankers	National Westminster
	106 Whiteladies Road
	Bristol
	BS99 5AD

IKEN BUSINESS LTD

DIRECTORS' REPORT

Year ended 31 March 2021

The directors present their report and the unaudited financial statements of the company for the year ended 31 March 2021 .

Directors

The directors who served the company during the year were as follows:

Dr A Chester
Mr J L Pemberton
Miss T J Corsie
Mr S P W Wanless

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

This report was approved by the board of directors on 6 January 2022 and signed on behalf of the board by:

Dr A Chester

Director

CHARTERED ACCOUNTANTS REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF IKEN BUSINESS LTD

Year ended 31 March 2021

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Iken Business Ltd for the year ended 31 March 2021, which comprise the profit and loss account, balance sheet and the related notes from the company's accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/membership/regulations-standards-and-guidance. This report is made solely to the Board of Directors of Iken Business Ltd, as a body, in accordance with the terms of our engagement letter dated 23 November 2020. Our work has been undertaken solely to prepare for your approval the financial statements of Iken Business Ltd and state those matters that we have agreed to state to you, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at www.icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Iken Business Ltd and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Iken Business Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Iken Business Ltd. You consider that Iken Business Ltd is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the financial statements of Iken Business Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. Kilsby & Williams LLP Chartered Accountants

Cedar House Hazell Drive Newport NP10 8FY

IKEN BUSINESS LTD

PROFIT AND LOSS ACCOUNT

Year ended 31 March 2021

	2021	2020
Note	£	£
TURNOVER	2,487,408	2,629,772

Cost of sales	( 86,963)	( 82,028)
	------------	------------
GROSS PROFIT	2,400,445	2,547,744

Administrative expenses	( 2,275,808)	( 2,316,924)
Other operating income	24,917	–
	------------	------------
OPERATING PROFIT	149,554	230,820

Income from other fixed asset investments		( 2)	–
Other interest receivable and similar income		1,964	5,825
		------------	------------
PROFIT BEFORE TAXATION	5	151,516	236,645

Tax on profit	25,312	763
	---------	---------
PROFIT FOR THE FINANCIAL YEAR AND TOTAL COMPREHENSIVE INCOME	176,828	237,408
	---------	---------

Dividends paid and payable	( 71,000)	( 70,000)

RETAINED EARNINGS AT THE START OF THE YEAR	1,828,374	1,660,966
	------------	------------
RETAINED EARNINGS AT THE END OF THE YEAR	1,934,202	1,828,374
	------------	------------

All the activities of the company are from continuing operations.

IKEN BUSINESS LTD

BALANCE SHEET

31 March 2021

	2021	2020
Note	£	£

FIXED ASSETS

Intangible assets	6	1,321,588	1,092,823
Tangible assets	7	49,560	61,572
Investments	8	–	2
		------------	------------
		1,371,148	1,154,397

CURRENT ASSETS

Debtors	9	519,535	610,171
Cash at bank and in hand		1,356,150	1,624,978
		------------	------------
		1,875,685	2,235,149

CREDITORS: amounts falling due within one year	10	( 1,038,631)	( 1,280,226)
		------------	------------
NET CURRENT ASSETS		837,054	954,923
		------------	------------
TOTAL ASSETS LESS CURRENT LIABILITIES		2,208,202	2,109,320

PROVISIONS	–	( 6,946)
	------------	------------
NET ASSETS	2,208,202	2,102,374
	------------	------------

CAPITAL AND RESERVES

Called up share capital	18,000	18,000
Share premium account	244,000	244,000
Capital redemption reserve	12,000	12,000
Profit and loss account	1,934,202	1,828,374
	------------	------------
SHAREHOLDERS FUNDS	2,208,202	2,102,374
	------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

For the year ending 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

IKEN BUSINESS LTD

BALANCE SHEET (continued)

31 March 2021

These financial statements were approved by the board of directors and authorised for issue on 6 January 2022 , and are signed on behalf of the board by:

Dr A Chester

Director

Company registration number: 02776536

IKEN BUSINESS LTD

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

1. GENERAL INFORMATION

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 3rd Floor Suite B, One George Square, Bath Street, Bristol, BS1 6BA.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Turnover

Turnover is measured at the fair value of the consideration receivable, and represents amounts receivable for software publishing and information technology consultancy services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

Deferred taxation is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the accounts. Deferred tax is not provided on timing differences arising from the revaluation of fixed assets where there is no commitment to sell the asset, or on unremitted earnings of subsidiaries and associates where there is no commitment to remit these earnings. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Research & Development	-	10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research and development

Research expenditure is written off as incurred. Development expenditure is also written off, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is capitalised as an intangible asset and amortised over the period during which the company is expected to benefit. This period is ten years and provision is made for any impairment.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold Property	-	8% straight line
Plant and Machinery	-	25% straight line

Investments

The investment represents 100% of the ordinary share capital of Bristol Limited, a company registered in England and Wales.

Investments in associates

The investment represents 100% of the ordinary share capital of Bristol Limited, a company registered in England and Wales.

Investments in joint ventures

Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. EMPLOYEE NUMBERS

The average number of persons employed by the company during the year amounted to 46 (2020: 40 ).

5. PROFIT BEFORE TAXATION

Profit before taxation is stated after charging:

	2021	2020
	£	£
Amortisation of intangible assets	231,831	192,042
Depreciation of tangible assets	19,265	18,464
	---------	---------

6. INTANGIBLE ASSETS

	Development costs
	£
Cost
At 1 April 2020	2,168,281
Additions	460,596
	------------
At 31 March 2021	2,628,877
	------------
Amortisation
At 1 April 2020	1,075,458
Charge for the year	231,831
	------------
At 31 March 2021	1,307,289
	------------
Carrying amount
At 31 March 2021	1,321,588
	------------
At 31 March 2020	1,092,823
	------------

Intangible assets include development costs relating to the development of computer software.

7. TANGIBLE ASSETS

	Leasehold property	Plant and machinery	Total
	£	£	£
Cost
At 1 April 2020	52,968	149,886	202,854
Additions	–	7,253	7,253
	--------	---------	---------
At 31 March 2021	52,968	157,139	210,107
	--------	---------	---------
Depreciation
At 1 April 2020	22,966	118,316	141,282
Charge for the year	4,237	15,028	19,265
	--------	---------	---------
At 31 March 2021	27,203	133,344	160,547
	--------	---------	---------
Carrying amount
At 31 March 2021	25,765	23,795	49,560
	--------	---------	---------
At 31 March 2020	30,002	31,570	61,572
	--------	---------	---------

8. INVESTMENTS

	Other investments other than loans
	£
Cost
At 1 April 2020 and 31 March 2021	2
	----
Impairment
At 1 April 2020	–
Disposals	2
	----
At 31 March 2021	2
	----

Carrying amount
At 31 March 2021	–
	----
At 31 March 2020	2
	----

The investment represents 100% of the ordinary share capital of Bristol Limited, a company registered in England and Wales.

9. DEBTORS

	2021	2020
	£	£
Trade debtors	359,804	407,233
Other debtors	159,731	202,938
	---------	---------
	519,535	610,171
	---------	---------

10. CREDITORS: amounts falling due within one year

	2021	2020
	£	£
Trade creditors	16,674	156,755
Social security and other taxes	128,667	121,595
Other creditors	893,290	1,001,876
	------------	------------
	1,038,631	1,280,226
	------------	------------

11. OPERATING LEASES

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2021	2020
	£	£
Not later than 1 year	158,355	158,355
Later than 1 year and not later than 5 years	158,355	316,710
	---------	---------
	316,710	475,065
	---------	---------

12. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following directors' loan balances are included within other debtors/(creditors):

	2021	2020
	£	£
A Chester	43,370	50,127
J Pemberton	(12,000)	(6,000)
S Wanless	(8,638)	(12,347)
T Corsie	(12,031)	(6,639)
	--------	--------
	10,701	25,141
	--------	--------

Loans from the directors to the company are interest free and repayable on demand. In respect of the director with an overdrawn loan account within the year, the following advances and credits took place with the company:

		A Chester
		£
Opening balance		50,127
Dividends		(65,000)
Amounts drawn		56,739
Interest paid		1,504
Closing balance		43,370

IKEN BUSINESS LTD

MANAGEMENT INFORMATION

Year ended 31 March 2021

The following pages do not form part of the financial statements.

IKEN BUSINESS LTD

DETAILED PROFIT AND LOSS ACCOUNT

Year ended 31 March 2021

2021	2020	Variance
£	£	£	%

TURNOVER

Sales	2,487,408	2,629,772	(142,364)	(5.41)
	------------	------------	---------	-----

COST OF SALES

Direct costs	86,963	82,028	4,935	6.02
	--------	--------	-------	-----
GROSS PROFIT/(LOSS)	2,400,445	2,547,744	(147,299)	(5.78)
	------------	------------	---------	-----

GROSS PROFIT PERCENTAGE	96.50%	96.88%
	-------	-------

ADMINISTRATIVE EXPENSES

Rent and rates	277,797	224,534	53,263	23.72
Light and heat	5,651	11,322	(5,671)	(50.09)
Insurance	21,436	32,292	(10,856)	(33.62)
Repairs and renewals	4,632	8,505	(3,873)	(45.54)
Wages and salaries	1,160,244	1,062,150	98,094	9.24
Staff pension contributions - defined contribution	109,577	81,529	28,048	34.40
Travel and subsistence	33	73,062	(73,029)	(99.95)
Telephone	12,416	12,194	222	1.82
IT expenses	79,799	90,633	(10,834)	(11.95)
Printing postage and stationery	504	3,112	(2,608)	(83.80)
Staff training	11,031	19,974	(8,943)	(44.77)
Staff welfare	(7,770)	10,340	(18,110)	(175.15)
Sundry expenses	5,758	13,104	(7,346)	(56.06)
Subscriptions and software support	9,963	11,456	(1,493)	(13.03)
Exhibition and marketing	21,530	79,275	(57,745)	(72.84)
Entertaining	–	932	(932)	(100.00)
Provision for doubtful debts	20,172	13,860	6,312	45.54
Bank charges	887	1,038	(151)	(14.55)
Legal and professional fees	15,184	25,496	(10,312)	(40.45)
Recruitment expenses	11,593	60,035	(48,442)	(80.69)
Accountancy fees	41,725	41,488	237	0.57
Directors emoluments	222,550	230,087	(7,537)	(3.28)
Amortisation of intangible assets	231,831	192,042	39,789	20.72
Depreciation of tangible assets	19,265	18,464	801	4.34
	------------	------------	--------	--------
	2,275,808	2,316,924	(41,116)	(1.77)
	------------	------------	--------	--------

OTHER OPERATING INCOME

Other income	24,917	–	24,917	–
	--------	----	--------	----

INCOME FROM OTHER FIXED ASSET INVESTMENTS

Gain/(loss) on disposal of other fixed asset investments	(2)	–	(2)	–
	----	----	----	----

FINANCE INCOME

Interest on cash and cash equivalents	1,964	5,825	(3,861)	66.28
	-------	-------	-------	-------

PROFIT/(LOSS) BEFORE TAXATION	151,516	236,645	(85,129)	(35.97)
	---------	---------	--------	-------

PROFIT BEFORE TAXATION PERCENTAGE	6.09%	9.00%
	-----	-----

TAXATION ON ORDINARY ACTIVITIES

Corporation tax charge	(18,366)	(1,663)	(16,703)	1,004.39
Deferred tax	(6,946)	900	(7,846)	(871.78)
	--------	-------	--------	----------
	(25,312)	(763)	(24,549)	3,217.43
	--------	-------	--------	----------

PROFIT/(LOSS) AFTER TAXATION	176,828	237,408	(60,580)	(25.52)
	---------	---------	--------	-------

PROFIT AFTER TAXATION PERCENTAGE	7.11%	9.03%
	-----	-----