LSE Regulatory News MORE NEWS

Director/PDMR Shareholding
Sep 20, 2017
cloudBuy, the global provider of cloud-based eCommerce marketplaces and B2B buyer and supplier solutions, announces that Ronald and Lyn Duncan, directors of the Company, have transferred for nil consideration a total of 2,053,836 Warrants to family members, they have also undertaken to pay any tax arising from the transfer or exercise of the Warrants.
read more
Interim Results for the six months ended 30 June 2017
Aug 16, 2017
cloudBuy plc (AIM: CBUY), the global provider of cloud-based ecommerce marketplaces and B2B buyer and supplier solutions, today announces its unaudited interim results for the six months ended 30 June 2017.
read more
NOTIFICATION OF MAJOR INTEREST IN SHARES
Aug 01, 2017
cloudBuy plc, the global provider of cloud-based e-commerce marketplaces and B2B buyer and supplier solutions, today provides an notifications of major interests in shares
read more
NOTIFICATION OF MAJOR INTEREST IN SHARES
Aug 01, 2017
cloudBuy plc, the global provider of cloud-based e-commerce marketplaces and B2B buyer and supplier solutions, today provides an notifications of major interests in shares
read more
NOTIFICATION OF MAJOR INTEREST IN SHARES
Jun 22, 2017
cloudBuy plc, the global provider of cloud-based e-commerce marketplaces and B2B buyer and supplier solutions, today provides an notifications of major interests in shares
read more

Audited Final Results for the 12 months ended 31 December 2013

Mar 12, 2014

RNS Number : 0667C
Cloudbuy PLC
12 March 2014

 

cloudBuy plc

("cloudBuy" or the "Company")

Audited Final Results for the 12 months ended 31 December 2013

 

cloudBuy plc (AIM:CBUY), the cloud eCommerce marketplace, today announces its audited final results for the 12 months ended 31 December 2013.

Key Points

Financial:

  • Turnover increased by 35% to £3.004m (2012: £2.219m)
  • Sales of web and eCommerce services increased by 73% to £2.044m (2012: £1.180m).
  • Company formations declined by 12% to £773k (2012: £880k)
  • Revenue from coding increased by 18% to £187k (2012: £158k) 
  • Gross profit increased by 46% to £2.561m (2012: £1.750m)
  • Gross margin increased to 85% (2012: 79%)
  • Operating expenses before share based payments increased to £3.275m (2012: £2.528m) reflecting the increase in costs associated with activities in Asia Pacific.      
  • Loss before tax increased by 10% to £936k (2012: £850k)
  • Cash and cash equivalents of £4.157m (2012: overdraft £61k)

Operational:

  • 3 year exclusive agreement signed with Visa Worldwide Pte. Limited (Asia Pacific)
  • Global launch as cloudBuy
  • Senior appointments to strengthen management and operational teams
  • First Australian contract win
  • Increased contract momentum in the UK, including wins with Invest Northern Ireland and Tungsten Corporation plc

Ronald Duncan, Executive Chairman of cloudBuy, commented:

"2013 was a remarkable year for cloudBuy, laying the foundations for future, profitable growth. We successfully launched in Asia Pacific with our partner Visa, completed an equity fundraising to provide us with the firepower to capitalise on our strong market position, to increase our investment in our people and technology and to ensure that we have the infrastructure to capitalise on the significant opportunity available to us.

"We are delighted with our progress both internationally and in the UK. We have made a considerable investment in both our technology and international expansion that resulted in a loss for the year.  The Board considered that this was justified on the expectation that the investment would result in significantly improved future results."

 

For further information, please contact:

cloudBuy plc

Ronald Duncan, Chairman

Tel: 0118 963 7000

Westhouse Securities Limited

Tom Griffiths/Richard Johnson

Tel: 020 7601 6100

Newgate Threadneedle

Caroline Forde/Alex White/Robyn McConnachie

Tel 020 7653 9850

 

About cloudBuy PLC

cloudBuy, formerly @UK, is the world's leading transactional Cloud Platform.

cloudBuy has used the platform to build the world leading B2B ecommerce and eprocurement applications which address the full range of buying and selling activities, in an easy to use web and mobile experience.  Along with other cloud based applications including Content Management, email and big data analysis.

The applications have already managed over $ 500 billion of spend and are being used by leading organisations around the world to deliver savings and improved services.

The applications are unique in delivering correct pricing in the complex world of B2B whilst being easy enough to use that the people with difficulties can use the system to buy their own social and health care.

For more information, visit www.cloudbuy.com

 

Chairman's Statement

2013 was a remarkable year for cloudBuy, laying the foundations for future, profitable growth. We successfully launched in Asia Pacific with Visa, completed an equity fundraising by way of a placing and open offer to provide us with the firepower to capitalise on our strong market position, to increase our investment in our people and technology and to ensure we have the infrastructure to capitalise on the significant opportunity available to us.

The partnership with Visa AP combines the strengths of Visa's payment technology with cloudBuy's experience in developing and running eCommerce and cloud computing solutions for Government and corporate clients, to provide buying and selling organisations with a complete cloud based procure-to-pay automation solution.

The Company enjoyed strong trading in the year, delivering good growth in web and eCommerce revenues of over 70% on the preceding year.  While the Company Formations division continued to see a small decline, overall revenues enjoyed strong growth.  As mentioned in past trading updates, this division of our business is becoming increasingly less significant.

Following our stated strategy we have invested in additional resources, in particular in sales and marketing, and technical support for an accelerated global roll-out. This has resulted in a slightly higher loss to that in the preceding year.  As a consequence of this activity we start the year with the best pipeline that the Company has ever had, with active prospects in Asia Pacific, India, Canada and the USA, as well as UK opportunities.

Following completion of the placing and open offer referred to above, the Company has significantly strengthened its executive management and delivery team, enabling the Company to make very good progress in Asia Pacific along with the transition to its new business model as was previously described in the Interim Report for the six months ended 30 June2013.

 

Board appointments

We were delighted to welcome two additional Non-executive Directors to the Board of the Company in October 2013, bringing additional industry and financial expertise. Patrick (Paddy) Broughton, who is based in Australia, joins the Company as President of cloudBuy Asia Pacific. Paddy is a very experienced banker who from 1987 to 1995 worked at JP Morgan, rising to European Head of Foreign Exchange Sales, prior to joining SG Warburg in Sydney in 1997. From 1998 until 2009 he rose to Head of Equity Capital Markets at ABN AMRO Rothschild in Sydney before being appointed as Global Head of Equity Origination for RBS and Chief Executive of Hoare Govett in London, a position which he held until 2012. He is currently also Chairman of the Dixon Advisory Investment Committee.

David Chellingsworth is a qualified Chartered Accountant and was formerly the Finance Director of cloudBuy between 1999 and 2001, before its flotation on AIM. He spent the majority of his career at British Gas. Subsequently, he served as Finance Director of Advanced Medical Solutions from 1994 to 1999 where he oversaw its successful flotation on the Official List in 1996. Since leaving cloudBuy, David has acted as Finance Director of private companies, including Cyworks plc and Medtrade Limited and acted as financial consultant at UK Biobank Limited. David is the chairman of the Company's audit committee.

 

Dividend

The Board is not recommending the payment of a dividend for 2013. In the immediate future, the Board is committed to building the Group's business and accordingly all the Group's financial resources are being applied to this end. In the longer term, the Directors intend to adopt a progressive dividend policy appropriate to the Group's financial performance.

 

People

We have an exceptional group of employees and on behalf of the Board and shareholders, I would like to thank all our employees for their hard work and effort during the year, welcome our new team in Asia Pacific and look forward together to a successful year in 2014.

 

Outlook

We are delighted with our progress both internationally and in the UK. We have made a considerable investment in both our technology and international expansion and expect these to result in significantly improved future results.

 

Ronald Duncan

Executive Chairman, 12 March 2014

 

Strategic Report

Overview

In 2013 we were focused on creating our partnership with VISA in Asia Pacific and continuing the development of our products.  Success in these meant we were able to strengthen our financial position through a successful fundraising, and build our team at all levels. Our investment in people was essential to ensure that we have the capability and capacity to execute on contract wins globally and thus, the Board considered it was appropriate to make the investment in  2013  for future growth

Financial results

In the year ended 31 December 2013, the group's revenue increased by 35% to £3,004,102 (2012: £2,219,034) and the loss before taxation increased to £936,417 (2012: £849,502).

Sales of web and eCommerce services recorded an increase of 73% in the year to £2,044,458 (2012: £1,180,324).

Revenue from company formation services decreased by 12% to £773,137, (2012: £880,455) in the year reflecting Companies House's continued increase in market share in electronic formations.

Revenue from coding increased by 18% to £186,507 (2012: £158,255).

As a result mainly of the increase in web and eCommerce services, gross margin increased to 85% (2012: 79%).

Operating expenses before share based payments increased to £3,273,579 (2012: £2,527,671). The increase in large part reflects the increase in costs associated with the launch in Asia Pacific. In addition, capitalised development expenditure in the year reduced to £9,900 (2012: £179,985).  This reflects the fact that the expenditure was on the enhancement of, rather than the launch of, new products and did not qualify to be capitalised under the accounting standards.   £217,790 was charged as the "cost" of share options granted to employees and shares issued to them under the Share Incentive Plan (2012: charge £70,247).

At 31 December 2013 the Group had cash and cash equivalents of £4,157,347 (31 December 2012: overdraft of £60,763).

 

Operational and performance review

Strengthened management team

We have significantly strengthened the management team of the business with several high level appointments. These include Jonathan Holden from Visa as CEO for Europe, Middle East and Africa region, along with the global solution team of Russell Darling, Nilesh Gopali, Sharlene Jobson and Chris Hope.  The Asia Pacific team was set up in March 2013 with the appointment of Matthew Clyne as Commercial Director and was strengthened during the year with the appointment of Patrick Broughton as its President, Dale Stephens as CEO for the region and Jeff Corcoran joining as a Sales Executive.

UK Operations

In the UK, we continue to see growth with contract wins increasing.

Technology investment

The Company invested considerable resources in product enhancement in 2013, particularly in the area of content management. The Company has developed a sophisticated content management system (CMS) which can be independently deployed for any customer or used in an integrated manner to customise cloudBuy eCommerce marketplaces and eCommerce websites. 

 This enterprise technology allows cloudBuy to quickly customise eCommerce marketplaces to meet diverse customer needs, ranging from eProcurement and Social Care, through to citizen disbursements and insurance payments.  These new marketplaces have a highly intuitive consumer interface, which integrates seamlessly with the controlled back office workflow.  Customer feedback is very positive and the new suite of solutions moves cloudBuy substantially ahead of its competitors.

Social Care

The Company secured a number of significant contract wins in Social Care in the UK and has now established itself as a market leader in this rapidly growing segment, where over 80% of the available market has yet to choose a solution. Local government spend on social care is in excess of £20bn and the overall UK market is estimated at up to £100bn.

In tandem, the NHS in the UK is implementing personal health budgets from April 2014, where the 211 Clinical Commissioning Groups (CCGs) have to offer all qualifying personal budget holders a solution which allows them to choose and purchase their care.  We have good engagement in this area and are the only eMarketplace provider that is accredited by the NHS to hold patient data, giving us a distinct competitive advantage.

Spend Analysis

In the area of spend analysis,  the volume of spend analysed by our systems is now over $500 billion, and, as was demonstrated with the signing of the contract with Tungsten Corporation announced on 4 September 2013, there are substantial revenues available in this area.  It is important to emphasise that these revenues are a small fraction of the RECURRING revenues that the Company can generate from realising the saving with our eCommerce marketplace available under the new business model.

Company Formations

2013 has been a challenging year for Company Formations. Although around 17,000 new companies and limited liability partnerships were incorporated in the course of the year and the full suite of business services for new start ups and established companies continued to be offered at competitive and attractive prices, revenue declined by around 12% compared to 2012.

We have responded to the downturn by focusing on increasing our social media profile and internet advertising to generate greater brand recognition and loyalty and exploring the possibilities of linking with partners to offer a greater range of business services including accountancy.

International Operations

We were delighted to announce the launch of cloudBuy in Asia Pacific with Visa in October 2013, targeting Governments and enterprises. This builds upon the market development work that we have been undertaking in Asia Pacific over the course of the past 12 months, which also saw our first contract win in Australia.

We enter 2014 with a good pipeline of opportunities throughout the region, in Australia, New Zealand, Hong Kong, Singapore, China and India.

The Asia Pacific team have bedded in and are focused on converting this pipeline into paying clients.  The prospects cover a range of industries and opportunities, including government organisations, large corporates and outsourcers.

The rebranding of the business to cloudBuy and an active global digital media strategy has resulted in enquiries from the USA and Canada, where we have been asked to bid for a number of contracts.

Post period developments

We are pleased to have carried the positive momentum into the new financial year, announcing two important contract wins in the UK in February 2014. The first was for a consumer led Social Care marketplace with Northamptonshire County Council, in conjunction with The Grass Roots Group PLC.

The Social Care marketplace is planned to be live by 1 April 2014, initially focusing on Northamptonshire's managed social care provision, with plans to involve all of Northamptonshire's citizens in the selection and management of their care during the following 12 months.

The second was a contract with a major central Government Agency ("the Agency") to provide an Intranet system using cloudBuy's content management technology. The agreed revenue is £406k with approximately £200k of immediate potential, follow-on revenue, giving potential total revenue in year one of £600k, followed by recurring revenues. The cloudBuy content management system provides a sophisticated Intranet capability, which will significantly enhance the Agency's ability to manage internal processes and communications.

We have also improved our service to customers with full legal compliance for einvoicing in over 40 countries of the world.  Our new website is driving enquires from all over the world, and whilst we already have buyers in every country in the world it was important to put in place the legal and technical requirements to service all the major economies.

Risks and Uncertainties facing the Business

We started the year with a weak capital position and a dependence on a narrow market.  We have addressed these risks by significantly increasing our market and our capital base.

Our rapid growth required a strengthened management team to reduce the risks and so we have addressed this risk with our strengthened global management team.

Summary

2013 was a very satisfactory year and has left us well placed to take advantage of the significant opportunities available to the Company.  The positive start to 2014 leaves us confident we can deliver on our objectives.

Signed on behalf of the Board by:

Lyn Duncan

Chief Executive Officer

12 March 2014

 

Group Statement of Comprehensive Income

For the year ended 31 December 2013

 

 

2013

2012

 

Notes

£

£

 

 

 

 

Revenue

4

3,004,102

2,219,034

Cost of sales

 

(442,950)

(468,745)

Gross profit

 

2,561,152

1,750,289

Administrative expenses

 

(3,273,579)

(2,527,671)

Share based payments

19

(217,790)

(70,247)

Operating loss

5

(930,217)

(847,629)

Finance costs

8

(6,200)

(1,873)

Loss on ordinary activities before taxation

 

(936,417)

(849,502)

Income tax expense

9

60,360

61,475

Loss for the year attributable to equity shareholders of the parent

 

(876,057)

(788,027)

Other comprehensive income - item which will or may be reclassified to profit and loss

 

 

 

Exchange gain arising on translation of foreign operations

 

15,393

-

Total comprehensive income

 

(860,664)

(788,027)

Loss per share

 

 

 

Basic and diluted

10

1.0p

0.9p

Revenue and operating loss for the year all derive from continuing operations.

The loss attributable to the owners of the parent company is £852,158 (2012 - loss of £796,242). Total comprehensive income attributable to owners of the parent company is £852,158 (2012 - (£796,242)). 

 

Statements of Financial Position

31 December 2013

 

 

Group

 

 

2013

2012

 

Notes

£

£

Assets

 

 

 

Non-current assets

 

 

 

Goodwill

11

-

-

Other intangible assets

12

202,649

358,153

Property, plant and equipment

13

114,762

94,774

Investments

14

-

-

 

 

317,411

452,927

Current assets

 

 

 

Trade and other receivables

15

998,392

392,190

Taxes recoverable

 

60,660

50,480

Cash and cash equivalents

16

4,157,347

-

 

 

5,216,399

442,670

Total assets

 

5,533,810

895,597

 

 

 

 

Liabilities

 

 

 

Current liabilities

 

 

 

Trade and other payables

17

(687,548)

(711,798)

Current tax liabilities

 

-

-

Financial liabilities - borrowings

18

-

(60,763)

 

 

(687,548)

(772,561)

Non-current liabilities

 

 

 

Financial liabilities - borrowings

18

-

-

 

 

-

-

Total liabilities

 

(687,548)

(772,561)

Total net assets

 

4,846,262

123,036

 

Shareholders' equity

 

 

 

Called up share capital

19

1,089,304

849,030

Share premium account

 19

16,880,351

11,508,523

Other reserve

 

630,030

630,030

Share-based payment reserve

 

(295,674)

(267,462)

Currency translation

 

15,393

-

Accumulated losses

 

(13,473,142)

(12,597,085)

Total equity attributable to equity shareholders of the parent

 

 

 

4,846,262

 

123,036

 

Statements of Cash Flows

For the year ended 31 December 2013

 

 

Group

 

 

2013

2012

 

Notes

£

£

Cash flows from operating activities

 

 

 

Loss before taxation

 

(936,417)

(849,502)

Adjustments for:

 

 

 

                Finance cost

 

6,200

1,873

                Depreciation of property, plant & equipment

 

58,045

41,991

                Amortisation of other intangible assets

 

168,083

95,513

                Share based payments

 

217,790

70,247

                Changes in working capital

 

 

 

                Trade and other receivables

 

(345,202)

(7,645)

                Trade and other payables

 

(24,250)

56,085

                Currency translation

 

15,393

-

Net cash used by operations

 

(840,358)

(591,438)

 

Tax received

 

 

50,180

 

66,192

Net cash used in operating activities

 

(790,178)

(525,246)

 

Cash flows from investing activities

 

 

 

Interest paid

 

(6,200)

(1,873)

Development expenditure capitalised

 

-

(179,985)

Purchase of other intangible assets

 

(12,579)

(34,056)

Purchase of property, plant and equipment

 

(78,033)

(93,323)

Net cash used in investing activities

 

(96,812)

(309,237)

Cash flows from financing activities

 

 

 

Issue of ordinary shares

Repayment of borrowings

Movement in bank overdraft

 

5,105,100

-

(60,763)

371,816

(18,342)

60,763

Net cash generated from financing

 

5,044,337

414,237

Net increase/(decrease) in cash and cash equivalents

 

4,157,347

(420,246)

 

Cash and cash equivalents at beginning of period

 

 

-

 

420,246

Cash and cash equivalents at end of period

16

4,157,347

-

 

Statements of Changes In Shareholder's Equity

For the year ended 31 December 2013

 

 

 

Share capital

Share premium

Other reserve

Share based payments reserve

Currency translation

Accumul-ated losses

Share-holders' equity

Group

£

£

£

£

£

£

£

 

 

 

 

 

 

 

 

At 31 December 2011

747,675

10,823,634

630,030

76,720

-

(11,809,058)

469,001

Shares issued in the year

101,355

684,889

-

(414,429)

-

-

371,815

Share based payments

-

-

-

70,247

-

-

70,247

Retained loss for the year

-

-

-

-

-

(788,027)

(788,027)

At 31 December 2012

849,030

11,508,523

630,030

(267,462)

-

(12,597,085)

123,036

Shares issued in the year

240,274

5,371,828

-

(246,002)

-

-

5,366,100

Share based payments

-

-

-

217,790

-

-

217,790

Exchange in year

-

-

-

-

15,393

-

15,393

Retained loss for the year

-

-

-

-

-

(876,057)

(876,057)

At 31 December 2013

1,089,304

16,880,351

630,030

(295,674)

15,393

(13,473,142)

4,846,262

 

 

 

 

 

 

 

 

The other reserve arises because shares issued on the acquisition of subsidiaries have been recorded at par value and no share premium recognised.

 

Notes to the Financial Statements

1.General information

cloudBuy plc ("the Company") and its subsidiaries (together "the Group)" provides an integrated software platform for eProcurement and eCommerce the trading of goods and services between purchasers such as public sector bodies and their suppliers, along with the analysis and coding of spend and product data. The Group also provides services to new businesses, including incorporation, company secretary services and filing annual returns, using its software platform. The Company is a public limited company which is listed on the Alternative Investment Market of the London Stock Exchange and is incorporated and operates in the UK.

The address of the registered office is:

5 Jupiter House,

Calleva Park,

Aldermaston,

Berkshire RG7 8NN.

 

2. Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied consistently to all the years presented, unless otherwise stated.

2.1 Basis of accounting

These financial statements have been prepared in accordance with IFRS as adopted by the European Union, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts in the financial statements. The areas involving a higher degree of judgement or complexity, or areas where assumptions or estimates are significant to the financial statements are disclosed in note 3.

As permitted under Section 408 of the Companies Act 2006 a separate statement of comprehensive income for the parent company has not been presented.

2.2 Going concern

The Group had a loss attributable to shareholders for the year of £876,057 and at the year-end had cash balances of £4,157,347.  The directors of the Group have prepared detailed projections and cash flow forecasts through to 31 December 2014. In considering these cash flow forecasts, the directors have carefully considered the assumptions and sensitivities and have concluded that the Group will be able to continue trading within its current working capital position and they have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of 12 months from the date the accounts were signed and as such have prepared the accounts on the going concern basis.

2.3 Consolidation

Subsidiary undertakings are all entities over which the Group has the power to govern the financial and operating policies so as to obtain benefit from their activities. Subsidiaries are fully consolidated from the date on which control is transferred until the date control ceases.

The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The investment in subsidiaries in the Company's statement of financial position is shown at cost less provision for diminution in value.

Inter-company transactions, balances and unrealised gains and losses on transactions between Group companies are eliminated.

2.4 Goodwill

Goodwill arising on acquisitions represents the excess of the consideration given plus any associated costs for investments in subsidiary undertakings over the fair value of the identifiable assets and liabilities acquired. Adjustments are made to fair values to bring the accounting policies of acquired businesses into alignment with those of the Group. Provision is made for any impairment in the value of goodwill. The costs of integrating and reorganising acquired businesses are charged to the post acquisition statement of comprehensive income.

In accordance with IFRS1, the Group has applied the exemption from retrospectively recalculating goodwill which arose on acquisitions prior to 1 January 2006. This goodwill is included at its deemed cost, being the amount recorded under UK GAAP as at 1 January 2006. Goodwill is carried at cost less accumulated impairment losses. Any impairment is recognised immediately in the statement of comprehensive income and is not subsequently reversed. Goodwill is allocated to cash generating units for the purpose of impairment testing. Each of these cash generating units represents the group's investment in each country of operation by primary reporting segment.

Goodwill is tested for impairment annually. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

2.5 Other intangible assets

Other intangible assets are shown at historical cost less accumulated amortisation and impairment losses.

The costs directly associated with the development of identifiable and unique software products controlled by the Group and that will probably generate economic benefits exceeding costs beyond one year are recognised as intangible assets and amortised over their estimated useful lives. Other research and development expenditure is written-off to the statement of comprehensive income in the year in which it is incurred.

Amortisation is charged to administrative expense in the statement of comprehensive income on a straight-line basis over the estimated useful lives of the intangible asset unless such lives are indefinite. Intangible assets with an indefinite useful life are tested for impairment at each balance sheet date. Other intangible assets are amortised from the date they are available for use. The useful lives are as follows:

  • Software - 3 years
  • Development expenditure - 3 years
  • Amortisation periods and methods are reviewed annually and adjusted if appropriate.

2.6 Property, plant and equipment

All are stated at cost less accumulated depreciation.

Depreciation of property, plant and equipment is provided to write each asset down to its estimated residual value on a straight-line basis over its estimated useful life, as follows:

  • Computer equipment - 3 years
  • Fixtures, fittings and equipment - 3 to 5 years

Residual values, remaining useful lives and depreciation methods are reviewed annually and adjusted if appropriate.

Gains or losses on disposal are included in the statement of comprehensive income.

2.7 Impairment of assets

The Group assess at each statement of financial position date whether there is any indication that any of its assets have been impaired. If such indication exists, the asset's recoverable amount is estimated and compared to its carrying value.

For goodwill and intangible assets that have an indefinite life and intangible assets not yet available for use, the recoverable amount is estimated at each statement of financial position date and whenever there is an indication of impairment.

An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Impairment losses are recognised in the statement of comprehensive income.

2.8 Financial instruments

Financial assets and financial liabilities are recognised on the group's statement of financial position when the group has become a party to the contractual provisions of the instrument.

2.8.1 Trade receivables

Trade receivables are initially recognised at fair value and then subsequently measured at amortised cost using the effective interest rate method. Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts.

2.8.2 Trade payables

Trade payables are initially recognised at fair value and then subsequently measured at amortised cost using the effective interest rate method. Trade payables are not interest bearing and ar stated at their nominal value.

2.8.3 Interest-bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the statement of comprehensive income over the period of the borrowings on an effective interest rate basis.

2.8.4 Equity Instruments

Equity instruments are recorded at the proceeds received, net of direct issue costs.

2.9 Share based payments

The group has applied the requirements of IFRS 2: Share-based Payments.

The group issues equity-settled share-based payments to its employees. Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the group's estimate of shares that will eventually vest.

Fair value is measured by use of a Black Scholes model. The expected life used in the model has been adjusted, based on management's best estimate, for the effect of non-transferability, exercise restrictions, and behavioural considerations.

2.10 Pensions

All pension schemes operated by the Group are defined contribution schemes. The costs are charged to the statement of comprehensive income in the year in which they are incurred.

2.11 Revenue

Revenue is measured at fair value of consideration received or receivable for goods sold and services provided to customers outside the Group, net of Value Added Tax and any discounts.

Where invoices are raised in advance of the income being earned through the performance of the service, the unearned portion is included in the accounts as deferred income, and released to the Profit and Loss Account as earned.

2.12 Leases

Rentals payable under operating leases are charged against income on a straight line basis over the lease term. The Group does not hold any assets under hire purchase contracts or finance leases and has not received any benefits as an incentive to sign a lease of whatever type.

2.13 Current and deferred taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

The current tax is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income 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 Group's liability for current tax is calculated by using tax rates that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method.

Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction which affects neither the tax profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in jointly controlled entities, except where the group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax is calculated at the tax rates (and tax laws) that have been enacted or substantively enacted by the statement of financial position date. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity.

2.14 Provisions

Provisions are recognised in the statement of financial position when there is a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation.

2.15 Adoption of new or amended IFRSs

(a) The Company has adopted the following revisions and amendments to IFRS issued by the International Accounting Standards Board, which are relevant to and effective for the Company's financial statements for the year beginning 1 January 2013.

IFRS 7

Offsetting Financial Assets and Financial Liabilities (Amendment)      

IFRS 10

Consolidated Financial Statements     

IFRS 11  

Joint Arrangements   

IFRS 12

Disclosure of Interests in Other Entities     

IFRS 13

Fair Value Measurement

IAS 19    

Employee Benefits (Amendment) 

IAS 27

Separate Financial Statements (amendments)        

(b) At that date of authorisation of these Financial Statements, the following Standards and Interpretations (International Financial Reporting Interpretation Committee - IFRIC), which have not been applied in these Financial Statements, were in issue but not yet effective:

IFRS 9

Financial Instruments    

(effective 1 January 2015)

 

IAS 32

Offsetting Financial Assets and Financial Liabilities (Amendment)

(effective 1 January 2014)                                                                                  

The Directors have considered the above new standards, interpretations and amendments to published standards that are not yet effective and concluded that they are either not relevant to the Group or that they would not have a material impact on the Group's financial statements.

 

3. Accounting estimates and judgements

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

3.1. Critical accounting estimates and judgments

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

  • Goodwill has been tested for impairment by comparing the amount of goodwill against future forecast results including cash flows expected to be generated in the future by the appropriate asset, cash-generating unit, or business segment.
  • The fair value of share-based payments is measured using a binomial model which inherently makes use of significant estimates and assumptions concerning the future applied by the directors.
  • Capitalised development expenditure is reviewed for compliance with IAS 38 on an ongoing basis. The technical feasibility and commerciality of development expenditure is considered prior to capitalisation and the carrying values are compared against future forecast results including cash flows expected to be generated in the future for any indication of potential impairment.

 

4 Revenue- Segmental Analysis

The Groups operating segments under IFRS have been determined with reference to the information presented in the management accounts reviewed by the Board of Directors.

The Group's main reportable segments are Company Formation and web and eCommerce services. These are managed from one operating platform and cannot be readily separated, so all management decisions in connection with these segments are taken to ensure the relevant skill sets are in place to maximise the return from these resources.

The Chief Operating Decision Maker, which is taken to be the Board of Directors, evaluates the performance and resource requirements of these segments in unison to ensure maximum efficiencies within the business. Resources are shared; in particular technical support and research and development advances are shared between the two in the form of improvements and refinements being made to the underlying platform that hosts them.

The Directors consider the most beneficial method of splitting these segments to provide useful information to users of the accounts is to provide details down to the Gross Profit level only.

From then on any further detail would necessitate arbitrary cost allocation that they do not use in managing the business and is not considered meaningful in terms of how resources are actually utilised. Similarly, any split of the statement of financial position assets would involve arbitrary allocation.

Coding International is the Company's 100% trading subsidiary and so these results are extracted from that company's own accounts that are published separately and consolidated into these results in accordance with statutory requirements. Details of the statement of financial position for Coding International Limited can be obtained from those accounts.

The revenue recognised and gross profit attributable between reportable segments is shown below:

2012

 

 

 

 

 

Company Formation

Services

Web and eCommerce

services

Coding International

Limited

Total

 

£

£

£

£

Revenue

880,455

1,180,324

158,255

2,219,034

Cost of Sales

(388,013)

(80,732)

-

(468,745)

Gross profit

492,422

1,099,592

158,255

1,750,289

 

2013

 

 

 

 

 

Company Formation

Services

Web and eCommerce

services

Coding International

Limited

Total

 

£

£

£

£

Revenue

773,137

2,044,458

186,507

3,004,102

Cost of Sales

(345,723)

(97,227)

-

(442,950)

Gross profit

427,414

1,947,231

186,507

2,561,152

All of the revenue derives from services provided in the United Kingdom.  During 2013 one customer for web and eCommerce services was responsible for revenue of £450,000 (2012: one customer, £374,216) otherwise no single customer was responsible for greater than 10% of the Group's revenues.

 

5 Operating loss

 

2013

2012

 

£

£

This is stated after the following:

 

 

Staff costs (see note 7)

1,865,553

1,310,662

Depreciation of property, plant and equipment (see note 13)

58,045

41,991

Amortisation of other intangible assets (see note 12)

168,083

95,513

Research and development costs recognised as an expense

324,685

167,817

 

 

 

 

6 Auditors remuneration

Amounts payable to James Cowper LLP in respect of audit and non-audit services

 

2013

2012

 

£

£

Audit of Company and consolidated accounts

16,500

12,000

Audit of subsidiaries

1,000

1,000

Other services relating to:

 

 

                Taxation

3,300

2,500

 

7 Employees

 

2013

2012

 

£

£

Staff costs including directors comprised:

 

 

Wages and salaries

1,504,292

1,124,523

Social security costs

143,471

115,892

Share based payments

217,790

70,247

 

1,865,553

1,310,662

 

 

No.

No.

The average monthly number of persons (including Directors)

 

 

employed by the Group during the year was:

 

 

 

Management and administration

8

10

Technical and delivery

31

24

Sales and marketing

7

8

 

46

42

Directors remuneration

 

2013

2012

Emoluments for qualifying services:

£

£

PH Broughton       (appointed 17 October 2013)

1,667

--

D Chellingsworth (appointed 17 October 2013)

5,224

-

RJ Duncan

78,000

78,000

HL Duncan

78,000

78,000

DJ Holloway

-

-

31 December 2013

162,891

156,000

All of the payments above relate to salary or fees.  None of the Directors receives any benefits or is accruing benefits under a Company pension scheme nor exercised share options in the year.  90,909 shares were issued to PH Broughton in lieu of remuneration and calculated at 33p per share and are released to him in equal quarterly portions over 3 years. 

 

8. Finance costs

 

2013

2012

 

£

£

Interest on borrowings

6,200

1,873

 

9. Taxation

 

2013

2012

 

£

£

R&D tax credit

60,360

50,480

Adjustment in respect of prior years

-

10,995

Tax credit for the year

60,360

61,475

 

Factors affecting tax charge for the year

 

 

 

Loss on ordinary activities before taxation

(936,417)

(849,502)

Loss on ordinary activities before taxation multiplied by

 

 

Standard rate of UK corporation tax of 23.5% (2012: 24.5%)

(220,058)

(208,128)

Effects of:

 

 

Expenses not deductible for tax purposes

470

490

Share based payments

(6,630)

--

Capital allowances less in excess of depreciation and amortisation

(8,075)

(3,248)

R&D tax credit claim in respect of current year

(3,048)

(4,241)

R&D tax relief claim in respect of prior years

-

(10,995)

Carry forward of tax losses

176,981

164,649

 

159,698

145,653

Total tax credit

(60,360)

(61,475)

The Group has estimated tax losses of £12,692,000 (2012: £11,400,000) available for carry forward against future trading profit. No deferred tax asset has been recognised in respect of the losses given the uncertainty regarding available future taxable profits.

 

10. Loss per share

The calculations for loss per share are based on the weighted average number of shares in issue during the year 90,201,736 (2012: 78,641,679) and the following losses:

 

2013

2012

 

£

£

Unadjusted earnings:

 

 

Loss for the year attributable to equity shareholders of the parent

(876,057)

(788,027)

Add back:

Share-based payments

 

217,790

 

70,247

Adjusted earnings

(658,267)

(717,780)

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The company has one category of dilutive potential ordinary shares: share options.  The company has made a loss and the potential share options are therefore anti-dilutive.

The basic and diluted loss per share calculated on the adjusted earnings is 0.7p (2012: 0.9p).

 

11. Goodwill

 

 

Cost

Provision for impairment

 

Carrying value

Carrying Value

Group

£

£

£

1 January 2012, 31 December 2012 and 2013

96,274

(96,274)

-

 

12. Other intangible assets

 

Computer software

Development Expenditure

Total

Group and Company

£

£

£

Cost:

 

 

 

1 January 2012

90,237

266,109

356,346

Additions

34,056

179,985

214,041

1 January 2013

124,293

446,094

570,387

Additions

2,679

9,900

12,579

31 December 2013

126,972

455,994

582,966

Amortisation:

 

 

 

1 January 2012

90,237

26,484

116,721

Charge for the year

6,442

89,071

95,513

1 January 2013

96,679

115,555

212,234

Charge for the year

11,566

156,517

168,083

31 December 2013

108,245

272,072

380,317

 

 

 

 

Carrying value at 1 January 2012

--

239,625

-239,625

Carrying value at 1 January 2013

27,614

330,539

358,153

Carrying value at 31 December 2013

18,727

183,922

202,649

The remaining amortisation period for development expenditure is up to 3 years.

 

13. Property, plant and equipment

 

Fixtures, fittings and equipment

Computer equipment

Total

Group

£

£

£

Cost:

 

 

 

1 January 2012

255,548

740,680

996,228

Additions

892

92,431

93,323

1 January 2013

256,440

833,111

1,089,551

Additions

--

78,033

78,033

31 December 2013

256,440

911,144

1,167,584

Depreciation:

 

 

 

1 January 2012

254,430

698,356

952,786

Charge for the year

1,366

40,625

41,991

1 January 2013

255,796

738,981

994,777

Charge for the year

297

57,748

58,045

31 December 2013

256,093

796,729

1,052,822

 

 

 

 

Carrying value at 1 January 2012

1,118

42,324

43,442

Carrying value at 1 January 2013

644

94,130

94,774

Carrying value at 31 December 2013

347

114,415

114,762

 

Company

£

£

£

Cost:

 

 

 

1 January 2012

254,690

736,611

991,301

Additions

892

92,081

92,973

1 January 2013

255,582

828,692

1,084,274

Additions

--

75,612

75,612

31 December 2013

255,582

904,304

1,159,876

Depreciation:

 

 

 

1 January 2012

253,572

694,808

948,380

Charge for the year

1,366

40,377

41,743

1 January 2013

254,938

735,185

990,123

Charge for the year

297

57,373

57,670

31 December 2013

255,235

792,558

1,047,793

 

 

 

 

Carrying value at 1 January 2012

1,118

41,803

42,921

Carrying value at 1 January 2013

644

93,507

94,151

Carrying value at 31 December 2013

347

111,746

112,093

 

14. Investments

Subsidiary undertakings (at cost):

Company

 

 

£

 

 

 

1 January 2012 and 2013 and 31 December 2013

 

 

61,771

Provision for impairment:

 

 

 

1 January 2012 and 2013 and 31 December 2013

 

 

30,394

 

 

 

 

Carrying value at 1 January 2012 and 2013 and 31 December 2013

 

 

31,377

The investments shown above represents the Company's 100% holding in the ordinary shares of @Software PLC and its wholly owned subsidiary Software Limited (incorporated in the United Kingdom;  non-trading) and Coding International Limited (incorporated in the United Kingdom;  provides coding services for use in procurement).  As Coding International Limited's balance sheet showed net liabilities full provision was made for impairment in the value of the investment in 2008.  The Company also has an investment in @India eCommerce Pvt. Ltd, incorporated in India, which will provide ecommerce solutions to Indian companies and Cloudbuy Pty Limited, incorporated in Australia, which will provide ecommerce solutions in the Asia Pacific region.

 

15. Trade and other receivables

 

Group

Company

 

2013

2012

2013

2012

 

£

£

£

£

Prepayments and accrued income

484,777

70,741

479,229

65,252

Amounts owed by related undertakings

-

-

129,119

30,069

Other receivables

278,364

8,843

262,849

5,078

Trade receivables

235,251

312,606

195,066

278,708

 

998,392

392,190

1,066,263

379,107

The Group's financial assets are fairly short term in nature.  The directors consider that the carrying value of trade and other receivables approximates to the fair value.

A provision of £466,804 (2012:£ 220,778) is included within amounts owed by related undertakings above.

Included in the Group's trade and other receivables balances are debtors with a carrying value of £54,201 which have been due for a period greater than three months against which a provision of £4,644 has been made.

 The balance and all other balances have been due for less than three months and are considered to be recoverable.

 

16. Notes to the cash flow statement

Analysis of changes in net funds/debt

 

Group

Company

 

31 December

1 January

31 December

1 January

 

2013

2012

2013

2012

Cash at bank and in hand

4,157,347

-

4,103,304

-

 

4,157,347

-

4,103,304

--

Cash and cash equivalents (which are presented as a single class of asset on the face of the statement of financial position) comprise cash at bank and other short term highly liquid investments with a maturity of three months or less.

 

17. Trade and other payables

 

Group

Company

 

2013

2012

2013

2012

 

£

£

£

£

Trade creditors

270,073

226,360

263,274

219,536

Other taxation and social security

74,055

117,024

46,920

103,524

Other creditors

7,103

3,378

-

3,378

Accruals and deferred income

336,317

365,036

379,708

370,573

 

687,548

711,798

689,902

697,011

The Group's financial liabilities are fairly short term in nature and due for payment in a period of less than 6 months. In the opinion of the directors the book values equate to their fair value.

 

18. Borrowings

 

Group

Company

 

2013

2012

2013

2012

 

£

£

£

£

Non current:

 

 

 

 

Bank loan

-

-

-

-

Amounts owed to Group undertakings

-

-

31,377

31,377

 

-

-

31,377

31,377

Current:

 

 

 

 

Bank overdraft

--

60,763

-

61,845

 

-

60,763

-

61,845

The bank overdraft was secured by a fixed and floating charge over the Company's assets.  The amount owed to Group undertakings has no fixed repayment schedule.

 

19. Share capital and share premium

 

Number of shares

Ordinary shares

Share premium

 

 

£

£

At 1 January 2012

74,767,452

747,675

10,823,634

Shares issued in connection with fund-raising

2,781,818

27,818

262,881

Shares issued in connection with intellectual property rights

59,700

597

6,269

Shares issued in connection with Share Incentive Plan

3,581,517

35,815

378,614

Shares issued on exercise of warrants

3,712,524

37,125

37,125

At 31 December 2012

84,903,011

849,030

11,508,523

Shares issued in connection with fund-raising

16,064,500

160,645

5,140,640

Shares issued on exercise of warrants

2,000,000

20,000

20,000

Shares issued in connection with exercise of options

4,242,832

42,428

75,571

Shares issued in connection with Share Incentive Plan

745,462

7,455

238,548

Shares issued for performance of services

790,909

7,909

253,091

Shares issued - other

183,616

1,837

58,764

Costs of share issues

-

--

(414,786)

At 31 December 2013

108,930,350

1,089,304

16,880,351

The total authorised number of ordinary shares is 250 million (2011: 250 million) with a par value of 1p each.

In October 2013 16,054,500 ordinary shares were issued at 33p under the fund-raising announced by the Board on 25 September 2013.  This took the form of a firm placing of 10,000,000 shares £3.3 million and an open offer of 6,064,500 shares to raise £2.0 million on the basis of 1 Open Offer Share for every 14 Existing Ordinary Shares.

Subscribers to the share issues in August 2009 were granted warrants to subscribe for a total of 10 million new ordinary shares at 2p per share.  The warrants are exercisable up to five years after issue.  On 15 October 2013 500,000 ordinary shares were issued at 2p and on 19 December 2013 1,500,000 ordinary shares were issued at 2p following the exercise of warrants, leaving warrants to subscribe for 4,287,476 shares outstanding.

During 2013 1,742,832 ordinary shares were issued at 1.75p and 2,500,000 ordinary shares were issued at 3.5p following the exercise of share options.

During October 2013 790,909 ordinary shares were issued at 33p for the provision of services.  These were issued subject to restrictions.  Included was 90,909 shares issued to PH Broughton in lieu of director's remuneration and that are released to him in equal quarterly portions over 3 years.  A further 183,636 ordinary shares were issued during October 2013 for IPR amongst other reasons.

During 2013 the number of options granted under the cloudBuy plc Share Option Scheme to subscribe for ordinary shares in the Company changed as follows:

 

2013

2012

 

Number

Weighted average exercise price

Number

Weighted average exercise price

 

 

 

 

 

At 1 January

6,590,248

8.5p

6,101,540

8.2p

Options granted during the year

3,230,000

38.9p

488,708

11.625p

Options lapsed during the year

(112,771)

16.7p

-

--

Exercised in the year

(4,242,832)

2.8p

 

 

At 31 December

5,464,645

30.7p

6,590,248

8.5p

Exercisable at the year end

1,916,210

20.1p

3,001,540

13.1p

 

The options at 31 December 2013 are as follows:

Number of options under grant

Subscription price per share

Exercise period

500,000

45p

December 2008 to December 2015

202,460

63p

January 2009 to January 2016

2,299,080

1.75p

August 2012 to August 2019

3,100,000

3.5p

October 2013 to October 2020

488,708

11.625p

December 2015 to December 2022

600,000

65p

October 2015 to October 2017

2,630,000

33p

October 2016 to October 2023

 

Share based payments

The Group has a share option scheme under which the Remuneration Committee can grant options over shares in the Company to employees of the Group.  Options are granted with a fixed option price equal, normally, to the market price of the shares under option at the date of grant.  The contractual life of an option is normally 10 years.  The scheme allows for performance criteria or market conditions to be attached to the options, but this has not generally been done.  Options are valued using the Black Scholes option pricing model.  The fair value of options granted and the assumptions used in the calculations are as follows:

Grant Date

31 Jan 06

28 Aug 09

24 Oct 10

24 Dec 12

14 Oct 13

14 Oct 13

Share price at grant date

63p

1.6p

3.5p

11.625p

43.5p

43.5p

Exercise price

63p

1.75p

3.5p

11.625p

65p

33p

Number of employees

31

37

31

9

3

21

Shares originally under option

644,121

2,930,795

3,150,000

488,708

600,000

2,630,000

Vesting period (years)

3

3

3

3

2 to 3†

3 to 5††

Expected volatility

31%

                90%

                90%

65%

105%

105%

Expected life (years)

4

4

4

4

2.5 to 3.5

4 to 6

Risk free rate

4.30%

2.45%

1.75%

0.9%

%

1.6%

%

1.6%

%

Rate ceasing employment before vesting (total)

57%

25%

25%

25%

25%

25%

Fair value per option

£0.15

£0.003

£0.015

£0.04

Average £0.19

Average £0.27

† Vest in equal parts between 2nd and 3rd anniversary

†† Vest in equal parts between 3rd and 5th anniversary

No dividends were assumed.  The expected volatility is based on the historical volatility of the Company's shares to the extent information was available and of the shares of similar entities.  In addition to the grant above on 8 December 2005, options over 500,000 shares were also granted to former directors of the Company at an exercise price of 45p per share.  As part of the terms of their compensation for loss of office in 2006 they were allowed to retain those options.  These were valued at the date on which the directors ceased to be employees and the value written off as it was in respect of past services.

Share incentive plan

The Group has a share incentive plan under which shares can be awarded to all employees.  The shares are held separately by the plan's Trustees.  To date there have been three issues:

  • On 5 April 2012 1,878,288 ordinary shares were issued at 11.5p per share;
  • On 24 December 2012 1,703,229 ordinary shares were issued at 11.65p per share, and 
  • On 15 October 2013 745,462 ordinary shares were issued at 33p per share.

Cost of the shares issued is charged to the profit and loss account over three years, the period for which the shares must be held by the trustees before becoming available to the relevant employee

 

20. Financial instruments

 

2013

2012

 

£

£

Financial assets

 

 

Floating rate interest bearing - cash

4,157,347

-


Cash is held in current or short term deposit account. 

All other finance assets are non-interest bearing.
 

Financial liabilities

Floating rate interest bearing - bank overdraft

(see note 18)

-

60,763

There is no material difference between the book value of financial assets and liabilities noted above, and the fair value.

The main objective of the Groups treasury policy is to protect post-tax cash flows of the business from the adverse effects of financial risks.

The Groups financial assets and liabilities comprise cash and liquid resources, and various items, such as trade receivables and trade payables that arise directly from its operations. The Group has no undrawn borrowing facilities. The Group is not exposed to significant foreign exchange risk.

The Group does not enter into instruments for speculative purposes.  The Group is exposed to credit risk predominantly from trade receivables and cash and cash equivalents held with banks.  The group's exposure to bad debts is reduced as its major customers tend to be public sector bodies.  

The Group finances its operations through funds raised from share issues.

Sensitivity analysis has not been performed as any impact is considered immaterial.

 

21. Financial commitments

 

 2013

2012

Present value of future commitments under non-cancellable operating leases:

£

£

Group

 

 

Land and buildings, falling due

 

 

- within 1 year

35,648

22,318

- within 2 to 5 years

55,099

63,295

- over 5 years

38,846

42,399

 

129,593

128,012

Company

 

 

Land and buildings, falling due

 

 

- within 1 year

24,239

10,909

- within 2 to 5 years

18,933

27,129

 

43,172

38,038

22. Related party transactions

Mr RJ Duncan and Mrs HL Duncan are the landlords of a property which is occupied by the Group. The annual rent is currently £24,000 (2012: £24,000). Isabella M Deas Limited, a company owned by Mr Duncan's parents and in which he has a minority interest, is the landlord of a second property which is occupied by the Group. The annual rent is currently £24,000 (2012: £24,000).  The leases on both properties are due for renewal in August 2014.

The Company acts as guarantor under the lease for the property occupied by its subsidiary Coding International Limited.  The annual rent under the lease which runs for 15 years from March 2011 is £12,550. 

There is no party which has Ultimate control of the Group.

Key management compensation

 

 

2013

2012

 

 

£

£

Short term employee benefits

 

336,197

260,000

Share based payment remuneration

 

18,846

8,667

 

 

355,043

268,667

Share based payment remuneration represents the value of options granted to key management valued as described in note 19.

 

NOTE TO THE ANNOUNCEMENT

The 2013 Annual Report and Accounts will be sent to shareholders shortly and will be available from the company's website http://investor.cloudbuy.com/ along with the latest research.

The extracts set out above do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.   Statutory accounts for the year ended 31 December 2012 which contained an unqualified audit report and which did not make any statements under Section 498 of the Companies Act 2006 have been, and accounts for the year ended 31 December 2013 will be, delivered to the Registrar of Companies.

 

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR VFLFFZXFXBBQ