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ATTRAQT Group PLC 
 
Report and Financial Statements 
 
Year Ended 
 
31 December 2015 
 
 
 
 
Company Number 8904529 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  ATTRAQT Group PLC 
 
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Report and financial statements 
for the year ended 31 December 2015 
 
Corporate statement 
 
ATTRAQT is a fast growing SaaS software 
business, providing an online merchandising 
platform to retailers. 
 
Uniquely, the ATTRAQT Freestyle 
Merchandising® platform provides the 
complete range of merchandising disciplines 
within a single platform providing a dynamic, 
robust and scalable merchandising solution 
that delivers increased online revenue and 
reduced costs to retailers  by enabling them to 
take total control of their online 
merchandising. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  ATTRAQT Group PLC 
 
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Contents 
 
Page: 
  
2 Corporate statement 
  
3 Contents 
  
4 Key highlights 
  
5 Chairman’s statement 
  
6 Strategic report 
   The FSM platform 
  Visual Merchandising the ATTRAQT way 
  ATTRAQT’s competitive strategy 
  Our growth strategy 
  Our clients 
  KPIs 
  Risks & mitigation 
 
 
14 CEO’s statement 
  
18 Board of directors 
  
20 Corporate governance report 
  
22 Audit committee report 
  
23 Remuneration committee report 
  
25 Directors report 
  
28 Independent auditor’s report 
  
 Company financial statements – ATTRAQT Group PLC - consolidated 
  
30 Statement of comprehensive income 
  
31 Statement of financial position 
  
32 Statement of cash flows 
  
33 Statement of changes in equity 
  
34 Notes forming part of the financial statements 
  
 Company financial statements - ATTRAQT Group PLC - Company 
  
51 Company statement of financial position  
  
52 Company statement of changes in equity 
  
53 Notes forming part of the Company financial statements 
  
56 Company information 
  
 
   ATTRAQT Group PLC 
 
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Key Highlights 
Financial Highlights 
 Significant revenue growth of 40% to £2.91m (2014: £2.09m) 
o Recurring monthly revenue increased by 38% to £2.65m (2014: £1.92m), now representing 
91% of all revenue (2014: 90%) 
 Exit rate (year-end annualised billing) up 29% at £3.05m (2014: £2.36m) 
 Increased gross margin to 84% (2014: 81%)  
 44% increase in gross profit to £2.4m (2014: £1.69m) 
 Adjusted EBITDA
1
 
losses reduced to £0.2m (2014: £0.74m), in line with management expectations 
 Cash at period end £3m (2014: £0.31m) 
 
1. 
Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortization, exceptional items 
and share based payments. 
 
Operational Highlights 
 Continued sales momentum with 49 deals in the period, including 31 new clients, bringing total clients 
to 110 (2014: 87)  
o New marquee clients signed include: Bonmarché, Brown Thomas, ESPA and World Duty Free 
in the UK; La Perla and Screwfix in Europe; Ben Sherman, Vix Swimwear and TUMI in North 
America.  
 North American sales operation continuing to deliver with eight new clients in the period, bringing the 
total number of clients in this region to 17 
 Delivered 63 new site implementations, bringing total live sites to 154 (2014: 110) 
 Continued investment in the Freestyle Merchandising platform (‘the Platform’) with five upgrades 
delivered during the year 
 Low client churn (<10% of the 2014 Exit rate) 
 Significant growth in the number of existing client upgrades including renewal upgrades and additional 
sites (2015: 18 vs 2014: 3), with incremental revenue from existing customers greater than that lost 
through churn. 
 
Fundraise 
 Successful issue of new shares completed and approved by shareholders on 30 November 2015, 
raising £3.3 million (before expenses) 
 
We are very pleased with the strong progress in 2015 – the management team is clearly delivering to plan and 
we are confident in the outlook for 2016 and beyond. 
 
Dan Wagner 
Co-Founder and Chairman 
 
   ATTRAQT Group PLC 
 
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Chairman’s Statement 
 
We are delighted with the continued progress we have made in our first full year as an AIM listed company, 
delivering further sales momentum and signing 49 new deals in the period, growing our client base to 110 clients 
with 154 live sites. We have also succeeded in growing recurring monthly revenue by 38% and increasing the 
average deal value by 31%. This has enabled us to deliver a solid set of results for the year, with top line growth 
of 40% to £2.91m. More importantly, with our year-end annualised billings (exit rate) up 29% at £3.05m; our visibility 
over future revenues is also ahead of the same period last year. 
 
ATTRAQT is also pleased with the further progress made in the careful and deliberate rollout of its North American 
operations, adding eight new clients in the period, including marquee brand TUMI, bringing the total number of 
clients in this region to 17.  
 
The trends we continue to see across the Platform are very exciting. ATTRAQT continues to demonstrate its ability 
to deliver value for retailers, with a number of key renewal upgrades achieved in the period, where clients increased 
fee levels and added further sites to the Platform.   
 
The recent successes of Black Friday and Cyber Monday provide further evidence of the Platform’s ability to 
improve online conversion rates, average order values and customer retention. During this peak period, the 
average conversion rate for our clients rose to 5.4%, a 9% increase over last year. The Platform served 4.6m 
unique users in a single day on Black Friday, an increase of 64% on last year.  Furthermore, Cyber Monday saw 
increased levels of activity across the platform, serving 4.1m unique users in a single day and average order values 
of £62.78, 22% higher than that of Black Friday. 
 
On 30 November 2015, we completed a successful fundraising of £3.3 million (before expenses) by way of a placing 
of new shares. We were delighted by the response from investors, seeing strong support from both our existing 
shareholders and new investors. The additional funds will enable us to accelerate our growth in UK, Europe and 
North America and also allows us to further improve our productive capacity and further invest in our unique 
Freestyle Merchandising technology platform. 
 
2016 looks to be a very exciting year for ATTRAQT and the Board looks to the future with confidence.  
 
 
Dan Wagner 
Chairman 
8 March 2016 
   ATTRAQT Group PLC 
 
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Strategic report 
 
ATTRAQT Group PLC 
 
(“the Company”) and its subsidiaries (together “the Group”) 
 
Innovative provider of visual merchandising, site search and product recommendation technology 
 
ATTRAQT provides a SaaS-based visual merchandising platform to online retailers called Freestyle 
Merchandising. The platform acts as a plugin for a retailer’s eCommerce site and provides tools to enable 
retailers to merchandise effectively. In particular it enables retailers to control how their products are 
merchandised through their eCommerce sites including site search, product recommendations, category pages, 
product detail pages, check-out basket, email, order tracking and in-store devices. 
 
Merchandising can be implemented using business rules, dynamically using behavioural data, and manually or 
any combination of these. 
 
Freestyle Merchandising uses the Balance Factor technology developed by ATTRAQT, which applies a 
weighting to metrics such as popularity, price, colour, stock availability and trend etc. to determine the blend and 
sequencing in which products are displayed. 
 
Implementation of Freestyle Merchandising by a retailer provides 5 core benefits: 
 
 a commercial gain from increased conversion rates and higher average order values 
 3 technologies in 1: site search, visual merchandising and product recommendations 
 complete control over how their products are merchandised online 
 removes the reliance on internal IT to make visual merchandising changes on the eCommerce site 
 productivity gain from their visual merchandising team. 
ATTRAQT has 110 retail clients (December 2015) covering the whole spectrum of retail from large-scale 
enterprises such as Screwfix, Tesco Clothing and TK Maxx to mid-sized businesses such as Boohoo.com, Ellis 
Brigham, Emma Bridgewater, Heals, Laura Ashley and Superdry, as well as smaller boutique retailers such as 
Joseph, Lulu Guinness, Myla and Wolf & Badger. 
 
The Group continues to invest in maintaining its platform at the leading edge of visual merchandising and 
released five platform upgrades during 2015 focusing on performance upgrades, enhancements to 
personalisation technology, improvements to manual merchandising and additional reporting functionalities. 
ATTRAQT has an exciting development roadmap for 2016, including improvements to the platform to 
streamline production, a full reporting and recommendations upgrade and further improvements to 
personalisation.  
 
 
 
 
 
 
   ATTRAQT Group PLC 
 
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Strategic report (cont.) 
 
Visual Merchandising the ATTRAQT way 
ATTRAQT Freestyle Merchandising allows retailers to optimise product positioning and tailor 
content to different markets, to target and convert global customers. 
 
ATTRAQT’s advanced online Search and Visual Merchandising solutions make it easy to apply traditional 
creative visual merchandising techniques found in a bricks and motor environment to the online world. The 
unique flexibility of ATTRAQT allows merchandisers the freedom to fully control the product mix and sequencing 
of products to produce optimum sales results, just as they would in store. 
 
ATTRAQT understands how critical it is to get the right products in front of the right people, at the right time. 
Trends and buying patterns change – retailers need to adapt just as quickly. With ATTRAQT’s drag and drop 
collections, Balance Factor control, powerful site-search, and personalised product recommendations, this 
couldn’t be simpler, ensuring that retailers are always in-sync with their customers’ needs and are able to 
manage the growing demands of their business. 
 
How ATTRAQT works 
 
Visual merchandising 
 Intelligent Visual Merchandising -  using the drag and drop collections, retailers can effortlessly curate the 
product offering to their audience. 
 
 ATTRAQT’s Balance Factor technology enables a merchandiser to fully automate dynamic product- 
sequencing based on frequently changing metrics including stock, price, margin, newness, style, colour 
and more. 
 
 International localisation – country-specific merchandising and content enables a retailer to tailor their 
product offering considering factors such as season, climate and differing cultural tastes. 
 
Site search 
 ATTRAQT optimises their site-search using Balance Factor technology to manipulate the sequencing  of 
results pages. Search driven merchandising can be created using an array of metrics including: newest in, 
best-selling, highest stock and many more. 
 
 Spell correction using several combined algorithms to predict both misspelling and mistyping in relation 
to their tailored  product database. It results in fewer zero search results, and far fewer losses of potential 
buyers. 
 
Product recommendations 
 Personalised product recommendations that improve conversion rates and average order values. 
Using a full range of behavioural algorithms, manual collections and Balance Factor control, retailers 
can ensure that they’re offering the right customers the right products, and lead them to convert. 
 
 
 
 
   ATTRAQT Group PLC 
 
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Strategic report (cont.) 
 
ATTRAQT’s competitive strategy 
 
Freestyle Merchandising is a visual merchandising platform that acts as a plugin for a retailer’s existing 
eCommerce platform and takes over three core elements of the retailer’s site (category pages, site search and 
product recommendations) to provide merchandising tools that enable retailers to merchandise their products 
more effectively through those elements of the site.  
The Group’s competitive strategy includes:  
1. Providing 3 technologies in one platform 
ATTRAQT provides 3 visual merchandising technologies (category pages, site search and product 
recommendations) in one platform. Being able to merchandise through all three main elements of a retailer’s site 
from a single visual merchandising platform is both a significant benefit to our clients and a significant competitive 
advantage as it easier to evict incumbent single component suppliers from a retailer and much harder to replace 
Freestyle Merchandising by a competitor. 
2. Balance Factor technology 
Freestyle Merchandising’s Balance Factor technology enables retailers to create and implement sophisticated 
visual merchandising on their sites. It uses a simple slider system to create merchandising rules from the site 
metrics that are important to a retailer. The system applies a weighting to the selected metrics to determine the 
sequencing of products. Balance Factor can be applied to category pages, site search, product recommendations 
and email. Balance Factor is patent pending. 
3. New platform developments 
The Group continues to develop the capabilities of Freestyle Merchandising, keeping the Company ahead of the 
competition and increasing the value it delivers to its customers, making its position within a retailer more secure. 
4. World class customer service 
ATTRAQT aims to provide world class customer service and continues to invest in this as a means to inoculate 
our clients against the competition.  
 
   ATTRAQT Group PLC 
 
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Strategic report (cont.) 
 
Our growth strategy 
 
Built into the Group’s DNA is the concept of developing innovative technology and turning it into 
easy to use products. ATTRAQT has used this approach to develop the market for its product 
Freestyle Merchandising and has successfully gained 110 clients to date. The recent round of 
fundraising completed in December 2015 has enabled us to reinforce our growth strategy 
consisting of: 
 
1) Expand the Sales teams and invest in marketing   
Following on from the success that the Group has had in signing new clients in North America  such as TUMI and 
Revolve Clothing, it will accelerate the investment in its North American operation during 2016 by hiring additional 
sales and telemarketing staff. We anticipate seeing the effect of this investment starting to appear on our P&L 
revenue line by Q4 of this year. 
In addition, to bring forward the overall effect of the new investment the company will further invest in its current 
UK sales operation as a parallel activity to make the UK sales team immediately more effective. This should have 
the effect of bring forward some additional revenue whilst the North American sales operation gets up to speed. 
The investment in the UK team will take the form of additional telemarketing resource and the appointment of 
additional members of the UK sales team. 
To support the expansion of the UK and North American sales teams, the Company will increase its expenditure 
on marketing. In particular, in an attempt to generate sales leads earlier in the year, the company will invest in 
marketing activity by attending 6 tradeshows during H1 2016 together with email marketing campaigns in March 
and June. 
2) Expand Productive Capacity 
The Group will continue to expand its productive capacity in order to keep pace with the accelerating rate of 
signing new clients. This investment will take the form of hiring additional project management staff, account 
managers and production developers in both the UK and US teams - with the intention that the North American 
operation should be able to sign, deliver and support clients locally independent of the UK operation.  
3) Develop Partnerships 
The Group has a number of existing strategic partnerships in the UK (including Magento, Dotmailer and 
Monetate), which it is seeking to extend into the equivalent position in North America to help penetrate the market 
and accelerate its sales growth.  
4) Extend our Technology Platform 
The Group will continue its on-going investment in the ATTRAQT Freestyle Merchandising platform by adding 
new features and creating new products to produce new revenue streams.  
5) Identify New Markets 
The Company will also continue to identify new markets and innovative ways to repurpose our technology. 
 
 
 
 
   ATTRAQT Group PLC 
 
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Strategic report (cont.) 
 
Some of our clients 
 
ATTRAQT is the trusted online merchandising partner for many retailers, both large and small. 
Here are just a few of the companies that we work with; 
 
 
 
 
 
 
“Rollout was really quick and the whole transition was very easy. Our team members love the dashboard 
interface because it’s so simple to use. Freestyle Merchandising™ allows them to do more and deliver greater 
flexibility with the categories they’re responsible for. We all see it as a hugely positive addition to our eCommerce 
toolset.” 
Gordon Newman, Life Style Sports 
 
 
“We have worked with ATTRAQT for a number of years and we rely on their technology to ensure that we have 
full control over the way in which our trends and products are presented to our customers. Their technology has 
had a really positive impact on our sales.”  
Visual Merchandiser, Boohoo 
 
   ATTRAQT Group PLC 
 
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Strategic report (cont.) 
The Group uses key performance indicators (KPIs) to measure progress in the business. These indicators 
provide visibility of both our financial and strategic performance. 
Key performance indicators 
Financial 
Revenue growth 
Year Sales  Growth 
2012 £1,250,000 6% 
2013 £1,581,000 26% 
2014 £2,086,000 32% 
2015 £2,911,000       40% 
 
 
Gross profit 
Year Gross profit Growth 
2012 £983,000   <1% 
2013 £1,287,000   31% 
2014 £1,687,000   31% 
2015 £2,431,000   44%   
 
Exit rate (year-end annualised billing) 
Year Sales  Growth 
2012 £1,295,000   27% 
2013 £1,670,000   29% 
2014 £2,365,000   42% 
2015 £3,051,000   29%  
 
Strategic 
New clients signed 
Year Clients 
2012   21 
2013   31 
2014   36 
2015   31  
 
Total live sites 
Year Live sites   
2012    38  
2013    76    
2014    110 
2015    154  ATTRAQT Group PLC 
 
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Strategic report (cont.) 
 
Risks & mitigation 
Principal risks and uncertainties 
Competitive risk 
The growth in eCommerce has resulted in a significant increase in software companies seeking to supply online 
retailers with enabling technology. The Directors are not aware of any directly comparable competitor offering all 
three elements of the Group’s platform in a SaaS package. The Directors believe having all three elements 
makes it easier for the Group to both reduce incumbent competitors’ new prospects and to defend its existing 
client-base from external competitors and consider that its competitors would face significant barriers in 
attempting to replicate the company’s technology. 
 
Loss of key clients 
The loss of key clients is always a potential threat. However, the company seeks to mitigate this risk in several 
ways: a) clients sign for a minimum of 12-months or longer with automatic annual renewals; b) the company 
invests in extensive client support and training to ensure users are able to use the  platform  effectively and c) the 
company also invests in account management and professional services to ensure that clients renew their 
commercial arrangements with the company. 
 
Platform outage 
As a provider of a SaaS service, the Group relies on its hosting partners to provide an uninterrupted service. The 
Group mitigates this risk by using fault-tolerant load- balanced Cloud services. In 2016, the Group will extend 
this architecture to a multi-site, multi data centre provider to provide as much resilience as possible.  
 
Recruitment and retention 
As with any fast growing software business, the Group’s growth strategy is predicated on hiring people who will 
be effective in realising its growth ambitions. 
This means further sales and marketing hires as well as the technical people that expand capacity (in terms of 
getting sites live) are crucial to drive the Group’s revenue base. The Directors believe that, over the last three 
years, the Group has refined its go-to-market strategy and can train new recruits quickly. They also regularly 
review the market rates of salaries and benefits to ensure staff have appropriate compensation and reward 
packages. 
 
Retail sector exposure 
Due to the nature of the technology the Group offers, the Group’s customers are predominantly in the retail 
sector. 
 
A widespread downturn in the economy could put pressure on capital expenditure budgets for software spending 
if overall retail volumes dropped, which could result in early termination of customer contracts and deter new 
customers from using the Group’s services. 
 
The Group seeks to mitigate such risks by: a) signing clients on 12 month contracts and b) continually 
considering new market opportunities. 
   ATTRAQT Group PLC 
 
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Strategic report (cont.) 
 
Technological risk 
The Group operates in an industry where competitive advantage is heavily dependent on technology. It is 
possible that technological development may reduce the importance of the Group’s function in the market. 
To remain competitive, the Group continues to enhance and improve the responsiveness, functionality, 
accessibility and other features of its software, services and technologies. 
 
Intellectual property 
The  Group’s intellectual property rights are important assets. The Group relies on a combination of 
copyright, registered and unregistered trademarks, registered domain names, database rights and the law 
protecting confidential information to define and protect its rights to brands, technologies and databases 
that are critical to its ability to compete in the online comparison market. 
 
The Group discloses proprietary knowledge, information and technology to third parties under licensing or other 
agreements. There is always a possibility that such a party may misappropriate or challenge the Group’s right to 
such knowledge, information and technology. 
 
To the extent that the Group’s brands, technologies and databases are not protected by intellectual property 
rights, third parties, including competitors, may be able to commercialise or otherwise use the Group’s brand, 
technologies and/or databases without compensating the Group. 
 
The Group also seeks to maintain certain intellectual property as trade secrets. The security of its trade secrets 
could be compromised by contractors or outside parties, or intentionally or accidentally by its employees, which 
would cause the Group to lose part of its competitive advantage. 
 
Any misappropriation of the Group’s intellectual property could have a materially adverse effect on the Group’s 
business, financial condition or operating results. 
 
Furthermore, the Group may need to take legal action to enforce its intellectual property or to protect trade 
secrets. Defending such claims may result in substantial costs and the diversion of resources and management 
attention and there can be no guarantees as to the outcome of any such litigation, or that it can be effectively 
used to enforce the Group’s rights. 
 
Mark Johnson 
Director 
8 March 2016  ATTRAQT Group PLC 
 
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CEO’s Statement  
 
Introduction 
 
We are very pleased with the strong operational and financial progress achieved by ATTRAQT during 2015. We 
have grown our customer base significantly, adding important marquee names to our client register and further 
building the volume of recurring revenue, which has also driven an improvement in gross margin. Our productive 
capacity has also improved and we now have 154 live sites, with a strong pipeline in place for 2016. Success in 
sales and production has contributed to the growth in revenue, which we expect to see continue in 2016. 
 
We have continued to invest in and upgrade the Platform during the year and have an exciting development 
programme for 2016. In addition, we have continued to develop a number of important technology partnerships 
including with YUDU Media, signing the first joint client in the period, to extend the functionality of the Platform and 
to expand the use of our technology into new market segments. 
 
Business model 
 
The Group’s business model is based on a recurring monthly service fee plus a one-off set-up fee and additional 
follow-on project fees. Clients sign up for a minimum of 12 months, with some larger clients signing up for a longer 
period of 2-3 years. 
 
The current sales model is based on direct sales via a dedicated sales team. Due to the importance of the 
functionality provided by the Platform to our clients, client loyalty is strong with churn rates below 10% of revenue 
per annum, with most clients automatically renewing at the end of the contractual term.  
 
Growth strategy 
 
The Group’s objective is to become the visual merchandising platform of choice for online retailers in Europe and 
North America and in a more global capacity in the long term. 
 
Our recent fundraising, as announced on 12 and 30 November 2015, has enabled us to continue to build on our 
business plan, which is founded on five key elements: 
 
1) Invest in sales and marketing to grow client base and volume of recurring revenue; 
2) Expand the company’s productive capacity to keep pace with accelerating sales; 
3) Develop strategic partnerships – both sales and technology – to accelerate sales growth and extend our product 
offering; 
4) Extend the capabilities of the platform through continued investment in research and development, adding new 
features and creating new products to initiate new revenue streams; and  
5) Identify new markets and innovative ways to repurpose our technology. 
 
Review of Sales & Operations 
 
The Group has grown the client-base in the year, adding 31 new clients in the UK and North America (2014: 36), 
worth £0.95m in recurring revenue on an annualised basis. These include marquee names such as Ben Sherman 
in Canada; Bonmarché, Brown Thomas, ESPA, Present Finder, Pretty Little Thing, World Duty Free and Buck and 
Hickman in the UK and Bizou, Echo Design, and TUMI in the US. Further additions include La Perla and Screwfix 
in Europe, bringing the Group’s total number of clients to 110 by the end of December 2015 (2014: 87). 
  ATTRAQT Group PLC 
 
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The average value of new client contracts signed in 2015 has increased by 24% to £31k per annum reflecting the 
return on investment we can demonstrate for our products, the growing maturity of the sales team and the sales 
process as well as the increasing size of our typical customer. 
 
The ongoing investment in our productive capacity has enabled us to deliver 63 new client sites during the year, 
nearly double the previous year’s total (2014: 35), bringing the total number of live sites to 154 by year end. The 
Group also started 11 new site builds before the end of 2015, which are scheduled for delivery during 2016.  
 
In 2015, we delivered a significant number of client renewal upgrades with 18 clients increasing their monthly fee 
increments and/or site upgrades (2014: 3). These upgrades, from clients such as Laura Ashley, TK Maxx and White 
Stuff, are worth an annualised £0.44m. We have also continued to undertake project work for our clients such as 
Responsive Web Design (‘RWD’) projects and search auto-complete projects. 
 
Interesting client implementations during the year included the following: 
 
 Brown Thomas and John Greed both added marketing content, in addition to the usual product displays, 
to their category page merchandising. This allowed them to promote particular products or promotions on 
the page. The products appear to mould themselves around the content, making the pages look far more 
sophisticated.  
 
 The Tate – Print Finder: Prints are one of the best sellers for The Tate. The company built a print finder 
function on their site which uses ATTRAQT filters to return the correct products to fit the users selected 
criteria The solution enabled them to implement a ‘wizard’, allowing their customer to choose specific filters 
to get them to the prints they liked quickly, therefore improving customer experience and conversion rates. 
 
 Wilko, The Tate, Bonmarché and Ben Sherman have added product recommendations to their 
homepages to reduce the number of clicks it takes customers to view products. This strategy utilises the 
real estate on the home page, which can often be overlooked by many customers, giving the retailer an 
opportunity to showcase the brand and products that get the highest conversion or to promote new 
products/sale products. 
 
North American Expansion progressing 
 
ATTRAQT has continued to focus on its North American expansion plans following the relocation of the North 
American HQ to Chicago in November 2014. During 2015, the Company successfully added 8 new clients in North 
America; Ben Sherman, Bikini Village, Bizou, Echo Design, La Vie en Rose, Souris Mini, TUMI, and Vix Swimwear 
bringing the total number of clients in this region to 17. 
 
With the aid of proceeds from the fundraise ATTRAQT intends to bolster the North American team in 2016, adding 
additional sales people, account managers, project managers and client services people. ATTRAQT has recently 
hired a senior account manager which will enable the transfer of account management from the UK team to North 
America, freeing up additional capacity in the UK.  
 
Platform enhancements and Product development 
 
During 2015, ATTRAQT deployed five upgrades to the Platform, focused on performance improvements, 
enhancements to personalisation technology, improvements to manual merchandising and additional reporting 
functionalities; further increasing its competitive strength.  
 
These new core platform releases included the new Hypercaching performance technology developed by the 
company which speeds up both search and category pages by getting the product information from a cache layer 
rather than having to retrieve it directly from the database or search index. Other code releases included “Smart 
collections” which allow clients to automatically add and remove products from manually created collections. In 
addition to this, ATTRAQT has made the first batch of changes to upgrade the platform infrastructure to improve 
platform resiliency and disaster recovery.   ATTRAQT Group PLC 
 
16 
 
 
Functionality within the ATTRAQT Control Panel was also added to make merchandising simpler for clients with 
very large product sets and/or lots of international sites. ATTRAQT also released a new feature that will allow data 
from any third party provider to be used as input into ATTRAQT merchandising strategies without the need to 
integrate clients of 3rd parties.  
 
ATTRAQT also continues to invest in and develop ATTRAQTMail™, which allows retailers to merchandise to 
customers through their current email marketing systems. 
  
Strategic Partnerships 
 
In August 2015, ATTRAQT announced its first technology partnership with mobile digital catalogue app developer 
YUDU Media to develop ‘Live Catalog’, a joint service offering using ATTRAQT’s visual merchandising platform 
and YUDU’s digital catalogue technology. ‘Live Catalog’ enables retailers to add real-time visual merchandising 
techniques, such as personalised promotions and special offers, and other rapidly-changing content to their digital 
catalogues. In November 2015, the Company announced it had signed Screwfix Germany as the first joint client of 
‘Live Catalog’.  
 
The Board believes partnerships present a valuable opportunity for ATTRAQT to engage with its clients on 
additional features, with the potential to create new revenue streams.  
 
Supportive Market Developments 
 
Online retail continues to be a very competitive and dynamic industry where retailers are continuously challenged 
to respond to a clear, and growing, interaction between online and offline retailing. The Board believes the Platform 
is well positioned to help retailers respond to this challenge, ensuring consistency of merchandising across 
channels and countries.  
 
The growth of ecommerce and investment in mobile continued during the year as retailers worked to enhance their 
capabilities in RWD, web app and mobile apps to capitalise on the trend for increasing use of mobile and tablet 
devices. According to reports by IMRG, visits to ecommerce sites via smartphone and tablet devices accounted for 
45% of all ecommerce traffic in the UK (IMRG, Feb 2015). UK Consumers are estimated to spend £53.6bn a year 
by 2024 using their smartphones and tablets, highlighting the importance for retailers to invest in their mobile 
strategy. ATTRAQT is well positioned to benefit from this trend as the Platform is device and platform agnostic, 
enabling it to support retailers regardless of their channels to market.  
 
Retailers continue to move away from the automated ‘black-box’ method of providing product recommendations 
towards a more nuanced approach that allows the retailer interaction with the recommendations being made, in 
particular to extend their visual merchandising strategies into those recommendations. This is a trend that plays to 
the core strength of the Platform and has continued throughout 2015. Internationalisation also remained a focus in 
2015, with clients including Superdry and TUMI rolling out 21 and 18 international sites respectively. 
We will continue to monitor market trends and enhance the Platform to ensure it meets customers’ needs. 
Financial Review 
Total revenue increased by 40% to £2.91m (2014: £2.09m), exceeding Group expectations of £2.8m, as new 
customers were added and more existing customers commissioned additional sites. The recurring monthly revenue 
rose 38% from £1.92m to £2.65m, now representing 91% of total Group revenue, up 1% from 90% in 2014. The 
Exit Rate (year-end annualised billing) for 2015 was up 29% to £3.1m.  
 
The Group recorded losses before tax and at the EBITDA level, both of which were in line with management 
expectations. Losses before tax were reduced to £0.73m (2014: £1.53m) and adjusted EBITDA losses for the year 
were significantly reduced by 73% to £0.2m (2014: £0.74m); on a monthly basis reaching a position of EBITDA 
breakeven in late FY 2015. In FY 2016, the investment of the proceeds of the fundraising in expanding sales, 
marketing and production (detailed further in the section below) are expected to lead to EBITDA losses increasing 
in the short-term, reflecting investment in the Group’s operational expansion; however the rate of growth is 
expected to accelerate as a result, with a return to EBITDA profitability in the mid-term. 
 
  ATTRAQT Group PLC 
 
17 
 
 
ATTRAQT continues to invest in technical enhancements to the existing product offerings and in new products. 
Some of this cost is capitalised and some is absorbed as part of the operating costs of the business.  
 
Funding 
Since its admission to AIM, ATTRAQT has continued to deliver strong operational and financial progress, signing 
important new clients across regions and continuing to invest in organic growth by developing performance 
improvements and new features. In order to continue to deliver on the exciting potential of the Group and its target 
markets, ATTRAQT successfully raised approximately £3.3 million (before expenses) by way of a placing. This will 
enable the Group to develop its sales teams in the UK and in North America, with additional investment required 
to expand the required production capacity to support its potential growth prospects and increase the functionality 
of the core platform.  
 
As part of the fundraising, ATTRAQT also welcomed Nick Habgood, Managing Partner of Azini Capital Partners 
LLP, to its Board as Non-executive Director as of 30 November 2015.  
 
Outlook 
 
We are very pleased with the strong progress we have made in 2015. We are continuing to gain traction with 
leading retailers both in the UK, Europe and North America, and with a strong financial platform, we look forward 
to 2016 with confidence.   
 
 There is real momentum in the sales process and production pipeline and with our year-end annualised 
billings up 29% we see this continuing into 2016. 
 
 The Platform continues to perform well, with further enhancements delivered in 2015 and an exciting 
development roadmap for 2016, including improvements to the Platform to streamline production, a full 
reporting and recommendations upgrade and further improvements to personalisation. 
 
 We have further invested in our productive capacity, driving efficiencies and working closely with our clients 
to drive improvements, increasing client reliance and usage of the Platform. 
 
 We have maintained our high margin and low revenue churn. 
 
 The successful fundraising has provided us with the financial means to accelerate our growth in the UK, 
Europe and North America, by investing further in sales, account management, production and core platform 
development.  
 
With a strong pipeline of new business opportunities, our much increased exit rates and an increasingly 
sophisticated merchandising platform, we are confident in the ongoing success of ATTRAQT and in the outlook for 
2016 and beyond. 
 
André Brown 
Chief Executive Officer  
8 March 2016 
 
 
  ATTRAQT Group PLC 
 
18 
 
Board of directors 
Dan Wagner 
Co-Founder and Chairman 
Dan is a veteran British internet entrepreneur and businessman who founded M.A.I.D. plc (Market 
Analysis Information Database) in 1984 – a pioneer in on-line information services. M.A.I.D. was listed 
on the London Stock Exchange in 1994 and on NASDAQ the following year and went on to become the 
world leader in online information capturing 26% of the world market before being sold in early 2000 to 
Thomson Reuters. 
 
In 1998, Dan founded Venda Limited – a pioneer in ‘cloud based’ or ‘On Demand’ eCommerce - which 
became the European market leader before being sold in June 2014 to NetSuite Inc. (a US based, NYSE 
listed, Cloud Software market leader). 
 
In 2003, Dan set up ATTRAQT with André Brown to improve search and merchandising in web based 
platforms and services. 
 
 
André Brown 
Co-Founder and Chief Executive Officer 
André, the Co-Founder and Chief Executive Officer of ATTRAQT, has over 25 years' experience in 
developing innovative technologies. He has been instrumental in the development of the Group and has 
helped to grow its customer base from zero to a list of well-known names in the retail arena. 
 
Previous positions include Group Mergers & Acquisitions Director for Nettec plc, Strategic Alliances 
Director for MAID plc, Chief Executive Officer of the eCommerce division of Dialog plc and one of the 
leaders of the team that originally brought Adobe Acrobat to the UK marketplace. 
 
André holds a BSc. in Economics from the London School of Economics and qualifications in Corporate 
Finance and Marketing Innovative Technologies from the London Business School and Harvard Business 
School, respectively. 
 
 
Mark Johnson 
Chief Financial Officer 
 
Mark joined ATTRAQT in August 2015.  He has been Finance Director of several entrepreneurial and high-
growth businesses, and has over 20+ years of commercially driven experience.  Before joining ATTRAQT, Mark 
was Commercial Director at Celador Entertainment, the internationally renowned media firm, where he oversaw 
all the finance, legal and back-office functions including all M&A. 
 
Mark has an honours degree in Accountancy and Financial Analysis from the University of Newcastle-upon-Tyne 
and has been CIMA qualified since 1995. 
  ATTRAQT Group PLC 
 
19 
 
Ivor Dunbar 
Independent Non-Executive Director and Deputy Chairman 
Ivor is the Chairman of Project Trust. He lives in London and is a Non- Executive Director of Bluefield 
Harrier Ltd., a solar power company. 
 
Educated at Inverness Royal Academy and University College of Wales in Aberystwyth, Ivor has spent 
most of his professional career as an investment banker with Barclays de Zoete Wedd and until recently 
with Deutsche Bank. 
 
Ivor is a capital markets specialist and at Deutsche he was Head of Global Capital Markets, Co-Head of 
Investment Banking and a member of the Executive Committee of Deutsche’s Corporate and Investment 
Banking Division.  Ivor is a Patron of the National Trust for Scotland and his interests include fishing, 
shooting and racing classic cars. 
 
 
Nicholas Habgood 
Non-Executive Director 
 
Nick is the Founder and Managing Partner of Azini Capital Partners LLP, a London based private equity firm that 
specialise in providing liquidity for historical investors and shareholders and investing in growth stage private and 
smaller public technology companies. Nick has substantial board level experience helping technology companies 
execute on growth opportunities. Please see www.azini.com for more details. 
Prior to founding Azini Capital Nick worked for LMS Capital, the venture capital division of London Merchant 
Securities plc. He has also held senior operational positions in Mondex International (part of MasterCard 
International) where he founded and was CEO of the MULTOS business, Mars Electronics International (a part of 
the Mars Group) and Twiflex Limited (part of GKN and Tomkins). Nick has a Masters Degree in Mechanical 
Engineering (M.Eng) from the University of Bristol. 
 
Ed Ewing 
Independent Non-Executive Director 
 
In a career spanning three decades, Ed has worked extensively as a senior executive in the technology, 
media and telecommunications sectors in management, sales and product/service development roles. 
Previous international roles have included working for Apple in Europe, Strategic Planning and 
Programme Director for Scoot.com plc and managing operations in Northern Europe for Quark Inc. He 
was responsible for establishing the digital division for global publisher Boat International Media, including 
successfully launching boatinternational.com and establishing it as one of the leading online market places 
for pre-owned superyachts. 
 
Along with advising a number of clients on strategy and business development Ed has a portfolio of 
successful companies based in north Norfolk, where he now lives, and most recently he was instrumental 
in raising over £750,000 in funding from the Heritage Lottery Fund and English Heritage to help secure the 
future of one of the UK’s ancient monuments. 
 
 
Robert Fenner 
Non-Executive Director 
 
Robert is a partner in the international law firm Taylor Wessing LLP and has been a solicitor for 24 
years.  He is a corporate lawyer specialising in advising companies on all aspects of corporate law 
including listings and mergers and acquisitions. 
   ATTRAQT Group PLC 
 
20 
 
Corporate Governance report 
 
The Board has reviewed the requirements of the UK Corporate Governance Code and although it is not 
statutorily mandatory to comply with the code the Group continues to work to implement it to the extent that it 
considers it appropriate to a company of its size and nature.  The remuneration and audit committees were 
established following the Company’s admission to AIM on 19 August 2014. 
 
1. The Board of Directors 
 
The details of the Group’s board, together with the audit and remuneration committees, are set out on pages 18 
to 19 and 22 to 23. 
The board meets quarterly and is responsible for the overall management of the Group’s long term strategy and 
objectives and monitoring of performance.  It oversees operations and ensures the maintenance of sound internal 
controls and risk management systems.  Certain matters are specifically reserved for the approval of the board, 
including approval of significant capital expenditure, material business contracts and corporate transactions. 
 
To enable the board to discharge its duties all directors receive appropriate and timely information.  The CEO has 
regular dialogue with all the directors and provides written updates to them at least twice a month. 
 
At the end of the year the board consisted of two executive directors, a non-executive chairman and four 
independent non-executive directors. 
 
2. Directors’ remuneration 
As set out on pages 24 the remuneration of the executive directors is determined by the remuneration committee.  
The remuneration of the non-executive directors is determined by the chairman and the executive directors.  The 
directors recognise the importance of performance related incentives and executive directors are paid bonuses 
as deemed appropriate by the remuneration committee. 
 
3. Relations with shareholders 
The Group recognises the value of communications with its shareholders.  As well as the statutorily required 
news releases via the Stock Exchange, the Group issues updates on matters that it considers of interest to 
shareholders and the wider investing public.  It responds quickly to enquiries and requests from shareholders 
subject to the limitations of providing price sensitive information. 
 
All shareholders receive at least 21 days’ notice of the annual general meeting at which all of the directors and 
the chairman are normally available to answer from shareholders attending the meeting. 
 
4. Accountability and audit 
a) Financial reporting 
The chief executive’s statement contains detailed reviews of the performance and financial position of the Group.  
The Group uses this and the directors’ report on pages 25 to 27 to present and explain the Group’s financial 
position and performance.  The directors’ responsibility for the financial statements is described on page 26. 
 
b) Internal control 
The board confirms that it has established the procedures necessary to implement the guidance set out in the 
Financial Reporting Council’s “Guidance on Risk Management, Internal Control and Related Financial and 
Business Reporting”.  The identification, evaluation and management of risk has been considered by the board.  
It is intended that this will continue to be kept under constant review and will be considered at each board 
meeting.  The board continues to take steps to embed internal control and risk management further into the 
operations of the business and to deal with areas of improvement which come to management and board 
attention.  
 
The directors acknowledge their responsibilities for the Group’s system of internal control.  Such a system can 
provide reasonable but not absolute assurance against material misstatement or loss. The board has considered 
the major business risks and the control environment.  Important control procedures, in addition to the day to day 
supervision of the business, include comparison of monthly management accounts to the budget. 
   ATTRAQT Group PLC 
 
21 
 
c) Audit committee and auditors 
The audit committee comprises Ivor Dunbar (chairman) and Ed Ewing, both non-executive directors.  The 
auditors of the Group may also attend part or all of each meeting and they have direct access to the committee 
for independent discussions, without the presence of an executive director, if required.  The audit committee may 
examine any matters relating to the financial affairs of the Group and the Group’s audit.  This includes reviews of 
the annual accounts and announcements, accounting policies, compliance with accounting standards, the 
appointment of auditors and their fees and other such related functions as the board may require. 
 
  ATTRAQT Group PLC 
 
22 
 
Audit committee report 
 
Audit committee:  composition and terms of reference 
 
The audit committee is chaired by Ivor Dunbar and its other member is Ed Ewing. The board has considered the 
independence of these directors and although Mr. Dunbar has a holding of 1.9% of the Company it considers 
him, and Mr. Ewing (who has a holding of 0.18% of the Company), to be independent non-executive directors.  It 
meets as required and specifically to review the Interim Report and Annual Report and to consider the stability 
and effectiveness of the internal control processes.   The audit committee reviews the findings of the external 
auditor and reviews accounting policies and material accounting judgements. 
 
The independence and effectiveness of the external auditor is reviewed annually.  The audit committee is able to 
meet separately with the external auditor without any executive director present to discuss their independence 
and objectivity, the Annual Report, any audit issues arising, internal control processes, appointment and fee 
levels and any other appropriate matters.  As well as providing audit related services the auditors also provide 
taxation advice.  Fees in respect of audit and tax service are disclosed in Note 6 of the Notes to the Group 
Financial Statements. Fees for non-audit services paid to the auditors are not deemed to be of such significance 
as to impair their independence and therefore the audit committee considers that the objectivity and 
independence of the auditors is safeguarded. 
 
Internal control 
 
The board is responsible for establishing and maintaining the Group’s system of internal control and for reviewing 
its effectiveness.  The system of internal control is designed to manage, rather than eliminate, the risk of failure of 
the achievement of business objectives and can only provide reasonable but not absolute assurance against 
material misstatement or loss. 
 
The audit committee monitors and reviews the effectiveness of the system of internal control and reports to the 
board when appropriate with recommendations. 
 
The main features of the system of internal control are: 
 A control environment exists through the close management of the business by the executive directors.  
The group has a defined organisation structure with delineated approval limits.  Controls are 
implemented and monitored by the executive directors. 
 The board has a schedule of matters expressly reserved for its consideration and this schedule includes 
acquisitions and disposals, major capital projects, treasury and risk management policies and approval of 
budgets. 
 The Group uses a detailed budgeting and forecasting process.  Budgets are prepared annually by the 
executive directors and submitted to the board for approval.  Forecasts, including cash flow projections, 
are updated at least quarterly to reflect changes in the business and are monitored by the board.  Actual 
results are monitored against the budget on a monthly basis, with variances highlighted to the board. 
 Financial risks are identified and evaluated for any major transactions for consideration by the board and 
senior management. 
 Standard financial control procedures are operated throughout the Group to ensure that the assets of the 
Group are safeguarded and that proper accounting records are maintained. 
  ATTRAQT Group PLC 
 
23 
 
Remuneration committee report 
 
Remuneration committee:  composition and terms of reference 
 
The remuneration committee is chaired by Ed Ewing and its other member is Ivor Dunbar, both of whom are 
independent non-executive directors. The Company’s chairman may attend committee meetings as an observer. 
The remuneration committee is expected to meet not less than once a year and at such other times as required. 
 
It has responsibility for determining, within the agreed terms of reference, the Company’s policy on the 
remuneration packages of the Company’s chief executive, chairman, and the executive directors, the company 
secretary, senior managers and such other members of the executive management as it is designated to 
consider. The remuneration committee also has responsibility for determining (within the terms of the Company’s 
policy and in consultation with the chairman of the Board and/or the chief executive officer) the total individual 
remuneration package for each executive director, the company secretary and other designated senior 
executives (including bonuses, incentive payments and share options or other share awards). The remuneration 
of non-executive directors is a matter for the chairman and executive directors of the Board. No director or 
manager is allowed to partake in any discussions as to their own remuneration. In addition, the remuneration 
committee has the responsibility for reviewing the structure, size and composition (including the skills, knowledge 
and experience) of the Board and giving full consideration to succession planning. It also has responsibility for 
recommending new appointments to the Board. 
 
Policy on Executive Directors’ remuneration 
 
Executive remuneration packages are designed to attract and retain executives with the qualities and skills 
needed to run the group.  The Remuneration Committee recommends to the Board remuneration packages by 
reference to individual performance and uses the knowledge and experience of the Committee members, 
published surveys relating to AIM companies and data on companies of similar size and in similar industries. 
 
There are three main elements of the remuneration package for Executive Directors and staff: 
i. Basic salaries and benefits in kind 
Basic salaries are recommended to the Board by the Remuneration Committee, taking into account the 
performance of the individual and the rates for similar positions in comparable companies.  Benefits in 
kind comprising death in service and private medical insurance are available to all staff and Executive 
Directors. 
ii. Share options 
The Group operates a share option scheme for the Executive Directors and other employees to motivate 
those individuals through equity participation.  Exercise of share options under the scheme is subject to 
specified exercise periods and compliance with the AIM Rules. 
The scheme is overseen by the remuneration committee which recommends to the Board all grants of 
share options based on the Remuneration Committee’s assessment of personal performance and 
specifying the terms under which eligible individuals may be invited to participate. 
iii. Bonus Scheme 
The Group has a discretionary bonus scheme for staff and Executive Directors. 
 
Service contracts 
 
The executive directors are employed under service contracts requiring six months’ notice by either party.  Non-
executive directors and the chairman receive payments under appointment letters which are terminable by two 
months’ notice by either party.  The service contracts of the non-executive directors are made available for 
inspection at the AGM.  ATTRAQT Group PLC 
 
24 
 
Policy on Non-Executive Directors’ remuneration 
 
One non-executive director receives a fee for his services as a director, which is approved by the board, mindful 
of the time commitment and responsibilities of the role and of current market rates for comparable organisations 
and appointments.  All non-executive directors and the chairman are reimbursed for travelling and other 
incidental expenses incurred on Group business. 
 
The emoluments of the Directors were as follows: (Audited) 
 
 
Year ended 31 December 2015 
Year ended 
31 December 
2014 
 
Salary & 
Directors' fees Benefits in kind 
Share Based 
Payments Total Total 
 £ £ 
£ 
£ £ 
Executive directors   
 
  
André Brown (i) 291,500 3,657 
- 
295,157 219,592 
David Stirling (ii) 35,417 5,282 74,426 115,125 80,828 
Mark Johnson (iii) 23,974 - 
 
- 23,974 - 
      
Non-executive directors  
 
  
Dan Wagner - - 
 
- - - 
Ivor Dunbar - - 
 
- - - 
Ed Ewing 20,000 - 
 
- 20,000 7,359 
Robert Fenner - - 
 
- - - 
Nick Habgood (iv) - - - - - 
   
 
  
Totals 370,891 8,939 74,426 454,256 307,779 
 
(i) Includes a discretionary bonus of £50,000 (2014: £nil) regarding the IPO in 2014 and the placing of 
new shares in 2015, these will not reoccur and the sum has been treated as an exceptional 
administrative expense. 
(ii) Resigned 25 September 2015 
(iii) Appointed to the board 25 September 2015 
(iv) Appointed to the board 30 November 2015 
 
 
The above fees and emoluments exclude reimbursed expenditure incurred in the conduct of Group business. 
 
Relative importance of spend on pay 
 
The following shows the Group’s relative expenditure on employee pay compared to all other distributions: 
 
 
 2015  2014  
 
£’000  £’000  
Employee remuneration costs 
2,033 100% 1,696 100% 
Dividends paid on ordinary shares 
- 0% - 0% 
 
2,033  1,696  
  ATTRAQT Group PLC 
 
25 
 
Directors’ Report 
 
The directors present their report with the financial statements of the Group and the Company for the year ended 
31 December 2015. 
 
Results 
The Group made a loss after tax in 2015 of £652,000 (2014 - £1,414,000) on turnover of £2,911,000 (2014 - 
£2,086,000) representing a loss of £0.03p per share (2014: £0.08).  The net cash used in operating activities was 
£319,000 (2014 - £1,058,000). 
 
Dividends 
The board do not propose the payment of a dividend for the year. 
 
Directors 
The directors shown below either held office during the reporting period or to the date of this report: 
 
 Dan Wagner 
 André Brown 
 David Stirling (resigned 25 September 2015) 
 Ivor Dunbar 
 Edward Ewing 
 Robert Fenner 
 Mark Johnson (appointed 25 September 2015) 
 Nick Habgood (appointed 30 November 2015) 
 
 
Qualifying third party indemnity provisions 
The Group has granted an indemnity to one or more of its directors against liability in respect of proceedings 
brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party 
indemnity provision remains in force as at the date of approving the directors’ report. 
 
The Group purchases directors and officers insurance against their cost in defending themselves in legal 
proceedings taken against them in that capacity, and in respect of damages resulting from the unsuccessful 
defence of any proceedings. 
 
Financial instruments 
Details of the Group’s risk management objectives and policies together with its exposure to financial risk are set 
out in Note 3 to the financial statements. 
 
Going concern 
The directors have prepared a cash flow forecast covering a period extending beyond 12 months from the date of 
these financial statements.  The forecast contains assumptions about the performance of the business.  These 
assumptions are the directors’ best estimate of the future development of the business, including consideration of 
cash reserves required to support working capital and its growth plans.  These plans include sales expansion in 
the UK and the USA. Growth rate assumptions for the UK have been based on the historic actual growth of the 
group since 2011. The directors remain confident of the group’s ability to continue to tap into to the American 
market and fuel further growth in the group’s activities. 
 
The cash flow forecast prepared shows the group will have sufficient headroom against available facilities based 
on the revenue growth assumptions. 
 
On the basis of this forecast the directors have a reasonable expectation that the Group has adequate resources 
to continue in operational existence for the foreseeable future.  They therefore continue to adopt the going 
concern basis of accounting in preparing the annual financial statements. 
   ATTRAQT Group PLC 
 
26 
 
Events after the reporting period 
There are no events after the date of this report or the date the financial statements were approved by the board 
of directors which impact on the figures presented. 
 
Listing 
The Group’s ordinary shares have been traded on the London Alternative Investment Market (AIM) since 19 
August 2014.  N+1 Singer are the Group’s nominated advisors and brokers.  The closing mid-market share price 
at 31 December 2015 was 62p. 
 
Statement of directors’ responsibilities 
Directors’ responsibilities 
The directors are responsible for preparing the strategic report, the directors’ report and the financial statements 
in accordance with applicable law and regulations.  
 
Company law requires the directors to prepare Group and Company financial statements for each financial year.  
Under that law the directors have elected to prepare the group and company financial statements in accordance 
with International Financial Reporting Standards (IFRSs) as adopted by the European Union.  Under company 
law the directors must not approve the financial statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the group and company and of the profit or loss of the group for that period.  The 
directors are also required to prepare financial statements in accordance with the rules of the London Stock 
Exchange for companies trading securities on the Alternative Investment Market.   
 
In preparing these financial statements, the directors are required to: 
 
 select suitable accounting policies and then apply them consistently; 
 
 make judgements and accounting estimates that are reasonable and prudent; 
 
 state whether they have been prepared in accordance with IFRSs as adopted by the European Union, 
subject to any material departures disclosed and explained in the financial statements; 
 
 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 
company will continue in business. 
 
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 
company’s transactions and disclose with reasonable accuracy at any time the financial position of the company 
and enable them to ensure that the financial statements comply with the requirements of the Companies Act 
2006.  They are also responsible for safeguarding the assets of the company and hence for taking reasonable 
steps for the prevention and detection of fraud and other irregularities. 
 
Website publication 
 
The directors are responsible for ensuring the annual report and the financial statements are made available on a 
website.  Financial statements are published on the company's website in accordance with legislation in the 
United Kingdom governing the preparation and dissemination of financial statements, which may vary from 
legislation in other jurisdictions.  The maintenance and integrity of the company's website is the responsibility of 
the directors.  The directors' responsibility also extends to the ongoing integrity of the financial statements 
contained therein 
 
Key future developments 
The Group plans to continue its development of both the UK and North American markets building on its success 
in signing new clients in 2015. 
 
It will also continue the research and development of new products and product enhancements using its internal 
expertise and jointly with technology partners. The selection of developments to be undertaken is based on 
feedback from existing and prospective clients and prioritised according to the return they can be expected to 
generate.  ATTRAQT Group PLC 
 
27 
 
  
 
 
Statement as to disclosure of information to auditors 
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the 
Companies Act 2006) of which the Group’s auditors are unaware, and each director has taken all the steps that 
he ought to have taken as a director in order to make himself aware of any relevant audit information and to 
establish that the Group’s auditors are aware of that information. 
 
Auditors 
The auditors, BDO LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. 
 
Mark Johnson 
Director 
 
Date:  8 March 2016 ATTRAQT Group PLC 
 
28 
 
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ATTRAQT GROUP PLC 
 
We have audited the financial statements of Attraqt Group Plc for the year ended 31 December 2015 which 
comprise the consolidated statement of comprehensive income, the consolidated statement of financial position, 
the consolidated statement of cash flows, the consolidated statement of changes in equity, the company 
statement of financial position, the company statement of changes in equity and the related notes.  The financial 
reporting framework that has been applied in their preparation is applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the European Union and, as regards the parent company financial 
statements, as applied in accordance with the provisions of the Companies Act 2006.  
 
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006.  Our audit work has been undertaken so that we might state to the company’s members 
those matters we are required to state to them in an auditor’s report and for no other purpose.  To the fullest 
extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the 
company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 
 
Respective responsibilities of directors and auditors 
 
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view.  Our 
responsibility is to audit and express an opinion on the financial statements in accordance with applicable law 
and International Standards on Auditing (UK and Ireland).  Those standards require us to comply with the 
Financial Reporting Council’s (FRC’s) Ethical Standards for Auditors.  
 
Scope of the audit of the financial statements 
 
A description of the scope of an audit of financial statements is provided on the FRC’s website at 
www.frc.org.uk/auditscopeukprivate. 
 
 
Opinion on financial statements 
 
In our opinion:  
 
 the financial statements give a true and fair view of the state of the group’s and the parent company’s affairs 
as at 31 December 2015 and of the group’s loss for the year then ended; 
 
 the group financial statements have been properly prepared in accordance with IFRSs as adopted by the 
European Union; 
 
 the parent company financial statements have been properly prepared in accordance with IFRSs as adopted 
by the European Union and as applied in accordance with the provisions of the Companies Act 2006; and 
 
 the financial statements have been prepared in accordance with the requirements of the Companies Act 
2006. 
 
Opinion on other matters prescribed by the Companies Act 2006 
 
In our opinion the information given in the strategic report and directors’ report for the financial year for which the 
financial statements are prepared is consistent with the financial statements.  
 
 
 
   ATTRAQT Group PLC 
 
29 
 
 
Matters on which we are required to report by exception 
 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report 
to you if, in our opinion: 
 
 adequate accounting records have not been kept by the parent company, or returns adequate for our audit 
have not been received from branches not visited by us; or 
 
 the parent company financial statements are not in agreement with the accounting records and returns; or 
 
 certain disclosures of directors’ remuneration specified by law are not made; or 
 
 we have not received all the information and explanations we require for our audit. 
 
 
Andrew Viner (senior statutory auditor) 
For and on behalf of BDO LLP, statutory auditor 
London 
United Kingdom 
Date: 8 March 2016 
 
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). 
  ATTRAQT Group PLC 
 
30 
 
. 
Consolidated statement of comprehensive income 
For the year to 31 December 2015 
 
 
  Year to 31 
December 
Year to 31 
December 
 Note 2015 2014 
  £’000 £’000 
    
    
    
Revenue 4 2,911 2,086 
    
Cost of sales  (480) (399) 
    
    
Gross profit  2,431 1,687 
    
Administrative expenses  (3,045) (2,736) 
Exceptional administrative expense 5 (118) (484) 
    
Total administrative expenses  (3,163) (3,220) 
    
    
Loss from operations 6 (732) (1,533) 
    
    
    
Loss before tax  (732) (1,533) 
    
Tax credit 8 80 119 
    
    
Loss for the year  (652) (1,414) 
    
    
    
    
Other comprehensive income:    
Items that will be reclassified subsequently to profit or loss:    
Exchange differences on translation of foreign operations  (6) (26) 
    
Total other comprehensive income  (6) (26) 
    
Total comprehensive loss for the year attributable to 
shareholders of the parent 
  
(658) 
 
(1,440) 
    
Loss per share attributable to the 
ordinary equity holders of the company   
 
 
    
Basic and diluted EPS 9 (3.1p) (8p) 
 
The notes on pages 34 to 50 form part of these financial statements. 
 
   ATTRAQT Group PLC 
 
31 
 
 
Consolidated statement of financial position 
As at 31 December 2015 
 
 Note 2015 2014 
  £’000 £’000 
    
Assets    
Non-current assets    
Property, plant and equipment  10 27 50 
Intangible assets  11 170 120 
    
  197 170 
Current assets    
    
Trade and other receivables 13 473 310 
Corporation tax receivable 13 61 119 
Cash and cash equivalents 3 2,996 307 
    
  3,530 736 
    
Total assets  3,727 906 
    
Liabilities    
Current liabilities    
Trade and other payables 14 700 540 
    
Total liabilities  700 540 
    
NET ASSETS  3,027 366 
    
Issued capital and reserves attributable to owners of 
the parent    
Share capital 16 269 206 
Share premium   4,253 1,252 
Merger reserve  1,457 1,457 
Share based payment reserve  477 222 
Foreign exchange reserve  (32) (26) 
Retained earnings  (3,397) (2,745) 
    
TOTAL EQUITY  3,027 366 
    
 
The financial statements were authorised for issue by the Board of Directors on 8 March 2016 and were signed 
on its behalf by: 
 
Mark Johnson 
Director 
 
Company Number 8904529 
 
The notes on pages 34 to 50 form part of these financial statements.   ATTRAQT Group PLC 
 
32 
 
 
Consolidated statement of cash flows 
for the year ended 31 December 2015 
 
 Note 2015 2014 
  £’000 £’000 
    
    
Cash flows from operating activities    
Loss for the year  (652)       (1,414) 
Adjustments for:    
Depreciation of property, plant and equipment 10 28           35 
Amortisation of intangible fixed assets 11 139         131 
Income tax credit 8 (80) - 
Share based payment expense 17 255          162      
Foreign exchange loss  (6) (40) 
    
  (316) (1,126) 
    
    
(Increase) in trade and other receivables  (163)          (96) 
Increase/(decrease) in trade and other payables  160              164 
    
Cash used in operations  (319) (1,058) 
    
Income taxes received  138 - 
    
Net cash flows from operating activities  (181) (1,058) 
    
    
Investing activities    
Purchases of property, plant and equipment 10 (5) (15) 
Development of intangibles 11 (189) (131) 
    
Net cash used in investing activities  (194) (146) 
    
Financing activities    
Issue of ordinary shares, net of issue costs  3,064 1,295 
Repayment of debt  - (45) 
    
Net cash from investing and financing activities  2,870 1,104 
    
Net increase in cash and cash equivalents  2,689 46 
Cash and cash equivalents at beginning of year  307 261 
    
Cash and cash equivalents at end of year 3 2,996 307 
    
 
The notes on pages 34 to 50 form part of these financial statements. 
 
 
 
   ATTRAQT Group PLC 
 
33 
 
Consolidated statement of changes in equity 
for the year ended 31 December 2015 
 
 
Share 
capital 
Share 
premium 
Other 
reserve 
Merger 
reserve 
Share 
based 
payment 
reserve 
Foreign 
exchange 
reserve 
Retained 
earnings 
Total 
equity 
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 
1 January 2014 
177 - 45 1,457 60 - (1,331) 408 
Loss for the year 
- - - - - - (1,414) (1,414) 
Translation of 
foreign entity  - - - - - (26) - (26) 
Total 
comprehensive 
Income for the year - - - - - (26) (1,414) (1,440) 
Share based 
payment charge 
- - - - 162 - - 162 
Issue of share 
capital 29 1,252 (45) - - - - 1,236 
31 December 2014 206 1,252 - 1,457 222 (26) (2,745) 366 
         
Loss for the year 
- - - - - - (652) (652) 
Translation of 
foreign entity  - - - - - (6) - (6) 
Total 
comprehensive 
Income for the year - - - - - (6) (652) (658) 
Share based 
payment charge - - - - 255 - - 255 
Issue of share 
capital 63 3,222 - - - - - 3,285 
Issue costs 
- (221) - - - - - (221) 
31 December 2015 
269 4,253 - 1,457 477 (32) (3,397) 3,027 
 
Reserves 
 
The following describes the nature and purpose of each reserve within equity: 
Reserve Description and purpose 
  
Share premium Amount subscribed for share capital in excess of nominal value. 
Other reserve Amount of proceeds on issue of convertible debt relating to the equity 
component (i.e. option to convert the debt into share capital). 
Merger reserve The merger reserve results from the application of merger accounting on 
the merger of ATTRAQT Inc. and ATTRAQT Limited.  
Share based payment reserve 
The share based payment reserve represents equity settled share based 
employee remuneration until such share options are exercised. 
 
Foreign exchange reserve 
The difference arising on the translation of the assets and liabilities of 
the overseas subsidiary company into the functional currency of the 
Group. 
Retained earnings All other net gains and losses and transactions with owners (e.g. 
dividends) not recognised elsewhere. 
 
The notes on pages 34 to 50 form part of these financial statements.  ATTRAQT Group PLC 
 
34 
 
Notes to the consolidated financial statements for the year ended 31 December 2015 
 
1.  Accounting policies 
 
 General information  
 
The principal activity of ATTRAQT Group PLC (“the Company”) and its subsidiaries (together “the Group”) is 
the development and provision of eCommerce site search, merchandising and product recommendation 
technology. 
 
The principal trading subsidiaries are ATTRAQT Limited and ATTRAQT Inc.  
 
The Company is a public limited company which is quoted on the Alternative Investment Market of the 
London Stock Exchange and is incorporated and domiciled in the UK. The address of the registered office is 
14 Gray’s Inn Road, London, WC1X 8HN. 
 
The registered number of the company is 8904529. 
 
 Basis of preparation 
 
The consolidated financial statements are for the year ended 31 December 2015.  They have been prepared 
in compliance with International Financial Reporting Standards (IFRSs) and IFRS Interpretations Committee 
(IFRIC) interpretations as adopted by the European Union as at 31 December 2015 and those parts of the 
Companies Act 2006 applicable to companies reporting under IFRS. The consolidated financial statements 
have been prepared under the historical cost convention and are presented in Sterling rounded to the 
nearest thousand except where indicated otherwise. 
 
A business combination is a ‘‘common control combination’’ if the combining entities are ultimately controlled 
by the same party (including the same individual shareholder or a group of shareholders acting together in 
accordance with a contractual arrangement) both before and after the combination and the common control 
is not transitory.  
 
For the purposes of the consolidated financial information, the initial creation of the ATTRAQT Group PLC 
group has been treated as a business combination involving entities under common control. Business 
combinations involving entities under common control fall outside the scope of IFRS 3: Business 
Combinations. In accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, 
management have considered the pronouncements of other standard-setting bodies in developing an 
accounting policy for common control combinations. The group adopted the prevailing accounting treatment 
defined under UK Generally Accepted Accounting Practice at the time of the transaction as permitted under 
IFRS. 
 
  
 Going concern 
 
The financial statements have been prepared under the going concern basis as the directors have 
undertaken a review of the future financing requirements of the ongoing operation of the group and are 
satisfied that sufficient cash together with bank and other facilities is available to meet its working capital 
requirements for at least 12 months from the date of signing these financial statements. The directors 
accordingly consider it appropriate for the financial statements to be prepared on a going concern basis as 
disclosed in page 25 of the Directors Report. 
 
Changes in accounting policies 
 
The Directors continue to monitor the impact of future changes to the reporting requirements but do not 
believe the proposed changes will significantly impact the financial statements.  
 
At the date of authorisation of these financial statements, certain new standards, amendments and 
interpretations to existing standards applicable to the Group have been published but are not yet effective, 
and have not been adopted early by the Group.  
 
  
 
  ATTRAQT Group PLC 
 
35 
 
Basis of consolidation  
  
Where  the  company  has  control  over  an  investee,   it  is  classified  as  a  subsidiary.  The company 
controls an investee if all three of the following elements are present: power over the investee, exposure to 
variable returns from the investee, and the ability of the investor to use its power to affect those 
variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a 
change in any of these elements of control.  
  
The consolidated financial statements present the results of the company and its subsidiaries ("the 
Group") as if they formed a single entity. Intercompany transactions and balances between group companies 
are therefore eliminated in full.  
  
 
 Revenue 
 
Revenue represents sales to external customers at invoiced amounts less value added tax or local taxes on 
sales. Where work is completed at the year-end but not invoiced, the ATTRAQT Group accrues for this 
income. 
 
The Group derives the majority of its revenue from the provision of eCommerce services to online retailers 
which includes site search, merchandising and product recommendation technology.  These are recurring 
revenues that are recognised on a monthly basis. 
 
Revenue from services provided by the ATTRAQT Group is recognised when the ATTRAQT Group has 
performed its obligations and in exchange obtained the right to consideration which can be reliably 
measured and it is probable economic benefits will flow to the entity. 
If amounts have been invoiced in advance for services, these amounts are deferred until the service has 
been provided to the client at which point the income is recognised. Within the ATTRAQT Group income is 
recognised across two streams: 
 Recurring revenues – a monthly subscription fee is earned from customers to the software as a service 
platform. Operation of the service is provided for a fixed term. 
 One-off fees – work is undertaken for existing clients to expand or upgrade the service they receive and 
this is billed for separately.  Revenue is recognised on stage of completion on this work.  Stage of 
completion is calculated based on estimated hours to complete the work versus the number of hours 
already done. 
 
 
  
 Foreign currency 
 
Transactions entered into by Group entities in a currency other than the currency of the primary economic 
environment in which it operates (the "functional currency") are recorded at the rates ruling when the 
transactions occur.  Foreign currency monetary assets and liabilities are translated at the rates ruling at the 
reporting date.  Exchange differences arising on the retranslation of unsettled monetary assets and liabilities 
are recognised immediately in profit or loss. 
 
On consolidation, the results of overseas operations are translated into Sterling Pounds at rates 
approximating to those ruling when the transactions took place. All assets and liabilities of overseas 
operations, including goodwill arising on the acquisitions of those operations, are translated at the rate ruling 
at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and 
the results of overseas operations at actual rate are recognised in other comprehensive income and 
accumulated in the foreign exchange reserve.  
 
 Exchange differences recognised in profit or loss in Group entities separate financial statements on the 
translation of long-term monetary items forming part of the Group’s net investment in the overseas operation 
concerned are reclassified to other comprehensive income and accumulated in the foreign exchange 
reserve on consolidation.  
 
 
   ATTRAQT Group PLC 
 
36 
 
Financial assets 
 
Loans and receivables 
 
These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in 
an active market.  They arise principally through the provision of services to customers (e.g. trade 
receivables), but also incorporate other types of contractual monetary asset.  They are initially recognised at 
fair value plus transaction costs that are directly attributable to their acquisition or issue, and are 
subsequently carried at amortised cost using the effective interest rate method, less provision for 
impairment.  
 
Impairment provisions are recognised when there is objective evidence (such as significant financial 
difficulties on the part of the counterparty or default or significant delay in payment) that the Group will be 
unable to collect all of the amounts due under the terms receivable, the amount of such a provision being 
the difference between the net carrying amount and the present value of the future expected cash flows 
associated with the impaired receivable.  For trade receivables, which are reported net, such provisions are 
recorded in a separate allowance account with the loss being recognised within administrative expenses in 
the consolidated statement of comprehensive income.  On confirmation that the trade receivable will not be 
collectable, the gross carrying value of the asset is written off against the associated provision. 
 
From time to time, the Group elects to renegotiate the terms of trade receivables due from customers with 
which it has previously had a good trading history.  Such renegotiations will lead to changes in the timing of 
payments rather than changes to the amounts owed and, in consequence, the new expected cash flows are 
discounted at the original effective interest rate and any resulting difference to the carrying value is 
recognised in the consolidated statement of comprehensive income (operating profit). 
 
The Group's loans and receivables comprise trade and other receivables and cash and cash equivalents in 
the consolidated statement of financial position. Their carrying value approximates fair value at both 
reporting dates. 
 
Cash and cash equivalents 
 
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly 
liquid investments with original maturities of three months or less, and - for the purpose of the statement of 
cash flows - bank overdrafts.  
 
 Financial liabilities 
 
 Other financial liabilities  
 
Other financial liabilities include the following items: 
 
 Trade payables and other short-term monetary liabilities, which are initially recognised at fair value and 
subsequently carried at amortised cost using the effective interest method. 
 Bank overdrafts are shown within loans and borrowings in current liabilities on the consolidated 
statement of financial position. 
 
Leases 
 
Where the risks and rewards of ownership of an asset are transferred to the group as lessee, the lease is 
treated as a finance lease. Other leases are treated as operating leases. Future instalments payable under 
finance leases net of finance charges are included in creditors with the corresponding asset values recorded 
in property, plant and equipment and depreciated over the shorter of their estimated useful lives or their 
lease terms. Lease payments are apportioned between the finance element, which is charged to the income 
statement as interest, and the capital element, which reduces the outstanding obligation for future 
instalments. 
 
Payments under operating leases are charged to the statement of comprehensive income on a straight line 
basis over the lease term. 
 
  ATTRAQT Group PLC 
 
37 
 
Share capital 
 
Financial instruments issued by the Group are classified as equity only to the extent that they do not meet 
the definition of a financial liability or financial asset. 
 
The Group’s ordinary shares are classified as equity instruments. 
 
Income taxes 
 
Current income tax assets and liabilities comprise those obligations to fiscal authorities in the countries in 
which the Group carries out its operations. They are calculated according to the tax rates and tax laws 
applicable to the fiscal period and the country to which they relate. All changes to current tax liabilities are 
recognised as a component of tax expense in the income statement unless the tax relates to an item taken 
directly to equity in which case the tax is also taken directly to equity. Tax relating to items recognised in 
other comprehensive income is recognised in other comprehensive income.   
 
Deferred taxation 
 
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the 
consolidated statement of financial position differs from its tax base, except for differences arising on: 
 
 the initial recognition of goodwill; 
 the initial recognition of an asset or liability in a transaction which is not a business combination and at 
the time of the transaction affects neither accounting or taxable profit; and 
 investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of 
the reversal of the difference and it is probable that the difference will not reverse in the foreseeable 
future. 
 
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will 
be available against which the difference can be utilised. 
 
The amount of the asset or liability is determined using tax rates that have been enacted or substantively 
enacted by the reporting date and are expected to apply when the deferred tax liabilities/(assets) are 
settled/(recovered).  
 
Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current 
tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax 
authority on either: 
 
 the same taxable Company; or 
 different Company entities which intend either to settle current tax assets and liabilities on a net basis, 
or to realise the assets and settle the liabilities simultaneously, in each future period in which significant 
amounts of deferred tax assets or liabilities are expected to be settled or recovered. 
 
 
Segmental reporting 
 
For the purpose of IFRS 8, the chief operating decision maker takes the form of the Board of Directors. The 
Directors’ opinion is that the business of the group is to provide cloud based E-commerce solutions.  Based 
on this, there is considered to be one reportable segment. The internal and external reporting is on a 
consolidated basis with transactions between group companies eliminated on consolidation. Therefore, the 
financial information of the single segment is the same as that set out in the consolidated statement of 
comprehensive income, the consolidated statement of changes in equity, the consolidated statement of 
financial position and statement of cash flows. 
 
  
   ATTRAQT Group PLC 
 
38 
 
 Internally generated intangible assets (development costs) 
 
Expenditure on internally developed products is capitalised if it can be demonstrated that: 
 
 it is technically feasible to develop the product for it to be sold; 
 adequate resources are available to complete the development; 
 there is an intention to complete and sell the product; 
 the Group is able to sell the product; 
 sale of the product will generate future economic benefits; and 
 expenditure on the project can be measured reliably. 
 
Capitalised development costs are amortised over three years. The amortisation expense is included within 
administrative expenses in the consolidated statement of comprehensive income.  
 
Development expenditure not satisfying the above criteria and expenditure on the research phase of internal 
projects are recognised in the consolidated statement of comprehensive income as incurred. 
 
 
Property, plant and equipment 
 
Items of property, plant and equipment are initially recognised at cost.  As well as the purchase price, cost 
includes directly attributable costs and the estimated present value of any future unavoidable costs of 
dismantling and removing items.  The corresponding liability is recognised within provisions.  
 
Property plant and equipment is depreciated over its estimated useful economic life taking into account their 
residual values. The estimated useful economic life of these assets is: 
 
 Plant and machinery - 4 years 
 Fixtures and fittings - 4 years 
 
Share based payments 
 
The Group has issued share options to certain employees, in return for which the Group receives services 
from those employees. The fair value of the employee services received in exchange for the grant of the 
options is recognised as an expense. 
 
The total amount to be expensed is determined by reference to the fair value of the options granted including 
any market performance conditions (for example the Company’s share price) but excluding the impact of any 
service or non-market performance vesting conditions (for example the requirement of the grantee to remain 
an employee of the Group). 
 
Non market vesting conditions are included in the assumptions regarding the number of options that are 
expected to vest. The total expense is recognised over the vesting period. At the end of each period the 
Group revises its estimates of the number of options expected to vest based on the non-market vesting 
conditions. It recognises the impact of any revision in the income statement with a corresponding adjustment 
to equity. 
 
2.  Significant accounting judgements and estimates 
 
The Group makes certain estimates and assumptions regarding the future.  Estimates and judgements are 
continually evaluated based on historical experience and other factors, including expectations of future 
events that are believed to be reasonable under the circumstances.  In the future, actual experience may 
differ from these estimates and assumptions.  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. 
 
Share based payments 
 
Share options are recognised as an expense based on their fair value at date of grant. The fair value of the 
options is estimated through the use of a valuation model – which require inputs such as the risk-free 
interest rate, expected dividends, expected volatility and the expected option life – and is expensed over the 
vesting period. Some of the inputs used to calculate the fair value are not market observable and are based 
on estimates derived from available data, such as employee exercise behaviour and employee turnover.  ATTRAQT Group PLC 
 
39 
 
Capitalisation of development costs 
It is a requirement under IFRS that development costs that meet the criteria prescribed in the standard are 
capitalised. The assessment of each project requires that a judgement is made as to the commercial viability 
and the ability of the company to bring the product to market.   
 
 
3.  Financial instruments - Risk Management 
 
The Company is exposed through its operations to the following financial risks: 
 
 Credit risk 
 Foreign exchange risk 
 Liquidity risk 
 
In common with all other businesses, the Group is exposed to risks that arise from its use of financial 
instruments.  This note describes the Group's objectives, policies and processes for managing those risks 
and the methods used to measure them.  Further quantitative information in respect of these risks is 
presented throughout these financial statements. 
 
There have been no substantive changes in the Group's exposure to financial instrument risks, its 
objectives, policies and processes for managing those risks or the methods used to measure them from 
previous periods unless otherwise stated in this note. 
 
 
Principal financial instruments 
 
The principal financial instruments used by the Group, from which financial instrument risk arises, are as 
follows: 
 
 Trade receivables  
 Cash and cash equivalents 
 Trade and other payables 
 
A summary of the financial instruments held by category is provided below. 
 
Financial liabilities 
 
A summary of financial liabilities is shown below. All financial liabilities held by the Group at 31 December 
2015 are classified as held at amortised cost. 
 
 
 
Financial assets 
 
2015 2014 
 £’000 £’000 
   
Current   
Trade receivables 369 250 
Other receivables 14 17 
   
 383 267 
   
Cash and cash equivalents 2,996 307 
   
 
All financial assets held by the Group at 31 December 2015 are classified as loans and receivables and 
there is no difference between the carrying amount and the fair value. 
At 31 December 2015 the three largest customers owed a total of £97,200.  The directors do not consider 
that there is any reason to provide against any part of this balance. 
 
 
  ATTRAQT Group PLC 
 
40 
 
 
Financial liabilities   
 2015 2014 
 £’000 £’000 
   
Trade payables 83 214 
Other payables 338 88 
   
 421 302 
   
All financial liabilities held by the Group at 31 December 2015 are classified as held at amortised cost. 
 
General objectives, policies and processes 
 
The Board has overall responsibility for the determination of the Company's risk management objectives and 
policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and 
operating processes that ensure the effective implementation of the objectives and policies to the 
Company's Chief Executive Officer.  The Board receives quarterly reports from the Company Chief Financial 
Officer through which it reviews the effectiveness of the processes put in place and the appropriateness of 
the objectives and policies it sets. 
 
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly 
affecting the Company's competitiveness and flexibility.  Further details regarding these policies are set out 
below: 
 
Credit risk 
 
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails 
to meet its contractual obligations. The Group is mainly exposed to credit risk from credit sales.  It is Group 
policy, implemented locally, to assess the credit risk of new customers before entering contracts.  Such 
credit ratings take into account local business practices.  
 
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For 
banks and financial institutions, only independently rated parties with minimum rating "A" are accepted. 
 
Further disclosures regarding trade and other receivables are provided in note 13. 
 
Cash at bank 
 
A significant amount of cash is held with the following institutions: 
 
   Balance at Balance at 
   31 
December 
31 
December 
   2015 2014 
   £’000 £’000 
     
 Barclays Bank Plc  2,987 298 
 Citibank  9 9 
     
On 8 January 2015 the Group obtained an overdraft facility with Barclays Bank for up to £50,000.  This is 
available for immediate drawdown.  It is secured over the assets of ATTRAQT Limited. 
 
Foreign exchange risk 
 
Foreign exchange risk arises when the Group enters into transactions denominated in a currency other than 
the functional currency.  The Group's policy is, where possible, to allow entities to settle liabilities 
denominated in their functional currency (primarily Sterling Pounds) with the cash generated from their own 
operations in that currency.   
 
In order to monitor the continuing effectiveness of this policy, the CEO reviews a monthly forecast, analysed 
by the major currencies held by the Group, of liabilities due for settlement and expected cash reserves. 
  ATTRAQT Group PLC 
 
41 
 
  
Liquidity risk 
 
Liquidity risk arises from the Group's management of working capital.  The Group manages the risk that it 
will encounter difficulty in meeting its financial obligations as they fall due by forecasting its short term cash 
position on a regular basis. 
 
The Group's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when 
they become due.  To achieve this aim, it seeks to maintain cash balances (or agreed facilities) to meet 
expected requirements for a period of at least 30 days. 
 
The Board receives rolling 12-month cash flow projections on a quarterly basis as well as information 
regarding cash balances.  At the end of the financial year, these projections indicated that the Group 
expected to have sufficient liquid resources to meet its obligations under all reasonably expected 
circumstances. 
 
In the management of liquidity risk, the group monitors and tries to maintain a level of cash and cash 
equivalents deemed adequate by management to finance the Group’s operations and mitigate the effects of 
fluctuations in cash flows.  
 
The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of 
financial liabilities: 
       
   Between Between Between  
  Up to 3 3 and 12 1 and 2 2 and 5 Over 
  months months years years 5 years 
 At 31 December 2014 £’000 £’000 £’000 £’000 £’000 
       
 Trade and other payables    291 11 - - - 
       
 Total 291       11 - - - 
       
   Between Between Between  
  Up to 3 3 and 12 1 and 2 2 and 5 Over 
  months months years years 5 years 
 At 31 December 2015 £’000   £’000 £’000 £’000 £’000 
       
 Trade and other payables 421 - - - - 
       
 Total 421 - - - - 
       
       
 
   ATTRAQT Group PLC 
 
42 
 
 
4.  Revenue 
 
    
 
Revenue arises from the rendering of services 2015 2014 
 
 £’000 £’000 
 
   
 
Recurring revenues 2,652 1,922 
 
One-off fees 259 164 
 Total rendering 
2,911 2,086 
  
There are three customers contributing 14%, 11% and 10% respectively to Group revenues. The Directors are 
not concerned about the continuance of these relationships.  
 
 Geographical split of revenue 
2015 2014 
  
£’000 £’000 
  
  
 UK 
2,785 2,064 
 North America 
126 22 
 Total revenue 
2,911 2,086 
    
 
The Group reports geographical revenue on the basis of the revenue of the relevant statutory billing 
entity. 
 
5. Exceptional administrative expenses 
 
Exceptional expenses of £118,000 in 2015 relates to: (i) £61,000 of costs incurred in respect of the secondary 
purchase of 5,000,000 shares in December 2015 done in conjunction with the December 2015 placing of 
6,316,346 new shares on AIM, and (ii) £57,000 of costs related to the non-recurring award of a bonus to Andre 
Brown regarding the IPO in 2014 and the placing in December 2015. (2014 – £484,000 in connection with the 
Company’s IPO and admission to AIM) 
 
6.  Loss from operations 
 
Loss from operations is taken after taking account of the following items: 
 
    
  2015 2014 
  £’000 £’000 
    
 Employee benefits (see note 7) 2,033 1,696 
 Depreciation of property, plant and equipment  28 35 
 Amortisation of intangible assets 139 131 
 Operating lease expense 22 8 
    
 Audit and non-audit services:   
    
 Fees payable to the company’s auditors for the audit of the Group 
annual accounts: 
  
 - Company annual accounts 16 9 
 - Group annual accounts 27 25 
 Fees payable to the company’s auditor and its associates for 
other services: 
  
 For tax services 8 4 
 Corporate finance advisory - 60 
 Research and Development costs expensed 139 336 
     ATTRAQT Group PLC 
 
43 
 
 
7.  Employee benefit expenses 
 
    
  2015 2014 
  £’000 £’000 
 Staff costs (including directors) comprise:   
    
 Wages and salaries 1,837 1,551 
 Social security contributions and similar taxes 196 145 
    
  2,033 1,696 
    
    
The charge related to share based payments in 2015 was £255,000 (2014 - £162,000) 
 
 
Key management personnel compensation 
 
 Key management personnel are those persons having authority and responsibility for planning, directing and 
controlling the activities of the Group, which comprises only the directors of the company. 
 
  2015 2014 
  £’000 £’000 
    
 Salary, Director fees, bonus and benefits in kind 380 297 
 Share based payments (i) 74 10 
    
  454 307 
    
 
 
(i) Relates to David Stirling who resigned as a director on 25 September 2015. 
 
The Employer’s National Insurance contributions expensed in the period relevant to the Key management 
personnel compensation was £52,000 (2014: £41,000). 
  
 
The remuneration of the highest paid director is shown in the report of the Remuneration Committee. 
 
 
Staff Numbers 
 
 The average monthly number of employees, including Directors and individuals employed by the Group are 
as follows: 
  2015 2014 
    
 Sales 9 8 
 Technical 15 14 
 Management (including directors) 6 4 
 Administration 1 1 
    
  31 27 
    
    
 
   ATTRAQT Group PLC 
 
44 
 
 
8.  Income tax credit 
 
  2015 2014 
  £’000 £’000 
    
 Current tax credit   
 Current tax on loss for the year (61) (119) 
 Adjustment to tax in respect of previous periods (19) - 
    
 Total tax credit (80) (119) 
    
    
 
The reasons for the difference between the actual tax charge for the year and the standard rate of 
corporation tax in the United Kingdom applied to profits for the year are as follows: 
 
  2015 2014 
  £’000 £’000 
    
 Loss for the year (732) (1,533) 
    
 Expected tax charge based on the standard rate of United 
Kingdom corporation tax at the domestic rate of 20.3% (2014 
-  21.5%) (148) (330) 
    
 Expenses not deductible for tax purposes 17 147 
 Depreciation for period (less than)/in excess of capital allowances (7) 2 
 Unrelieved tax losses arising in the period 86 28 
 Additional deduction for R&D expenditure (85) (104) 
 Adjustment to tax in respect of previous periods (19) - 
 Surrender of tax losses for R&D tax credit refund 66 83 
 Other deductions arising in the period 10 55 
    
 Total tax credit (80) (119) 
    
 
9.  Loss per share 
    
    
  2015 2014 
 Numerator £’000 £’000 
    
 Loss for the year and loss used in basic and diluted EPS (652) (1,414) 
    
    
 Denominator   
    
 Weighted average number of shares used in basic and diluted 
EPS 21,127,841 18,819,772 
    
    
 Loss per share – basic and diluted (3.1p) (8p) 
    
    
    
 
At the year end the Group had 1,341,680 exercisable share options (2014: nil), however in accordance with 
IAS 33 where there is a loss for the year, there is no dilutive effect of options and therefore there is no 
difference between the basic and diluted loss per share. 
 
   ATTRAQT Group PLC 
 
45 
 
10.  Property, plant and equipment 
     
 
 2015  2014 
 Plant & 
machinery 
Fixtures & 
fittings 
Total  Plant & 
machinery 
Fixtures & 
fittings 
Total 
Cost £’000 £’000 £’000  £’000 £’000 £’000 
Balance at 1 
January  
189 2 191  174 
 
2 176 
Additions 5 - 5  15 - 15 
Balance at 31 
December  
194 2 196  189 2 191 
        
Accumulated 
depreciation 
and 
impairments 
       
        
Balance at 1 
January 
139 2 141  105 1 106 
Depreciation 
charge for the 
year 
28 - 28  34 1 35 
Balance at 31 
December 
167 2 169  139 2 141 
        
Net book value        
At 31 December  27 - 27  50 -              50 
At 31 December 
prior year 
50 - 50  69 1 70 
        
 
 
 
11.  Intangible assets 
 
 
 
2015  2014 
 
Software  Software 
Cost 
£’000  £’000 
Balance at 1 January  
785  654 
Additions 
189  131 
Balance at 31 December  
974  785 
Accumulated amortisation 
   
Balance at 1 January 
665  534 
Amortisation charge for the year 
139  131 
 
Balance at 31 December 
804  665 
Net book value 
   
At 31 December 
170  120 
At 31 December prior year 
120  120 
    
 
 
   ATTRAQT Group PLC 
 
46 
 
12.  Investments in subsidiaries 
 
The subsidiaries of ATTRAQT Group PLC, all of which have been included in these consolidated financial 
statements, are as follows:  
 
 Name of subsidiary 
Shareholding 
Country of incorporation and 
 principle place of business 
 ATTRAQT Limited 100% UK 
 ATTRAQT Inc. (held through ATTRAQT Limited) 100% USA 
 
Investments in subsidiaries, associates and joint ventures are held in the Statement of Financial Position of the 
Company at historic cost less any allowance for impairment. 
 
13.  Trade and other receivables 
 
    
  2015 2014 
  £’000 £’000 
    
 Trade receivables 392 253 
 Less: allowance account for bad and doubtful debts  (23) (3) 
    
  369 250 
 Prepayments and accrued income 90 43 
 Corporation tax recoverable  61 119 
 Other receivables  14 17 
    
 Total trade and other receivables 534 429 
    
 Invoices for services rendered are due immediately on the rendering of the invoice, however the majority of 
customers settle debts within 45 days of the date of the invoice. 
 
As at 31 December 2015 trade receivables of £384,000 (2014: £240,000) were technically past due of which 
£23,000 were provided against (2014: £10,000). They relate to the customers with no history of default. 
Payment of the overdue receivables is expected in due course. The ageing analysis of these overdue 
receivables is as follows: 
  2015 2014 
  £’000 £’000 
    
 Up to 3 months 351 228 
 3 to 6 months 33 6 
 6 to 12 months - 6 
 Over 12 months - - 
    
  384 240 
    
 
 
As at 31 December 2015 trade receivables of £23,000 (2014:  £3,000) were considered bad or doubtful. If 
fully impaired the amount of the debt would be written off from the allowance account. 
 
Movements on the allowance account for bad and doubtful debts: 
 
  2015 2014 
  £’000 £’000 
    
 At 1 January 2015 3 14 
    
 Released during the year (3) (34) 
 Provided during the year 23 23 
    
 At 31 December 2015 23 3  ATTRAQT Group PLC 
 
47 
 
    
 
The movement on the provision for impaired receivables has been included in administrative expenses in 
the consolidated statement of comprehensive income.  
 
Other classes of financial assets included within trade and other receivables do not contain impaired assets. 
 
 
14.  Trade and other payables 
 
  2015 2014 
  £’000 £’000 
    
 Trade payables 83 214 
 Accrued expenses 338 88 
 Deferred income 125 99 
 Other payables - tax and social security payable 154 139 
    
 Total trade and other payables 700 540 
    
 
15.  Deferred tax 
 
No deferred tax assets have been recognised due to uncertainties over their ultimate recoverability. 
  
 
 
16.  Share capital        
 
       
 Allocated, called up and fully paid 
 
  2015 2015 2014 2014 
  Number £’000 Number £’000 
      
 Ordinary shares of £0.01 
each 
    
 At 1 January 20,625,994 206 17,759,600 
 
177 
 Shares issued for cash 
during the year 
 
6,316,346 
 
63 
 
2,500,000 25 
 Shares issued on 
conversion of loan - - 266,394 3 
 Shares issued for non-cash 
during the year 
 
- 
 
- 
 
100,000 1 
      
 At 31 December 26,942,340 269 20,625,994 206 
      
 
   ATTRAQT Group PLC 
 
48 
 
17. Share based payment 
 
The company operates an EMI share option scheme for employees. The options are valid for 10 years from 
the date of grant. After satisfaction of any performance condition included in the award the options will 
become exercisable on the earlier of any of the following events: 
 
- The third anniversary of the Date of Grant; 
- On a change of Control of the Company as defined in the Plan rules; 
- On a Sale or Disposal of the Company as defined in the Plan rules; or  
- Following the exercise of discretion by the Board. 
 
Details of the number of share options and the weighted average exercise price (WAEP) outstanding during 
the year are as follows: 
 
 
 2015 WAEP 2014 WAEP 
 Number Price (pence) Number Price (pence) 
Outstanding at the beginning of the 
year 
 
1,341,680 
 
31.59 
 
986,500 
 
31.59 
Granted during the year  1,360,889 50.00 355,180 31.59 
Exercised during the year - - - - 
Expired during the year - - - - 
     
Outstanding at the year end  2,702,569 40.86 1,341,680 31.59 
     
Exercisable at the year end 1,341,680 31.59 - - 
 
The options outstanding at the year-end are set out below: 
Date of grant Expiry date Exercise 2015 2014 
  Price (p) Share 
options 
Remaining 
life 
Share 
options 
Remaining 
life 
       
24 July 2013 24 July 2023 31.59 986,500 8 986,500 9 
29 May 2014 29 May 2024 31.59 177,590 9 177,590 10 
19 August 2014 19 August 2024 31.59 177,590 9 177,590 10 
25 September 2015 25 September 2025 50.00 1,360,889 10   
 
The company uses a Black Scholes model to estimate the cost of share options. 
 
The following information is relevant in the determination of the fair value of options granted during the year. 
The assumptions inherent in the use of this model are as follows: 
 
 The option life is the estimated average period over which the options will be exercised. 
 There are no vesting conditions remaining which apply to the share options other than that they vest at 
the earlier of 3 years’ continued service with the Group. 
 No variables change during the life of the option (e.g. dividend yield remains zero). 
 Volatility has been calculated over the 5 year period prior to the grant date by reference to the daily share 
price of comparable listed companies. 
 Expectations of staff retention over the vesting period have been calculated by reference to the three 
year period prior to the grant date. 
 
   ATTRAQT Group PLC 
 
49 
 
The following options were granted during the year: 
 
2015 
 
2014 
Date 25 September 2015  29 May 2014 19 August 2014 
No. 1,360,889  177,590 177,590 
Fair Value per 
Share (p) 42.0  40.0 47.8 
Share Price on 
Grant Date (p) 63.5  42.0 50.0 
Exercise Price (p) 50.0  31.59 31.59 
Vesting Period 3 Years  3 Years 3 Years 
Staff Retention 
Factor 90%  100% 100% 
5 Year Volatility 100%  220% 220% 
Risk Free Rate 0.583%  0.488% 0.488% 
Total Fair Value (£) 514,783  71,036 84,888 
 
The total expense recognised during the year by the Group, for all schemes, was £255,000 (2014: 
£162,000) of which £209,000 was recognised in respect of the shares that vested in the year and are 
Exercisable at year end (2014: £nil).  
The weighted average remaining life of the options outstanding at the end of the year was 8.8 years (2014: 
8.8 years). 
No options were exercised during the period. 
 
18.  Leases 
 
Operating leases - lessee 
 
The total future value of minimum lease payments is due as follows: 
 
 Other operating leases:   
  2015 2014 
  £’000 £’000 
    
 Not later than one year 19 13 
 Later than one year and not later than five years 5 19 
 Later than five years - - 
    
  24 32 
 
 
   ATTRAQT Group PLC 
 
50 
 
19.  Related party transactions 
 
Trading transactions 
 
During the year Group companies entered into the following transactions with related parties who are not 
members of the Group. 
 
  Sales of goods Purchase of goods 
      
  2015 2014 2015 2014 
  £’000 £’000 £’000 £’000 
      
 Powa Technologies Limited 129 105 169 136 
 Bright Station Ventures 
Management Limited 
 
- 
 
- 
 
- 
 
13 
      
 
  Amounts owed by related parties Amounts owed to related parties 
     
  2015 2014 2015 2014 
  £’000 £’000 £’000 £’000 
      
 Powa Technologies Limited 12 - 17 16 
 Bright Station Ventures 
Management Limited 
 
- 
 
- 2 
 
17 
  
  
  
 
None of the amounts above are secured against any assets of the Group. 
 
During the year Mr D M Wagner was a director of Powa Technologies Limited and Bright Station Ventures 
Management Limited. 
 
Sales of services to related parties were made at the Group's usual list prices. 
Details of the directors’ emoluments, together with other related information, are set out in the Report of the 
Remuneration Committee. Other related party transactions are as follows: 
 
  Type of 
transaction 
Transaction amount Balance owed 
   2015 2014 2015 2014 
   £’000 £’000 £’000 £’000 
       
 Mr D H Weinberger Loan repayment - 8 - - 
 Brightstation 
Ventures Ltd Loan repayment - 
 
8 
 
- 
 
- 
 
In 2014 loans outstanding to both Mr Weinberger and Brightstation Ventures Ltd were repaid. 
 
The Company has not made any provision for bad or doubtful debts in respect of related party debtors 
nor has any guarantee been given or received during 2015 regarding related party transactions. 
 
 
20.  Events after the balance sheet date 
 
There are no material events to report after the balance sheet date. 
 
21.  Capital commitments 
 
At 31 December 2015 the Group had no capital commitments (2014:  £nil).  ATTRAQT Group PLC - Company 
 
 
 51 
Report and financial statements 
for the period ended 31 December 2015 
 
Company statement of financial position 
for the period ended 31 December 2015 
 
 
    Restated 
  At 31 December  At 31 December 
 Note 2015  2014 
  £’000  £’000 
     
Non-current assets     
Investments 3 638  383 
     
Current assets     
Other receivables 4 3,813  1,020 
     
Total assets  4,451  1,403 
     
Current liabilities     
Trade and other payables 5 15  68 
     
Total liabilities  15  68 
     
Net assets  4,436   1,335 
     
     
Issued capital and reserves attributable to 
owners of the parent 
 
 
 
 
Share capital 6 269  206 
Share premium  4,253    1,252 
Share based payments reserve  477  222 
Retained earnings  (563)  (345) 
     
Total equity  4,436  1,335 
     
 
  
The accompanying accounting policies and notes form an integral part of these financial statements. 
 
 
 
Mark Johnson 
Director 
Date: 8 March 2016 
  ATTRAQT Group PLC - Company 
 
 
 52 
Company statement of changes in equity 
for the period ended 31 December 2015  
 
 
 
Share 
capital 
Share 
premium 
Share 
based 
payment 
reserve 
Restated 
Retained 
earnings 
Restated 
Total 
equity 
 £’000 £’000 £’000 £’000 £’000 
      
On incorporation - - - - - 
Loss for the year - - - (345) (345) 
      
Total comprehensive Income 
for the year - - - (345) (345) 
Share based payment reserve - - 222 - 222 
Issue of share capital 206 1,252 - - 1,458 
      
31 December 2014 206 1,252 222 (345) 1,335 
      
Loss for the year    (218) (218) 
Total comprehensive Income 
for the year - - - (218) (218) 
Share based payment reserve 
- - 255 - 255 
Issue of share capital 
63 3,001 - - 3,064 
      
31 December 2015 269 4,253 477 (563) 4,436 
 
 
The following describes the nature and purpose of each reserve within equity: 
 
Reserve Description and purpose 
  
Share premium Amount subscribed for share capital in excess of nominal 
value. 
Share based payment reserve 
The share based payment reserve represents equity settled 
share based employee remuneration until such share options 
are exercised. 
Retained earnings All other net gains and losses and transactions with owners 
(e.g. dividends) not recognised elsewhere. 
 
 
The accompanying accounting policies and notes form an integral part of these financial statements 
   ATTRAQT Group PLC - Company 
 
 
 53 
1.   Accounting policies 
 
The Company has applied the Group accounting policies consistently during the period. 
 
Basis of preparation 
The financial statements are for the period ended 31 December 2015.  They have been prepared 
in compliance with International Financial Reporting Standards (IFRSs) and IFRS Interpretations 
Committee (IFRIC) interpretations as adopted by the European Union as at 31 December 2015 
and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. 
 
Expense recognition 
Expenditure is reported on an accruals basis. Operating expenses are recognised in the income 
statement upon utilisation of the service or at the date of their origin 
 
Financial Assets 
Loans and receivables  
The Company’s loans and receivables comprise trade and other receivables in the statement of 
financial position. Their carrying value approximates fair value at both reporting dates. 
 
Financial liabilities 
Other financial liabilities 
 
Other financial liabilities include the following items: 
   
 Trade payables and other short-term monetary liabilities, which are initially recognised at fair 
value and subsequently carried at amortised cost using the effective interest method. 
 
Restatement 
 
The presentation of the share option charge of £222,000 has been restated to reflect the fact 
these options relate to employees of a subsidiary company and therefore the charge has been 
recognised as a capital contribution. 
 
2.   Company income statement 
 
As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the 
parent company is not presented as part of these financial statements. The parent company’s 
result after taxation for the financial year was a loss of £218,000 (2014 Restated: £345,000). 
 
3.   Investments 
 
 
   Restated 
 At 31 December  At 31 December 
 2015  2014 
 £’000  £’000 
    
As at 1 January 383  - 
Additions 255  383 
    
Investments at 31 December 638  383 
 
The subsidiaries of ATTRAQT Group PLC are as follows:  
 
Name of subsidiary Shareholding Country of incorporation and 
 principle place of business 
ATTRAQT Limited 100% UK 
ATTRAQT Inc. (held through ATTRAQT 
Limited) 
100% USA 
  ATTRAQT Group PLC - Company 
 
 
 54 
Investments in subsidiaries, associates and joint ventures are held in the Statement of Financial 
Position of the Company at historic cost less any allowance for impairment. 
 
4.   Other receivables 
 
   
 2015 2014 
 £’000 £’000 
   
Amounts owed by group undertakings 3,768 965 
Prepayments 32 23 
VAT  13 32 
   
Total trade and other receivables 3,813 1,020 
   
The fair values of other receivables are not materially different to their carrying values. 
 
 
5.   Trade and other payables 
 
 2015 2014 
 £’000 £’000 
   
Trade payables 15 67 
Other payables - 1 
   
Total trade and other payables 15 68 
   
All financial liabilities held by the Company at 31 December 2015 are classified as held at 
amortised cost. 
 
6.   Share capital 
 
 Issued and fully paid Issued and fully paid 
 2015 2015 2014 2014 
 Number £’000 Number £’000 
Ordinary shares of £0.01 each     
At 1 January (2014: On incorporation) 20,625,994 206 1 - 
Share swap 100 for 1 - - 17,759,599 177 
Other issues for cash during the year 6,316,346 63 2,766,394 28 
Other issues for non-cash during the year - - 100,000 1 
     
At 31 December 26,942,340 269 20,625,994 206 
 
 
 
On 14 May 2014 the Company entered into a share for share swap with ATTRAQT Limited at a rate 
of 100 new shares for every 1 share in ATTRAQT Limited. As a result the number of shares increased 
by 17,759,599 or £177,596. 
 
The shares of the Company were listed on the Alternative Investment Market on 19 August 2014.  
On that date: 
 
 2,500,000 new shares were issued for cash at a price of 50 pence each: 
 100,000 shares were issued for non-cash consideration in lieu of fees; 
 The provider of a loan of £45,000 exercised his right to convert this into shares.  The 
Company issued 226,394 shares in exchange for the loan in accordance with the terms 
of the loan agreement entered into in December 2009. 
  ATTRAQT Group PLC - Company 
 
 
 55 
On 2 December 2015 6,316,346 new shares were issued for cash at a price of 52 pence 
each. 
 
 
7.  Share based payments 
 
For details of the share based payments please refer to the Group note 17. 
 
 
8.  Financial instruments 
 
Categories of financial instrument 2015  2014 
 £’000  £’000 
    
Current    
Other receivables  3,768  965 
    
 3,768  965 
    
Cash and cash equivalents - loans and receivables -  - 
    
Total loans and receivables 3,768  965 
    
Trade and other payables 15  68 
    
 15  68 
    
9.    Cash balances 
 
 
ATTRAQT Group PLC does not hold bank accounts in its name. The Company’s cash flow 
movements have been disclosed as part of the group financial statements on page 32.   ATTRAQT Group PLC - Company 
 
 
 56 
Company information 
 
Country of incorporation 
 
United Kingdom 
 
Legal form 
 
Public limited company 
 
 
Directors 
 
Dan Wagner 
André Brown 
David Stirling (resigned 25 September 2015) 
Ivor Dunbar 
Edward Ewing 
Robert Fenner 
Mark Johnson (appointed 25 September 2015) 
Nick Habgood (appointed 30 November 2015) 
 
Secretary and registered office 
 
M Johnson 
14 Gray’s Inn Road 
London 
WC1X 8HN 
 
Company number 
 
8904529 
 
Auditors 
 
BDO LLP, 55 Baker Street, London, W1U 7EU 
 
Bankers 
 
Barclays Bank Plc, Barclays Business Centre, 27 Soho Square, London, W1D 3QR 
 
Lawyers 
 
Taylor Wessing LLP, 5 New Street Square, London, EC4A 3TW