Hybrid Software Group PLC Annual Report 2022 Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC Annual Report 2022 96 97 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 19. TAX (CONTINUED) The deferred tax asset at 31 December 2022 has been calculated based on the rates expected to be in force at the time of utilisation. The deferred tax liability at 31 December 2022 has been recognised as a result of acquisitions in different tax jurisdictions at the rates prevailing in those jurisdictions. The rates range from 17% to 30%. Deferred tax assets on trading losses of €21.25 million (2021: €17.50 million) and fixed asset temporary differences of €13.79 million (2021: €14.40 million) have not been recognised. The movement in deferred tax is as follows: 20. TRADE AND OTHER RECEIVABLES DUE AFTER MORE THAN ONE YEAR In thousands of euros 2022 2021 Trade receivables 54 216 Accrued revenue 3,664 3,466 Total trade and other receivables due after more than one year 3,718 3,682 Under some licensing arrangements, the Group recognises revenue at the commencement of the contract and payments become due during the term of the agreement. 21. INVENTORIES In thousands of euros 2022 2021 Finished goods 2,174 1,930 Components 1,739 378 Total inventories 3,913 2,308 22. TRADE AND OTHER RECEIVABLES In thousands of euros 2022 2021 Trade receivables 6,509 6,834 Accrued revenue 4,720 3,715 Deferred consideration receivable - 500 Allowance for doubtful debts (336) (134) Total trade and other receivables 10,893 10,915 Trade receivables less than 90 days past due are not considered impaired. The ageing analysis of total trade receivables is as follows: In thousands of euros 2022 2021 Under 90 days 6,213 6,283 Over 90 days and provided for 336 134 Over 90 days but not provided for 14 633 Total trade receivables 6,563 7,050 Impairment losses during the year were €9,000 (2021: €nil). In thousands of euros 2022 2021 Deferred tax assets Balance as at 1 January 2,756 959 Amounts credited to profit & loss 199 315 As a result of business combinations (see note 34) - 1,430 Foreign currency translation differences recognised in other comprehensive income (169) 52 Total recognised deferred tax assets before set-off as at 31 December 2,786 2,756 Deferred tax liabilities Balance as at 1 January 10,166 740 Amounts credited to profit & loss (853) (691) As a result of business combinations (see note 34) - 10,035 Foreign currency translation differences recognised in other comprehensive income 68 82 Total recognised deferred tax liabilities before set-off as at 31 December 9,381 10,166 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 22. TRADE AND OTHER RECEIVABLES (CONTINUED) Movements in the Group's provision for impairment of trade receivables are as follows: In thousands of euros 2022 2021 At 1 January 134 15 Charge during the year 202 119 At 31 December 336 134 The Directors have considered the nature of the customers, the historic levels of bad debts and the payment profile of customer contracts in reaching the value of the expected credit losses above. See Note 31 ‘Financial risk management’ for further disclosure regarding the credit quality of the Group’s trade debtors. 23. OTHER CURRENT ASSETS In thousands of euros 2022 2021 VAT receivable 294 254 Current finance lease receivables (see note 26) 85 25 Other items 46 18 Total other current assets 425 297 24. CASH AND CASH EQUIVALENTS In thousands of euros 2022 2021 Cash at bank and in hand 6,317 9,234 Total cash and cash equivalents 6,317 9,234 25. CAPITAL AND RESERVES Ordinary shares of €0.40 allotted, called up and fully paid: 2022 2021 In thousands of euros, except number of shares Number Value Number Value As at 1 January 32,909,737 13,164 11,835,707 4,734 Issued in business combination (see note 34) - - 21,074,030 8,430 As at 31 December 32,909,737 13,164 32,909,737 13,164 Share premium: In thousands of euros 2022 2021 As at 31 December 1,979 1,979 Merger reserve: The acquisition of HYBRID Software Group S.à r.l. (“HYBRID Software”) (see Note 34 ‘Acquisitions’) was a common control transaction due to the fact that both the Company and HYBRID Software were under the same parent company control. In accordance with section 612 of the Companies Act 2006, the premium over the par value of the consideration shares issued in exchange for 100% of the issued share capital of HYBRID Software has been credited to a merger reserve instead of share premium. The premium over par value is calculated as follows: In thousands of euros Contractual consideration (see note 34) 80,000 Fair value adjustment for consideration shares (4,555) Acquisition date market value of new shares issued as consideration (see note 34) 75,445 Par value of 21,074,030 shares issued (8,430) Premium over par value credited to merger reserve 67,015 In thousands of euros 2022 2021 As at 31 December 67,015 67,015 The fair value adjustment for the consideration shares is an adjustment to reflect the acquisition date fair value of the shares (see Note 34 ‘Acquisitions’).
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