Financial statements N otes to the company financial statements continued The Company directly holds 100% ownership in S4Capital 2 Ltd. The Company indirectly holds effectively 100% of ordinary shares in the entities as disclosed in Note 14 of the consolidated financial statements. The investments in subsidiaries are assessed annually to determine if there is any indication that any of the investments might be impaired. At the end of the reporting period, there was no indication of impairment (2020: nil). 2. Trade and other receivables 31 Dec 2021 31 Dec 2020 £000 £000 Value added tax 467 697 Corporate tax 774 669 Trade receivables 1,358 295 Other receivables and prepayments 1,104 317 Total 3,703 1,978 The loss allowance for receivables from subsidiaries is based on the three-stage impairment expected credit loss model. No material impairment arose. 3. Cash and cash equivalents 31 Dec 2021 31 Dec 2020 £000 £000 Cash and cash equivalents 3,454 560 Total 3,454 560 4. Trade and other payables 31 Dec 2021 31 Dec 2020 £000 £000 Trade payables 2,317 2,271 Other payables and accruals 1,096 1,542 Total 3,413 3,813 5. Equity A. Share capital The authorised share capital of S4Capital plc contain an unlimited number of Ordinary Shares having a nominal value of £0.25 per Ordinary Share. At the end of the reporting period, the issued and paid-up share capital of the Company consisted of 555,307,572 (2020: 542,065,458) Ordinary Shares having a nominal value of £0.25 per Ordinary Share. B. Reserves The following describes the nature and purpose of each reserve within equity: • Share premium Amount subscribed for share capital in excess of nominal value. The share premium is net of costs directly relating to the issuance of shares. • Merger reserves Amount subscribed for share capital in excess of nominal value as required by merger relief. • Other reserves Shares issued in the name of the Company to an employee benefit trust and shares issued in the name of S4Capital Group for deferred consideration. • Retained losses Retained earnings represents the net profit (loss) for the year and all other net gains and losses and transactions with shareowners (example dividends) not recognised elsewhere. 6. Related party transactions Details of compensation for key management personnel are disclosed on pages 71 to 91. The Company did not have any other related party transactions during the financial year (2020: nil). 7. Events occurring after the reporting period Details of events occurring after the reporting period are disclosed in Note 28 of the consolidated financial statements. 166 S4Capital Annual Report and Accounts 2021