Business adviser Grant Thornton has helped Sheffield technology business Tangentix to boost its financial returns, just a month after the company secured £1.4m of backing to fund growth.
Tangentix, based at Electric Works on Sheffield’s Digital campus, is a leading developer of compression and distribution technology, which 3D video games companies use to cut download times, by up to two thirds.
The Bradford University spin-out’s technology makes it possible for games to be distributed digitally, making the process more convenient for customers, increasing margins for publishers, reducing the threat of piracy and increasing control over sales of secondhand games.
Tangentix is gaining global recognition from games publishers, operators of digital distribution systems and gamers and recently showcased its latest innovations at the Game Developers’ Conference in San Francisco.
With Grant Thornton’s help, Tangentix has now been able to secure research and development tax relief from the Government.
Tangentix’s chief executive, Ed French, said: “Obviously, the process of taking data and condensing it without losing image quality is extremely complex and its development has been lengthy and required considerable investment.
“We work closely with business consultant Alastair Walmsley who acts as our financial adviser and he introduced us to the team of R&D tax relief experts at Grant Thornton in Sheffield, led by Helen Millar. She has helped us to reclaim some of our development costs, enabling us to invest that money in further R&D.”
Although Tangentix couldn’t claim the highest rate of tax relief because it has received government grants, it still received £22,000 which has been crucial for the company’s investment plans, says Ed French.
Grant Thornton’s Alastair Walmsley said: “As a specialist in working with early stage technology businesses, R&D tax relief is always high on my list of areas to explore with clients.
“Helen has an impressive knowledge of the R&D landscape, and she invests time in fully understanding the nature of the businesses with which she works so that she can give an informed opinion about what can be claimed.”