Contents of the Financial Statements

for the Period Ended 30 June 2019

Directors' report period ended 30 June 2019

The directors present their report with the financial statements of the company for the period ended 30 June 2019

Directors

The director shown below has held office during the whole of the period from
1 July 2018 to 30 June 2019

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
24 March 2020

And signed on behalf of the board by:
Name: Graham Holmes
Status: Director

Profit And Loss Account

for the Period Ended 30 June 2019

Balance sheet

As at 30 June 2019

The notes form part of these financial statements

Balance sheet statements

For the year ending 30 June 2019 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The notes form part of these financial statements

Notes to the Financial Statements

for the Period Ended 30 June 2019

• 1. Accounting policies

  Basis of measurement and preparation

  FRS 101 ‘Reduced Disclosure Framework’.

  Turnover policy

  The Company has applied IFRS 15 Revenue from contracts with customers from its effective date for the Company, 30 June 2018. This did not have a material impact on the Company’s results. Accounting policy effective from 30 June 2018Turnover relates exclusively to services delivered to Western Digital Corporation, the company's ultimate US parent company. The Company recognises revenue over time upon transfer of control of promised services in an amount that reflects the consideration the Company expects to receive in exchange for those services. Under the new revenue recognition standard, the Company applies the following five step approach: (1) identify the contract, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognise revenue when a performance obligation is satisfied.Accounting policy effective prior to 30 June 2018Turnover comprises revenue recognised by the company in respect of goods and services supplied during the period, exclusive of Value Added Tax and trade discounts. Revenue is billed on a monthly basis and recognised when the service is delivered.

  Tangible fixed assets depreciation policy

  Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.Depreciation is provided on the following basis:The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.

  Other accounting policies

  DividendsEquity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meetingShare based paymentsThe cost of equity settled transactions with employees is measured by reference to the fair value of the Company’s ultimate parent undertaking at the date at which they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined by using an appropriate pricing model. In valuing equity settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of the shares of the Company’s ultimate parent undertaking, Western Digital Corporation.At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired. The movement in cumulative expense since the previous balance sheet date is recognised in the profit and loss account, with a corresponding entry in the capital contribution account in other reserves.Operating leases: the Company as lesseeRentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term.Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.PensionsThe Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.TaxationTax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a businesscombination, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.

Notes to the Financial Statements

for the Period Ended 30 June 2019

• 2. Employees

  	2019	2018
  Average number of employees during the period	32	31