Sword IT Solutions Limited - Period Ending 2020-12-31
Sword IT Solutions Limited - Period Ending 2020-12-31
Registration number:
Sword IT Solutions Limited
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Brebners
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Sword IT Solutions Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Statement of Income and Retained Earnings |
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Statement of Financial Position |
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Notes to the Financial Statements |
Sword IT Solutions Limited
Company Information
Directors |
D Bruce P Norgate J D Innes J F Mottard |
Registered office |
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Auditor |
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Sword IT Solutions Limited
Strategic Report for the Year Ended 31 December 2020
The directors present their strategic report for the year ended 31 December 2020.
Principal activity
The principal activity of the company is the provision of IT business solutions and services.
Fair review of the business
The directors are satisfied that the performance of the company for the year ended 31 Dec 2020 is in line with management's expectations.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2020 |
2019 |
|
Turnover |
£ |
25,210,739 |
22,457,012 |
Gross margin |
% |
66 |
53 |
Profit before tax |
£ |
2,524,047 |
1,329,639 |
Turnover has increased due to both the growth of existing accounts and the signature of contracts with new clients during the year. This in turn has led to improved cash generation and a strong balance sheet.
The company seeks to ensure that responsible business practices are fully integrated into the management of all of its operations and into the culture of all parts of its business. It believes that the consistent adoption of responsible business practice is essential for operational excellence, which in turn, ensures the delivery of its core objectives of sustained real growth in revenue and profitability.
In a company this size, the directors consider there are collectively numerous non-financial performance indicators but no individual indicator is more important than any other.
Sword IT Solutions Limited
Strategic Report for the Year Ended 31 December 2020
Principal risks and uncertainties
The company trades within the IT sector, specialising in the provision of IT Business Solutions and services. The company faces the business risks of the individual industries within which our clients operate and to specific business risks around the IT industry, such as technological changes. Management monitor these risks to ensure continuity of trade and to assist our clients to succeed within their own industry sectors. The company's results and strengthening statement of financial position from the retention of profits provide a good base to react to any risks that the company faces.
As we are in the midst of a global pandemic which is creating a huge level of uncertainty to the global economy, it would be remiss of the directors to not discuss the potential impact that COVID-19 could have on the current and future business activities and the actions that we as an organization have taken in order to minimize these risks.
Central to our strategy in addressing the COVID related risks was the welfare of our staff as well as assuring the continuity of our business activities. From the outset we have taken these risks extremely seriously and amongst the actions which we put in place from day one were:
• Identification of key business critical tasks and ensuring these could be carried out both in the office and at distance with appropriate back up in case of illness to key staff members.
• Daily meetings to address issues, and ensure regular communication to all clients and staff members.
• Clear communication plans to ensure all staff are spoken with on a regular basis and do not feel isolated.
• Home working strategies to ensure all staff can remain productive and carry out their duties from distance.
• Help lines set up to ensure that staff feel there is someone for them to raise any concerns with.
• Close tracking of government guidelines to ensure we confirm with current guidance and also understand the assistance available.
• Detailed tracking of working capital and cash requirements in order to ensure the company continues to be well managed.
Although at the date of writing this report the pandemic is clearly not yet over, our business to date has proven extremely robust and has performed extremely well during this period of crisis, our cashflow has remained strong, our pipeline of opportunities has also remained robust and our profitability has actually increased during this period.
Our underlying strategy of ensuring a strong element of annuity based recurring revenue has ensured that the underlying business has remained stable and our risk relating to projects being deferred during these uncertain times has therefore been minimized.
We have taken advantage of government assistance where available, deferred payments where possible, renegotiated with landlords and also made use of the furlough scheme where appropriate. The majority of our staff have been able to carry out their responsibilities from distance and as at the time of writing this report we currently have no employees remaining on the furlough scheme.
Although there is clearly still uncertainty in relation to the global economy we have adapted well to working at distance and we indeed specialize in this area assisting our clients to do the same, some of the changes in working practices will clearly stay with us for the medium to long term and we feel confident and well placed ensure the long-term health of the business irrespective of what the future holds.
Financial instruments
Objectives and policies
The company uses basic financial instruments, other than derivatives, comprising bank balances, and various other items such as trade debtors and trade creditors. The main purpose of these instruments is to raise funds for and finance the company's operations.
It is and has been throughout the year under review, the company’s policy that no trade in non-basic financial instruments shall be undertaken.
The company does not enter into any formal hedging arrangements.
Sword IT Solutions Limited
Strategic Report for the Year Ended 31 December 2020
Price risk, credit risk, liquidity risk and cash flow risk
Liquidity, credit, price and cash flow risks are managed by the directors on a constant basis to ensure the company maintains adequate cash flows to serve its working capital requirements.
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling.
Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses by authorisation of credit terms to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations and ensuring regular monitoring of amounts outstanding for both time and credit limits in trade debtors.
Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on a variable rate debt. The company manages this risk, where significant, and does not maintain any derivatives or complex financial instruments as explained above.
Future developments
The principal activity and trading performance of the company is expected to remain consistent for the
foreseeable future.
Approved by the
.........................................
Director
Sword IT Solutions Limited
Directors' Report for the Year Ended 31 December 2020
The directors present their report and the financial statements for the year ended 31 December 2020.
Directors of the company
The directors who held office during the year were as follows:
Disclosure of information in the Strategic Report
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors' Report. It has done so in respect of future developments and financial instruments.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the Board on
.........................................
P Norgate
Director
Sword IT Solutions Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 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.
Sword IT Solutions Limited
Independent Auditor's Report to the Members of Sword IT Solutions Limited
for the Year Ended 31 December 2020
Opinion
We have audited the financial statements of Sword IT Solutions Limited (the 'company') for the year ended 31 December 2020, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Sword IT Solutions Limited
Independent Auditor's Report to the Members of Sword IT Solutions Limited
for the Year Ended 31 December 2020
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
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; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
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, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the 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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities (set out on page 6), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Sword IT Solutions Limited
Independent Auditor's Report to the Members of Sword IT Solutions Limited
for the Year Ended 31 December 2020
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the company and the industry in which it operates, we determined that the principle risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006), UK corporate taxation laws, health and safety legislation and data protection legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.
We understood how the company is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company's financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management's incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
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.
......................................
For and on behalf of
130 Shaftesbury Avenue
W1D 5AR
Sword IT Solutions Limited
Statement of Income and Retained Earnings for the Year Ended 31 December 2020
Note |
2020 |
2019 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
- |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
14,299 |
10,214 |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Retained earnings brought forward |
272,546 |
(804,462) |
|
Retained earnings carried forward |
2,396,267 |
272,546 |
Sword IT Solutions Limited
Statement of Financial Position as at 31 December 2020
Note |
2020 |
2019 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
515,644 |
515,644 |
|
Share premium reserve |
2,742,951 |
2,742,951 |
|
Profit and loss account |
2,396,267 |
272,546 |
|
Shareholders' funds |
5,654,862 |
3,531,141 |
Approved and authorised by the
......................................................................
P Norgate
Director
Company registration number: 03165591
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the company is the provision of consultancy services which help clients to improve business performance and create new business opportunities through the effective application of information technology.
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
Summary of disclosure exemptions
The entity satisfies the criteria of being a qualified entity as defined in FRS 102. Its financial statements are consolidated into the financial statement of Sword Group SE, which can be obtained from sword-group.com/en/investors. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) No cash flow statement has been presented for the company.
(b) Disclosures in respect of financial instruments have not been presented.
(c) No disclosure has been given for the aggregate remuneration of key management personnel. .
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Going concern
The company made a profit after tax for the year ended 31 December 2020 and had net assets of £5,654,862 at that date.
As we are in the process of gradually moving out of the COVID crisis we are fortunate to be able to report that over the past year business has been robust and the financial performance of the business has remained strong in spite of the challenging economic climate.
The actions we put in place to ensure we protected the welfare of our staff as well as the financial performance of the business have been successful, and the organisation has performed strongly.
Although at the date of writing this report the pandemic is clearly not yet over, our business to date has proven extremely robust and has performed extremely well during this period of crisis, our cashflow has remained strong, our pipeline of opportunities has also remained robust and our profitability has actually increased during this period.
Our underlying strategy of ensuring a strong element of annuity based recurring revenue has ensured that the underlying business has remained stable and our risk relating to projects being deferred during these uncertain times has therefore been minimized.
As such, having made enquiries, the directors have a reasonable expectation that the company has adequate resources to continue operating for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
Judgements and key sources of estimation uncertainties
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. Key assumptions and other estimation uncertainty may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
Judgements and estimates that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
Onerous lease provision
The onerous lease provision is calculated based on management's estimates of lease payments, business rates, occupancy, subject to future events and are reviewed annually.
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Revenue recognition
Turnover represents the fair value of consideration received in respect of sales of software, professional services and support services to external customers, net of Value Added Tax.
The company generates revenues from sales of its own software products directly to end users, sales of consultancy services, and customer support services.
Revenues from the sale of the company's own perpetual software licences are recognised where there is persuasive evidence of an agreement with a customer, delivery of the software has taken place, revenue collection is probable, the fee is fixed and determinable and all contingencies relating to the sale have been resolved. Periodic software licences are recognised over the period to which they relate.
Revenues from consultancy services are normally recognised as services are performed, on a time and materials basis. Occasionally consultancy projects are sold on a fixed price basis. In these cases, the profitability of the project is measured on a monthly basis and any loss is recognised immediately in the profit and loss account. If the project to date is profitable then revenue is recognised on a percentage completion basis of consultant hours worked against total estimated hours to complete the fixed price contract.
Revenues from support contracts are recognised rateably over the term of the contract. Revenues from hosting activities are recognised over the period of usage.
Revenues from multi component contracts are broken down based upon the contractual terms and rates set out in the contracts, derived from the standalone sales prices published in the company price list. Revenues from each component is then recognised based upon the accounting policies stated above.
Government grants
Government grants have been recognised when there is reasonable assurance that the entity will comply with the conditions attaching to them and that the grants will be received. The grants have been recognised based on the accrual model as a grant relating to revenue, which has been recognised in other operating income in the period in which it becomes receivable.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
15% straight line |
Computer equipment |
3 years straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Operating leases are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term on a straight-line basis.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due.
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2020 |
2019 |
|
Rendering of services |
|
|
The analysis of the company's turnover for the year by market is as follows:
2020 |
2019 |
|
UK |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2020 |
2019 |
|
Government grants |
|
- |
Operating profit |
Arrived at after charging/(crediting)
2020 |
2019 |
|
Depreciation expense |
|
|
Foreign exchange losses/(gains) |
|
( |
Other interest receivable and similar income |
2020 |
2019 |
|
Other interest receivable |
|
|
Interest payable and similar expenses |
2020 |
2019 |
|
Interest expense on other finance liabilities |
|
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2020 |
2019 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the company during the year, analysed by category was as follows:
2020 |
2019 |
|
Consulting and support |
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2020 |
2019 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
271,500 |
271,500 |
During the year the number of directors who were receiving benefits was as follows:
2020 |
2019 |
|
Accruing benefits under money purchase pension scheme |
|
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
In respect of the highest paid director:
2020 |
2019 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
115,500 |
115,500 |
Auditors' remuneration |
2020 |
2019 |
|
Audit of the financial statements |
|
|
Non-audit fees |
||
Non-audit services |
|
|
Auditors remuneration |
30,850 |
32,350 |
Taxation |
Tax charged/(credited) in the income statement
2020 |
2019 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
434,974 |
29,363 |
|
Deferred taxation |
||
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
(34,648) |
223,268 |
Tax expense in the income statement |
|
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2019 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2020 |
2019 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
( |
( |
Deferred tax (credit)/expense from unrecognised tax loss or credit |
( |
|
Tax increase from effect of capital allowances and depreciation |
|
|
Over provision of corporation tax in prior period |
( |
- |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
- |
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
2020 |
Asset |
Effect of trading losses carried forward |
- |
Pension accrual |
|
Accelerated capital allowances |
|
Other timing differences |
|
|
2019 |
Asset |
Effect of trading losses carried forward |
|
Pension accrual |
|
Accelerated capital allowances |
|
Other timing differences |
|
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Tangible assets |
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
||
At 1 January 2020 |
|
|
Additions |
|
|
At 31 December 2020 |
|
|
Depreciation |
||
At 1 January 2020 |
|
|
Charge for the year |
|
|
At 31 December 2020 |
|
|
Carrying amount |
||
At 31 December 2020 |
|
|
At 31 December 2019 |
|
|
Debtors |
Note |
2020 |
2019 |
|
Trade debtors |
|
|
|
Amounts owed by group undertakings |
|
|
|
Other debtors |
|
|
|
Prepayments and accrued income |
|
|
|
Deferred tax assets |
|
|
|
Total current trade and other debtors |
|
|
Cash and cash equivalents |
2020 |
2019 |
|
Cash at bank |
|
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Creditors |
Note |
2020 |
2019 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to group undertakings |
- |
|
|
Social security and other taxes |
|
|
|
Other payables |
|
|
|
Accruals and deferred income |
|
|
|
|
|
Provisions |
Onerous contracts |
|
At 1 January 2020 |
|
Movement in the year |
( |
At 31 December 2020 |
|
This provision relates to an onerous lease contract on the company's main premises. This lease has 7 years remaining and lease payments are expected to be made throughout the lease term. There is some uncertainty over the amount of payments relating to future business rates. The rates predicted by the provision are compared to the actual rates charged each year to ensure no adjustments to the provision are required. No reimbursements are expected.
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Pension commitments |
Included within the balance sheet are pension commitments amounting to £68,691 (2019 - £59,086).
Share capital |
Allotted, called up and fully paid shares
2020 |
2019 |
|||
No. |
£ |
No. |
£ |
|
|
|
515,644 |
|
515,644 |
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Reserves |
The share premium account contains the premium arising on the issue of equity shares, net of issue expenses.
The profit and loss account includes all current and prior retained earnings and accumulated losses.
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2020 |
2019 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Related party transactions |
Amounts due to and from group undertakings at 31st December 2020 are aggregated as permitted by FRS 102 and shown separately in debtors and creditors.
In accordance with FRS 102 paragraph 33.1A, exemption is taken not to disclose transactions in the year between wholly owned group undertakings.
During the year management charges payable to other parent undertakings, Sword SA, amounted to £117,017 (2019: £139,793).
Parent and ultimate parent undertaking |
The company's immediate parent is
Ultimate control vests with
Sword Group SE, whose registered office is situated at Route d'Arlon 2-4, L-8399 Windhof, Luxembourg, is the parent of the largest and smallest group preparing consolidated financial statements incorporating the results of the company.