Ancoris Limited - Limited company accounts 22.3

REGISTERED NUMBER: 04830784 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Period 29 July 2021 to 31 July 2022

for

Ancoris Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Statement of Directors' Responsibilities

6

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

15

Notes to the Financial Statements

16

DIRECTORS:

A M Ferreira Azevedo Mar

R J Haxton

SECRETARY:

D W J McLeman

REGISTERED OFFICE:

5a Frascati Way

Maidenhead

Berkshire

SL6 4UY

REGISTERED NUMBER:

04830784 (England and Wales)

AUDITORS:

WP Audit Limited

Statutory Auditors

5a Frascati Way

Maidenhead

Berkshire

SL6 4UY

The directors present their strategic report for the period 29 July 2021 to 31 July 2022.

Principal Activities

Ancoris is a successful Cloud Services Provider. The principal activity of the Company during the year was that of providing cloud solutions and services to enable its enterprise and corporate customers to transform and innovate. The Company offers a full suite of services across Google Cloud and holds the top partnership accreditation as a Google Premier Partner.

Areas of capability include:

- Professional Services (consulting, deployment and support services)

- Application Development (both the development of our own bespoke IP for individual client requirements and productised IP for resale)

- Managed Services (across infrastructure, data, applications and other Google Cloud environments)

- Resale of third party services or IP (primarily that of Google Cloud)

Our principal solution areas include:

- Data, Analytics and AI - our GCP Data Analytics & AI practice brings together a team of experienced data scientists, mathematicians and engineers, who collaborate with customer teams to deliver actionable insights for business performance optimisation through leading-edge data analytics and machine learning solutions.

- Cloud Modernisation - Transforming customers' IT by putting cloud infrastructure in place, improving performance, adding new capabilities and increasing . Enable businesses to modernise their workloads on world-class secure and cloud-native infrastructure, covering datacentre, containers, storage, database, application services, machine learning, as well as Geolocation capabilities through the use of the Google Maps Platform.

- Application Modernisation - helping customers to modernise their business operations and develop new services through the development of new applications using mobile and Google Cloud Platform technology. These new applications are typically delivered and supported on recurring contracts.

- Workplace Modernisation - helping clients to change their working practices through the adoption of collaborative cloud technologies and applications such as Google Workspace.

REVIEW OF BUSINESS

Ancoris continued good development in the FY21-22 financial year against its long-term business plans and delivered solid revenue growth.

The cloud services market continues to grow rapidly, bringing with it new business opportunities and competition. Ancoris continued investment in further innovation and expansion of the higher value practices has continued to generate healthy growth, as well as deeper and long-term relationships with its customers.

We have invested heavily in developing cloud skills, creating an academy programme (Ancoris Launchpad) which successfully delivered talent across all areas of the business. Our employee engagement and churn are considerably better than market standards in our industry.

Our revenue grew to £22.7M in FY21-22 from £16.3M in FY20-21, due to growth in new business and expansion of existing customer relationships.

PRINCIPAL RISKS AND UNCERTAINTIES

There are a number of principal risks and uncertainties which could have a material effect on the Company's long-term performance and cause actual results to differ materially from expected and historical results. The Company's management continually seeks to identify risks and implement plans to mitigate the Company's exposure.

- COVID-19: Following the introduction of government lockdown measures in March 2020 and subsequent lockdowns in 2020 and 2021, the Directors continued to implements similar actions to the previous year:

- Enable all staff to work from home. Business continued as usual using Google Workspace for collaboration, including Google Meet, allowing all employees to continue team and customer meetings remotely.

- No employees were furloughed and the Company did not make use of the government's coronavirus job retention scheme. All employees were paid their full salary, pay increases and bonuses awarded as usual commensurate with business and personal performance.

- Office safety measures in line with guidance and best practice.

- The company continued to monitor the credit worthiness of, and payment terms for, its customers with particular reference to clients in sectors most affected by the pandemic.

- Market Risks: Despite the current macroeconomic factors threatening a slowdown in the economy, the cloud services market continues to grow rapidly and disrupt the industry. The Company's growth is closely tied to Google's own execution in the market. Most analysts report the emergence of Amazon Web Services, Microsoft Azure and Google Cloud as the three leading vendors, all of whom are growing revenues. Google Cloud continues to grow at similar or faster rates than its two major competitors.The company's management monitors the market positions of the three vendors and believes that its close relationship with Google means it is well placed to take advantage of the continued market migration from on-premise solutions to cloud services, as well as new data and application modernisation projects.

- Vendor Dependency: Ancoris is highly dependent on its relationship with Google Cloud. There is a broad cross-functional focus within the company to maintain its top-tier relationship as a Google Premier Partner. This means investing in staff training and certifications, achievement of Google Cloud "Specialisations" and "Expertises" and joint business planning. Google's management are committed to 100% partner attachment to their customers. The Company is one of a small number of UK partners in the top Premier tier with a 100% focus on Google Cloud. The company's management sees no reason to believe that it will not continue to maintain its position with Google for the foreseeable future.

- Customer Dependency: The Company has limited dependency on individual customers.

- Recruitment and Retention: Recruitment and retention of talent are vital to the Company's future success. The Company's position and brand in the growing cloud services market and its relationship with Google has allowed it to meet its recruitment needs to date. The Company invests in training for all its staff, offers competitive salary and benefits, has an active social club and corporate and social responsibility initiatives and a bonus scheme based on company performance to aid retention.

- Competitive Risk: The market in which the Company operates is competitive. The company is passionate about customer success and being trusted to deliver. The focus on strong customer relationships, the development of performant solutions and competitive commercial models mitigate the competitive risk and our demonstrated in the Company's renewal rates and increasing ARR.

- Information Security: The legislative environment, with the arrival of the GDPR, and the focus on security as companies transition to cloud services mean that an ongoing attention to information security is core to the business. The company introduced new terms of business during the financial year including Data Processing Agreements which are compliant with Data Processing legislation including the GDPR. It maintains the Cyber Essentials Plus certification which is the standard for doing business with the UK Government. All the Google services which we offer to our customers are supported by their certifications including ISO/IEC 27001/ 27017/ 27018. As the UK left the European Union, the Company's management continues to monitor any changes to the data compliance requirements affecting the Company and its customers.

- Currency Risk: The Company trades predominantly with UK headquartered businesses in Sterling and has minimal currency risk.

- Liquidity Risk: The company has no borrowings and maintains sufficient cash reserves for the continued operation of the business and foreseen investments.

RESULTS AND KEY PERFORMANCE INDICATORS

KPIS:

- Revenue increased from £16.3M (FY20-21) to £22.7M (FY21-22)

- PBT was £0.9M (compared to £1M in FY20-21) reflecting the investments made in staff during the year.

- Cash balances increased from £4.4M (FY20-21) to £8.9M (FY21-22).

- Average number of employees increased from 42 in FY20-21 to 67 in FY21-22.

GOVERNANCE

In August 2021, the Company secured a significant investment from Beech Tree Private Equity (BTPE), a growth investor in tech and tech-enabled businesses. The partnership will provide funds and expertise to accelerate the company's growth and respond to growing customer demand for our skills and capabilities. The Company holds monthly Board meetings to monitor and report on all core metrics and initiatives, and regular all-hands meetings to communicate direction and performance to, and gain feedback from, its employees.

ON BEHALF OF THE BOARD:

R J Haxton - Director

8 February 2023

The directors present their report with the financial statements of the company for the period 29 July 2021 to 31 July 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of providing cloud solutions and services to UK headquartered enterprise and corporate customers.

DIVIDENDS

No dividends will be distributed for the period ended 31 July 2022.

DIRECTORS

The directors who have held office during the period from 29 July 2021 to the date of this report are as follows:

D W J McLeman - resigned 26 April 2022

A McLeman - resigned 29 July 2021

A M Ferreira Azevedo Mar - appointed 29 July 2021

R J Haxton - appointed 26 April 2022

POLITICAL DONATIONS AND EXPENDITURE

During the year, the company made charitable donations of £4,170 (2021: £1,042) to a variety of charities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

R J Haxton - Director

8 February 2023

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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.

Opinion

We have audited the financial statements of Ancoris Limited (the 'company') for the period ended 31 July 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 July 2022 and of its profit for the period 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 Auditors' 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 directors' 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 financial statements are 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 in the Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters 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 the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the 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 or the Report of the Directors.

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 six, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlines 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud.

-The engagement partners ensured that the engagement team collectively had the appropriate competence, capabilities and skill to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the recruitment sector;

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

-we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instance of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

-understanding the design of the company's remuneration policies.

To address the risk of fraud through management bias and override of controls, we;

-performed analytical procedures to identify unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-investigated the rationale behind significant or unusual transactions.

Audit response to risks identified

In response to the risk of irregularities and non-compliance with laws and regulations; we designed procedures which included, but were not limited to;

-agreeing financial statement disclosures to underlying supporting documentation;

-enquiring of management as to actual and potential litigation and claims; and

-reviewing correspondence with HMRC, relevant regulators and company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment of collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Philippa Duckworth BSc FCCA (Senior Statutory Auditor)

for and on behalf of WP Audit Limited

Statutory Auditors

5a Frascati Way

Maidenhead

Berkshire

SL6 4UY

8 February 2023

TURNOVER

3

22,737,890

16,285,195

Cost of sales

(15,654,018

)

(10,107,360

)

GROSS PROFIT

7,083,872

6,177,835

Administrative expenses

(6,288,324

)

(5,164,764

)

795,548

1,013,071

Other operating income

8,360

15,840

OPERATING PROFIT

5

803,908

1,028,911

Interest receivable and similar income

149,141

58

953,049

1,028,969

Interest payable and similar expenses

6

(57,106

)

-

PROFIT BEFORE TAXATION

895,943

1,028,969

Tax on profit

7

(20,152

)

(65,225

)

PROFIT FOR THE FINANCIAL PERIOD

875,791

963,744

PROFIT FOR THE PERIOD

875,791

963,744

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

875,791

963,744

FIXED ASSETS

Intangible assets

9

648,743

483,233

Tangible assets

10

218,141

191,981

866,884

675,214

CURRENT ASSETS

Debtors

11

13,003,512

7,679,183

Cash at bank

8,875,838

4,424,098

21,879,350

12,103,281

CREDITORS

Amounts falling due within one year

12

(14,199,836

)

(6,870,975

)

NET CURRENT ASSETS

7,679,514

5,232,306

TOTAL ASSETS LESS CURRENT LIABILITIES

8,546,398

5,907,520

PROVISIONS FOR LIABILITIES

14

(53,463

)

(18,511

)

DEFERRED INCOME

15

(6,365,163

)

(4,858,918

)

NET ASSETS

2,127,772

1,030,091

CAPITAL AND RESERVES

Called up share capital

16

105

92

Share premium

17

337,438

115,561

Capital redemption reserve

17

28

28

Retained earnings

17

1,790,201

914,410

SHAREHOLDERS' FUNDS

2,127,772

1,030,091

The financial statements were approved by the Board of Directors and authorised for issue on 8 February 2023 and were signed on its behalf by:

R J Haxton - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 August 2020

92

1,193,832

115,561

28

1,309,513

Prior year adjustment

-

(790,463

)

-

-

(790,463

)

As restated

92

403,369

115,561

28

519,050

Changes in equity

Dividends

-

(452,703

)

-

-

(452,703

)

Total comprehensive income

-

963,744

-

-

963,744

Balance at 28 July 2021

92

914,410

115,561

28

1,030,091

Changes in equity

Issue of share capital

13

-

221,877

-

221,890

Total comprehensive income

-

875,791

-

-

875,791

Balance at 31 July 2022

105

1,790,201

337,438

28

2,127,772

1.	STATUTORY INFORMATION

Ancoris Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The principal place of business is Lily Hill House, Lily Hill Road, Bracknell, RG12 2SJ.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention.

The accounts are prepared on a going concern basis as in the opinion of the directors the company has sufficient finance available to it to meet its obligations as they fall due for the foreseeable future, that is at least 12 months from the date of approval of the accounts.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The company does not make significant estimates and assumptions concerning the future that have a material effect of the reported position shown in the accounts.

Turnover

Turnover from resale of third party products, software and subscriptions is recognised on supply. Turnover from Ancoris services including support, consulting and software application services is recognised on a monthly basis over the term of the contract. All amounts are exclusive of Value Added Tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2012 and 2013, has been amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

33% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Tangible fixed assets are included at cost less depreciation and impairment.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

(i) Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss. Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when (a) the contractual rights to the cash flows from the financial asset expire or are settled, (b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or (c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on software development directly associated with on-going revenue streams is capitalised and amortised over 3 years. Other research and development is expensed in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

Period

Period

29.7.21

1.8.20

to

to

31.7.22

28.7.21

£

£

United Kingdom

19,746,983

14,716,200

Europe

1,365,865

956,686

Rest of the world

1,625,042

612,309

22,737,890

16,285,195

4.	EMPLOYEES AND DIRECTORS

Period

Period

29.7.21

1.8.20

to

to

31.7.22

28.7.21

£

£

Wages and salaries

3,589,700

3,146,551

Social security costs

435,236

353,135

Other pension costs

120,610

101,065

4,145,546

3,600,751

The average number of employees during the period was as follows:

Period

Period

29.7.21

1.8.20

to

to

31.7.22

28.7.21

Directors

2

2

Employees

66

42

68

44

Period

Period

29.7.21

1.8.20

to

to

31.7.22

28.7.21

£

£

Directors' remuneration

351,691

42,270

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

2

Information regarding the highest paid director for the period ended 31 July 2022 is as follows:

Period

29.7.21

to

31.7.22

£

Emoluments etc

253,911

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period

Period

29.7.21

1.8.20

to

to

31.7.22

28.7.21

£

£

Other operating leases

188,155

72,426

Depreciation - owned assets

84,452

77,238

Loss/(profit) on disposal of fixed assets

282

(735

)

Development costs amortisation

334,620

340,047

Auditors' remuneration

12,750

12,360

Foreign exchange differences

(22,179

)

37,674

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

Period

29.7.21

1.8.20

to

to

31.7.22

28.7.21

£

£

Loan interest

57,106

-

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

Period

Period

29.7.21

1.8.20

to

to

31.7.22

28.7.21

£

£

Current tax:

UK corporation tax

(14,800

)

3,021

Deferred tax

34,952

62,204

Tax on profit

20,152

65,225