Sauce Labs Software UK Limited - Limited company accounts 23.2

REGISTERED NUMBER: 11848560 (England and Wales)

Report of the Director and

Financial Statements for the Period 1 March 2022 to 31 January 2023

for

Sauce Labs Software UK Limited

Page

Company Information

1

Report of the Director

2

Report of the Independent Auditors

4

Income Statement

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTOR:

E A Deeds

REGISTERED OFFICE:

85 Great Portland Street,

London

W1W 7LT

REGISTERED NUMBER:

11848560 (England and Wales)

AUDITORS:

Thomas Taraz Rand

Chartered Accountants and Statutory Auditors

10 Jesus Lane

Cambridge

Cambridgeshire

CB5 8BA

The director presents his report with the financial statements of the company for the period 1 March 2022 to 31 January 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of providing automated web and mobile app testing solutions, enhancing software quality and efficiency through cloud-based platforms

DIRECTORS

E A Deeds has held office during the whole of the period from 1 March 2022 to the date of this report.

Other changes in directors holding office are as follows:

P K Joachim ceased to be a director after 31 January 2023 but prior to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is 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 he 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.

AUDITORS

The auditors, Thomas Taraz Rand, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

E A Deeds - Director

12 February 2024

Opinion

We have audited the financial statements of Sauce Labs Software UK Limited (the 'company') for the period ended 31 January 2023 which comprise the Income Statement, 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).

31 January 2023 which comprise the Profit and loss account, 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 January 2023 and of its loss 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 Report of the Directors, 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.

The comparative figures for the year ended 31st January 2023 are unaudited as the company was exempt under section 477 of the Companies Act 2006.

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

- the Report of the Directors has 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 Report of the Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Director.

Responsibilities of director

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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:

We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the following laws and regulations were most significant: the Companies Act 2006, FRS 102 'the Financial Reporting Standards applicable in the UK and Republic of Ireland" and relevant UK tax legislation. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures within the financial statements such as Health and Safety laws and regulations. Employment Legislation. The risk of non-compliance with Health and Safety laws and regulations was addressed through inquiries of management.

We made inquiries with management to understand whether there were any instances of non-compliance with laws-and regulations or whether they had any knowledge of actual, or suspected fraud. From the procedures performed we did not identify any matters relating to non-compliance with laws and regulation or matters in relation to fraud.

We evaluated directors and managements incentives and opportunities for fraudulent manipulation of the financial statements (including management override of controls) and determined the principal risks were related to Revenue recognition, the posting of manual journal entries, management bias through application of judgement and assumptions in significant accounting estimates particularly relating to staff bonus accruals

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and. performed our audit in accordance with auditing standards; For example, the further removed none compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standard would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non­ compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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.

Andrew Rand (Senior Statutory Auditor)

for and on behalf of Thomas Taraz Rand

Chartered Accountants and Statutory Auditors

10 Jesus Lane

Cambridge

Cambridgeshire

CB5 8BA

12 February 2024

TURNOVER

4,358,264

3,385,132

Administrative expenses

4,465,750

3,310,448

OPERATING (LOSS)/PROFIT

4

(107,486

)

74,684

Interest payable and similar expenses

100

-

(LOSS)/PROFIT BEFORE TAXATION

(107,586

)

74,684

Tax on (loss)/profit

1,705

12,695

(LOSS)/PROFIT FOR THE FINANCIAL PERIOD

(109,291

)

61,989

FIXED ASSETS

Tangible assets

5

39,233

30,257

CURRENT ASSETS

Debtors

6

955,179

727,047

Cash at bank

367,747

476,551

1,322,926

1,203,598

CREDITORS

Amounts falling due within one year

7

1,207,750

971,860

NET CURRENT ASSETS

115,176

231,738

TOTAL ASSETS LESS CURRENT LIABILITIES

154,409

261,995

PROVISIONS FOR LIABILITIES

7,454

5,749

NET ASSETS

146,955

256,246

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

146,954

256,245

146,955

256,246

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the director and authorised for issue on 12 February 2024 and were signed by:

E A Deeds - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 26 February 2019

-

194,256

194,256

Changes in equity

Issue of share capital

1

-

1

Total comprehensive income

-

61,989

61,989

Balance at 28 February 2022

1

256,245

256,246

Changes in equity

Total comprehensive income

-

(109,291

)

(109,291

)

Balance at 31 January 2023

1

146,954

146,955

1.	STATUTORY INFORMATION

Sauce Labs Software UK 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The accounts have been prepared under the historical cost convention.

Turnover

Turnover is recognised in respect of the recharge of costs incurred relating to the sale of software in the company's parent company using cost plus basis.

Tangible fixed assets

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

Financial instruments

Basic financial assets and basic financial liabilities as defined under section 11 of FRS 102, including trade and other debtors, trade and other creditors, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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.

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.

Capitalised costs to obtain revenue contracts

The company capitalises commission payments to the company's direct sales personal. These payments represent software subscription agreements within the parent company. The capitalised commission is released to the profit and loss account over the duration of the subscription agreement in the parent company. These costs are then recharged on a cost plus basis to the parent company.

Reporting period

The company shortened its accounting period by one month so as to end on 31st January. to maintain consistency with the year-end of the company's parent company. The comparatives figures disclosed are nor therefore wholly comparable.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 32 (2022 - 23 ) .

4.	OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging:

Period

Period

1.3.22

26.2.19

to

to

31.1.23

28.2.22

(Unaudited)

£

£

Depreciation - owned assets

17,059

7,447

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 March 2022

38,554

Additions

26,035

At 31 January 2023

64,589

DEPRECIATION

At 1 March 2022

8,297

Charge for period

17,059

At 31 January 2023

25,356

NET BOOK VALUE

At 31 January 2023

39,233

At 28 February 2022

30,257

6.

DEBTORS

31.1.23

28.2.22

(Unaudited)

£

£

Amounts falling due within one year:

Other debtors

536,802

386,636

Amounts falling due after more than one year:

Other debtors

418,377

340,411

Aggregate amounts

955,179

727,047

Included within other debtors due in less than one year is deferred commission payments of £435,905 (2022: £351,415) and in more than one year £418,377 (£340,411).

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.23

28.2.22

(Unaudited)

£

£

Trade creditors

25,315

12,001

Amounts owed to group undertakings

839,794

653,811

Taxation and social security

155,692

8,595

Other creditors

186,949

297,453

1,207,750

971,860

8.	TRANSACTIONS WITH RELATED PARTIES

During the period the company made sales of £4,358,264 (2022: £3,385,132) to company's parent company. The balance outstanding at the balance sheet date is £839,794 (2022: £653,835) and is repayable on demand and disclosed within group undertakings.

9.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the company's parent company Sauce Labs Inc, a company incorporated in the United States of America. The consolidated financial statements of the group can be obtained from the groups head office 450 Sansome Street, 9th Floor San Francisco, CA 94111 USA