Connectwise Ltd - Limited company accounts 16.1

REGISTERED NUMBER: 06517178 (England and Wales)

Report of the Directors and

Financial Statements for the Period 1 March 2015 to 31 December 2015

for

Connectwise Ltd

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Profit and Loss Account

4

Balance Sheet

5

Notes to the Financial Statements

6

DIRECTORS:

J Walker

M Nachtrab

A Bellini

D Bellini

SECRETARY:

J Walker

REGISTERED OFFICE:

10c Peckingham Street

Halesowen

West Midlands

B63 3AW

REGISTERED NUMBER:

06517178 (England and Wales)

AUDITORS:

Michael Dufty Partnership Ltd

The Counting House

56-61 Charlotte Street

St Paul's Square

Birmingham

West Midlands

B3 1PX

The directors present their report with the financial statements of the company for the period 1 March 2015 to 31 December 2015.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 March 2015 to the date of this report.

J Walker

M Nachtrab

Other changes in directors holding office are as follows:

A Bellini - appointed 14 July 2015

D Bellini - appointed 14 July 2015

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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.

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.

AUDITORS

The auditors, Michael Dufty Partnership Ltd, 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:

A Bellini - Director

30 September 2016

We have audited the financial statements of Connectwise Ltd for the period ended 31 December 2015 on pages four to nine. The

financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for

Smaller Entities (effective January 2015) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).

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.

Respective responsibilities of directors and auditors

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. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable

assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an

assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and

adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the

financial statements. In addition, we read all the financial and non-financial information in the Report of the Directors to identify

material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect

based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of

any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2015 and of its profit for the period then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion 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.

Matters on which we are required to report by exception

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; or

-	the directors were 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 Directors.

Robert MacLaren (Senior Statutory Auditor)

for and on behalf of Michael Dufty Partnership Ltd

The Counting House

56-61 Charlotte Street

St Paul's Square

Birmingham

West Midlands

B3 1PX

30 September 2016

TURNOVER

1,986,478

1,959,006

Cost of sales

1,189,240

708,055

GROSS PROFIT

797,238

1,250,951

Administrative expenses

775,651

530,650

OPERATING PROFIT and

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

2

21,587

720,301

Tax on profit on ordinary activities

3

(4,783

)

173,511

PROFIT FOR THE FINANCIAL PERIOD

26,370

546,790

FIXED ASSETS

Tangible assets

4

182,140

113,918

CURRENT ASSETS

Debtors

5

1,365,647

711,571

Cash at bank

1,267,204

580,596

2,632,851

1,292,167

CREDITORS

Amounts falling due within one year

6

1,907,534

539,472

NET CURRENT ASSETS

725,317

752,695

TOTAL ASSETS LESS CURRENT LIABILITIES

907,457

866,613

CREDITORS

Amounts falling due after more than one year

7

(68,472

)

(67,175

)

PROVISIONS FOR LIABILITIES

9

(22,993

)

(9,816

)

NET ASSETS

815,992

789,622

CAPITAL AND RESERVES

Called up share capital

10

100

100

Profit and loss account

11

815,892

789,522

SHAREHOLDERS' FUNDS

815,992

789,622

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective January 2015).

The financial statements were approved by the Board of Directors on 30 September 2016 and were signed on its behalf by:

A Bellini - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the Financial

Reporting Standard for Smaller Entities (effective January 2015).

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax.

Tangible fixed assets

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

Plant and machinery etc

-

at varying rates on cost

Deferred tax

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

2.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.3.15

to

Year Ended

31.12.15

28.2.15

£

£

Depreciation - owned assets

37,354

7,923

Foreign exchange differences

16,258

33,183

Directors' remuneration and other benefits etc

7,778

8,555

3.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit on ordinary activities for the period was as follows:

Period

1.3.15

to

Year Ended

31.12.15

28.2.15

£

£

Current tax:

UK corporation tax

(17,960

)

163,695

Deferred tax

13,177

9,816

Tax on profit on ordinary activities

(4,783

)

173,511

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 March 2015

121,841

Additions

105,576

At 31 December 2015

227,417

DEPRECIATION

At 1 March 2015

7,923

Charge for period

37,354

At 31 December 2015

45,277

NET BOOK VALUE

At 31 December 2015

182,140

At 28 February 2015

113,918

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.15

28.2.15

£

£

Trade debtors

470,921

355,228

Other debtors

894,726

356,343

1,365,647

711,571

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.15

28.2.15

£

£

Trade creditors

17,211

112,968

Taxation and social security

59,835

213,597

Other creditors

1,830,488

212,907

1,907,534

539,472

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.15

28.2.15

£

£

Other creditors

68,472

67,175

8.	OPERATING LEASE COMMITMENTS

The following operating lease payments are committed to be paid within one year:

31.12.15

28.2.15

£

£

Expiring:

Between one and five years

208,632

208,632

9.	PROVISIONS FOR LIABILITIES

31.12.15

28.2.15

£

£

Deferred tax

22,993

9,816

Deferred

tax

£

Balance at 1 March 2015

9,816

Provided during period

13,177

Balance at 31 December 2015

22,993

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.15

28.2.15

value:

£

£

100

Ordinary

1

100

100

11.

RESERVES

Profit

and loss

account

£

At 1 March 2015

789,522

Profit for the period

26,370

At 31 December 2015

815,892

12.	ULTIMATE PARENT COMPANY

ConnectWise Inc (incorporated in USA ) is regarded by the directors as being the company's ultimate parent company.

The company became a wholly owned subsidiary of ConnectWise Inc. on 20th January 2016.

13.	CAPITAL COMMITMENTS

31.12.15

28.2.15

£

£

Contracted but not provided for in the

financial statements

-

154,902

14.	RELATED PARTY DISCLOSURES

Labtech LLC

A company in which Mr Nachtrab is a director

During the period the company paid £722036 (28/02/15 £660025) to Labtech LLC for operational expense

recharges.Throughout the period the company was a subsidiary of Labtech LLC.

31.12.15

28.2.15

£

£

Amount due to related party at the balance sheet date

671,883

-

ConnectWise.com Inc

During the period the company bought goods and services for £ 443692 (28/02/15 £22273) from ConnectWise.com Inc. Mr A

Bellini and Mr D Bellini the directors of ConnectWise.com Inc were appointed as directors of the company on the 14th July

2015.

31.12.15

28.2.15

£

£

Amount due (to)/from related party at the balance sheet date

(420,904

)

86,276