Enghouse Interactive (UK) Limited - Limited company accounts 16.3

REGISTERED NUMBER: 04230977 (England and Wales)

for

Page

Company Information  

1

Strategic Report  

2

Report of the Director  

4

Report of the Independent Auditors  

6

Statement of Comprehensive Income  

8

Balance Sheet  

9

Statement of Changes in Equity  

10

Notes to the Financial Statements  

11

DIRECTOR:

S J Sadler

SECRETARY:

D C Bryson

REGISTERED OFFICE:

Imperium

Imperial Way

Reading

Berkshire

RG2 0TD

REGISTERED NUMBER:

04230977 (England and Wales)

SENIOR STATUTORY

AUDITOR:

Neil John Gadeke FCCA

INDEPENDENT AUDITORS:

Masons Statutory Auditors

337 Bath Road

Slough

Berkshire

SL1 5PR

SOLICITORS:

Ashfords Solicitors

Ashford House

Grenadier Road

Exeter

EX1 3LH

The director presents his strategic report for the year ended 31 October 2016.

REVIEW OF BUSINESS

The results for the year and the financial position at the year-end were considered satisfactory by the director

who expects continued growth in the foreseeable future.

During the year the company transitioned from previously extant UK GAAP to FRS 101 - Reduced

Disclosure Framework and has taken advantage of the disclosure exemptions allowed under this standard.

The Company's parent undertaking, Enghouse Systems Limited, was notified of and did not object to the use

of the EU-adopted IFRS disclosure exemptions. Details of the recognition or measurement differences

arising on the adoption of FRS 101 are included in notes to these financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of

risks.

The key business risks affecting the company are set out below.

Risks are reviewed by management on an on-going basis and appropriate processes put in place to monitor

and mitigate them.

(i)  Competition

The group operates in a highly competitive market particularly around price and product availability/quality.

This results not only in downward pressure on margins, but also the risk that we will not meet our customers'

expectations. In order to mitigate this risk, management review pricing on an on-going basis. Furthermore,

we undertake market research and customer surveys to understand our customers' expectations and whether

their needs are being met.

(ii) Economic, business and political environment

Periodic difficulties or changes in the domestic or international economic, business or political environment

particularly affecting the technology industry or industries from which we derive a significant portion of our

revenues, increase the likelihood that customers will unexpectedly delay, cancel or reduce the size of orders.

Management continues to invest in maintaining existing partner relationships and further establishing and

expanding relationships with partners such that any general decline in trading conditions can be countered by

expanding our opportunity base and attachment rate.

(iii)  Product development

As the technological, market and industry conditions in our business can change very rapidly, if we do not

successfully adapt our products to these changes, our revenues and profits can be damaged. This risk is

mitigated by continuing to invest significantly in developing new products and enhancing existing products

to respond to customer requirements, keeping pace with merging technologies as well as investing in an

on-going program of education and training of our sales force and partners.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of providing software and

services to medium and large enterprises. By combining voice recognition, speaker verification and CTI in

an open standards solution, we are able to provide solutions and services that solve business problems,

deliver reductions in operating costs, improve process efficiency and deliver a measurable return on

investment.

KEY PERFORMANCE INDICATORS

Given that the company is a fully owned subsidiary of Enghouse Systems Limited which is a public

company listed on the Toronto stock exchange, the Director is of the opinion that analysis using KPIs is not

necessary for an understanding of the development, performance or position of the business. KPIs for the

Enghouse Group can be found on page 1 of the Enghouse Systems Limited Annual Report 2016.

ON BEHALF OF THE BOARD:

S J Sadler - Director

17 July 2017

The director presents his report with the financial statements of the company for the year ended 31 October 2016.  

DIVIDENDS

No dividends will be distributed for the year ended 31 October 2016.

RESEARCH AND DEVELOPMENT

In order to maintain the competitive position of the Company, there is a dedicated development team at

Group level.

FUTURE DEVELOPMENTS

The company is a subsidiary of Enghouse Systems Limited, a publicly traded Canadian based software and

services company founded in 1984. Enghouse serves a number of distinct vertical markets through its two

divisions, each developing and selling enterprise oriented applications software.

Enghouse's overall strategy is to create a larger and more diverse enterprise software company through

strategic acquisitions and managed growth. The company is led by a seasoned team of proven executives

who have years of experience building and running successful software companies.

The external commercial environment is expected to remain competitive in 2016, while economic conditions

remain uncertain. However, we remain confident we will maintain our market position through leveraging

existing strong partner relationships and by continuing to invest in our product portfolio.

DIRECTOR

S J Sadler held office during the whole of the period from 1 November 2015 to the date of this report.

FINANCIAL RISK MANAGEMENT

The director is responsible for setting risk management policies. The company's operations expose it to a

variety of financial risks that include the effects of risk and liquidity. The company has processes in place to

ensure these risks are minimised.

i)   Credit risk

The company has implemented policies that require appropriate credit checks on potential customers  before

sales are made.

ii) Liquidity risk

The company aims to continuously assess and observe the level of funding required to finance the business

to ensure that it has sufficient liquid assets for financing its operations.

iii) Price risk and interest risk

The company does not consider that it is exposed to any material risks in relation to price or interest rates.

DISABLED EMPLOYEES

The Company gives full consideration to applications for employment from disabled persons where the

candidate's particular aptitudes and abilities are consistent with adequately meeting the requirements of the

job. Opportunities are available to disabled employees for training, career development and promotion.

Where existing employees become disabled, it is the Company's policy to provide continuing employment

wherever practicable in the same or an alternative position and to provide appropriate training to achieve this

aim.

EMPLOYEE INVOLVEMENT

The Company operates a framework for employee information and consultation which complies with the

requirements of the Information and Consultation of Employees Regulations 2005. Regular meetings are

held between local management and employees to allow a free flow of information and ideas.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

AUDITORS

The auditors,  Masons Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

ON BEHALF OF THE BOARD:

S J Sadler - Director

17 July 2017

We have audited the financial statements of Enghouse Interactive (UK) Limited for the year ended

31 October 2016 on pages eight to twenty five. The financial reporting framework that has been applied in

their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally

Accepted Accounting Practice), including Financial Reporting Standard 101 'Reduced Disclosure

Framework'.

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 director and auditors

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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

Opinion on financial statements

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Strategic Report and the Report of the Director 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 director's remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit.

Neil John Gadeke FCCA (Senior Statutory Auditor)

for and on behalf of Masons Statutory Auditors

337 Bath Road

Slough

Berkshire

SL1 5PR

17 July 2017

TURNOVER

3

24,571

22,911

Cost of sales

721

695

GROSS PROFIT

23,850

22,216

Administrative expenses

13,618

14,641

10,232

7,575

Other operating income

1,582

-

OPERATING PROFIT

11,814

7,575

Interest receivable and similar income

125

54

11,939

7,629

Interest payable and similar expenses

5

8

178

PROFIT BEFORE TAXATION

6

11,931

7,451

Tax on profit

8

2,335

1,582

PROFIT FOR THE FINANCIAL

YEAR

9,596

5,869

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE

INCOME FOR THE YEAR

9,596

5,869

FIXED ASSETS

Tangible assets

9

682

404

Investments

10

39,122

34,731

39,804

35,135

CURRENT ASSETS

Debtors

11

26,447

7,289

Cash at bank

5,735

7,350

32,182

14,639

CREDITORS

Amounts falling due within one year

12

26,768

14,152

NET CURRENT ASSETS

5,414

487

TOTAL ASSETS LESS CURRENT

LIABILITIES

45,218

35,622

CAPITAL AND RESERVES

Called up share capital

14

316

316

Share premium

15

20,972

20,972

Retained earnings

15

23,930

14,334

SHAREHOLDERS' FUNDS

45,218

35,622

The financial statements were approved by the director on 17 July 2017 and were signed by:

S J Sadler - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£'000

£'000

£'000

£'000

Balance at 1 November 2014

-

8,465

20,972

29,437

Changes in equity

Issue of share capital

316

-

-

316

Total comprehensive income

-

5,869

-

5,869

Balance at 31 October 2015

316

14,334

20,972

35,622

Changes in equity

Total comprehensive income

-

9,596

-

9,596

Balance at 31 October 2016

316

23,930

20,972

45,218

1.

STATUTORY INFORMATION

Enghouse Interactive (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.

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

The Company as parent of a group has taken advantage of the exemption under s400 of the

Companies Act 2006 not to prepare group accounts as it is a wholly owned subsidiary of Enghouse

Systems Limited which is a public company listed on the Toronto stock exchange and is included in

their consolidated financial statements.

2.

ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 101 "Reduced Disclosure Framework":

•

the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 Share-based Payment;

•

the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii),

B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations;

•

the requirements of paragraph 33(c) of IFRS 5 Non Current Assets Held for Sale and

Discontinued Operations;

•

the requirements of IFRS 7 Financial Instruments: Disclosures;

•

the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;

•

the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present

comparative information in respect of:

-

paragraph 79(a)(iv) of IAS 1;

-

paragraph 73(e) of IAS 16 Property, Plant and Equipment;

-

paragraph 118(e) of IAS 38 Intangible Assets;

-

paragraphs 76 and 79(d) of IAS 40 Investment Property; and

-

paragraph 50 of IAS 41 Agriculture;

•

the requirements of paragraphs 10(d), 10)(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and

111 of IAS 1 Presentation of Financial Statements;

•

the requirements of paragraphs 134 to 136 of IAS 1 Presentation of Financial Statements;

•

the requirements of IAS 7 Statement of Cash Flows;

•

the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting

Estimates and Errors;

•

the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;

•

the requirements in IAS 24 Related Party Disclosures to disclose related party transactions

entered into between two or more members of a group;

•

the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of

Assets.

Judgements and key sources of estimation uncertainty

Turnover

Tangible fixed assets

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

Short leasehold

-

Straight line over period of lease

Fixtures, fittings and equipment

-

33% on reducing balance

Financial instruments, assets and liabilities