Company Registration No. 08788914 (England and Wales)
Contino Solutions Limited
Director's Report and Consolidated Financial Statements
For the Year Ended 31 December 2021
Contino Solutions Limited
Contents
Page
Company information
1
Strategic report
2 - 7
Directors' report
8 - 9
Directors' responsibilities statement
10
Independent auditor's report
11 - 13
Group statement of comprehensive income
14
Group balance sheet
15
Company balance sheet
16
Group statement of changes in equity
17
Company statement of changes in equity
18
Group statement of cash flows
19
Notes to the financial statements
20 - 38
Contino Solutions Limited
Company Information
Page 1
Directors
Michael Chalmers
(Appointed 1 September 2021)
Elisa De Rocca-Serra
(Appointed 31 December 2021)
Yatin K Mahandru
(Appointed 27 May 2022)
Company number
08788914
Registered office
37 Commercial Road
Poole
Dorset
BH14 0HU
Auditor
Azets Audit Services
37 Commercial Road
Poole
Dorset
BH14 0HU
Business address
34-37 Liverpool Street
London
EC2M 7PP
Contino Solutions Limited
Strategic Report
For the year ended 31 December 2021
Page 2

The directors present the strategic report for the year ended 31 December 2021.

Fair review of the business

 

About Contino

Contino Solutions Limited is a leading transformation consultancy that helps large, heavily-regulated enterprises to become fast, agile and competitive. "We Advise" by assessing clients’ maturity and creating a cutting-edge strategy to help them succeed. "We Build" - everything from initial lighthouse projects to enterprise-grade platforms and products. "We Upskill" by giving clients the skills they need to be competitive in a cloud-native world.

 

Since 2014, we’ve grown to a global team and we here to challenge the status quo. Since then, we have delivered over 300 transformation projects with over 150 of the world’s largest brands and partner with the leading cloud providers. Contino were recognised as one of the top 25 start-ups to work for by LinkedIn in 2018 and 2019. The industries that we serve include: Banking and Financial Services; Insurance; Public Sector; Communications, Media & Technology; Energy, Utilities & Natural Resources; Life Sciences & Healthcare; Travel & Transport; Digital Native & Start-Ups.

 

Our Partners

Contino partners with the world’s leading cloud providers and cutting-edge digital outfits to accelerate our customer’s transformation. Contino is a Premier Services member of the Amazon Web Services Partner Network (APN), a Google Cloud Platform Premier Partner and a leading Microsoft Gold partner with multiple Gold competencies. Our technology partners include: FinOps Foundation, Kubernetes, Snowflake, Databricks, GitLab, Cloud Native Computing Foundation, The Linux Foundation and Cloud Security Alliance.

 

Acquisition

Contino was acquired in October 2019 by Cognizant, one of the world’s leading professional services companies. Since then, we have been in a stronger position to offer, and more readily deploy, transformative solutions for clients.  As part of Cognizant, Contino has been working in close partnership with its Digital Business practices and have had even more opportunities to scale its offerings globally and extend its success. Contino and Cognizant’s shared expertise in cloud technologies, DevOps, digital engineering, and data analytics, along with the experience of serving many of the same leading clients, enabled Contino to seize new global opportunities. During 2020 and 2021 Contino delivered a number of successful projects in partnership with Cognizant.

 

Contino Solution Limited owns 100% of its Australian subsidiary – Contino Pty Ltd. The ultimate Parent company of Contino Solution Limited has been Cognizant Domestic Holdings Corporation since the acquisition by Cognizant in October 2019. The immediate parent remains Contino Holdings Inc.

 

FY21 Results

Contino is still a fast-growing company. Our Revenue, Profits and Bookings continue to increase year on year. 2021 produced strong results with record high Revenue and Booked Work. Revenues for 2021 closed at £35,715,250 (2020: £26,869,101), representing a 33% increase year on year. This was achieved by growth in our existing customer accounts as well as the increase in sales of new business. Contino secured £47,441,435 in booked contracts in 2021 (2020 bookings: £30,684,854), which represents 55% increase year on year. Contino continues to build trusted relationships with its customers, using a consultative, outcome-based, value-driven methodologies. We define solutions to customer problems that will deliver meaningful business change, focusing on customer value. In addition to a distinctive approach to helping clients accelerate their digital transformation, our talented consulting teams, unique operating model, as well as innovative engineering culture contributed to the successful performance of the company.

 

The company results for the year show net profit of £2,865,620 (2020 loss: £3,598,086). Our net profit continues to be impacted by Retention Payments that were agreed as part of the SPA when Cognizant acquired Contino. This impact is however decreasing: £2.1m in 2021 vs £6.2m in 2020. Retention payments are included in our Administrative Expenses.

 

The company had net asset of £9,368,202 in the year ending 2021 (2020: £6,502,582). This increase in net assets was driven mainly by 1) increase in Cash by £1,071,915, which was achieved by increased collections on higher sales as well as the repayment of the loan by Contino Pty Ltd; 2) reductions in creditors - a loan from Cognizant as well as reduction in VAT liability. Contino took advantage of the COVID-19 VAT payment deferral scheme, allowing to defer VAT payments falling due between 20th March 2020 and 30th June 2020 until 31st March 2021.

 

Contino Solutions Limited
Strategic Report (Continued)
For the year ended 31 December 2021
Page 3
Contino Pty Ltd incurred a net loss of $4,251,164 during the year ended 31 December 2021 (net loss of $8,316,765 year ended 31 December 2020) and, as of that date the Company's current liabilities exceeded its current assets by $21,913,396 (as at 31 December 2020: current liabilities exceeded its current assets by $22,596,070). The Company also has total net liability (negative equity) of $19,745,216 as at 31 December 2021 (as at 31 December 2020: net liability of $15,493,932). The Company's current liabilities mainly include loans from related parties.

Contino Pty Ltd is going through a growth phase and has seen a significant increase in revenue (increase of $19,862,884 as compared to year ended 31 December 2020) during the year. Costs to deliver these projects were high due to the specialised nature of acquired projects as well as to meet the expected operational costs necessary to grow the Company's operations. Management believes that the existing projects which were secured in 2021 will continue to generate significant income at least in the next 12 months. The Company has also started implementing more formal cost controlling and budgeting measures in addition to monitoring projects profitability.

Directors of Contino Pty Ltd believe that the viability of the Company and its ability to continue as a going concern and meets its debts and commitments as they fall due are dependent on: 1) Generating revenue from existing and new major projects, 2) Reducing project delivery costs and improving gross profits across all significant projects, 3) Close monitoring and controlling indirect costs, 4) Parent and related parties loans to be not called upon for the foreseeable future or until the Company is able to support its liabilities without the Parent and related parties support.
Principal risks and uncertainties
The management of the business and the execution of the company's strategy are subject to a number of risks and uncertainties.
The key business risks affecting the Company are set out below:
Competition
Contino Solutions Ltd operates in highly competitive customer environments with incumbent professional service providers.
In order to mitigate the risk of disruption from traditional service providers we focus on customer outcomes and aligning to business value, avoiding the need to compete on price.
Employees
The company's performance depends largely on its talented employees and the ability to recruit consultants with the right experience and skills is crucial. Market dynamics of increased competition for talent, accelerated by the pandemic, has been impacting Contino's ability to hire talent to meet current increased demand to deliver transformation programs to our clients. It has also created challenges around increased attrition. Time to hire has been longer than in previous years. To mitigate these risks the company focuses on the personal development of our employees, making sure they have the skills and support they need to deliver the best services. Contino invested in people through 2020 and 2021 to stem attrition in face of global pandemic. This included: remote working policy, Wellbeing initiatives, Diversity & Inclusion groups, defined Career Framework, Learning & Development.

Shift to remote working has also put lots of pressure on the business trying to find the best balanced solution for both employees and customer. There is high expectation from employees to continue working from home and at the same time the expectation from Clients that some of the work will be delivered on site. Contino is mitigating these risks and continues to adopt a hybrid way of working - “Work from where you work best”. This combines the successfully implemented remote working framework in place during the pandemic with an office presence to ensure we foster both collaboration and social interactions, as well as the mental well-being of our employees. Contino is also supporting employees where there is a requirement to travel to client site by contributing to the travel costs.
Contino Solutions Limited
Strategic Report (Continued)
For the year ended 31 December 2021
Page 4

Political and Economic uncertainties

Contino is a global company with clients based in UK, Europe and rest of the world. Any negative political, legal or economic conditions might impact on our business. On 31st January 2020 the United Kingdom formally left the European Union, which impacted freedom of movement between United Kingdom and European Union countries. In the past Contino engaged with the Clients based in Europe and employees previously were able to travel freely to these countries without the need to obtain visas or work permits. The impact on our business so far has been limited but in the future Contino could be adversely impacted by the new post-Brexit travel and working arrangements. Some of our potential projects in Europe could be delayed, with recruitment of skilled workforce from Europe could also be negatively impacted.

 

Conflict in Ukraine

Russia invaded Ukraine on 24th February 2022. The war in Ukraine has been having a huge impact on people’s lives and forcing millions of people to flee the country with no place to stay - many of whom are arriving in the UK every day. Whilst Contino has no clients, operations or employees located in either Ukraine or Russia, the Directors have been closely monitoring the events unfolding in Ukraine. The company has been supporting employees, families and friends who have been affected by the situation and encouraging charity donations and volunteering.

 

One of the indirect impacts of the war is an increased global inflation. Rising global energy prices are affecting companies across the whole economy and Russian invasion of Ukraine might keep inflation for longer by triggering a further increase in prices. This increased inflation might have a negative impact on Contino’s operating cost and net margins. To mitigate these risks the company will focus on building a closer partnership with Cognizant in 2022 that will drive greater cost efficiencies, with synergies expected in areas like administrative expenses, rent and IT costs. Contino will also be implementing better cost controls through improved expenses policies.

COVID-19 Pandemic

 

In March 2020 the World Health Organisation declared the coronavirus (COVID-19) outbreak a global pandemic. In an attempt to stop the spread of COVID-19, the British government enforced a lockdown and the closure of all non-essential businesses. The outbreak and the response of Government in dealing with the pandemic did not cause a significant interference with general activity levels and the operations of our business. The Company’s main business activities are to provide the cloud-native technology solutions and despite the challenging times during the pandemic in 2020, Contino managed to maintain revenue levels similar to 2019, and increased revenue by 33% in 2021. One of the side effects of the pandemic has been the acceleration of many businesses to shift to operating with digital business models and Contino specialises in digital transformation.

 

During the Coronavirus pandemic Contino’s top priority was the safety of all its employees. The Company followed the Government guidance and advised all employees to work from home. The Company issued Remote Working Guidelines and allowed employees to purchase office equipment to make working from home more comfortable (through its own ‘Contishop’). The transition was seamless as Contino had already full remote capabilities before COVID-19 hit.

Contino Solutions Limited
Strategic Report (Continued)
For the year ended 31 December 2021
Page 5
Key performance indicators

 

Contino uses a unique Squad Operating Model where all the functions of the business (including Sales, Consulting, Engineering, Finance, Marketing, People, Talent) are collectively working towards KPIs. The goal is to collaboratively apply diverse skill sets to an engagement in order to deliver a deep transformation program that results in more than just a technical outcome.

 

The Company measures its performance using the below Key Performance Indicators:

 

 

 

 

Strategy

Strategic Focus Areas for Contino for 2022 include:

 

Driving Growth

Contino will continue to drive growth in 2022 and this will be achieved by: Building an opinionated Contino point of view on key themes and topics, building the engineering and consulting IPs; Designing, mapping and delivering upon transformation journeys for our clients to successfully deliver upon their strategic needs; Building a differentiated partner ecosystem that accelerates our customers’ transformation journey and enables them to work with the best partners without having to go through their own learning and experimentation phase. Contino will also build closer partnership with Cognizant against key capabilities to build a transformation powerhouse that clients love to work with. Contino’s growth strategy will be focused on maturing and scaling existing services rather than introducing any new services offerings.

 

Operational Excellence

Contino will aim to improve operational process in 2022 with a focus on resourcing and onboarding experience, project delivery governance and account lifecycle governance, management, leadership and continues growth.

 

Our People and Culture

Our mission is to nurture and maintain a culture that enables our employees to thrive and Contino to grow. To achieve this, Contino will focus on delivering the sustainable workforce by hiring and retaining the best talent; making Contino the best place to work by offering an inclusive and diverse place to work and creating an exceptional opportunities and career development for our employees.

 

Sustainability

Contino strategy will be achieved in a way that ensures the long-term health and future of the Company. The Business will continue to be profitable by selling high-value services to high-value customers. Our aim is also to help our customers build a sustainable business and value propositions via accelerated adoption of Digital.

Contino Solutions Limited
Strategic Report (Continued)
For the year ended 31 December 2021
Page 6
Section 172 of the Companies Act 2006

This statement is intended by the Directors to set out how they have approached and met their responsibilities under Section 172 of the Companies Act 2006 in the financial period ending 31st December 2021.

 

The Directors of Contino act in accordance with a set of general duties, including those under Section 172 of the Companies Act 2006 to promote the success of the company for the benefit of its members as a whole. In doing so they complied with the below factors:

(a) the likely consequences of any decision in the long term,

(b) the interests of the company's employees,

(c) the need to foster the company's business relationships with suppliers, customers and others,

(d) impact of the company's operations on the community and the environment,

(e) the desirability of the company maintaining a reputation for high standards of business conduct,

(f) the need to act fairly as between members of the company.

Decision Making

The Directors understand the business and the markets within which we operate. By focusing on our purpose, vision and strategy set by the Directors and Leadership Team is to ensure that we continue to deliver value to our people, customers, partners and other stakeholders. All matters that, under the Company’s governance arrangements, are reserved for decision by the Directors are presented at Board meetings. Directors are briefed on any potential impacts and risks for our people, customers, partners and other stakeholders and how these are to be managed. The Directors consider these factors before making a final decision, which as a Board, they believe is in the best interests of the Company. During 2020 and 2021 this included assessing the continued impact of COVID-19, as well as making decisions on the remote working policy and the extent to which our offices will be accessible by our employees.

 

Employees

Contino is a business driven by people and that’s why the primary focus for Directors of the Company is employee engagement. Employees at Contino are encouraged and empowered to contribute to improving business performance. The Directors are involved in and support the following initiatives that are aimed at keeping employees informed and at gathering their feedback:

 

Fostering Business Relationships with Suppliers, Customers and Others

The Directors recognise that fostering business relationships with key stakeholders, such as customers, suppliers, partners and regulatory authorities, is essential to the company’s success. Contino is part of the Cognizant Group and follows the group wide Code of Business Conduct and Ethics, which provides all employees of the Group with guidance on the key principles that each employee should follow.

Contino’s services delivery focuses on Customer values. Contino Directors ensure that the Company build trusted long term relationships with its customers, using a consultative, outcome-based, value-driven methodology. Contino works with regulated enterprise clients to understand their strategies and goals to build and scale their capabilities necessary to deliver high quality, compliant and secure software change.

Contino follows Cognizant’s global process for onboarding new vendors that comply with Corporate Security, Ethics & Compliance and Data Privacy policies.

Contino Solutions Limited
Strategic Report (Continued)
For the year ended 31 December 2021
Page 7

Impact on the Community and the Environment

The Directors recognise the importance of leading a company that not only generates value for shareholders but also contributes to wider society. Contino strive to act in an environmentally friendly way and is always aspiring to give back to the community. Contino Employees are encouraged to take part in charitable initiatives, each employee can take one day off to volunteer within the community of their choice.

 

Maintaining a reputation for high standards of business conduct

The Directors of the company promote the following values and behaviours (“The Contino Way”):

In addition to that, The Directors foster an open and collaborative culture where employees are encouraged to support each other, give regular feedback, share knowledge and new ideas.

 

The need to act fairly between members of the company

The Directors recognise their responsibility in ensuring that all members of the company are treated equally, regardless of age, gender and orientation. The company has implemented a number of programs to promote diversity, equality and to create inclusive environments, which include: Wellbeing and Diversity, Belonging & Inclusiveness programs. As a business driven by people, Contino’s Directors are committed to treating everyone with respect, fairness and equality. Contino is committed to encouraging the equality and diversity of our workforce and eliminating any unlawful discrimination. We aim for Contino to be truly representative of all sections of society and our customers and for each employee to feel respected and able to give their best.

Greenhouse Gas Emissions

It is deemed that the energy consumed by the group is less than 40,000 kWh, therefore the exemption has been taken not to disclose the energy used during the period.

This report was approved by the board and signed on its behalf by:
Michael Chalmers
Director
23 August 2022
Contino Solutions Limited
Directors' Report
For the year ended 31 December 2021
Page 8

The directors present their annual report and financial statements for the year ended 31 December 2021.

Principal activities

The principal activity of the company continued to be that of IT Services Consultancy.

Results and dividends

The results for the year are set out on page 14.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Simon White
(Resigned 14 December 2021)
Mr Sanjiv Gossain
(Resigned 12 January 2022)
Mr James Houghton
(Resigned 30 May 2022)
Michael Chalmers
(Appointed 1 September 2021)
Elisa De Rocca-Serra
(Appointed 31 December 2021)
Yatin K Mahandru
(Appointed 27 May 2022)
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

Azets Audit Services were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Contino Solutions Limited
Directors' Report (Continued)
For the year ended 31 December 2021
Page 9
This report was approved by the board and signed on its behalf by:
Michael Chalmers
Director
23 August 2022
Contino Solutions Limited
Directors' Responsibilities Statement
For the year ended 31 December 2021
Page 10

The directors are responsible 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Contino Solutions Limited
Independent Auditor's Report
To the members of Contino Solutions Limited
Page 11
Opinion

We have audited the financial statements of Contino Solutions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 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 group's and parent 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

Contino Solutions Limited
Independent Auditor's Report (Continued)
To the members of Contino Solutions Limited
Page 12
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent 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.

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.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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

Contino Solutions Limited
Independent Auditor's Report (Continued)
To the members of Contino Solutions Limited
Page 13

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

.............................................................
Mr Paul Francis FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
Statutory Auditor
37 Commercial Road
Poole
Dorset
BH14 0HU
Date:
30 August 2022
Contino Solutions Limited
Group Statement of Comprehensive Income
For the year ended 31 December 2021
Page 14
2021
2020
Notes
£
£
Turnover
3
63,620,710
43,744,695
Cost of sales
(36,345,656)
(25,878,389)
Gross profit
27,275,054
17,866,306
Administrative expenses
(24,472,669)
(28,202,625)
Other operating income
152,806
227,282
Operating profit/(loss)
4
2,955,191
(10,109,037)
Interest receivable and similar income
8
4,083
3,534
Interest payable and similar expenses
9
(175,628)
(89,140)
Profit/(loss) before taxation
2,783,646
(10,194,643)
Tax on profit/(loss)
10
(2,403,823)
1,968,712
Profit/(loss) for the financial year
20
379,823
(8,225,931)
Other comprehensive income
Currency translation differences
344,600
(346,725)
Total comprehensive income for the year
724,423
(8,572,656)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Contino Solutions Limited
Group Balance Sheet
As at 31 December 2021
31 December 2021
Page 15
2021
2020
Notes
£
£
£
£
Fixed assets
Goodwill
11
943,340
1,092,719
Other intangible assets
11
853,115
972,376
Total intangible assets
1,796,455
2,065,095
Tangible assets
12
240,589
278,870
2,037,044
2,343,965
Current assets
Debtors
15
16,130,841
13,986,729
Cash at bank and in hand
4,967,354
2,701,006
21,098,195
16,687,735
Creditors: amounts falling due within one year
16
(22,833,573)
(19,550,771)
Net current liabilities
(1,735,378)
(2,863,036)
Total assets less current liabilities
301,666
(519,071)
Provisions for liabilities
Deferred tax liability
17
241,311
144,997
(241,311)
(144,997)
Net assets/(liabilities)
60,355
(664,068)
Capital and reserves
Called up share capital
19
1,000
1,000
Other reserves
20
15,627,998
15,627,998
Profit and loss reserves
20
(15,568,643)
(16,293,066)
Total equity
60,355
(664,068)
The financial statements were approved and authorised for issue by the board of directors and are signed on its behalf by:
Michael Chalmers
Director
23 August 2022
2022-09-07
Contino Solutions Limited
Company Balance Sheet
As at 31 December 2021
31 December 2021
Page 16
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
11
853,115
972,376
Tangible assets
12
195,054
145,337
Investments
13
1,734,253
1,734,253
2,782,422
2,851,966
Current assets
Debtors
15
9,437,201
9,733,694
Cash at bank and in hand
2,826,739
1,754,824
12,263,940
11,488,518
Creditors: amounts falling due within one year
16
(5,641,100)
(7,810,288)
Net current assets
6,622,840
3,678,230
Total assets less current liabilities
9,405,262
6,530,196
Provisions for liabilities
17
(37,060)
(27,614)
Net assets
9,368,202
6,502,582
Capital and reserves
Called up share capital
19
1,000
1,000
Other reserves
20
14,205,219
14,205,219
Profit and loss reserves
20
(4,838,017)
(7,703,637)
Total equity
9,368,202
6,502,582

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,865,620 (2020 - £3,598,086 loss).

The financial statements were approved and authorised for issue by the board of directors and are signed on its behalf by:
Michael Chalmers
Director
23 August 2022
Company Registration No. 08788914
Contino Solutions Limited
Group Statement of Changes in Equity
For the year ended 31 December 2021
Page 17
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2020
1,000
14,789,436
(7,720,410)
7,070,026
Year ended 31 December 2020:
Loss for the year
-
-
(8,225,931)
(8,225,931)
Other comprehensive income:
Currency translation differences
-
-
(346,725)
(346,725)
Total comprehensive income for the year
-
-
(8,572,656)
(8,572,656)
Transfers
-
838,562
-
838,562
Balance at 31 December 2020
1,000
15,627,998
(16,293,066)
(664,068)
Year ended 31 December 2021:
Profit for the year
-
-
379,823
379,823
Other comprehensive income:
Currency translation differences
-
-
344,600
344,600
Total comprehensive income for the year
-
-
724,423
724,423
Balance at 31 December 2021
1,000
15,627,998
(15,568,643)
60,355
Contino Solutions Limited
Company Statement of Changes in Equity
For ther year ended 31 December 2021
Page 18
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2020
1,000
14,205,219
(4,105,551)
10,100,668
Year ended 31 December 2020:
Loss and total comprehensive income for the year
-
-
(3,598,086)
(3,598,086)
Balance at 31 December 2020
1,000
14,205,219
(7,703,637)
6,502,582
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
2,865,620
2,865,620
Balance at 31 December 2021
1,000
14,205,219
(4,838,017)
9,368,202
Contino Solutions Limited
Group Statement of Cash Flows
For the year ended 31 December 2021
Page 19
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
2,470,069
(1,107,661)
Interest paid
(175,628)
(89,140)
Income taxes refunded/(paid)
140,787
(184,613)
Net cash inflow/(outflow) from operating activities
2,435,228
(1,381,414)
Investing activities
Purchase of intangible assets
(4,375)
(40,939)
Purchase of tangible fixed assets
(185,393)
(139,699)
Proceeds on disposal of tangible fixed assets
16,805
2,103
Interest received
4,083
3,534
Net cash used in investing activities
(168,880)
(175,001)
Financing activities
Capital Contribution Movement
-
838,562
Net cash (used in)/generated from financing activities
-
838,562
Net increase/(decrease) in cash and cash equivalents
2,266,348
(717,853)
Cash and cash equivalents at beginning of year
2,701,006
3,418,859
Cash and cash equivalents at end of year
4,967,354
2,701,006
Contino Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2021
Page 20
1
Accounting policies
Company information

Contino Solutions Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 37 Commercial Road, Poole, Dorset, BH14 0HU. The trading address on the company is 34-37 Liverpool Street, London, EC2M 7PP.

 

The group consists of Contino Solutions Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Contino Solutions Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2021. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
1
Accounting policies
(Continued)
Page 21
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future, although the company continued to be loss making this year and has net liabilities as at the year end.

 

In addition the company is expected to have continued financial and operation support from its parent company, Cognizant Technology Solutions Corporation, thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Revenue from Fixed Price contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is based on the Effort Complete and is calculated by comparing total effort to date (days worked) as a proportion of total effort to date (days worked) and effort remaining (days remaining). Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that is probable will be recovered.

 

Revenue recognition for Time and Materials projects is based on the time worked in the month multiplied by the daily billing rate.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years straight line
Trade name
3 years straight line
Customer relationships
12 years straight line
Non competition agreement
3 years straight line
Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
1
Accounting policies
(Continued)
Page 22
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
3 years straight line
Office Equipment
20% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
1
Accounting policies
(Continued)
Page 23
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
1
Accounting policies
(Continued)
Page 24
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
1
Accounting policies
(Continued)
Page 25
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
1
Accounting policies
(Continued)
Page 26
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

Recoverability of trade debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of debtors, the ageing profile of debtors and historical experience.

3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Sale of Services
63,620,710
43,744,695
2021
2020
£
£
Other significant revenue
Interest income
4,083
3,534
Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
3
Turnover and other revenue
(Continued)
Page 27
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
34,682,346
24,367,360
Europe
804,588
1,710,214
Rest of world
28,133,776
17,667,121
63,620,710
43,744,695
4
Operating profit/(loss)
2021
2020
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange losses/(gains)
231,266
(288,116)
Research and development costs
17,727
6,392
Depreciation of owned tangible fixed assets
193,432
232,149
(Profit)/loss on disposal of tangible fixed assets
(695)
642
Amortisation of intangible assets
273,015
295,855
Operating lease charges
1,598,410
1,637,044

Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £231,266 (2020 - £288,116).

5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
16,750
16,000
Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
Page 28
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2021
2020
2021
2020
Number
Number
Number
Number
Delivery
216
173
123
96
Sales
21
24
12
12
Management
2
3
1
2
Finance & Admin
8
8
4
4
Marketing
8
9
5
6
Human Resources
26
23
14
13
Delivery management
21
20
10
12
Total
302
260
169
145

Their aggregate remuneration comprised:

Group
Company
2021
2020
2021
2020
£
£
£
£
Wages and salaries
37,916,370
38,484,044
22,358,160
21,628,437
Social security costs
4,131,265
3,835,854
3,217,806
3,076,332
Pension costs
2,059,473
1,871,358
684,094
831,860
44,107,108
44,191,256
26,260,060
25,536,629
7
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
631,484
-
Company pension contributions to defined contribution schemes
3,920
-
635,404
-
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
631,484
-
Company pension contributions to defined contribution schemes
3,920
-
Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
Page 29
8
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
4,083
3,396
Other interest income
-
138
Total income
4,083
3,534

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
4,083
3,396
9
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
175,628
73,499
Other interest on financial liabilities
-
15,641
175,628
89,140
10
Taxation
2021
2020
£
£
Deferred tax
Origination and reversal of timing differences
2,403,823
(1,968,712)
Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
10
Taxation
(Continued)
Page 30

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2021
2020
£
£
Profit/(loss) before taxation
2,783,646
(10,194,643)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
528,893
(1,936,982)
Tax effect of expenses that are not deductible in determining taxable profit
93,851
12,413
Tax effect of utilisation of tax losses not previously recognised
(521,605)
-
0
Unutilised tax losses carried forward
-
0
2,525,931
Effect of change in corporation tax rate
(254,035)
(727,398)
Permanent capital allowances in excess of depreciation
14,179
26,681
Other permanent differences
-
0
1,367
Foreign exchange differences
138,849
97,866
Deferred taxation movement
2,403,823
(1,968,712)
Loss on disposal of Fixed Assets
(132)
122
Taxation charge/(credit)
2,403,823
(1,968,712)
Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
Page 31
11
Intangible fixed assets
Group
Goodwill
Software
Trade name
Customer relationships
Non competition agreement
Total
£
£
£
£
£
£
Cost
At 1 January 2021
1,493,792
75,814
72,191
1,195,087
5,432
2,842,316
Additions - internally developed
-
0
4,375
-
0
-
0
-
4,375
At 31 December 2021
1,493,792
80,189
72,191
1,195,087
5,432
2,846,691
Amortisation and impairment
At 1 January 2021
401,073
38,907
62,935
269,454
4,852
777,221
Amortisation charged for the year
149,379
15,209
8,532
99,315
580
273,015
At 31 December 2021
550,452
54,116
71,467
368,769
5,432
1,050,236
Carrying amount
At 31 December 2021
943,340
26,073
724
826,318
-
1,796,455
At 31 December 2020
1,092,719
36,907
9,256
925,633
580
2,065,095
Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
11
Intangible fixed assets
(Continued)
Page 32
Company
Software
Trade name
Customer relationships
Non competition agreement
Total
£
£
£
£
£
Cost
At 1 January 2021
75,814
66,209
1,195,087
5,432
1,342,542
Additions - internally developed
4,375
-
0
-
0
-
4,375
At 31 December 2021
80,189
66,209
1,195,087
5,432
1,346,917
Amortisation and impairment
At 1 January 2021
38,907
56,953
269,454
4,852
370,166
Amortisation charged for the year
15,209
8,532
99,315
580
123,636
At 31 December 2021
54,116
65,485
368,769
5,432
493,802
Carrying amount
At 31 December 2021
26,073
724
826,318
-
853,115
At 31 December 2020
36,907
9,256
925,633
580
972,376
12
Tangible fixed assets
Group
Fixtures and fittings
Office Equipment
Total
£
£
£
Cost
At 1 January 2021
78,646
686,966
765,612
Additions
-
0
185,393
185,393
Disposals
-
0
(91,472)
(91,472)
Exchange adjustments
(1,611)
(15,529)
(17,140)
At 31 December 2021
77,035
765,358
842,393
Depreciation and impairment
At 1 January 2021
48,079
438,663
486,742
Depreciation charged in the year
14,101
179,331
193,432
Eliminated in respect of disposals
-
0
(75,362)
(75,362)
Exchange adjustments
(1,492)
(1,516)
(3,008)
At 31 December 2021
60,688
541,116
601,804
Carrying amount
At 31 December 2021
16,347
224,242
240,589
At 31 December 2020
30,567
248,303
278,870
Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
12
Tangible fixed assets
(Continued)
Page 33
Company
Fixtures and fittings
Office Equipment
Total
£
£
£
Cost
At 1 January 2021
44,235
355,230
399,465
Additions
-
0
185,393
185,393
Disposals
-
0
(35,519)
(35,519)
At 31 December 2021
44,235
505,104
549,339
Depreciation and impairment
At 1 January 2021
32,168
221,960
254,128
Depreciation charged in the year
10,999
118,557
129,556
Eliminated in respect of disposals
-
0
(29,399)
(29,399)
At 31 December 2021
43,167
311,118
354,285
Carrying amount
At 31 December 2021
1,068
193,986
195,054
At 31 December 2020
12,067
133,270
145,337
13
Fixed asset investments
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1,734,253
1,734,253

 

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2021 and 31 December 2021
1,734,253
Carrying amount
At 31 December 2021
1,734,253
At 31 December 2020
1,734,253
Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
Page 34
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2021 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Indirect
Contino PTY Ltd
Australia
IT Services Consultancy
Oridnary
100.00
0
Dylis Consulting PTY Ltd
Australia
Dormant Company
Oridnary
100.00
0
Registered Office addresses:
Contino PTY Ltd
120 Sussex Street, Sydney, NSW, 2000
Dylis Consulting PTY Ltd
289 Filnders Lane, Melbourne, Victoria, 3000
15
Debtors
Group
Company
2021
2020
2021
2020
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,980,590
6,300,141
2,198,761
2,984,251
Amounts owed by group undertakings
-
-
-
4,244,955
Other debtors
3,611,840
2,761,181
1,644,832
1,532,115
Prepayments and accrued income
6,239,445
1,178,145
5,370,875
972,373
14,831,875
10,239,467
9,214,468
9,733,694
Deferred tax asset (note 17)
1,298,966
3,747,262
222,733
-
0
16,130,841
13,986,729
9,437,201
9,733,694
16
Creditors: amounts falling due within one year
Group
Company
2021
2020
2021
2020
£
£
£
£
Trade creditors
877,877
234,287
422,995
107,813
Amounts owed to group undertakings
-
0
-
0
36,540
-
0
Other taxation and social security
3,274,843
3,606,573
2,667,937
3,076,557
Other creditors
12,555,329
9,280,467
394,804
2,997,936
Accruals and deferred income
6,125,524
6,429,444
2,118,824
1,627,982
22,833,573
19,550,771
5,641,100
7,810,288
Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
Page 35
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2021
2020
2021
2020
Group
£
£
£
£
Accelerated capital allowances
241,311
144,997
-
-
Tax losses
-
-
1,298,966
3,747,262
241,311
144,997
1,298,966
3,747,262
Liabilities
Liabilities
Assets
Assets
2021
2020
2021
2020
Company
£
£
£
£
Accelerated capital allowances
37,060
27,614
-
-
Tax losses
-
-
222,733
-
37,060
27,614
222,733
-
Group
Company
2021
2021
Movements in the year:
£
£
Liability/(Asset) at 1 January 2021
(3,602,265)
27,614
Charge/(credit) to profit or loss
2,544,610
(213,287)
Asset at 31 December 2021
(1,057,655)
(185,673)

The deferred tax asset set out above is expected to start reversing within the near future and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse over future years and relates to accelerated capital allowances that are expected to mature within the same period.

18
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
2,059,473
1,871,358

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
Page 36
19
Share capital
Group and company
2021
2020
Ordinary share capital
£
£
Issued and fully paid
500 Ordinary Shares of £1 each
500
500
500 Ordinary A Shares of £1 each
500
500
1,000
1,000
20
Reserves
Other Reserves
Included within Other Reserves is a Capital Contribution made from the controlling parent company.
Profit and loss reserves
Included within profit and loss reserves is the accumulated profit and loss account balance which contains distributable reserves.
21
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2021
2020
2021
2020
£
£
£
£
Within one year
1,263,798
1,332,845
897,021
971,690
Between two and five years
767,084
2,086,568
-
897,021
2,030,882
3,419,413
897,021
1,868,711
Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
Page 37
22
Related party transactions

Other related party transactions

During the year the company made the following related party transactions:

 

Parent Company

 

During the year a total of £Nil (2020: £745,883) was advanced to Contino Solutions Limited by the parent company as a capital contribution. No interest was charged on this balance. At the balance sheet the amount included within other reserves was £14,205,219 (2020: £14,205,219).

 

During the year Contino Solutions Limited made sales totalling £8,245,125 (2020: £1,585,803) to the ultimate parent company and purchased services totalling £Nil (2020: £Nil).

 

During the year Contino Solutions Limited received funding amounting to £5,723,057 (2020: £5,998,429) from the ultimate parent company.

 

At the balance sheet date the amount due to the ultimate parent company and included within other creditors was £390,559 (2020: £2,912,626).

 

Under common control

 

During the year Contino Solutions Limited made sales totalling £287,169 (2020: £632,480) to a related company and purchased services totalling £146,327 (2020: £195,076).

 

At the balance sheet date the amount due from the related company and included within other debtors was £1,403,302 (2020: £1,262,460).

 

During the year Contino Solutions Limited made sales totalling £353,991 (2020: £554,732) to a related company. Interest of £106,309 (2020: £194,346) was charged on the outstanding balance.

 

At the balance sheet date the amount due to / (from) the related company and included within other debtors was £36,540 (2020: £(4,244,955)).

 

Related parties

 

During the year, Contino Solutions Limited purchased services from a related party totalling £83,068 (2020: £nil).

At the balance sheet date the amount due to the related company and included within other creditors was £3,245.

 

During the year Contino Solutions Limited made sales totalling £9,746 to a related company. The balance at year end with this company was £nil.

23
Controlling party

The company is controlled by Contino Holdings Inc. a company incorporated in the United States of America by virtue of its 100% ownership of the company's issued share capital. The ultimate controlling party is Cognizant Domestic Holdings Corporation.

Contino Solutions Limited
Notes to the Financial Statements (Continued)
For the Year Ended 31 December 2021
Page 38
24
Cash generated from/(absorbed by) group operations
2021
2020
£
£
Profit/(loss) for the year after tax
379,823
(8,225,931)
Adjustments for:
Taxation charged/(credited)
2,403,823
(1,968,712)
Finance costs
175,628
89,140
Investment income
(4,083)
(3,534)
(Gain)/loss on disposal of tangible fixed assets
(695)
642
Loss on disposal on intangible fixed assets
-
1,269
Amortisation and impairment of intangible assets
273,015
295,855
Depreciation and impairment of tangible fixed assets
193,432
232,149
Foreign exchange movement on translation of foreign subsidiaries
344,600
(355,801)
Other non cash movements
14,132
3,101
Movements in working capital:
Increase in debtors
(4,592,408)
(2,525,280)
Increase in creditors
3,282,802
11,349,441
Cash generated from/(absorbed by) operations
2,470,069
(1,107,661)
25
Analysis of changes in net funds - group
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
2,701,006
2,266,348
4,967,354
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