Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2022
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SIMPRO SOFTWARE LIMITED
COMPANY INFORMATION
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SIMPRO SOFTWARE LIMITED
CONTENTS
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SIMPRO SOFTWARE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Board of Directors has pleasure in presenting their strategic report for the year ended 31 December 2022.
Throughout the year, the principal activities of the Company involved the development, marketing, sales, implementation and support of fully integrated enterprise business software solutions for service, project and maintenance contractors. There have been no significant changes in the nature of these activities during the year.
For the financial year ended 31 December 2022, the Company delivered strong financial results achieving a 37% (2021 - 47%) increase in revenues, from £8,742,200 in 2021 to £11,960,033 in 2022. The profit of the Company for the financial year after providing for corporation tax amounted to £375,820 (2021 - profit after tax of £347,157).
The Company has continued its business expansion across product offerings and sales capability. The company continued expansion and spread geographically. Over 85% of the Company’s revenue was subscription-based, which is recurring in nature. Customer retention in terms of dollar was also strong in 2022, highlighting our strong suite of software solutions into our expanded customer base. The Company remains focussed on controlling overheads; however, some cost increases have been out of control. The cost of staff, utilities and travel has significantly increased given the current global economic situation. Current assets have decreased from £5,211,843 in 2021 to £4,463,973, a decrease of £747,870. This is mainly due to cash being paid to simPRO Corporate Pty Ltd, the treasury company in the group, to ensure cash is centralised where needed for expansion across the group. Overall, the Company is still cash positive and its assets exceeds its liabilities by £1,729,261 (2021 - £1,349,685). Consistent with prior years, our strategy is to being together a suite of solutions trusted by thousands of field service businesses around the world that delivers end-to-end software that streamlines all areas of workflows for the trades industry. Key understanding of the company’s strategy over the next 2 to 3 years is to appreciate the following, generally: • There is still a large addressable market to offer services to; • Investment is focussed on maintaining, refining, and improving existing assets and acquiring our developing solutions to complement or differentiate our offerings, especially in the cloud; and • The business has a stable and loyal customer base. For the 2023 year, we expect to see sustained strong growth in our existing markets. Our pipeline for FY2023 is strong and we anticipate that our SaaS business will continue to see growth. The Company continues to assess appropriate corporate transactions.
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SIMPRO SOFTWARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Being part of a larger group but operating in the UK, we acknowledge certain principal risks and uncertainties. These include the economic slowdowns that may impact demand for our services, as well as challenges posed by rising prices and inflation. Additionally, we remain vigilant in managing the ever-evolving regulatory environment and market competition, along with the effective coordination of a globally dispersed workforce. We remain committed to actively mitigating these risks to ensure the stability and growth of our operations in the UK market.
The Company makes use of certain alternative performance measures that are non-UK GAAP measures. The board uses these to assess performance of the company and considers them to provide useful supplementary information to the statutory results. The Company does not consider APM’s to be more relevant or reliable than UK GAAP measures and notes that their definition and basis of calculation may differ from other companies. The Company’s APM’s are defined and a reconciliation of most directly comparable UK GAAP measure is shown below.
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SIMPRO SOFTWARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
This report was approved by the board and signed on its behalf.
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SIMPRO SOFTWARE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The directors present their report and the financial statements for the year ended 31 December 2022.
The profit for the year, after taxation, amounted to £375,820 (2021 - £347,157).
The dividends paid during the year amounted to £NIL (2021 - £NIL).
The director who served during the year was:
JJ Eastgate and G Spencer were appointed as directors subsequent to the year end.
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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SIMPRO SOFTWARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
There have been no significant events affecting the Company since the year end.
The auditors, Peters Elworthy & Moore, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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SIMPRO SOFTWARE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SIMPRO SOFTWARE LIMITED
We have audited the financial statements of simPRO Software Limited (the 'Company') for the year ended 31 December 2022, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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SIMPRO SOFTWARE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SIMPRO SOFTWARE LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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SIMPRO SOFTWARE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SIMPRO SOFTWARE LIMITED (CONTINUED)
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 Auditors' 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:
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: • the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; • we obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework; and • we identified which laws and regulations were significant in the context of the entity. We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: • making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and • considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we; • assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; • investigated the rationale behind significant or unusual transactions; and • we designed procedures to identify unexpected and unusual journal entries and performed testing to confirm the validity of such postings.
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SIMPRO SOFTWARE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SIMPRO SOFTWARE LIMITED (CONTINUED)
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation; and • enquiring of management as to actual and potential litigation and claims.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Salisbury House
Station Road
CB1 2LA
Date:
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SIMPRO SOFTWARE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
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SIMPRO SOFTWARE LIMITED
REGISTERED NUMBER: 06983493
BALANCE SHEET
AS AT 31 DECEMBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 22 form part of these financial statements.
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SIMPRO SOFTWARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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SIMPRO SOFTWARE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
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SIMPRO SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
simPRO software Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is Suite 6, James Hall, Parsons Green, St Ives, Cambridgeshire, PE27 4AA.
The parent undertaking of the smallest group to consolidate these financial statements is simPRO Holdings (Aus) Pty Limited, a private company incorporated in Australia. That company's registered office is 31 McKechnie Drive, Eight Mile Plains, QLD 4113, Australia.
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
Functional and presentation currency
Transactions and balances
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SIMPRO SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.ACCOUNTING POLICIES (CONTINUED)
At each reporting date, deferred turnover is recognised on the Balance Sheet for the unearned portion of the subscription turnover. Services turnover The service component relates to turnover derived on implementation and additional training invoiced to clients at 100%. Services turnover is recognised in accordance with the quantity (in units of time) of training session undertaken and completed. The allocated training session if unutilised after one year is expired and simPRO is not obliged to fulfil the expired sessions. Expired outstanding training is released to turnover at end of the expired period. Deferred turnover is recognised on the Balance Sheet for the training sessions that have not been undertaken. Hardware turnover Trackers sales represents the sale of physical tracking devices to vehicle fleet operators where the device is fitted to vehicles to capture and transmit trip data. simPRO sources these devices from Taiwan and maintains a limited stock level according to customer demand. Customers who buy physical trackers have to download simTRAC to their devices. Customers have the option to self install or pay for installation per vehicle. Hardware turnover for the sale of GPS Tracking devices is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of the involvement in these goods. Discounts Sales discounts are netted against the turnover to which it relates and therefore follow recognition patterns for the turnover. As such, sales discounts are recognised as a reduction to revenue and not an expense. Contract commission expense Commissions directly attributable to turnover are deferred and released over the average life of the customer relationship in line with FRS 102.
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SIMPRO SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.ACCOUNTING POLICIES (CONTINUED)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
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SIMPRO SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.ACCOUNTING POLICIES (CONTINUED)
Analysis of turnover by country of destination:
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SIMPRO SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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SIMPRO SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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SIMPRO SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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SIMPRO SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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SIMPRO SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
13.OTHER FINANCIAL COMMITMENTS
Total financial commitments, guarantees and contingencies that are not included in the balance sheet amount to £160,718 (2021 - £216,576).
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