Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-31falsefalse782022-01-01110true 06983493 2022-01-01 2022-12-31 06983493 2021-01-01 2021-12-31 06983493 2022-12-31 06983493 2021-12-31 06983493 2021-01-01 06983493 1 2022-01-01 2022-12-31 06983493 1 2021-01-01 2021-12-31 06983493 d:Director1 2022-01-01 2022-12-31 06983493 d:Director1 2022-12-31 06983493 d:Director2 2022-01-01 2022-12-31 06983493 d:Director3 2022-01-01 2022-12-31 06983493 d:RegisteredOffice 2022-01-01 2022-12-31 06983493 e:Buildings e:LongLeaseholdAssets 2022-01-01 2022-12-31 06983493 e:Buildings e:LongLeaseholdAssets 2022-12-31 06983493 e:Buildings e:LongLeaseholdAssets 2021-12-31 06983493 e:OfficeEquipment 2022-01-01 2022-12-31 06983493 e:OfficeEquipment 2022-12-31 06983493 e:OfficeEquipment 2021-12-31 06983493 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 06983493 e:OtherPropertyPlantEquipment 2022-01-01 2022-12-31 06983493 e:OtherPropertyPlantEquipment 2022-12-31 06983493 e:OtherPropertyPlantEquipment 2021-12-31 06983493 e:OtherPropertyPlantEquipment e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 06983493 e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 06983493 e:CurrentFinancialInstruments 2022-12-31 06983493 e:CurrentFinancialInstruments 2021-12-31 06983493 e:Non-currentFinancialInstruments 2022-12-31 06983493 e:Non-currentFinancialInstruments 2021-12-31 06983493 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 06983493 e:CurrentFinancialInstruments e:WithinOneYear 2021-12-31 06983493 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 06983493 e:ReportableOperatingSegment1 2021-01-01 2021-12-31 06983493 e:ReportableOperatingSegment2 2022-01-01 2022-12-31 06983493 e:ReportableOperatingSegment2 2021-01-01 2021-12-31 06983493 e:ReportableOperatingSegment3 2022-01-01 2022-12-31 06983493 e:ReportableOperatingSegment3 2021-01-01 2021-12-31 06983493 e:ReportableOperatingSegment5 2022-01-01 2022-12-31 06983493 e:ReportableOperatingSegment5 2021-01-01 2021-12-31 06983493 f:UnitedKingdom 2022-01-01 2022-12-31 06983493 f:UnitedKingdom 2021-01-01 2021-12-31 06983493 f:RestEuropeOutsideUK 2022-01-01 2022-12-31 06983493 f:RestEuropeOutsideUK 2021-01-01 2021-12-31 06983493 f:RestWorldOutsideUK 2022-01-01 2022-12-31 06983493 f:RestWorldOutsideUK 2021-01-01 2021-12-31 06983493 e:ShareCapital 2022-12-31 06983493 e:ShareCapital 2021-12-31 06983493 e:ShareCapital 2021-01-01 06983493 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 06983493 e:RetainedEarningsAccumulatedLosses 2022-12-31 06983493 e:RetainedEarningsAccumulatedLosses 1 2022-01-01 2022-12-31 06983493 e:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 06983493 e:RetainedEarningsAccumulatedLosses 2021-12-31 06983493 e:RetainedEarningsAccumulatedLosses 2021-01-01 06983493 d:OrdinaryShareClass1 2022-01-01 2022-12-31 06983493 d:OrdinaryShareClass1 2022-12-31 06983493 d:OrdinaryShareClass1 2021-12-31 06983493 d:FRS102 2022-01-01 2022-12-31 06983493 d:Audited 2022-01-01 2022-12-31 06983493 d:FullAccounts 2022-01-01 2022-12-31 06983493 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 06983493 2 2022-01-01 2022-12-31 06983493 7 2022-01-01 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06983493









SIMPRO SOFTWARE LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
SIMPRO SOFTWARE LIMITED
 
 
COMPANY INFORMATION


DIRECTORS
JJ Eastgate 
G Specter 




REGISTERED NUMBER
06983493



REGISTERED OFFICE
Suite 6
James Hall

Parsons Green

St Ives

Cambridgeshire

PE27 4AA




INDEPENDENT AUDITORS
Peters Elworthy & Moore
Chartered Accountants & Statutory Auditors

Salisbury House

Station Road

Cambridge

CB1 2LA





 
SIMPRO SOFTWARE LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 3
Directors' Report
 
 
4 - 5
Independent Auditors' Report
 
 
6 - 9
Profit and Loss Account
 
 
10
Balance Sheet
 
 
11
Statement of Changes in Equity
 
 
12
Statement of Cash Flows
 
 
13
Notes to the Financial Statements
 
 
14 - 22


 
SIMPRO SOFTWARE LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

INTRODUCTION
 
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.

BUSINESS REVIEW
 
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.

Page 1

 
SIMPRO SOFTWARE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

PRINCIPAL RISKS AND UNCERTAINTIES
 
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.

FINANCIAL KEY PERFORMANCE INDICATORS
 
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OTHER KEY PERFORMANCE INDICATORS
 
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.
ole342b.png

Page 2

 
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.





JJ Eastgate
Director

Date: 28 September 2023

Page 3

 
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.

PRINCIPAL ACTIVITY

The principal activity of the Company during the year continued to be that of software sales.

RESULTS AND DIVIDENDS

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).

DIRECTOR

The director who served during the year was:

S Diljore (resigned 31 January 2023)

JJ Eastgate and G Spencer were appointed as directors subsequent to the year end.

DIRECTORS' RESPONSIBILITIES STATEMENT

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 2006They 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.

Page 4

 
SIMPRO SOFTWARE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Company since the year end.

AUDITORS

The auditorsPeters Elworthy & Moorewill 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.
 





JJ Eastgate
Director

Date: 28 September 2023

Page 5

 
SIMPRO SOFTWARE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SIMPRO SOFTWARE LIMITED
 

OPINION


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 policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


BASIS FOR OPINION


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.


CONCLUSIONS RELATING TO GOING CONCERN


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
SIMPRO SOFTWARE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SIMPRO SOFTWARE LIMITED (CONTINUED)


OTHER INFORMATION


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 ReportOur 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.


OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the 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.


MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 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.


Page 7

 
SIMPRO SOFTWARE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SIMPRO SOFTWARE LIMITED (CONTINUED)


AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.
 
Page 8

 
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.


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 2006Our 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.







Edward Napper (Senior Statutory Auditor)
  
for and on behalf of
Peters Elworthy & Moore
 
Chartered Accountants
Statutory Auditors
  
Salisbury House
Station Road
Cambridge
CB1 2LA

 
Date: 
29 September 2023
Page 9

 
SIMPRO SOFTWARE LIMITED
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

  

Turnover
 3 
11,960,033
8,742,200

Cost of sales
  
(3,881,977)
(2,830,182)

GROSS PROFIT
  
8,078,056
5,912,018

Administrative expenses
  
(7,700,658)
(5,564,007)

OPERATING PROFIT
  
377,398
348,011

Interest receivable and similar income
 6 
20
84

Interest payable and similar expenses
 7 
(1,598)
(938)

PROFIT BEFORE TAX
  
375,820
347,157

PROFIT FOR THE FINANCIAL YEAR
  
375,820
347,157

There are no items of other comprehensive income for 2022 or 2021 other than the profit for the yearAs a result, no separate Statement of Comprehensive Income has been presented.

The notes on pages 14 to 22 form part of these financial statements.

Page 10

 
SIMPRO SOFTWARE LIMITED
REGISTERED NUMBER: 06983493

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

FIXED ASSETS
  

Tangible assets
 9 
124,820
123,165

  
124,820
123,165

CURRENT ASSETS
  

Debtors: amounts falling due after more than one year
 10 
355,595
500,058

Debtors: amounts falling due within one year
 10 
1,985,075
1,523,360

Cash at bank and in hand
  
2,123,303
3,188,425

  
4,463,973
5,211,843

Creditors: amounts falling due within one year
 11 
(2,859,532)
(3,985,323)

NET CURRENT ASSETS
  
 
 
1,604,441
 
 
1,226,520

TOTAL ASSETS LESS CURRENT LIABILITIES
  
1,729,261
1,349,685

  

NET ASSETS
  
1,729,261
1,349,685


CAPITAL AND RESERVES
  

Called up share capital 
 12 
3,603,202
3,603,202

Profit and loss account
  
(1,873,941)
(2,253,517)

  
1,729,261
1,349,685


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



JJ Eastgate
Director
 
Date: 
28 September 2023

The notes on pages 14 to 22 form part of these financial statements.

Page 11

 
SIMPRO SOFTWARE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2021
3,603,202
(2,600,674)
1,002,528



Profit for the year
-
347,157
347,157



At 1 January 2022
3,603,202
(2,253,517)
1,349,685



Profit for the year
-
375,820
375,820

Share option charge
-
3,756
3,756


AT 31 DECEMBER 2022
3,603,202
(1,873,941)
1,729,261


The notes on pages 14 to 22 form part of these financial statements.

Page 12

 
SIMPRO SOFTWARE LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the year
375,820
347,157

ADJUSTMENTS FOR:

Depreciation of tangible assets
90,432
68,070

Loss on disposal of tangible assets
1,728
1,897

Interest paid
1,598
938

Interest received
(20)
(84)

(Increase) in debtors
(248,969)
(525,101)

(Increase)/decrease in amounts owed by groups
(68,283)
208,400

Increase in creditors
63,324
561,780

(Decrease)/increase in amounts owed to groups
(1,189,010)
1,261,665

Share option charge
3,756
-

NET CASH GENERATED FROM OPERATING ACTIVITIES

(969,624)
1,924,722


CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of tangible fixed assets
(97,191)
(62,950)

Sale of tangible fixed assets
3,376
-

Interest received
20
84

HP interest paid
(1,598)
(938)

NET CASH FROM INVESTING ACTIVITIES

(95,393)
(63,804)


(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(1,065,017)
1,860,918

Cash and cash equivalents at beginning of year
3,188,320
1,327,402

CASH AND CASH EQUIVALENTS AT THE END OF YEAR
2,123,303
3,188,320


CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:

Cash at bank and in hand
2,123,303
3,188,425

Bank overdrafts
-
(105)

2,123,303
3,188,320


Page 13

 
SIMPRO SOFTWARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


GENERAL INFORMATION

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

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

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:

 
2.2

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 
SIMPRO SOFTWARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.ACCOUNTING POLICIES (CONTINUED)

 
2.3

TURNOVER

Turnover is recognised when the Company transfers control of goods or services to the customer for the amount to which the Company expects to be entitled.  Turnover is recognised over the course of the subscription period covered, which is typically one month.  For some larger clients, subscription invoices may be issued for longer subscription periods where turnover is accordingly recognised on a straight line basis over the applicable period covered.
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.

Page 15

 
SIMPRO SOFTWARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.ACCOUNTING POLICIES (CONTINUED)

 
2.4

OPERATING LEASES: THE COMPANY AS LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

Long-term leasehold property
-
over the period of the lease
Office equipment
-
25% - 37.5% straight line
Trackers
-
33% straight line

 
2.9

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 16

 
SIMPRO SOFTWARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.ACCOUNTING POLICIES (CONTINUED)

 
2.10

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.11

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.12

HOLIDAY PAY ACCRUAL

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.


3.


TURNOVER

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Software licence and support
10,405,133
7,506,715

Implementation and training
2,008,813
1,905,628

Vehicle tracking and installation
51,486
45,644

Customisation
(505,399)
(715,787)

11,960,033
8,742,200


Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
11,409,654
8,435,578

Rest of Europe
469,581
228,201

Rest of the World
80,798
78,421

11,960,033
8,742,200


Page 17

 
SIMPRO SOFTWARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

4.


AUDITORS' REMUNERATION

During the year, the Company obtained the following services from the Company's auditors:


2022
2021
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
13,300
9,450


5.


EMPLOYEES

2022
2021
£
£

Wages and salaries
4,759,467
3,321,585

Social security costs
563,120
390,385

Cost of defined contribution scheme
358,928
252,416

5,681,515
3,964,386


The average monthly number of employees, including directors, during the year was 110 (2021 - 78).


6.


INTEREST RECEIVABLE

2022
2021
£
£


Bank and other interest receivable
20
84

20
84


7.


INTEREST PAYABLE AND SIMILAR EXPENSES

2022
2021
£
£


Late payment interest payable
1,598
938

1,598
938

Page 18

 
SIMPRO SOFTWARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


TAXATION


2022
2021
£
£


TOTAL CURRENT TAX
-
-

DEFERRED TAX

TOTAL DEFERRED TAX
-
-


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
-
-

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is lower than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
375,820
347,157


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
71,406
65,960

EFFECTS OF:


Fixed asset timing differences
(9,031)
(4,174)

Expenses not deductible for tax purposes
4,385
1,989

Utilisation of tax losses
(65,422)
(64,037)

Other timing differences
(1,338)
262

TOTAL TAX CHARGE FOR THE YEAR
-
-

Page 19

 
SIMPRO SOFTWARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

9.


TANGIBLE FIXED ASSETS





Long-term leasehold property
Office equipment
Trackers
Total

£
£
£
£



COST OR VALUATION


At 1 January 2022
42,351
247,358
25,117
314,826


Additions
-
89,054
8,137
97,191


Disposals
-
(38,210)
(6,121)
(44,331)



At 31 December 2022

42,351
298,202
27,133
367,686



DEPRECIATION


At 1 January 2022
21,130
159,929
10,602
191,661


Charge for the year on owned assets
11,175
71,130
8,127
90,432


Disposals
-
(33,106)
(6,121)
(39,227)



At 31 December 2022

32,305
197,953
12,608
242,866



NET BOOK VALUE



At 31 December 2022
10,046
100,249
14,525
124,820



At 31 December 2021
21,221
87,429
14,515
123,165

Page 20

 
SIMPRO SOFTWARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


DEBTORS

2022
2021
£
£

DUE AFTER MORE THAN ONE YEAR

Other debtors
355,595
500,058


2022
2021
£
£

DUE WITHIN ONE YEAR

Trade debtors
582,500
558,647

Amounts owed by group undertakings
69,179
896

Other debtors
1,256,822
844,584

Prepayments and accrued income
76,574
119,233

1,985,075
1,523,360



11.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022
2021
£
£

Bank overdrafts
-
105

Trade creditors
81,628
127,173

Amounts owed to group undertakings
1,097,356
2,286,366

Other taxation and social security
594,557
536,485

Other creditors
182,304
189,283

Accruals and deferred income
903,687
845,911

2,859,532
3,985,323


Other creditors includes pension contributions amounting to £29,750 (2021 - £26,165) payable to defined contribution pension schemes at the balance sheet date. 

Page 21

 
SIMPRO SOFTWARE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


SHARE CAPITAL

2022
2021
£
£
ALLOTTED, CALLED UP AND FULLY PAID



3,603,202 (2021 - 3,603,202) Ordinary shares of £1.00 each
3,603,202
3,603,202



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).

14.


ANALYSIS OF NET DEBT




At 1 January 2022
Cash flows
At 31 December 2022
£

£

£

Cash at bank and in hand

3,188,425

(1,065,122)

2,123,303

Bank overdrafts

(105)

105

-



3,188,320
(1,065,017)
2,123,303

 
Page 22