REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
SAILPOINT TECHNOLOGIES UK LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
SAILPOINT TECHNOLOGIES UK LTD |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Notes to the Financial Statements | 15 |
SAILPOINT TECHNOLOGIES UK LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Highland House, Mayflower Close |
Chandlers Ford |
Eastleigh |
Hampshire |
SO53 4AR |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their strategic report for the year ended 31 December 2022. |
Introduction |
The directors present their strategic report for the year ended 31 December 2022. SailPoint Technologies UK Limited is the wholly owned subsidiary of SailPoint Technologies Holdings, Inc. and some of the below responses are directly associated with SailPoint Technologies Holdings, Inc. |
REVIEW OF BUSINESS |
The company's principal operation is the provision of sales and marketing services to its parent company, SailPoint Technologies Holdings, Inc, a company incorporated in the United States of America. The company operates from London, United Kingdom. |
For the years ended December 31, 2022 and 2021, our revenue was £30,264,144 and £26,462,626, respectively. |
For the year ended December 31, 2022, we had a net income of £1,836,607 compared to net income of £1,542,024 for the year ended December 31, 2021. |
The company has net assets of £15,118,064 (2021: £9,825,245). |
Strategy |
The company's overriding strategy is to drive new customer growth through expanding its footprint through both new, greenfield deployments and displacements of competitive legacy solutions. We plan to expand our customer base by continuing to grow our sales organization, expand and leverage our channel partnerships and enhance our marketing efforts. In addition, we plan to further penetrate our existing customer base. Our customers have the flexibility to start with a single use case or project and expand over time. As they realize the value of their investment, new use cases and deployments are identified, allowing us to sell more products to existing customers and to expand the number and typed of identities, including non-human and machine identities, and governed systems we cover within their organizations. |
Research and development |
No research and development activities are performed by the company. |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The key business risks that could affect the company's ability to achieve its strategic goals are set out below: |
If we are unable to maintain successful relationships with our channel partners, our ability to market, sell and distribute our solutions will be limited and our business, financial condition and operating results could be adversely affected. SailPoint has an extensive and diverse network of resellers consisting of over 1,000 channel partners. |
Our future revenues and operating results will be harmed if we are unable to acquire new customers, if our customers do not renew their arrangements with us, or if we are unable to expand sales to our existing customers or develop new solutions that achieve market acceptance. SailPoint continues to add customers at an attractive rate and retention rates remain high year over year. |
Our success depends on the experience and expertise of our senior management team and key employees. If we are unable to hire, retain, train and motivate our personnel, our business, operating results and prospects may be harmed. The CEO is the founder of SailPoint. The CRO and EVP-Product are long-tenured executives of the company. |
Real or perceived errors, failures, or disruptions, including those caused by cyber-attacks, in the SailPoint platform and solutions could adversely affect our customers' satisfaction with our solutions and harm our business and industry reputation. SailPoint maintains a strong controls around cyber infrastructure, and has a dedicated Compliance Team focussed on adherence to ISO standards. |
If we fail to adapt and respond effectively to rapidly changing technology, evolving industry standards, changing regulations, customer needs, requirements or preferences, the SailPoint platform and solutions may become less competitive. SailPoint's product strategy is to (1) accelerate innovation within the company's core identity security SaaS offerings, (2) deliver continued innovation as we execute against our vision for SailPoint identity security, and (3) ensure that as the company delivers these new innovations, they work in concert with our SaaS offerings in addition to our on-premises offerings. |
Financial key performance indicators |
The company has made significant progress in the year on the overriding strategic objectives. The board monitors progress on the overall strategy by reference to our KPI's set forth by the parent company, SailPoint Technologies Holdings, Inc. The main KPI used by SailPoint Technologies Holdings, Inc. that is applicable to the company is the number of customers. In 2022, the total number of customers for SailPoint Technologies Holdings, Inc. was 2,514 as compared to 2,259 for 2021. |
In addition to our financial information prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), we monitor total annual recurring revenue ("ARR") to help us measure and evaluate the effectiveness of our operations. In 2022, the Total ARR related to UK contracts was $29.0M as compared to $20.2M in 2021, displaying the stability, experience and expertise of our senior management team. |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Total ARR represents the annualized value of the active portion of SaaS, term-based license, maintenance and support contracts and other subscription services at the end of the reporting period. We calculate total ARR by dividing the active contract value by the number of days in the active portion of the overall contract term and then multiplying by 365. Total ARR should be viewed independently of revenue and deferred revenue as total ARR is an operating metric and is not intended to be combined with or replace these items. Total ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates, and does not include revenue from perpetual licenses, training, professional services or other sources of revenue that are not deemed to be recurring in nature. |
Future developments |
General worldwide economic conditions could experience significant downturns and instability, including as a result of changes in global trade policies, trade disputes and increased tariffs between the United States and China, or other political or economic developments. This uncertainty may cause some of our customers or potential customers to curtail spending and may ultimately result in new regulatory and cost challenges to our United Kingdom and global operations. These conditions, make it extremely difficult for our customers and us to forecast and plan future business activities accurately, and they could cause our customers to re-evaluate their decisions to purchase our products, which could delay and lengthen our sales cycles or result in cancellations of planned purchases. Furthermore, during challenging economic times and/or during times of rising interest rates, our customers may tighten their budgets and face issues in gaining timely access to sufficient and/or affordable credit, which could result in an impairment of their liability to make timely payments to us. In turn, we may be required to increase our allowance for doubtful accounts, which would adversely affect our financial results. |
As the pandemic has caused more of our customers to shift to a virtual workforce, we believe the value and scalability of our identity platform has become even more evident. We believe that the pandemic has not had a material adverse impact on our financial performance during 2022, and indeed, our revenue and customer base grew throughout 2022. As expected, we saw a higher level of travel expenses in 2022. Nevertheless, we recognize that the uncertainty related to worldwide economic conditions may result in increased volatility in the financial projections we use as the basis for our estimates and assumptions used in our financial statements. |
ON BEHALF OF THE BOARD: |
29 September 2023 |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their report with the financial statements of the company for the year ended 31 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of sales and marketing services to its parent company, Sailpoint Technologies Holdings, Inc. |
Branches outside of the UK |
During the year, the company had operations in Norway and Sweden. |
RISK MANAGEMENT |
The activities of the business expose it to a number of financial risks. The controls in place to mitigate these risks are detailed within the strategic report. |
DIVIDENDS |
The profit of the year, after taxation, amounted £1,836,607 (2021: £1,542,024). |
No dividends were proposed or paid during the year. |
POST BALANCE SHEET EVENTS |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, HWB Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SAILPOINT TECHNOLOGIES UK LTD |
Opinion |
We have audited the financial statements of Sailpoint Technologies UK Ltd (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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). |
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 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SAILPOINT TECHNOLOGIES UK LTD |
Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SAILPOINT TECHNOLOGIES UK LTD |
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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- We obtained an understanding of the legal and regulatory frameworks that are applicable to thecompany, and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006, UK Generally Accepted Accounting Practice and the relevant tax compliance regulations for the company. |
- We obtained an understanding of how the company is complying with these frameworks through discussions with management. |
- We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs and correspondence. |
- We assessed the susceptibility of the company's financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature. |
- We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SAILPOINT TECHNOLOGIES UK LTD |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Highland House, Mayflower Close |
Chandlers Ford |
Eastleigh |
Hampshire |
SO53 4AR |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 4 |
Profit/loss on sale of tang FA | 5 |
2,240,960 | 1,960,846 |
Interest receivable and similar income |
2,244,141 | 1,960,918 |
Interest payable and similar expenses |
6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Shared based payments expense |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
BALANCE SHEET |
31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Debtors: amounts falling due within one year |
9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 12 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Capital contribution reserve | 14 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up | Capital |
share | Retained | contribution | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Total comprehensive income | - | 1,542,024 | 1,542,024 |
Capital contribution for |
equity settled share based |
payments | - | - | 2,793,876 | 2,793,876 |
Balance at 31 December 2021 |
Changes in equity |
Total comprehensive income | - | 1,836,607 | 1,836,607 |
Capital contribution for |
equity settled share based |
payments | - | - | 3,456,212 | 3,456,212 |
Balance at 31 December 2022 |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
SailPoint Technologies UK Limited is a private company limited by shares, incorporated and domiciled in England and Wales. |
The address of the registered office is Fourth Floor, St James House, St James' Square, Cheltenham, Gloucestershire, England, GL50 3PR, with its principal place of business at New Broad Street House, 35 New Broad Street, London, EC2M 1NH. |
The company is registered at Companies House England and Wales. Its registered number is 06648439. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
This information is included in the consolidated financial statements of Sailpoint Technologies, Inc. as at 31 December 2022 and these financial statements may be obtained from 11120 Four Points Drive, Suite 100, Austin, Texas 78726, United States of America. |
Going concern |
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least twelve months from the date of signing this report. Accordingly, the going concern basis has been adopted in preparing the directors report and financial statements. |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23; |
• | the requirement of paragraph 33.7. |
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The directors concluded that, due to the nature of the business, there are no critical accounting judgements or key sources of estimation uncertainty that are required to be disclosed here. |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The company is contracted by its parent company Sailpoint Technologies Holdings, Inc. to deliver sales and marketing services under an intercompany agreement. The turnover in respect of these services provided is calculated as attributable costs plus 8% in accordance with the transfer pricing agreement between the company and its parent company. |
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, using the straight-line method. |
The estimated useful lives range as follows: |
- Leasehold improvements - Earlier of 5 years or the lease end date |
- Fixtures and fittings - 5 years |
- Computer equipment - 3 years |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. |
Financial instruments |
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
Basic financial assets and liabilities that are payable or receivable within one year, typically trade payables and receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income. |
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that: |
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
The company's functional and presentational currency is pound sterling (GBP). |
Monetary amounts in these financial statements are rounded to the nearest £1 sterling. |
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. |
Leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
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 Statement of financial position. The assets of the plan are held separately from the company in independently administered funds. |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Share based payments |
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Statement of financial position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition. |
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
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. |
Creditors |
Short term creditors are measured at the transaction price. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the Statement of financial position. |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
The whole of the turnover is attributable to the principal activity of the company, details of which can be found in the Directors' Report. |
The company is contracted by its parent company, SailPoint Holdings, Inc. to deliver sales and marketing services under an intercompany agreement. The company is remunerated by its parent for these services. |
2022 | 2021 |
£ |
Intercompany sales | 30,264,144 | 26,462,626 |
30,264,144 | 26,462,626 |
Analysis of turnover by country of destination: |
2022 | 2021 |
£ | £ |
United States | 30,264,144 | 26,462,626 |
30,264,144 | 26,462,626 |
3. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
Corporate | 4 | 3 |
Customer success | 11 | 9 |
Marketing | 3 | 3 |
PS | 14 | 13 |
Sales | 78 | 70 |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | EMPLOYEES AND DIRECTORS - continued |
2022 | 2021 |
£ | £ |
Directors' remuneration |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2022 | 2021 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences |
5. | EXCEPTIONAL ITEMS |
2022 | 2021 |
£ | £ |
Profit/loss on sale of tang FA |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Interest expense |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax |
Adjustments in respect of |
prior periods | (13,718 | ) | 56,023 |
Foreign tax | - | 14,762 |
Total current tax |
Deferred tax |
Tax on profit |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
7. | TAXATION - continued |
Tax effects relating to effects of other comprehensive | income |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Shared based payments expense | - | 3,456,212 |
2021 |
Gross | Tax | Net |
£ | £ | £ |
Shared based payments expense | - | 2,793,876 |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
7. | TAXATION - continued |
Factors affecting tax charge for the year |
The tax assessed for the year is the same as for 2021, the standard rate of corporation tax in the UK of 19% (2021: 19%) as set out below: |
2022 | 2021 |
£ | £ |
Profit on ordinary activities before tax | 2,243,165 | 1,960,918 |
Profit in ordinary activities multiplied by standard rate ofcorporation tax in the UK 19% (2021: 19%) | 426,201 | 372,574 |
Effects of: |
Fixed assets differences | (26,694 | ) | (10,566 | ) |
Expenses not deductible for tax purposes | 323,540 | 537,627 |
Other permanent differences | (303,740 | ) | (553,029 | ) |
Foreign tax credits | - | 116 |
Remeasurement of deferred tax for changes in tax rates | 969 | 24,165 |
Movement in deferred tax not recognised | - | (8,017 | ) |
Unexplained difference/other differences | (1 | ) | 1 |
Adjustments to tax charge in respect of prior periods | 13,421 | 56,023 |
Further adjustments to tax charge in respect of prior periods | (27,138 | ) | - |
Total tax charge for the year | 406,558 | 418,894 |
Factors that may affect future tax charges |
Capital allowances - super deduction |
- Annual investment allowance (AIA) - can be claimed up to £1 million on certain plant and machinery. |
- 100% first year allowances - can be claimed the full amount for certain plant and machinery in the year that it was bought. |
- The super-deduction or 50% special rate first year allowance - can be claimed these for certain plant and machinery bought from 1 April 2021 up to and including 31 March 2023. |
- Writing down allowances - can be claimed these if plant and machinery does not qualify for AIA or have already claimed the maximum amount. |
Tax Rate |
The main rate of corporation tax will be 25% for the financial year beginning 1 April 2023, previously 19% in the financial year beginning 1 April 2022. |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
8. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | and | Office |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Amounts owed by group undertakings |
Other debtors |
Other taxation | 12,798 | - |
VAT |
Prepayments |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Other taxation | - | 38,682 |
Social security and other taxes |
Other creditors |
Accrued expenses |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
11. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
12. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax | 104,724 | 100,686 |
Deferred |
tax |
£ |
Balance at 1 January 2022 |
Provided during year |
Balance at 31 December 2022 |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
Ordinary shares hold full voting rights, are entitled to dividends and are entitled to a distribution arising from winding up the company. |
14. | RESERVES |
Called up share capital - represents the nominal value of shares that have been issued. |
Profit and loss account - represents accumulated profits and losses. |
Capital contribution - represents the accumulated share based payments expense. |
15. | PENSION COMMITMENTS |
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £443,282 (2021: £392,219). Contributions totalling £79,791 (2021: £61,386) were payable to the fund at the reporting date and are included in creditors. |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
16. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
17. | POST BALANCE SHEET EVENTS |
On 30 August 2023, Osirium Technologies plc ("Osirium") and SailPoint Technologies UK Ltd ("SailPoint UK") announced that they had reached agreement on the terms and conditions of a recommended cash offer pursuant to which SailPoint UK would acquire the entire issued, and to be issued, ordinary share capital of Osirium (the "Offer"). The Offer values Osirium's entire issued, and to be issued, ordinary share capital at approximately £3.11 million on a fully diluted basis and implies an enterprise value of approximately £6.56 million. At this stage the Offer remains subject to Osirium shareholder approval and we expect this acquisition to complete in the fourth quarter of 2023. |
18. | ULTIMATE CONTROLLING PARTY |
The company is a wholly owned subsidiary of Sailpoint Holdings, Inc., a company incorporated in the United States of America, therefore Sailpoint Holdings, Inc. is the immediate parent undertaking. |
SailPoint Parent, LP. a company incorporated in the United States of America, is considered to be the ultimate parent undertaking who indirectly holds 100% of the issued share capital in the company. |
The smallest group in which the results of the company are consolidated is that headed by Sailpoint Holdings, Inc. |
The largest group in which the results of the company are consolidated is that headed by Sailpoint Technologies Holdings, Inc. with its registered office at 11120 Four Points Drive, Suite 100, Austin Texas, 78726, United States of America. |
SAILPOINT TECHNOLOGIES UK LTD (REGISTERED NUMBER: 06648439) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
19. | SHARE-BASED PAYMENT TRANSACTIONS |
The company's ultimate parent company, Sailpoint Technologies Holdings, Inc. operates a share based payment scheme for all the employees of the company. |
The stock options in Sailpoint Technologies Holdings, Inc. are granted to the company's employees at a price equal to the fair value of the shares in Sailpoint Technologies Holdings, Inc. at the date of the grant and are denominated in US dollars. |
The stock options have a four year vesting period. If the stock options remain unexercised after a period of ten years from the date of the grant the stock options expire. Stock options are forfeited if the employee leaves the company before the options vest. |
The company did not enter into any share based payment transactions with parties other than employees during the year. |
The grant terms and valuations of the share-based payments were revised following the takeover in August by Thomas Bravo. The option vesting periods remain in line with the terms agreed in the original agreements. |