Registration number:
for the Year Ended 31 January 2023
Zuora UK Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Zuora UK Limited
Company Information
Directors |
Alexander White Margaret Thum Matthew Dobson |
Registered office |
|
Auditors |
|
Zuora UK Limited
Strategic Report for the Year Ended 31 January 2023
The directors present their report for the year ended 31 January 2023.
Fair review of the business
Zuora is a cloud-based subscription management platform, providing software that enables companies across multiple industries and geographies to launch, manage or transform to a subscription business model.
Designed specifically for dynamic, recurring subscription business models, our cloud-based software functions as an intelligent subscription management hub that automates and orchestrates the entire subscription order-to-revenue process, including billing and revenue recognition. The solution enables businesses to easily change pricing and packaging for products and services to grow and scale, lo efficiently comply with revenue recognition standards, and to build meaningful relationships with their subscribers.
Our 6 key products are Zuora Billing, Zuora Revenue, CPQ, Collect, Marketplace & Zephr.
Our offerings have competitive advantages enabling us to maintain and extend our leadership in the market, through:
- Solutions that are built specifically to handle subscription business models
- Flexible technology with a broad range of customers and use cases
- Deep domain expertise across a broad range of subscription business models
The results for the year and financial position of the Company are as shown in the annexed financial statements.
The company continues to grow and perform as per business forecasts both as an individual entity and exceeding expectations & targets as a subsidiary of Zuora Inc.
Zuora UK Limited
Strategic Report for the Year Ended 31 January 2023
Future developments
Subscription business models are inherently dynamic, with multiple interactions and constantly changing relationships and events. The capabilities to launch, price, and bill for products, facilitate and record cash receipts, process and recognize revenue, and produce the data required to close their books and drive key decisions are mission critical and particularly complex for companies with subscription business models. As a result, as companies launch or grow a subscription business, they often conclude that legacy systems arc inadequate.
Key elements of our growth strategy include:
• New Customer Acquisition
• Expand Relationships with existing customers
• Enter new vertical markets
- Expand our global footprint
- Leverage global system Integrators
- Launch new products and extend our Technology lead
We also intend to optimize pricing and packaging ·throughout the above to align the value customers realize from our products with the revenue we receive. We continue to experience rapid growth in our operations and personnel over this year. This growth and expansion of our business has placed and continues to place a significant strain on our management, operations, financial infrastructure, and corporate culture. In the event of further growth of our operations or in the number of our third-party relationships, our information technology systems and our internal controls and procedures may not be adequate to support our operations. To manage growth in our operations and personnel, we will need to continue to improve our operational, financial and management controls and our reporting systems and procedures, all of which are underway.
Zuora UK Limited
Strategic Report for the Year Ended 31 January 2023
Principal risks and uncertainties
Political developments, economic uncertainty or downturns, particularly as it impacts particular industries, could adversely affect our business and operating results.
Political developments impacting government spending and international trade, including government shutdowns in the United States, continued uncertainty surrounding the United Kingdom's departure from the European Union and trade disputes and harm, may negatively impact markets and cause weaker macroeconomic conditions.
The effects of these events may continue due to potential additional U.S. government shutdowns, instability in the United Kingdom and the European Union as the terms of Brexit remain under negotiation and the prolonging of the United States' trade disputes with China and other countries. The continuing effect of any or all of these events could adversely impact demand for our products, harm our operations and weaken our financial results.
In recent years, the United Kingdom and other significant markets have experienced cyclical downturns and worldwide economic conditions ·remain uncertain. Economic uncertainty and associated macroeconomic conditions make it extremely difficult for our customers and us to accurately forecast and plan future business activities and could cause our customers to slow spending on our solution, which could delay and lengthen sales cycles. Furthermore, during uncertain economic times our customers may face issues gaining timely access to sufficient credit, which could result in an impairment of their ability to make timely payments to us. If that were to occur, we may be required to increase our allowance for doubtful accounts and our results could be negatively impacted.
Furthermore, we have customers in a variety of different industries. A significant downturn in the economic activity attributable to any industry, including, but not limited to, the retail and financial industries, may cause
organizations to react by reducing their capital and operating expenditures in general or by specifically reducing their spending on information technology. In addition, our customers may delay or cancel information technology projects or seek to lower their costs by renegotiating vendor contracts. To the extent purchases of our solution are perceived by customers and potential customers to be discretionary, our revenue may be disproportionately affected by delays or reductions in general information technology spending. Also, customers may choose to develop in-house software or modify their legacy business software as an alternative to using our solution. Moreover, competitors may respond to challenging market conditions by lowering prices and attempting to lure away our customers.
We cannot predict the timing, strength, or duration of any economic slowdown or any subsequent recovery generally, or any industry. If the conditions in the general economy and the markets in which we operate worsen from present levels, our business, financial condition, and operating results could be materially adversely affected.
Approved by the
......................................... |
Zuora UK Limited
Directors' Report for the Year Ended 31 January 2023
The directors present their report and the financial statements for the year ended 31 January 2023.
Directors' of the company
The directors, who held office during the year, were as follows:
The following directors were appointed after the year end:
Principal activity
The principal activity of the company is providing a cloud-based subscription management platform through four key products; the platform itself, Billing, Revenue & Collect.
Political donations
The Company made no political donations during the year.
Research and development
Zuora UK employs three dedicated heads for Research & Development to continuously improve and develop the Subscription software platform, customer sandbox and project environments which can be brought into use and monetised accordingly.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
......................................... |
Zuora UK Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework' ('FRS 101'). 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 apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Zuora UK Limited
Independent Auditor's Report to the Members of Zuora UK Limited
Opinion
We have audited the financial statements of Zuora UK Ltd. (‘the Company’) for the year ended 31 January 2023 set out on pages 11 to 22, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and related notes, including the summary of significant accounting policies set out in note 1.The financial reporting framework that has been applied in their preparation is UK Law and FRS 101 Reduced Disclosure Framework.
In our opinion:
• | the financial statements give a true and fair view of the state of the Company’s affairs as at 31 January 2023 and of its profit for the period then ended; |
• | the financial statements have been properly prepared in accordance with FRS 101 Reduced Disclosure Framework issued by the UK’s Financial Reporting Council; and |
• | the financial statements 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with ethical requirements that are relevant to our audit of financial statements in the UK, including the Financial Reporting Council (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
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).
In our evaluation of the directors' conclusions, we considered the inherent risks to the Company’s business model and analysed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period.
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 the date 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
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the Company will continue in operation.
Zuora UK Limited
Independent Auditor's Report to the Members of Zuora UK Limited
Detecting irregularities including fraud
We identified the areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements and risks of material misstatement due to fraud, using our understanding of the entity's industry, regulatory environment and other external factors and inquiry with the directors. In addition, our risk assessment procedures included: inquiring with the directors as to the Company’s policies and procedures regarding compliance with laws and regulations and prevention and detection of fraud; inquiring whether the directors have knowledge of any actual or suspected non-compliance with laws or regulations or alleged fraud; inspecting the Company’s regulatory and legal correspondence; and reading Board minutes.
We discussed identified laws and regulations, fraud risk factors and the need to remain alert among the audit team.
The Company is subject to laws and regulations that directly affect the financial statements including companies and financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items, including assessing the financial statement disclosures and agreeing them to supporting documentation when necessary.
The Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, employment law and environmental law.
Auditing standards limit the required audit procedures to identify non-compliance with these non-direct laws and regulations to inquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. These limited procedures did not identify actual or suspected non-compliance.
We assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. As required by auditing standards, we performed procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition. We did not identify any additional fraud risks.
In response to risk of fraud, we also performed procedures including: identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation; assessing significant accounting estimates for bias; and assessing the disclosures in the financial statements.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Other information
The directors are responsible for the other information presented in the Annual Report together with the financial statements. The other information comprises the information included in the strategic report and the directors’ report. The financial statements and our auditor’s report thereon do not comprise part of the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
Zuora UK Limited
Independent Auditor's Report to the Members of Zuora UK Limited
Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work we have not identified material misstatements in the other information.
Opinion on other matter prescribed by the Companies Act 2006
Based solely on our work on the other information undertaken during the course of the audit:
• |
we have not identified material misstatements in the directors' report or the strategic report; |
• |
in our opinion, the information given in the directors’ report and the strategic report is consistent with the financial statements; |
• |
in our opinion, the directors’ report and the strategic report have been prepared in accordance with the Companies Act 2006. |
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required 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; or |
• |
the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report. |
We have nothing to report in these respects.
Respective responsibilities and restrictions on use
Responsibilities of directors for the financial statements
As explained more fully in the directors’ responsibilities statement set out on page 6, the directors are responsible for: the preparation of the financial statements including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor 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, other irregularities or error, and to issue an opinion in an auditor’s report. 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, other irregularities 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.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.
Zuora UK Limited
Independent Auditor's Report to the Members of Zuora UK Limited
The purpose of our audit work and to whom we owe our responsibilities
Our report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
1 Stokes Place
St Stephen's Green
Dublin 2
Zuora UK Limited
Profit and Loss Account for the Year Ended 31 January 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit/(loss) |
|
( |
|
Interest payable and similar expenses |
( |
( |
|
(23,643) |
(61,145) |
||
Profit/(loss) before tax |
|
( |
|
Tax on profit/(loss) |
( |
( |
|
Profit/(loss) for the year |
|
( |
The above results were derived from continuing operations.
Zuora UK Limited
(Registration number: 07496870)
Balance Sheet as at 31 January 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Trade and other debtors |
|
|
|
Cash at bank and in hand |
|
|
|
Corporation tax |
- |
405,883 |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current (liabilities)/assets |
( |
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net (liabilities)/assets |
( |
|
|
Capital and reserves |
|||
Called up share capital |
100 |
100 |
|
Other reserves |
- |
5,240,797 |
|
Retained earnings |
(54,983) |
(3,778,798) |
|
Shareholders' (deficit)/funds |
(54,883) |
1,462,099 |
Approved by the
......................................... |
Zuora UK Limited
Statement of Changes in Equity for the Year Ended 31 January 2023
Share capital |
Other reserves |
Retained earnings |
Total |
|
At 1 February 2022 |
|
|
( |
|
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
Share based payment transactions |
- |
(5,240,797) |
- |
(5,240,797) |
At 31 January 2023 |
|
- |
( |
( |
Share capital |
Other reserves |
Retained earnings |
Total |
|
At 1 February 2021 |
|
|
( |
|
Loss for the year |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
Share based payment transactions |
- |
2,691,077 |
- |
2,691,077 |
At 31 January 2022 |
100 |
5,240,797 |
(3,778,798) |
1,462,099 |
Zuora UK Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
General information |
The company is a private company limited by share capital, incorporated and domiciled in England.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework.
The financial statements are presented in Sterling.
Summary of disclosure exemptions
The Company’s ultimate parent undertaking, Zuora Inc includes the Company in its consolidated financial statements. The consolidated financial statements of Zuora Inc are prepared in accordance with US GAAP and are available to the public and may be obtained from 3050 South Delaware Street, Suite 301, San Mateo, California, USA. In these financial statements, the Company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 101 in respect of the following disclosures:
• Cash Flow Statement and related notes; and
• Key Management Personnel compensation.
As the consolidated financial statements of the ultimate parent undertaking include the disclosures equivalent to those required by FRS 101, the Company has also taken the exemptions available in respect of the following disclosures:
• Certain disclosures required by FRS 101 Share-based Payments;
Changes in accounting policy
None of the standards, interpretations and amendments effective for the first time from 1 February 2022 have had a material effect on the financial statements.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes and other taxes. Revenue is attributable to one principle activity of the company, being recharged costs.
Zuora UK Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Tax
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets is stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Long leasehold |
in accordance with the term of the lease |
Improvements to property |
in accordance with the term of the lease |
Fixtures, fittings and computer equipment |
Straight line over three years |
Investments
Investments in subsidiaries, associates and joint ventures are measured at cost.
Financial Instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and IFRS 7 'Financial Instruments ' of FRS 101 to all its financial instruments.
Financial Instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Foreign currency transactions and balances
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at
the date of the transaction. All differences are charged to profit or loss.
Zuora UK Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Borrowings
All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in finance costs.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Leases
Assets obtained under hire purchase contracts or leases are capitalised on the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.
Defined contribution pension obligation
Contributions to defined contribution plans are expensed in the period to which they relate
Share based payments
The fair value of employee and director stock option compensation awards, including purchase rights issued under ESPP, is based on the awards estimated fair value on the date of grant. Expense associated with these awards is recognised using the straight-line attribution method over the requisite service period for stock options, RSUs and restricted stock; and over the offering period for the purchase rights issued under the ESPP, and is reported in the statement of comprehensive income.
The fair value of the stock options, and purchase rights under the ESPP, is estimated using the Black- Scholes option-pricing model. The resulting fair value, net of estimated forfeitures, is recognised on a straight-line basis over the period during which an employee is required to provide service in exchange for the reward. Stock options generally vest over two to four years and have a contractual term of ten years. ESPP purchase rights generally vest over the two-year offering period.
The fair value of restricted stock and RSU grants is based on the grant date fair value of the parent company's common stock. The resulting fair value, net of estimated forfeitures, is to recognise on a straight-line basis over the period during which an employee is required service in exchange for the reward, which is generally three to four years. Estimated forfeitures are based upon experience and estimates are revised, if necessary, in subsequent periods if actuall forfeitures differ from initial estimates.
The services received and a liability to pay for those services are recognised over the expected vesting period. Until the liability is settled it is measured at each reporting date with changes in fair value recognised in the statement of comprehensive income.
Zuora UK Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Rendering of services |
|
|
The directors have not disclosed revenue to third parties disaggregated by geographical location as in the opinion of the directors such disclosure would be seriously prejudicial to the interests of the group.
Operating profit/(loss) |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Foreign currency (gains)/losses |
( |
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
|
Research and development |
|
|
Sales, marketing and distribution |
|
|
Sales |
|
|
Marketing |
|
|
Other departments |
|
|
|
|
Zuora UK Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Income tax |
Tax charged/(credited) in the profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
- |
Deferred taxation |
||
Arising from origination and reversal of temporary differences |
( |
|
Tax expense in the profit and loss account |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 25% (2022 - 19%).
The differences are reconciled below:
2023 |
2022 |
|
Profit/(loss) before tax |
|
( |
Corporation tax at standard rate |
|
( |
(Decrease)/increase from effect of capital allowances depreciation |
( |
|
Increase from effect of expenses not deductible in determining taxable profit (tax loss) |
|
|
(Increase)/decrease from tax losses for which no deferred tax asset was recognised |
( |
|
(Decrease)/increase from effect of unrelieved tax losses carried forward |
( |
|
(Decrease)/increase from effect of exercise employee share options |
( |
|
Total tax charge |
|
|
Zuora UK Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Improvements to property |
Total |
|
Cost or valuation |
||||
At 1 February 2022 |
|
|
|
|
Additions |
|
|
- |
|
At 31 January 2023 |
|
|
|
|
Depreciation |
||||
At 1 February 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 January 2023 |
|
|
|
|
Carrying amount |
||||
At 31 January 2023 |
|
|
|
|
At 31 January 2022 |
|
|
|
|
The net book value of property, plant and equipment includes £180,269 in respect of assets held under finance leases
Investments |
Subsidiaries |
£ |
Cost or valuation |
|
At 1 February 2022 |
|
Additions |
|
At 31 January 2023 |
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Carrying amount |
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At 31 January 2023 |
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Details of the subsidiaries as at 31 January 2023 are as follows:
Name of subsidiary |
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Holding |
Proportion of ownership interest and voting rights held |
2022 |
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Zuora UK Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Zuora UK Limited holds 100% of the share capital in overseas subsidiaries: Zuora Sweden AB, Zuora Italia SRL and Zuora Germany GmbH.
On 2 September 2022 Zuora UK Limited purchased 100% of the shares of Zephr Inc Limited for £41,516,408 and subsequently disposed of component parts of the investment to its parent, Zuora Inc on the same day for £40,733,238. The remaining investment relates to the elements of Zephr that are specific to the UK.
The Directors, in preparing these financial statements have complied with the Companies Act 2006. The Company is exempt by virtue of s400 of the Companies Act 2006 from the requirement to prepare group financial statements. These financial statements present information about the Company as an individual undertaking and not about its group. These financial statements were prepared in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs"). The Company's ultimate parent undertaking is in the US, The consolidated financial statements of Zuora Inc are prepared in accordance with US GAAP and are available to the public and may be obtained from 101 Redwood Shores Parkway, Redwood City, CA 94065, USA.
Trade and other debtors |
Trade and other debtors falling due within one year |
2023 |
2022 |
Trade debtors from related parties |
|
|
Prepayments |
|
|
Other trade debtors |
|
|
VAT Control account |
770,899 |
242,214 |
Deferred tax assets |
4,751 |
- |
87,844,362 |
66,110,839 |
Other trade debtors includes a long term debtor of £1,316,205 (2022 £1,316,205)
Cash at bank and in hand |
2023 |
2022 |
|
Cash at bank |
|
|
Creditors: amounts falling due within one year |
2023 |
2022 |
|
Trade creditors |
|
|
Accrued expenses |
|
|
Amounts due to related parties |
|
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Social security and other taxes |
|
|
Other trade creditors |
|
|
Income tax liability |
|
- |
Obligations under leases and hire purchase contracts |
|
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Zuora UK Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Creditors: amounts falling due after more than one year |
2023 |
2022 |
|
Obligations under leases and hire purchase contracts |
- |
|
Other non-current financial liabilities |
|
|
|
|
Obligations under leases and hire purchase contracts |
2,023 |
2,022 |
||
Amounts payable |
£ |
£ |
|
Within one year |
59,653 |
856,864 |
|
Within two to five years |
- |
59,653 |
|
59,653 |
203,817 |
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
100 |
|
100 |
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £634,012 (2022 - £339,206).
Related party transactions |
The company has taken advantage of exemption under the terms of Financial Reporting Standard 101 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned companies within the Group
Parent and ultimate parent undertaking |
The immediate parent undertaking and ultimate holding company is Zuora Inc, with registered office address 3050 South Delaware Street, Suite 301, San Mateo, California, United States of America. The consolidated financial statements include the results of the company and are available at 101 Redwood Shores Parkway, Redwood City, CA 94065, USA.