Registration number:
for the Year Ended
AlternIT One Limited
Contents
Company Information |
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Strategic Report |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
AlternIT One Limited
Company Information
Directors |
D C Foreman N T Gannon N A Brooks D S Wallace C Whamond C J Steele |
Registered office |
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Bankers |
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Accountants |
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AlternIT One Limited
Strategic Report for the Year Ended 31 July 2023
The directors present their strategic report for the year ended 31 July 2023.
Fair review of the business
The past year to July 2023 has seen another very strong year in terms of Financial Growth and Performance for AlternIT One Limited. Revenue grew by 33%, Gross Profit as a number increased by 89% and net profits before dividends increased by 87.5%. Revenue streams though, if we look deeper, are built on Recurring Revenue and our focus has always been on building such streams with of course, strong and sensible margins. Recurring Revenues now account for 73% of our Annual Revenue which is up from 68% the year before.
Revenues this year again came both from significant new client wins and the expansion and building out of existing clients. It is vindication of our relevance in the marketplace. Our intention has always been to be selective in the clients we engage with and having such a quality of client means that they themselves are more likely to grow and expand even in tough market conditions. We are often such an integral part of many of our clients that naturally we work tirelessly to help them develop and succeed. And it maybe a cliché, but the better they do, the better we do.
This year has also seen employee headcount increase by 42%, a little ahead of Revenue Growth but we are investing for the future. Employee bonus schemes are now in place and the past year has seen the setup of a full EMI scheme. Great Service and Services need great staff and employees. We are lucky enough to have a fantastic team and naturally we want to keep hold of them long into the future.
It’s fair to say we have now completed our Start Up Phase and are now entering our next phase, that of Scale Up.
We are constantly looking for ways to improve operational visibility, technical consistency and remove the room for human error. We believe this is (and will) allow us to make more proactive, informed decisions at both an operational level, but also improve the delivery of technical support. Thus, we’ve spent a considerable amount of time this year researching and investing in automation technologies.
We’ve invested in cloud automation toolsets that allow us to manage client environments to a baseline security standard, to great efficiency. Similar toolsets allow us to create new environments at pace to a predefined specification – ensuring consistency of deployments with little or no margin for error across our client base.
More recently we’ve engaged in R&D on the use of toolsets that will improve, automate and innovate the triage of client technical issues, and this project will continue into the next financial year.
The same technological investments have further increased the skill sets of our team, as well as facilitated the creation of an entirely software as a service-based infrastructure model – taking us into the next generation of our vision of scalable, flexible, automated cloud deployments. A proposition that has been warmly received by the many start up organisations we’ve worked with this financial year. Our newer approaches to building and running infrastructure have enabled us to deliver services to startup firms at speed, without compromising on adherence to financial services regulatory requirements.
AlternIT One continue to invest in the dedicated team delivering communications and audio-visual solutions as a key part of our service proposition with the increased requirement for robust meeting room, auditoriums, town hall collaboration and client entertainment suites. This technology and its tight integration to the client’s core Microsoft technology stack makes this very much part of the core platforms that we manage on our clients’ behalf. No longer is this technology one that sits on the peripheral of the estate.
AlternIT One Limited
Strategic Report for the Year Ended 31 July 2023
Another industry driven investment begun this financial year, along with long term commitment from our board, that of our journey into ESG. The appointment of an external, specialist ESG advisor allowed us to undertake our materiality assessment. Meaning we have identified our ESG KPI and can begin measuring our performance against those. The next phases include the improvement or creation of policies and procedures that will ensure we improve our KPI metrics in the coming years. Buoyed by our commitment to a meaningful ESG strategy, we have also enrolled in the Heart of the City initiative to contribute to London’s enterprise journey to Net Zero Carbon Footprint.
The Board welcome the successes and achievements, both financial and non-financial, of the past 5 years. However, the team are experienced enough to know we have many objectives, challenges and ambitions to achieve over the next 5 years. We are however excited at what the future holds for the company, the staff and our clients.
Approved by the Board on
N T Gannon
Director
AlternIT One Limited
(Registration number: 11463079)
Balance Sheet as at 31 July 2023
Note |
2023 |
2022 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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|
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Current assets |
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Stocks |
- |
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Debtors |
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Cash at bank and in hand |
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|
|
|
|
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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|
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
- |
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Net assets |
|
|
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Capital and reserves |
|||
Called up share capital |
10,716 |
10,716 |
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Share based payment reserve |
45,366 |
- |
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Retained earnings |
844,235 |
358,520 |
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Shareholders' funds |
900,317 |
369,236 |
For the financial year ended 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
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• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
Director
AlternIT One Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
The principal place of business is: Ground Floor, 14 Cullum Street, London, EC3M 7JJ.
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.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention.
These financial statements are presented in Sterling (£), which is the company's functional currency.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in IT support. Turnover is shown net of value added tax, returns, rebates and discounts.
Government grants
Government grants have been recognised within the profit and loss account for the accounting period they relate to.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
AlternIT One Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023
Tax
Current Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 taxable income.
Deferred 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 tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Office equipment |
33% Straight Line |
Computer equipment |
33% Straight Line |
Leasehold property improvements |
20% and 33% Straight Line |
Development costs
The amounts paid in connection with the development of software used in connection with the business' activity. The assets are carried at the costs less accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Software development |
33% Straight Line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
AlternIT One Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing 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 interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Share based payments
The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
AlternIT One Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023
Intangible assets |
Software development |
Total |
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Cost or valuation |
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At 1 August 2022 |
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At 31 July 2023 |
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Amortisation |
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At 1 August 2022 |
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Amortisation charge |
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At 31 July 2023 |
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Carrying amount |
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At 31 July 2023 |
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At 31 July 2022 |
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Tangible assets |
Leasehold property improvements |
Office equipment |
Computer equipment |
Total |
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Cost or valuation |
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At 1 August 2022 |
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Additions |
- |
- |
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At 31 July 2023 |
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Depreciation |
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At 1 August 2022 |
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Charge for the year |
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At 31 July 2023 |
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Carrying amount |
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At 31 July 2023 |
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At 31 July 2022 |
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Stocks |
2023 |
2022 |
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Stocks |
- |
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AlternIT One Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023
Debtors |
2023 |
2022 |
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Trade debtors |
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Other debtors |
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Prepayments and accrued income |
615,798 |
652,300 |
|
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Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
2022 |
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Due within one year |
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Trade creditors |
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Loans and borrowings |
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Other creditors |
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Taxation and social security |
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Accruals and deferred income |
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Creditors: amounts falling due after more than one year
Note |
2023 |
2022 |
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Due after one year |
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Loans and borrowings |
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AlternIT One Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
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No. |
£ |
No. |
£ |
|
|
- |
- |
- |
- |
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|
9,642 |
|
9,642 |
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|
179 |
|
179 |
|
|
179 |
|
179 |
|
|
179 |
|
179 |
|
|
179 |
|
179 |
|
|
179 |
|
179 |
|
|
179 |
|
179 |
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|
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|
On 2 August 2021 the 10,000 Ordinary £1 Shares were redesignated as 964,200 Ordinary £0.01 A shares, 17,900 Ordinary £0.01 B Shares and 17,900 Ordinary £0.01 C Shares.
Share based payments |
Share options have been issued to employees during the year with a fair value of £45,366 (2022 - £nil). The options have no vesting conditions, consequently the fair value has been recognised in full as an expense. The options expire 10 years from the date of issue and can only be exercised in the event of a change in majority ownership or sale of the majority of trading assets of the company.
Loans and borrowings |
2023 |
2022 |
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Non-current loans and borrowings |
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Bank borrowings |
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2023 |
2022 |
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Current loans and borrowings |
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Bank borrowings |
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Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £