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Registration number: 11463079

AlternIT One Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2023

 

AlternIT One Limited

Contents

Company Information

1

Strategic Report

2 to 3

Balance Sheet

4

Notes to the Unaudited Financial Statements

5 to 10

 

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

9 Perseverance Works
Kingsland Road
London
E2 8DD

Bankers

Metro Bank Plc
One Southampton Row
London
WC1B 5HA

HSBC UK Bank Plc
Bishopsgate
1 - 3 Bishopsgate
London
EC2N 3AQ

Accountants

Lambert Chapman LLP
3 Warners Mill
Silks Way
Braintree
Essex
CM7 3GB

 

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 6 November 2023 and signed on its behalf by:


N T Gannon
Director

 

AlternIT One Limited

(Registration number: 11463079)
Balance Sheet as at 31 July 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

787

2,362

Tangible assets

5

56,904

41,386

 

57,691

43,748

Current assets

 

Stocks

6

-

1,539

Debtors

7

1,624,248

1,284,262

Cash at bank and in hand

 

1,132,546

809,780

 

2,756,794

2,095,581

Creditors: Amounts falling due within one year

8

(1,881,776)

(1,738,526)

Net current assets

 

875,018

357,055

Total assets less current liabilities

 

932,709

400,803

Creditors: Amounts falling due after more than one year

8

(21,594)

(31,567)

Provisions for liabilities

(10,798)

-

Net assets

 

900,317

369,236

Capital and reserves

 

Called up share capital

9

10,716

10,716

Share based payment reserve

45,366

-

Retained earnings

844,235

358,520

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:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

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 Board on 6 November 2023 and signed on its behalf by:
 

N T Gannon
Director

 

AlternIT One Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is: 9 Perseverance Works, Kingsland Road, London, E2 8DD.

The principal place of business is: Ground Floor, 14 Cullum Street, London, EC3M 7JJ.

2

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

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 40 (2022 - 28).

 

AlternIT One Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

4

Intangible assets

Software development
£

Total
£

Cost or valuation

At 1 August 2022

4,725

4,725

At 31 July 2023

4,725

4,725

Amortisation

At 1 August 2022

2,363

2,363

Amortisation charge

1,575

1,575

At 31 July 2023

3,938

3,938

Carrying amount

At 31 July 2023

787

787

At 31 July 2022

2,362

2,362

5

Tangible assets

Leasehold property improvements
£

Office equipment
 £

Computer equipment
 £

Total
£

Cost or valuation

At 1 August 2022

27,235

12,338

63,912

103,485

Additions

-

-

38,881

38,881

At 31 July 2023

27,235

12,338

102,793

142,366

Depreciation

At 1 August 2022

15,945

11,815

34,339

62,099

Charge for the year

5,645

491

17,227

23,363

At 31 July 2023

21,590

12,306

51,566

85,462

Carrying amount

At 31 July 2023

5,645

32

51,227

56,904

At 31 July 2022

11,290

523

29,573

41,386

6

Stocks

2023
£

2022
£

Stocks

-

1,539

 

AlternIT One Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

7

Debtors

2023
£

2022
£

Trade debtors

961,482

536,235

Other debtors

46,968

95,727

Prepayments and accrued income

615,798

652,300

1,624,248

1,284,262

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

679,906

901,710

Loans and borrowings

11

10,032

9,804

Other creditors

 

96,245

113,377

Taxation and social security

 

527,439

173,401

Accruals and deferred income

 

568,154

540,234

 

1,881,776

1,738,526

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

11

21,594

31,567

 

AlternIT One Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

9

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

-

-

-

-

Ordianry A Shares of £0.01 each

964,200

9,642

964,200

9,642

Ordinary B Shares of £0.01 each

17,900

179

17,900

179

Ordianry C Shares of £0.01 each

17,900

179

17,900

179

Ordinary D Shares of £0.01 each

17,900

179

17,900

179

Ordinary E Shares of £0.01 each

17,900

179

17,900

179

Ordinary F Shares of £0.01 each

17,900

179

17,900

179

Ordinary G Shares of £0.01 each

17,900

179

17,900

179

 

1,071,600

10,716

1,071,600

10,716

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.

10

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.

11

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

21,594

31,567

2023
£

2022
£

Current loans and borrowings

Bank borrowings

10,032

9,804

12

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 £49,440 (2022 - £98,880).