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REGISTERED NUMBER: 05702796 (England and Wales)




















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 March 2023

for

Appsbroker Limited

Appsbroker Limited (Registered number: 05702796)






Contents of the Consolidated Financial Statements
for the Year Ended 31 March 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 7

Consolidated Income Statement 10

Consolidated Other Comprehensive Income 11

Consolidated Balance Sheet 12

Company Balance Sheet 13

Consolidated Statement of Changes in Equity 14

Company Statement of Changes in Equity 15

Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 17


Appsbroker Limited

Company Information
for the Year Ended 31 March 2023







DIRECTORS: M Conner
Mrs N Conner





SECRETARY: F D Ball





REGISTERED OFFICE: Appsbroker House
The Square
Swindon
SN1 3EB





REGISTERED NUMBER: 05702796 (England and Wales)

Appsbroker Limited (Registered number: 05702796)

Group Strategic Report
for the Year Ended 31 March 2023

The directors present their strategic report of the company and the group for the year ended 31 March 2023.

REVIEW OF BUSINESS
Appsbroker is a 'born in the Cloud' Google Partner with specific experience of working with Google products and services to solve the business problems faced by its customers across Financial Services, Media, Manufacturing and Retail sectors amongst others.

2023 proved to be a year of two halves. Up to October 2022 Appsbroker was in line to achieve its best ever year with September 2022 being a record month for both revenue and EBIT. However, from November onwards customers appeared to slow down their spend commitments on new projects. This was particularly prevalent in the Financial Services sector. The key driver for this slowdown in activity is linked to the wider economic situation with rising interest rates and increased costs across the board.

As a result Professional Services revenue ended the year flat vs prior year and the revenue growth seen was driven by the reselling of Google products and services.

In this challenging second half of the year there remained some positive customer engagements particularly in the Security and Training practices - indeed the Training practice won its first million pound deal at the end of the financial year.

The Board took the opportunity to review the company's strategy in light of the market conditions - the outcome was to focus even harder on Professional Services where Appsbroker could bring its skills at solving business problems using technology. The Board remains convinced that there is appetite in the market for competitors to the traditional Global System Integrators (GSIs). However, in the short term a right-sizing process was needed to ensure the business was in the best shape to deliver on its strategic aims. The right-sizing process began at the end of the financial year and the major changes were implemented at the beginning of May 2023. This was an exceptionally difficult time for all concerned.

Appsbroker's operational performance is underpinned by strong internal governance and it continues to hold ISO 27001 and ISO 9001 accreditations recognising the importance of providing customers with confidence in its ability to manage Information Security and operate a robust quality management system.

The Board is also pleased to announce that in February 2023 it earned B Corp status. As a B Corp, Appsbroker formally demonstrates and has evidenced the steps it has taken to ensure its positive effect on its team, customers, suppliers, community members, governance and the environment.

As ever the success of the company is due to the quality of its team. In what has been a challenging year for our people they have demonstrated all the values Appsbroker represents of Pace, Care and Excellence. As a Board we are thankful for our team and for their loyalty, dedication and ability.

RESULTS AND PERFORMANCE
Turnover during the year was £73.5m (2022 - £46.2m) a growth of +59%. As mentioned above the Revenue growth was driven by the Google resell with both Professional Services and Managed Services broadly flat.

Net profit before tax was £2.2m (2022 - £4.7m). The net profit performance reflects the impact of a higher cost base than required to satisfy the reduced demand for Professional Services. As mentioned above the company was on plan to achieve significant growth in Professional Services until midway through the year and this meant that the cost base, largely people given the nature of the business, was not sustainable. The plan to right-size was put in place and a formal consultation process was implemented. Whilst the full financial benefits of the process did not impact results until May 2023 low levels of profitability were achieved in Q4 driven by other operation savings and the continued focus of the sales team delivering a consistent pipeline of opportunities.

Cash balances grew to £12.0m at the end of the year as the Finance team focused on collecting debt in a timely manner to ensure that there continued to be no reliance on external debt.

Shareholder funds increased by 15% to £8.9m (2022 : £7.7m) showing the continued strong financial position of the business.


Appsbroker Limited (Registered number: 05702796)

Group Strategic Report
for the Year Ended 31 March 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The group has focussed on managing a limited number of large multinational and European centric customers. The economic impact of higher interest rates and general cost inflation can have an impact on the timing of customer projects as companies reassess their financial strategy. The Board views this as a short term risk as the need for companies to better understand their customers through data, use of AI/ML and ensuring data security will remain an on-going challenge and hence an opportunity for Appsbroker.

Whilst there have been no examples of customer non payments Appsbroker continues to monitor the financial risks around customer payment cycles and sales pipeline to ensure that its cash flow is understood and can be modelled quickly should the situation change.

BORROWINGS
The company has no borrowings and has funded its growth through retained earnings.

KEY FINANCIAL AND OTHER PERFORMANCE INDICATORS
The group's key financial and other performance indicators during the year were as follows:

Unit 2023 2022
Turnover £m 73.5 46.1
Operating profit £m 2.1 4.7
Profit after tax £m 1.7 4.1
Equity shareholders' funds £m 8.9 7.7
Current assets as % of current liabilities ('quick ratio') % 138 143
Average number of employees No 228 188

STRUCTURE OF THE GROUP
The company is a private company owned and managed by its two directors. The company has a senior manager's operational board who meet monthly. The company operates an approved EMI scheme, which is open to all employees.

As at 31st March 2023 there were 5 active members in the scheme.

ON BEHALF OF THE BOARD:





M Conner - Director


3 October 2023

Appsbroker Limited (Registered number: 05702796)

Report of the Directors
for the Year Ended 31 March 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023.

DIVIDENDS
The directors recommend a final dividend payment of £Nil be made in respect of the financial year ended 31 March 2023.

Total dividends paid during the year amounted to:
'A' shares - £Nil
'B' shares - £Nil
'C' shares - £Nil

RESEARCH AND DEVELOPMENT
Appsbroker continues to develop innovative solutions that solve customers' problems. Working closely with customers it is able to develop and sell solutions to an expanding range of customers and markets. It is this on-going research which has been a major driver in Appsbroker's continued success. This research is also crucial in attracting and retaining industry experts who are motivated by the constant technological advances being made in the Cloud environment. Appsbroker is committed to this on-going product development and is confident that it will continue to benefit from the research and development tax credit scheme.

FUTURE DEVELOPMENTS
Appsbroker will continue to focus on helping enterprise sized customers to solve their business problems using technology. The lower cost base has allowed the company to return to higher levels of profitability due to increased levels of utilisation across the Delivery teams. The focus of the sales team for the last six months has been on having high level conversations with business leaders outside of IT to understand their problems and demonstrate how Appsbroker can help them. This focus has helped to ensure that the sales pipeline is now in a strong position with September 2023 looking like a record month for Professional Service deal wins.

The Board is confident that 2023/4 will be a successful year.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

M Conner
Mrs N Conner

OBJECTIVES AND POLICIES
The Public Cloud market continues to be highly competitive and there is pressure on pricing but Appsbroker is in a strong position to maintain its growth and its market share without impacting gross margins due to its deep knowledge of Google and associated technologies and its ability to innovate to create bespoke solutions for customers. The strong cashflow driven by multi-year licence agreements also gives Appsbroker the capability to invest in the required resources to grow the business in a sustainable and profitable way.

PRICE RISK, CREDIT RISK, LIQUIDITY RISK AND CASH FLOW RISK
The trading terms and timescales of trade relations following the implementation of Brexit may create changes in commercial confidence and business practices. These could have an impact on the future growth of the business. Cash flows have remained strong during the year and the group continues to benefit from the favourable tax treatment under the research and development tax credit scheme.

Enhanced credit management processes have been implemented as part of the response to the uncertainty surrounding the economy driven by Covid-19 and the increased number of customers in Appsbrokers portfolio.

EMPLOYMENT OF DISABLED PERSONS
The company is an equal opportunities employer and keeps employees informed through interactive briefings, intranet newsletters and updates.

EMPLOYEE PENSION SCHEME
The company operates an Employee pension scheme in line with current guidelines.

Appsbroker Limited (Registered number: 05702796)

Report of the Directors
for the Year Ended 31 March 2023


POST BALANCE SHEET EVENTS
In order to better fulfil its strategic aims Appsbroker has engaged advisors to seek out potential strategic partners. It is envisaged that any such partnership will provide the necessary scale to compete with GSIs and deliver solutions to business problems for enterprise size customers. The Board is positive about this process and has identified a suitable partner with negotiations on-going.

MODERN SLAVERY STATEMENT
Appsbroker continues to develop its policies around ethical sourcing to ensure there is no modern slavery or human trafficking in our supply chain. Internal training is also planned to raise awareness within the company.

STREAMLINED ENERGY AND CARBON REPORTING
The Company is conscious of its impact on the environment and is committed to making positive changes across the business.

In comparison with other sectors, the company is fortunate that its environmental impact is relatively low, but climate change is a global challenge, and every business has to play its part in minimising the footprint of their operations.

The Company has reported scope 1 and 2 greenhouse gas (GHG) emissions in accordance with the requirements of Streamlined Energy and Carbon reporting. This includes the Company's stated emissions for the year ended 31 March 2023.

Scope 1: Fuel used in company vehicles
Scope 2: Purchased electricity and natural gas

The figures were calculated using UK government 2020 conversion factors expressed as Kilogrammes of carbon dioxide equivalent (kgCO2e)

Scope 1 Emissions
The Company Scope 1 emissions from fuel used in company vehicles is 8.1 kgCO2e for the year ended 31 March 2023 (2022: 8.1 kgCO2e)

Scope 2 Emissions
The Company's Scope 2 Energy and Carbon Emissions from purchased electricity equated to approximately 25,354 kWh or 7.21 kgCO2e for the year ended 31 March 2023 (2022: 27,536 kWh or 5.78 kgCO2e) and emissions from natural gas is 26,000 kWh or 2.8 kgCO2e for the year ended 31 March 2023 (2022: 20,986 kWh or 3.78kgCO2e)

The Company is in the process of establishing carbon reduction initiatives and targets.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Appsbroker Limited (Registered number: 05702796)

Report of the Directors
for the Year Ended 31 March 2023


AUDITORS
The auditors, Sumer Audit, will be proposed for re-appointment.

ON BEHALF OF THE BOARD:





M Conner - Director


3 October 2023

Report of the Independent Auditors to the Members of
Appsbroker Limited

Opinion
We have audited the financial statements of Appsbroker Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement 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 group's and of the parent company affairs as at 31 March 2023 and of the group's 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 group 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 group's and the parent 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 Group 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.

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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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.

Report of the Independent Auditors to the Members of
Appsbroker Limited


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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

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:

Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Group. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included:
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
- Understanding of management's internal controls designed to prevent and detect irregularities, and fraud;
- Reviewing the Group's legal costs to check for non-compliance with laws and regulations and fraud;
- Review of tax compliance with the involvement of our tax specialists in the audit;
- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses;
- Testing transactions entered into outside of the normal course of the Group's business; and
- Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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
Appsbroker Limited


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.




David Iain Black (Senior Statutory Auditor)
for and on behalf of Sumer Audit
Statutory Auditors
Hermes House
Fire Fly Avenue
Swindon
Wiltshire
SN2 2GA

3 October 2023

Appsbroker Limited (Registered number: 05702796)

Consolidated
Income Statement
for the Year Ended 31 March 2023

2023 2022
Notes £    £   

TURNOVER 4 73,522,909 46,102,650

Cost of sales 67,749,689 38,577,147
GROSS PROFIT 5,773,220 7,525,503

Administrative expenses 4,694,728 3,216,859
1,078,492 4,308,644

Other operating income 1,055,932 418,442
OPERATING PROFIT 6 2,134,424 4,727,086

Interest receivable and similar income 7 64,969 5,797
2,199,393 4,732,883

Interest payable and similar expenses 8 19,314 2,914
PROFIT BEFORE TAXATION 2,180,079 4,729,969

Tax on profit 9 409,239 635,963
PROFIT FOR THE FINANCIAL YEAR 1,770,840 4,094,006
Profit attributable to:
Owners of the parent 1,770,840 4,094,006

Appsbroker Limited (Registered number: 05702796)

Consolidated
Other Comprehensive Income
for the Year Ended 31 March 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,770,840 4,094,006


OTHER COMPREHENSIVE INCOME
Currency translation differences (12,093 ) 8,147
Income tax relating to other comprehensive
income

-

-

OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

(12,093

)

8,147
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,758,747

4,102,153

Total comprehensive income attributable to:
Owners of the parent 1,758,747 4,102,153

Appsbroker Limited (Registered number: 05702796)

Consolidated Balance Sheet
31 March 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 13 132,715 199,953
Tangible assets 14 193,242 187,161
Investments 15 - -
325,957 387,114

CURRENT ASSETS
Debtors 16 19,995,547 16,756,012
Cash at bank and in hand 11,968,967 7,920,828
31,964,514 24,676,840
CREDITORS
Amounts falling due within one year 17 23,242,663 17,256,548
NET CURRENT ASSETS 8,721,851 7,420,292
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,047,808

7,807,406

CREDITORS
Amounts falling due after more than one
year

18

(45,873

)

(46,356

)

PROVISIONS FOR LIABILITIES 21 (20,554 ) (19,398 )
NET ASSETS 8,981,381 7,741,652

CAPITAL AND RESERVES
Called up share capital 22 1,150 1,158
Share premium 23 79,128 40,128
Capital redemption reserve 23 16 5
Share option scheme reserve 23 157,290 215,289
Retained earnings 23 8,743,797 7,485,072
SHAREHOLDERS' FUNDS 8,981,381 7,741,652

The financial statements were approved by the Board of Directors and authorised for issue on 3 October 2023 and were signed on its behalf by:





M Conner - Director


Appsbroker Limited (Registered number: 05702796)

Company Balance Sheet
31 March 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 13 - -
Tangible assets 14 149,419 152,388
Investments 15 21,366 21,366
170,785 173,754

CURRENT ASSETS
Debtors 16 19,832,828 16,634,492
Cash at bank and in hand 11,878,188 7,681,645
31,711,016 24,316,137
CREDITORS
Amounts falling due within one year 17 23,080,952 17,221,634
NET CURRENT ASSETS 8,630,064 7,094,503
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,800,849

7,268,257

CREDITORS
Amounts falling due after more than one
year

18

(45,873

)

(46,356

)

PROVISIONS FOR LIABILITIES 21 (20,554 ) (19,398 )
NET ASSETS 8,734,422 7,202,503

CAPITAL AND RESERVES
Called up share capital 22 1,150 1,158
Share premium 79,128 40,128
Capital redemption reserve 16 5
Share option scheme reserve 157,290 215,289
Retained earnings 8,496,838 6,945,923
SHAREHOLDERS' FUNDS 8,734,422 7,202,503

Company's profit for the financial year 2,050,937 4,005,096

The financial statements were approved by the Board of Directors and authorised for issue on 3 October 2023 and were signed on its behalf by:





M Conner - Director


Appsbroker Limited (Registered number: 05702796)

Consolidated Statement of Changes in Equity
for the Year Ended 31 March 2023

Called up
share Retained Share
capital earnings premium
£    £    £   

Balance at 1 April 2021 1,156 4,307,919 37,502

Changes in equity
Issue of share capital 2 - 2,626
Dividends - (925,000 ) -
Total comprehensive income - 4,102,153 -
Balance at 31 March 2022 1,158 7,485,072 40,128

Changes in equity
Increase in share capital 3 - 39,000
Reduction in share capital (11 ) (500,022 ) -
Total comprehensive income - 1,758,747 -
Balance at 31 March 2023 1,150 8,743,797 79,128
Share
Capital option
redemption scheme Total
reserve reserve equity
£    £    £   

Balance at 1 April 2021 5 141,453 4,488,035

Changes in equity
Issue of share capital - - 2,628
Dividends - - (925,000 )
Total comprehensive income - 73,836 4,175,989
Balance at 31 March 2022 5 215,289 7,741,652

Changes in equity
Increase in share capital - - 39,003
Reduction in share capital - - (500,033 )
Total comprehensive income 11 (57,999 ) 1,700,759
Balance at 31 March 2023 16 157,290 8,981,381

Appsbroker Limited (Registered number: 05702796)

Company Statement of Changes in Equity
for the Year Ended 31 March 2023

Called up
share Retained Share
capital earnings premium
£    £    £   

Balance at 1 April 2021 1,156 3,865,827 37,502

Changes in equity
Issue of share capital 2 - 2,626
Dividends - (925,000 ) -
Total comprehensive income - 4,005,096 -
Balance at 31 March 2022 1,158 6,945,923 40,128

Changes in equity
Increase in share capital 3 - 39,000
Reduction in share capital (11 ) (500,022 ) -
Total comprehensive income - 2,050,937 -
Balance at 31 March 2023 1,150 8,496,838 79,128
Share
Capital option
redemption scheme Total
reserve reserve equity
£    £    £   

Balance at 1 April 2021 5 141,453 4,045,943

Changes in equity
Issue of share capital - - 2,628
Dividends - - (925,000 )
Total comprehensive income - 73,836 4,078,932
Balance at 31 March 2022 5 215,289 7,202,503

Changes in equity
Increase in share capital - - 39,003
Reduction in share capital - - (500,033 )
Total comprehensive income 11 (57,999 ) 1,992,949
Balance at 31 March 2023 16 157,290 8,734,422

Appsbroker Limited (Registered number: 05702796)

Consolidated Cash Flow Statement
for the Year Ended 31 March 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 29 5,222,200 3,886,013
Interest paid (16,398 ) -
Interest element of hire purchase payments
paid

(2,916

)

(2,914

)
Tax paid (635,397 ) (100,310 )
Net cash from operating activities 4,567,489 3,782,789

Cash flows from investing activities
Purchase of tangible fixed assets (129,913 ) (234,253 )
Sale of tangible fixed assets 20,001 4,863
Interest received 64,969 5,797
Net cash from investing activities (44,943 ) (223,593 )

Cash flows from financing activities
Capital repayments in year (6,966 ) (6,954 )
Amount introduced by directors 797,523 925,000
Amount withdrawn by directors (791,852 ) (1,704,317 )
Proceeds from issue of ordinary shares 39,000 2,628
Share buyback (500,022 ) -
Issue of share capital 3 -
Equity dividends paid - (925,000 )
Net cash from financing activities (462,314 ) (1,708,643 )

Increase in cash and cash equivalents 4,060,232 1,850,553
Cash and cash equivalents at beginning
of year

30

7,920,828

6,062,128
Effect of foreign exchange rate changes (12,093 ) 8,147
Cash and cash equivalents at end of year 30 11,968,967 7,920,828

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements
for the Year Ended 31 March 2023

1. STATUTORY INFORMATION

Appsbroker Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the group.

Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company. Consolidation has been performed on the acquisition basis of accounting. Uniform accounting policies are adopted throughout the Group.

Significant judgements and estimates
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

Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(a) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. In particular the group expenses all portable and personal computing products purchased for employees as they have limited value once used. For all other assets their useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the property plant and equipment, and note 3 for the useful economic lives for each class of assets.

(b) The group designs, builds and sells software systems and does not capitalise its IPR in its own developed software products.

(c) Inventory provisions. The group does not carry inventory of it's own products and therefore there are no provisions.

(d) Impairment of debtors. The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 16 for the net carrying amount of the debtors and associated impairment provision.

(e) Use of derivatives. The group does not use derivative financial instruments. In particular it has no forward foreign currency contracts interest rate or hedge accounting.

(f) Exposure to price, credit, liquidity and cash flow risk. Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or debt.

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

3. ACCOUNTING POLICIES - continued

Turnover
Turnover shown in these accounts comprises the fair value of the consideration received or receivable for the sale of goods and provision of services, in the ordinary course of the Company's activities. The balance of the consideration received in respect of future periods is included in Current Liabilities being shown as Deferred Income. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The group recognises revenue when:
- the amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity;
- and specific criteria have been met for each of the group activities.

Sale of goods
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on dispatch of the goods, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services
Revenue from provision of software services is recognised by reference to the stage of completion. Stage of completion is measured by reference to labour hours incurred to date as a percentage of total estimated labour hours for each contract. Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Intanigle assets are amortised over a period of 10 years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings- 25% on a straight line basis
Plant and machinery- 4% on a straight line basis
Fixtures and fittings- 25% on a straight line basis
Motor vehicles- 25% on reducing balance
Office equipment- 100% in year of acquisition

Tangible assets are stated in the statement of financial position 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.

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

3. ACCOUNTING POLICIES - continued

Financial instruments
Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the group is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

Recognition and measurement
Financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in the profit or loss.

Impairment
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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

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

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

3. ACCOUNTING POLICIES - continued

Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group 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.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share based payments
The cost of equity-settled transactions with employees is measured by reference to the fair value of the equity instruments granted at the date at which they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined, using an appropriate pricing model. In valuing equity-settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of the shares of the company (market conditions) and non vesting conditions. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market or non vesting condition, which are treated as vesting irrespective of whether or not the market or non vesting condition is satisfied, provided that all other performance conditions are satisfied.

At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management's best estimate of the achievement or otherwise of non-market conditions and of the number of equity instruments that will ultimately vest or in the case of an instrument subject to a market condition, be treated as vesting as described above. The movement in cumulative expense since the previous balance sheet date is recognised in the income statement, with a corresponding entry in equity.

Where the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost based on the original award terms continues to be recognised over the original vesting period. In addition, an expense is recognised over the remainder of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value of the original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognised if this difference is negative.

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in the profit and loss account for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from equity, with any excess over fair value expensed in the profit and loss account.

The financial effect of awards by the parent company of options over its equity shares to the employees of subsidiary undertakings are recognised by the parent company in its individual financial statements. In particular the parent company records an increase in its investment in subsidiaries with a credit to equity equivalent to the cost in the subsidiary undertakings.

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Sale of goods - 55,603
Consultancy services 15,067,209 15,735,212
Other services 58,455,700 30,311,835
73,522,909 46,102,650

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 62,923,045 38,474,184
Europe 9,221,855 6,433,463
Rest of world 1,378,009 1,195,003
73,522,909 46,102,650

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 16,045,781 9,419,059
Social security costs 1,570,206 1,140,342
Other pension costs 463,526 274,688
18,079,513 10,834,089

The average number of employees during the year was as follows:
2023 2022

Administration and support 62 76
Sales 41 37
Other departments 125 75
228 188

The above table of the average number of employees includes those for Appsbroker Limited, Appsbroker Fintech Limited, Appsbroker Europe GmbH and S.C. Appsbroker Consulting S.R.L.

2023 2022
£    £   
Directors' remuneration 16,332 16,328

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 266,692 153,916
Depreciation - owned assets 103,831 236,814
Loss on disposal of fixed assets - 397
Computer software amortisation 67,238 94,916
Auditors' remuneration 15,103 17,250
Foreign exchange differences (160,233 ) (20,142 )
Research and Development - 1,331,317
Share based payments (57,996 ) 73,836

7. INTEREST RECEIVABLE AND SIMILAR INCOME
2023 2022
£    £   
Deposit account interest 51,345 5,797
Interest on directors' loan
accounts 13,624 -
64,969 5,797

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 2,308 -
Other interest 14,090 -
Hire purchase 2,916 2,914
19,314 2,914

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 408,083 649,993

Deferred tax 1,156 (14,030 )
Tax on profit 409,239 635,963

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

9. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,180,079 4,729,969
Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2022 - 19 %)

414,215

898,694

Effects of:
Expenses not deductible for tax purposes 24,229 13,316
Capital allowances in excess of depreciation (13,011 ) (5,484 )
Movement in deferred tax 1,156 (14,030 )
Research and development tax credit (90,072 ) (252,950 )
Share based payment deduction (11,019 ) 8,738
Non-UK profit not subject to Corporation Tax 83,741 (14,369 )
Non-UK tax charge - 2,048
Total tax charge 409,239 635,963

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Currency translation differences (12,093 ) - (12,093 )

2022
Gross Tax Net
£    £    £   
Currency translation differences 8,147 - 8,147

10. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


11. DIVIDENDS

2023 2022
£ £

Ordinary A shares - 350,000
Ordinary B shares - 575,000
Ordinary C shares - -
- 925,000

12. PENSIONS 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 £463,526 (2022 - £274,688).

Contributions totalling £87,650 (2022 - £72,552) were payable to the scheme at the end of the year and are included in other creditors.

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

13. INTANGIBLE FIXED ASSETS

Group
Computer
software
£   
COST
At 1 April 2022
and 31 March 2023 460,367
AMORTISATION
At 1 April 2022 260,414
Amortisation for year 67,238
At 31 March 2023 327,652
NET BOOK VALUE
At 31 March 2023 132,715
At 31 March 2022 199,953

14. TANGIBLE FIXED ASSETS

Group
Fixtures
Land and Plant and and
buildings machinery fittings
£    £    £   
COST
At 1 April 2022 312,529 98,942 24,585
Additions - 2,910 -
Disposals - - -
At 31 March 2023 312,529 101,852 24,585
DEPRECIATION
At 1 April 2022 312,529 72,474 23,321
Charge for year - 1,002 -
At 31 March 2023 312,529 73,476 23,321
NET BOOK VALUE
At 31 March 2023 - 28,376 1,264
At 31 March 2022 - 26,468 1,264

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

14. TANGIBLE FIXED ASSETS - continued

Group

Motor Office
vehicles equipment Totals
£    £    £   
COST
At 1 April 2022 268,631 648,584 1,353,271
Additions 12,037 114,966 129,913
Disposals (20,001 ) - (20,001 )
At 31 March 2023 260,667 763,550 1,463,183
DEPRECIATION
At 1 April 2022 174,150 583,636 1,166,110
Charge for year 19,257 83,572 103,831
At 31 March 2023 193,407 667,208 1,269,941
NET BOOK VALUE
At 31 March 2023 67,260 96,342 193,242
At 31 March 2022 94,481 64,948 187,161

Included within the net book value of motor vehicles above is £36,613 (2022 - £84,491) in respect of assets held under hire purchase agreements.

Company
Land and Plant and Motor Office
buildings machinery vehicles equipment Totals
£    £    £    £    £   
COST
At 1 April 2022 312,529 24,773 268,631 624,697 1,230,630
Additions - - 12,037 108,826 120,863
Disposals - - (20,001 ) - (20,001 )
At 31 March 2023 312,529 24,773 260,667 733,523 1,331,492
DEPRECIATION
At 1 April 2022 312,529 7,927 174,150 583,636 1,078,242
Charge for year - 1,002 19,257 83,572 103,831
At 31 March 2023 312,529 8,929 193,407 667,208 1,182,073
NET BOOK VALUE
At 31 March 2023 - 15,844 67,260 66,315 149,419
At 31 March 2022 - 16,846 94,481 41,061 152,388

Included within the net book value of motor vehicles above is £36,613 (2022: £84,491) in respect of assets held under hire purchase agreements.

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

15. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 April 2022
and 31 March 2023 21,366
NET BOOK VALUE
At 31 March 2023 21,366
At 31 March 2022 21,366

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

S.C. Appsbroker Consulting S.R.L
Registered office: United Business Centre 3,Str. Palas No. 7B-7C, Building C1,Floor 15, Iasi, 700051, Romania
Nature of business: Provision of Google cloud software support
%
Class of shares: holding
Ordinary shares 100.00
2023 2022
£    £   
Aggregate capital and reserves 466,895 531,539
Loss for the year (19,568 ) (28,965 )

S. C. Appsbroker Consulting S.R.L. is a wholly owned company that is managed locally in Romania. The purpose of the Romanian company is to provide technical support and to develop new applications for the UK business.

Appsbroker Fintech Limited
Registered office: Appsbroker House The Square, Old Town, Swindon, Wiltshire, SN1 3EB
Nature of business: Financial services specialist consultancy
%
Class of shares: holding
Ordinary shares 100.00
2023 2022
£    £   
Aggregate capital and reserves 153,296 36,709
Profit for the year 188,367 16,972

Appsbroker Europe GmbH
Registered office: Neue Mainzer Straße 75, 60311 Frankfurt am Main
Nature of business: Provision of Google cloud software support
%
Class of shares: holding
Ordinary Shares 100.00
2023 2022
£    £   
Aggregate capital and reserves 402,632 21,331
Loss for the year (429,267 ) -

Appsbroker Europe GmbH is a wholly owned company that is managed locally in Germany.The purpose of the German company is to provide technical support and to develop new applications for the UK business.


Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

16. DEBTORS

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year:
Trade debtors 13,254,513 10,496,225 13,065,905 10,477,981
Amounts owed by group undertakings - - 165,673 -
Other debtors 66,555 118,654 28,800 26,805
Directors' current accounts 694,831 700,503 694,831 700,503
Prepayments and accrued income 3,938,273 4,994,630 3,836,244 4,983,203
17,954,172 16,310,012 17,791,453 16,188,492

Amounts falling due after more than one year:
Other debtors 2,041,375 446,000 2,041,375 446,000

Aggregate amounts 19,995,547 16,756,012 19,832,828 16,634,492

An impairment against trade debtors has been recognised of £230,746 (2022 - £Nil).

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Hire purchase contracts (see note 19) 8,025 14,508 8,025 14,508
Trade creditors 9,545,647 7,100,369 9,530,787 7,097,520
Amounts owed to group undertakings - - - 176,536
Tax 418,553 645,867 383,596 644,614
Social security and other taxes 3,422,474 2,107,652 3,348,631 2,112,517
VAT - 4,145 - -
Other creditors 219,919 257,826 217,888 79,277
Accruals and deferred income 9,628,045 7,126,181 9,592,025 7,096,662
23,242,663 17,256,548 23,080,952 17,221,634

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Hire purchase contracts (see note 19) 45,873 46,356 45,873 46,356

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 8,025 14,508
Between one and five years 45,873 46,356
53,898 60,864

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

19. LEASING AGREEMENTS - continued

Company
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 8,025 14,508
Between one and five years 45,873 46,356
53,898 60,864

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 162,085 118,720
Between one and five years - 102,410
162,085 221,130

Company
Non-cancellable operating leases
2023 2022
£    £   
Within one year 162,085 118,720
Between one and five years - 102,410
162,085 221,130

20. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
2023 2022 2023 2022
£    £    £    £   
Hire purchase contracts 53,898 60,864 53,898 60,864

The above debt is secured on the assets to which they relate.

21. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax
Accelerated capital allowances 20,554 19,398 20,554 19,398

Group
Deferred
tax
£   
Balance at 1 April 2022 19,398
Provided during year 1,156
Balance at 31 March 2023 20,554

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

21. PROVISIONS FOR LIABILITIES - continued

Company
Deferred
tax
£   
Balance at 1 April 2022 19,398
Provided during year 1,156
Balance at 31 March 2023 20,554

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
660,000 Ordinary A shares 0.001 p 660 660
340,000 Ordinary B shares 0.001 p 340 340
149,862 Ordinary C shares 0.001 p 150 158
1,150 1,158

The "A", "B" and "C" shares rank equally with regards to voting rights.

The "A" and "B" shares have a nominal value of 0.001p and were issued at par. The "C" shares have a nominal value of 0.001p and were issued at a premium of 14.9p and £12.99.

All shares rank equally with regards to dividends, however dividends may be paid on one class of share at the exclusion of other classes of shares at the discretion of the Directors.

The "A" "B" and "C" shares rank in proportion to the nominal amount paid up with regards to distribution on winding up or other repayment of capital.

23. RESERVES

Share premium - includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Other reserves - see share based payments transactions note 28.

Retained earnings - includes all current and prior period retained profits and losses.

Capital redemption reserve - includes amounts transferred following the redemption or purchase of a company's own shares.

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

24. FINANCIAL INSTRUMENTS

The carrying value of the company's financial assets and liabilities are summarised by category below:

2023 2022
£ £
Financial Assets
Measured at undiscounted amount receivable
- Trade debtors 13,254,513 10,496,225
- Other debtors 66,555 118,654
- Amounts owed by directors 694,831 700,502
14,015,899 11,315,381

Financial liabilities
Measured at amortised cost
- Obligations under finance leases (53,898 ) (60,864 )

Measured at undiscounted amount payable
- Trade creditors (9,545,647 ) (7,100,369 )
- Other creditors (4,060,946 ) (3,005,821 )
(13,660,491 ) (10,167,054 )


25. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2023 and 31 March 2022:

2023 2022
£    £   
M Conner
Balance outstanding at start of year 700,502 (36,426 )
Amounts advanced 379,029 1,086,928
Amounts repaid (789,585 ) (350,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 289,946 700,502

Mrs N Conner
Balance outstanding at start of year - (42,389 )
Amounts advanced 412,823 617,389
Amounts repaid (7,938 ) (575,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 404,885 -

The directors' loan balances are unsecured and repayable on demand.

26. 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.

Dividends
Total dividends of £Nil (20221 - £925,000) were paid to the directors.

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

26. RELATED PARTY DISCLOSURES - continued

Key management personnel of the entity or its parent (in the aggregate)
2023 2022
£    £   
Salaries and other short term employee benefits 433,651 853,489
Pension benefits 16,380 20,000

Key management includes the directors and members of senior management.

Annual rent of £111,720 (2022 - £111,720) was paid to the Directors' SSAS which owns the building the company occupies.

Other related parties

Thorne Island Ltd
A company over which a director of the entity has significant control. As at 31 March 2023 Thorne Island Ltd owed £621,573 (2022 - £468,125), for loans repayable over 5 years. Interest on these loans is charged at rates of between 2% and 2.1%.

27. ULTIMATE CONTROLLING PARTY

The shareholders are the ultimate controlling party.

28. SHARE-BASED PAYMENT TRANSACTIONS

EMI Scheme
The company operates a share based remuneration scheme for certain employees introduced in 2013. Under the scheme the board of directors can grant options over shares in the company to employees of the company. Options are granted with a fixed exercise price for the reporting date given the restricted market for the shares. The contractual life of an option is 10 years from the grant date.

Options granted under the share based remuneration schemes generally become exercisable on the third, fourth and fifth anniversary of the date of grant. Exercise of an option is subject to continued employment. Option values have been agreed with the share valuation department of HMRC taking into account the restricted market for the shares and the estimated forecast earnings as at the date of grant.

The amount recognised for share based payment plan in respect of employee services received during the year is £57,996 credit (2022 - expense £73,836), all of which related to equity-settled share based payment transactions.

The carrying amount of the liability relating to the equity-settled options at the balance sheet date is £157,290 (2022 - £215,289). Options exercised in the year are detailed in the table below.

A reconciliation of option movements over the year is shown below:

2023 2022






Number
Weighted
average
exercise
price (£



)



Number
Weighted
average
exercise price



)
Outstanding at 1 April 20,765 12.68 23,445 11.34
Granted 5,423 11.37 - -
Exercised (3,000 ) 0.98 (2,680 ) 0.98
Forfeited (9,615 ) - - -
Expired - - - -
Outstanding at 31 March 13,573 3.78 20,765 12.68
Exercisable at 31 March - - - -

Appsbroker Limited (Registered number: 05702796)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 March 2023

29. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 2,180,079 4,729,969
Depreciation charges 171,069 331,730
Loss on disposal of fixed assets - 397
Share based payment transactions (57,999 ) 73,836
Finance costs 19,314 2,914
Finance income (64,969 ) (5,797 )
2,247,494 5,133,049
Increase in trade and other debtors (3,245,206 ) (9,238,650 )
Increase in trade and other creditors 6,219,912 7,991,614
Cash generated from operations 5,222,200 3,886,013

30. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 11,968,967 7,920,828
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 7,920,828 6,062,128


31. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank and in hand 7,920,828 4,048,139 11,968,967
7,920,828 4,048,139 11,968,967
Debt
Finance leases (60,864 ) 6,966 (53,898 )
(60,864 ) 6,966 (53,898 )
Total 7,859,964 4,055,105 11,915,069