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REGISTERED NUMBER: 01555529 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 May 2023

for

Datel Computing Limited

Datel Computing Limited (Registered number: 01555529)






Contents of the Financial Statements
for the Year Ended 31 May 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


Datel Computing Limited

Company Information
for the Year Ended 31 May 2023







DIRECTORS: Mr A K Simpson
Mr N Swarbrick
Mr A Pritchard





REGISTERED OFFICE: Cinnamon Park
Fearnhead
Crab Lane
WARRINGTON
Cheshire
WA2 0XP





REGISTERED NUMBER: 01555529 (England and Wales)





AUDITORS: Ashworth Treasure Limited
Statutory Auditors
17-19 Park Street
Lytham
Lancashire
FY8 5LU

Datel Computing Limited (Registered number: 01555529)

Strategic Report
for the Year Ended 31 May 2023

The directors present their strategic report for the year ended 31 May 2023.

PRINCIPAL OBJECTIVES AND STRATEGIES
The principal activity of the company is the sale of business management software systems and associated implementation and support services.

Datel remains the UK's leading provider of business management systems to medium sized enterprises and is Sage's largest business partner. Businesses across a diverse cross-section of markets and industries have chosen Datel to deliver critical software solutions.

PERFORMANCE REVIEW
We achieved high levels of customer retention and satisfaction, helped by an increasingly broad portfolio of products and services that we are able to offer to maximise the benefits that customers derive from their business management systems.

Given the difficult market due to various geo-political factors, we still experienced strong demand from existing and new customers, and low churn of annual support, maintenance and subscription contracts.

On 1st May Datel Computing completed the purchase of the X3 business of Percipient, another Sage business partner, further strengthening our market position for this product. This was an asset purchase arrangement, rather than a legal entity deal.

In the latter half of the year we also invested time and resource in migrating our legacy accounting system to a new hosted solution with Sage Intacct; this successfully went live at the beginning of June 2023.

Turnover grew nearly 10% from last year to £29.8m (2022: £27.2m). Recurring margins continued to grow, and now stand at £12.3m, over 60% of our total margin (2022: 57%). Whilst our cost base expanded, this was done in a controlled manner. Profit before tax therefore strengthened to £4.1m (2022: £3.2m).

The company generated strong cash flows during the period, and so even with some significant ad hoc payments, still finished the year with cash funds of £8.4m (2022: £6.0m) and no debt (2022: £nil).

Our headcount grew in the year, partly as a result of the Percipient acquisition, finishing at 204, compared to 193 last year.

As we exit the year, we have a strong order book, and we see activity levels still climbing, so have a degree of confidence that 23/24 will still be a strong one, despite various market challenges.

PRINCIPAL RISKS AND UNCERTAINTIES
The company maintains a strategy of strong management, leadership and training. This strategy enables the company to react quickly to changes in the business environment, as we have seen with recent geo-political crises. In addition, our recurring revenue streams afford us a degree of protection when our variable revenue streams come under pressure, which gives us time and space to respond in a controlled and orderly manner.

Accordingly, the company is well-placed to react to any future risks or uncertainties arising out of the business environment, including the ongoing war in Ukraine, high inflation and widespread supply chain issues.

KEY PERFORMANCE INDICATORS
Datel Computing uses a number of metrics to track performance.

- Recurring margin from Support and Subscription contracts is critical to our success. We have seen this figure increase strongly in both absolute and relative terms, and now stands at 60% (2022: 57%)
- Customer satisfaction measures for our support customers are still tracking at over 98% (2022: 98%)
- We continue to grow the value of our own Fusion product range, developed in-house, currently generating revenues of £1.5m (2022 £1.4m)
- Chargeability for our service teams averaged 66%, slightly down on last year (67%)

We also continue to invest in our research and development activity, identifying technologies which may enhance our future offering. Total expenditure incurred on the R&D team in the year was over £0.6m.

ON BEHALF OF THE BOARD:



Mr A K Simpson - Director


22 November 2023

Datel Computing Limited (Registered number: 01555529)

Report of the Directors
for the Year Ended 31 May 2023

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

DIVIDENDS
Interim dividend payments were made during the year. The directors recommend that no final dividend be paid.
The total distribution of dividends for the year ended 31 May 2023 will be £2,050,000.

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

Mr A K Simpson
Mr N Swarbrick
Mr A Pritchard

DISCLOSURE IN THE STRATEGIC REPORT
The strategic report on the preceding page provides information regarding the performance, developments, and risks and uncertainties of the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Ashworth Treasure Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr A K Simpson - Director


22 November 2023

Report of the Independent Auditors to the Members of
Datel Computing Limited

Opinion
We have audited the financial statements of Datel Computing Limited (the 'company') for the year ended 31 May 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 May 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
Datel Computing Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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:

Our approach to identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the business sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including legislation such as Companies Act, taxation legislation, environmental and health and safety legislation etc.
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team maintained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journals to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims;
- reviewing correspondence with HMRC etc

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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
Datel Computing 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.




Victoria Reynolds (Senior Statutory Auditor)
for and on behalf of Ashworth Treasure Limited
Statutory Auditors
17-19 Park Street
Lytham
Lancashire
FY8 5LU

22 November 2023

Datel Computing Limited (Registered number: 01555529)

Income Statement
for the Year Ended 31 May 2023

2023 2022
Notes £'000 £'000 £'000 £'000

TURNOVER 3 29,873 27,219

Cost of sales 9,494 8,808
GROSS PROFIT 20,379 18,411

Distribution costs 12,092 11,178
Administrative expenses 4,256 3,995
16,348 15,173
OPERATING PROFIT 5 4,031 3,238

Interest receivable and similar income 66 4
PROFIT BEFORE TAXATION 4,097 3,242

Tax on profit 6 766 633
PROFIT FOR THE FINANCIAL YEAR 3,331 2,609

Datel Computing Limited (Registered number: 01555529)

Other Comprehensive Income
for the Year Ended 31 May 2023

2023 2022
Notes £'000 £'000

PROFIT FOR THE YEAR 3,331 2,609


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

3,331

2,609

Datel Computing Limited (Registered number: 01555529)

Balance Sheet
31 May 2023

2023 2022
Notes £'000 £'000 £'000 £'000
FIXED ASSETS
Intangible assets 8 488 293
Tangible assets 9 502 436
990 729

CURRENT ASSETS
Stocks 10 - 2
Debtors 11 13,036 11,803
Cash at bank and in hand 8,452 6,017
21,488 17,822
CREDITORS
Amounts falling due within one year 12 19,295 16,649
NET CURRENT ASSETS 2,193 1,173
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,183

1,902

CAPITAL AND RESERVES
Called up share capital 15 25 25
Retained earnings 16 3,158 1,877
SHAREHOLDERS' FUNDS 3,183 1,902

The financial statements were approved by the Board of Directors and authorised for issue on 22 November 2023 and were signed on its behalf by:





Mr A K Simpson - Director


Datel Computing Limited (Registered number: 01555529)

Statement of Changes in Equity
for the Year Ended 31 May 2023

Called up
share Retained Total
capital earnings equity
£'000 £'000 £'000

Balance at 1 June 2021 25 1,890 1,915

Changes in equity
Repayment of capital
contribution - (700 ) (700 )
Dividends - (1,922 ) (1,922 )
Total comprehensive income - 2,609 2,609
Balance at 31 May 2022 25 1,877 1,902

Changes in equity
Dividends - (2,050 ) (2,050 )
Total comprehensive income - 3,331 3,331
Balance at 31 May 2023 25 3,158 3,183

Datel Computing Limited (Registered number: 01555529)

Notes to the Financial Statements
for the Year Ended 31 May 2023

1. STATUTORY INFORMATION

Datel Computing 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

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

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Impairment of assets
The carrying value of those assets recorded in the company's balance sheet, at amortised cost, could be materially reduced where circumstances exist which might indicate that an asset has been impaired and an impairment review is performed. Impairment reviews consider the fair value and or value in use of the potentially impaired asset or assets and compares that with the carrying value of the asset or assets in the balance sheet. Any reduction in value arising from such a review would be recorded in the statement of comprehensive income. Impairment reviews involve the significant use of assumptions. Consideration has to be given as to the price that could be obtained for the asset or assets, or in relation to a consideration of value in use, estimates of the future cash flows that could be generated by the potentially impaired asset or assets, together with a consideration of an appropriate discount rate to apply to those cash flows.

Datel Computing Limited (Registered number: 01555529)

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

2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents net invoiced sales of goods, excluding value added tax, except in respect of service contracts where turnover is recognised when the company obtains the right to consideration.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed five years.

Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that assets as follows:

Goodwill - straight line basis over 5-10 years

If there is an indication that there has been significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

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.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Improvements to property - Over 15 years straight line
Fixtures and fittings - 20% on cost and Over 15 years straight line
Computer equipment - 33% on cost

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Datel Computing Limited (Registered number: 01555529)

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

2. ACCOUNTING POLICIES - continued
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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


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

Long term contracts
When the outcome of an individual contract can be foreseen with reasonable certainty and can be estimated reliably, margin is recognised by reference to the stage of completion, based on the lower of the percentage margin earned to date and that prudently forecast at completion. This is after the deduction of any foreseeable losses and applicable payments on account.

Operating profit is stated after attributable profit on long term contracts completed and amounts recoverable on contracts uncompleted, the latter also being included within debtors due within one year.

Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Datel Computing Limited (Registered number: 01555529)

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

3. TURNOVER

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

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

2023 2022
£'000 £'000
Sale of goods 10,823 8,934
Rendering of services 19,050 18,285
29,873 27,219

4. EMPLOYEES AND DIRECTORS
2023 2022
£'000 £'000
Wages and salaries 11,903 11,125
Social security costs 1,262 1,398
Other pension costs 504 460
13,669 12,983

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

Sales, distribution & programming 173 170
Office and management 20 20
193 190

2023 2022
£    £   
Directors' remuneration 916,443 1,192,971
Directors' pension contributions to money purchase schemes 25,527 21,800

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 637,768 602,585
Pension contributions to money purchase schemes 15,906 11,683

5. OPERATING PROFIT

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

2023 2022
£'000 £'000
Depreciation - owned assets 112 145
(Profit)/loss on disposal of fixed assets (1 ) 1
Goodwill amortisation 305 293
Auditors' remuneration 8 8
Auditors' remuneration for non audit work 13 23
Stock recognised as an expense 422 591
Impairment of trade debtors 30 47
Operating leases 273 248
Research and development expenditure 192 204

Datel Computing Limited (Registered number: 01555529)

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

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£'000 £'000
Current tax:
UK corporation tax 863 610
Corporation tax - prior year - (25 )
Total current tax 863 585

Deferred tax (97 ) 48
Tax on profit 766 633

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
£'000 £'000
Profit before tax 4,097 3,242
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

1,024

616

Effects of:
Expenses not deductible for tax purposes 71 57
Capital allowances in excess of depreciation (35 ) -
Depreciation in excess of capital allowances - 19
R&D expenditure (58 ) (51 )
Group relief - (4 )
Enhanced capital allowances (26 ) (4 )
Change in corporation tax rate (210 ) -

Total tax charge 766 633

7. DIVIDENDS
2023 2022
£'000 £'000
Ordinary shares of £1 each
Interim 2,050 1,922

Datel Computing Limited (Registered number: 01555529)

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

8. INTANGIBLE FIXED ASSETS
Goodwill
£'000
COST
At 1 June 2022 6,284
Additions 500
At 31 May 2023 6,784
AMORTISATION
At 1 June 2022 5,991
Amortisation for year 305
At 31 May 2023 6,296
NET BOOK VALUE
At 31 May 2023 488
At 31 May 2022 293

9. TANGIBLE FIXED ASSETS
Improvements Fixtures
to and Computer
property fittings equipment Totals
£'000 £'000 £'000 £'000
COST
At 1 June 2022 119 505 375 999
Additions - 22 156 178
Disposals - - (272 ) (272 )
At 31 May 2023 119 527 259 905
DEPRECIATION
At 1 June 2022 30 239 294 563
Charge for year 8 37 67 112
Eliminated on disposal - - (272 ) (272 )
At 31 May 2023 38 276 89 403
NET BOOK VALUE
At 31 May 2023 81 251 170 502
At 31 May 2022 89 266 81 436

10. STOCKS
2023 2022
£'000 £'000
Raw materials and consumables - 2

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£'000 £'000
Trade debtors 3,439 2,674
Amounts owed by group undertakings 4,661 4,666
Other debtors 205 247
Deferred tax asset 344 247
Prepaid maintenance costs 4,160 3,740
Prepayments 227 229
13,036 11,803

Datel Computing Limited (Registered number: 01555529)

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

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£'000 £'000
Trade creditors 2,430 2,687
Amounts owed to group undertakings 848 850
Corporation tax 384 170
Social security and other taxes 697 561
Deferred income 12,553 10,462
Accrued expenses 2,383 1,919
19,295 16,649

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£'000 £'000
Within one year 273 248
Between one and five years 682 869
955 1,117

14. DEFERRED TAX
£'000
Balance at 1 June 2022 (247 )
Accelerated capital allowances (97 )
Balance at 31 May 2023 (344 )

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £'000 £'000
25,000 Ordinary £1 25 25

16. RESERVES
Retained
earnings
£'000

At 1 June 2022 1,877
Profit for the year 3,331
Dividends (2,050 )
At 31 May 2023 3,158

17. RELATED PARTY DISCLOSURES

The company has taken advantage of the exemptions not to make related party disclosures in respect of transactions with the members of the group, on the grounds that the company is a wholly owned subsidiary of Datel Group plc whose financial statements are publicly available.

Key management is the directors, the total remuneration paid to directors' is given in note 4.

Datel Computing Limited (Registered number: 01555529)

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

18. ULTIMATE CONTROLLING PARTY

The controlling party is Datel Group plc.

The ultimate controlling party is Mr A K Simpson.

Copies of Datel Group plc's financial statements are available at the registered office at Cinnamon Park, Warrington , WA2 0XP.

19. EMPLOYEE BENEFITS

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £503,369 (2022: £459,737). The amount outstanding at the year end was £40,524 (2022 - £36,154).