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REGISTERED NUMBER: 07167784 (England and Wales)












Report of the Directors and

Financial Statements

for the Year Ended 30 September 2023

for

UK Allied Associates Limited

UK Allied Associates Limited (Registered number: 07167784)






Contents of the Financial Statements
for the Year Ended 30 September 2023




Page

Company Information 1

Report of the Directors 2

Statement of Directors' Responsibilities 4

Report of the Independent Auditors 5

Statement of Profit or Loss 9

Statement of Profit or Loss and Other
Comprehensive Income

10

Statement of Financial Position 11

Statement of Changes in Equity 12

Statement of Cash Flows 13

Notes to the Statement of Cash Flows 14

Notes to the Financial Statements 15


UK Allied Associates Limited

Company Information
for the Year Ended 30 September 2023







DIRECTORS: D D Metcalfe
H L Scott
Ms J Mcfarlane
J Zangardi





REGISTERED OFFICE: PO Box 8
88 Lower Marsh
London
SE1 7AB





REGISTERED NUMBER: 07167784 (England and Wales)





AUDITORS: Ardor Business Solutions Limited
Statutory Auditors
Chartered Certified Accountants
Unit 1
Shrine Barn
Sanding Road
Hythe
Kent
CT21 4HE

UK Allied Associates Limited (Registered number: 07167784)

Report of the Directors
for the Year Ended 30 September 2023

The directors present their report with the financial statements of the company for the year ended 30 September 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the provision of bespoke software engineering products and services.

DIVIDENDS
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

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

D D Metcalfe
J Buckley
A W Winters
H L Scott

Other changes in directors holding office are as follows:

Ms J Mcfarlane and J Zangardi were appointed as directors after 30 September 2023 but prior to the date of this report.

A W Winters and J Buckley ceased to be directors after 30 September 2023 but prior to the date of this report.

SUPPLIER PAYMENT POLICY
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London, WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

- settle the terms of payment with suppliers when agreeing the terms of each transaction;
- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
- pay in accordance with the company's contractual and other legal obligations.

Trade creditors of the company at the year end were equivalent to 3 day's purchases, based on the average daily amount invoiced by suppliers during the year.

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 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 company's auditors are aware of that information.

UK Allied Associates Limited (Registered number: 07167784)

Report of the Directors
for the Year Ended 30 September 2023


AUDITORS
The auditors, Ardor Business Solutions Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D D Metcalfe - Director


6 March 2024

UK Allied Associates Limited (Registered number: 07167784)

Statement of Directors' Responsibilities
for the Year Ended 30 September 2023

The directors are responsible for preparing 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 UK-adopted international accounting standards. 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.

Report of the Independent Auditors to the Members of
UK Allied Associates Limited

Opinion
We have audited the financial statements of UK Allied Associates Limited (the 'company') for the year ended 30 September 2023 which comprise the Statement of Profit or Loss, the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 International Financial Reporting Standards (IFRSs) as adopted by the UK.

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with IFRSs as adopted by the UK; 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 Report of the Directors and the Statement of Directors' Responsibilities, 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Directors has been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
UK Allied Associates Limited


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 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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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.

Report of the Independent Auditors to the Members of
UK Allied Associates Limited


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:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Officers and other management (as required by auditing standards).

We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Officers.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

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
UK Allied Associates 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.




Bryan Michael Kemsley FCCA FMAAT (Senior Statutory Auditor)
for and on behalf of Ardor Business Solutions Limited
Statutory Auditors
Chartered Certified Accountants
Unit 1
Shrine Barn
Sanding Road
Hythe
Kent
CT21 4HE

6 March 2024

UK Allied Associates Limited (Registered number: 07167784)

Statement of Profit or Loss
for the Year Ended 30 September 2023

30/9/23 30/9/22
Notes £    £   

CONTINUING OPERATIONS
Revenue 3 1,229,790 1,241,969

Cost of sales (472,153 ) (461,049 )
GROSS PROFIT 757,637 780,920

Administrative expenses (1,077,067 ) (912,347 )
OPERATING LOSS (319,430 ) (131,427 )

Finance costs 5 (2,957 ) (4,068 )
LOSS BEFORE INCOME TAX 6 (322,387 ) (135,495 )

Income tax 7 194,851 197,106
(LOSS)/PROFIT FOR THE YEAR (127,536 ) 61,611

UK Allied Associates Limited (Registered number: 07167784)

Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended 30 September 2023

30/9/23 30/9/22
£    £   

(LOSS)/PROFIT FOR THE YEAR (127,536 ) 61,611

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(127,536

)

61,611

UK Allied Associates Limited (Registered number: 07167784)

Statement of Financial Position
30 September 2023

30/9/23 30/9/22
Notes £    £   
ASSETS
NON-CURRENT ASSETS
Owned
Property, plant and equipment 8 134,761 63,142
Right-of-use
134,761 63,142
CURRENT ASSETS
Trade and other receivables 9 315,046 302,249
Cash and cash equivalents 10 445,826 569,613
760,872 871,862
TOTAL ASSETS 895,633 935,004
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 11 1,000 1,000
Retained earnings 12 536,384 663,920
TOTAL EQUITY 537,384 664,920
LIABILITIES
NON-CURRENT LIABILITIES
Financial liabilities - borrowings
Interest bearing loans and borrowings 14 46,087 -
CURRENT LIABILITIES
Trade and other payables 13 261,179 223,951
Financial liabilities - borrowings
Interest bearing loans and borrowings 14 50,983 46,133
312,162 270,084
TOTAL LIABILITIES 358,249 270,084
TOTAL EQUITY AND LIABILITIES 895,633 935,004


The financial statements were approved by the Board of Directors and authorised for issue on 6 March 2024 and were signed on its behalf by:





D D Metcalfe - Director


UK Allied Associates Limited (Registered number: 07167784)

Statement of Changes in Equity
for the Year Ended 30 September 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 October 2021 1,000 602,309 603,309

Changes in equity
Total comprehensive income - 61,611 61,611
Balance at 30 September 2022 1,000 663,920 664,920

Changes in equity
Total comprehensive income - (127,536 ) (127,536 )
Balance at 30 September 2023 1,000 536,384 537,384

UK Allied Associates Limited (Registered number: 07167784)

Statement of Cash Flows
for the Year Ended 30 September 2023

30/9/23 30/9/22
£    £   
Cash flows from operating activities
Cash generated from operations 1 (337,233 ) (242,747 )
Finance costs paid (2,957 ) (4,068 )
Tax paid 194,851 197,106
Net cash from operating activities (145,339 ) (49,709 )

Cash flows from investing activities
Purchase of tangible fixed assets (29,535 ) (5,167 )
Sale of tangible fixed assets 150 (64 )
Net cash from investing activities (29,385 ) (5,231 )

Cash flows from financing activities
Payment of lease liabilities 50,937 (53,088 )
Net cash from financing activities 50,937 (53,088 )

Decrease in cash and cash equivalents (123,787 ) (108,028 )
Cash and cash equivalents at
beginning of year

2

569,613

677,641

Cash and cash equivalents at end of
year

2

445,826

569,613

UK Allied Associates Limited (Registered number: 07167784)

Notes to the Statement of Cash Flows
for the Year Ended 30 September 2023

1. RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM
OPERATIONS
30/9/23 30/9/22
£    £   
Loss before income tax (322,387 ) (135,495 )
Depreciation charges (42,317 ) 62,644
Loss on disposal of fixed assets 83 64
Finance costs 2,957 4,068
(361,664 ) (68,719 )
Increase in trade and other receivables (12,797 ) (122,421 )
Increase/(decrease) in trade and other payables 37,228 (51,607 )
Cash generated from operations (337,233 ) (242,747 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 September 2023
30/9/23 1/10/22
£    £   
Cash and cash equivalents 445,826 569,613
Year ended 30 September 2022
30/9/22 1/10/21
£    £   
Cash and cash equivalents 569,613 677,641

UK Allied Associates Limited (Registered number: 07167784)

Notes to the Financial Statements
for the Year Ended 30 September 2023


1. STATUTORY INFORMATION

UK Allied Associates 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 (£).


Amounts are rounded to the nearest Pound Sterling.

2. ACCOUNTING POLICIES

Basis of preparation
These financial statements have been prepared in accordance with UK-adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a historical cost basis. The principal accounting policies adopted are set out below.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below:


Critical judgements
Depreciation
See accounting policy (Property, plant and equipment)

Foreign exchange
See accounting policy (Foreign exchange)

Going concern
The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operation existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

UK Allied Associates Limited (Registered number: 07167784)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is recognized at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and other rebates.

Revenue from contracts for the provision of professional services is recognized by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognized only to the extent of the expenses that are recoverable.

Cash and cash equivalents
Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position.

Property, plant and equipment
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvement - 25% on cost
Right of use - Straight line over the lease period
Fixtures and fittings - 25% on cost
Computers - 25% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognized in the profit and loss account.

UK Allied Associates Limited (Registered number: 07167784)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

2. ACCOUNTING POLICIES - continued

Financial assets
Financial assets are recognized in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into two specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognized in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets held at amortized cost
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortized cost using the effective interest method, less any impairment.

Interest is recognized by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets
Financial assets, other than those measured at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cashflow of the investment have been affected.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Financial liabilities
The company recognizes financial debt when the company becomes party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit and loss' or 'other financial liabilities'.

Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortized cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any coupon payable while the liability is outstanding.

Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled or they expire.

UK Allied Associates Limited (Registered number: 07167784)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

2. ACCOUNTING POLICIES - continued

Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities related to taxes levied by the same tax authority.

UK Allied Associates Limited (Registered number: 07167784)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

2. ACCOUNTING POLICIES - continued

Leases
At inception the Company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the Company recognizes a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within tangible fixed assets, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other tangible fixed assets. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the Company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payment in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the Company's estimate of the amount expected to be payable under a residual value guarantee; or the Company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Cash at bank and in hand
Cash and cash equivalents include cash in hand and deposits held at call with banks.

Employee benefits
The costs of short-term employee benefits are recognized as a liability and an expense, unless those costs are required to be recognized as part of the cost of inventories or fixed assets.

The cost of any unused holiday entitlement is recognized in the period in which the employee's services are received.

UK Allied Associates Limited (Registered number: 07167784)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

2. ACCOUNTING POLICIES - continued

Fair value measurement
IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an en entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The resulting calculations under IFRS 13 affected the principles that the Company uses to assess the fair value, but the assessment of fair value under IFRS 13 has not materially changed the fair values recognized or disclosed. IFRS 13 mainly impacts the disclosures of the Company. It requires specific disclosures about fair value measurements and disclosures of fair values, some of which replace existing disclosure requirements in other standards.

3. REVENUE

Revenue from contracts with customers
30/9/23 30/9/22
£    £   
Contracts with customers 1,229,790 1,241,969

4. EMPLOYEES AND DIRECTORS
30/9/23 30/9/22
£    £   
Wages and salaries 1,020,369 904,339
Social security costs 121,545 98,426
Other pension costs 99,839 92,081
1,241,753 1,094,846

The average number of employees during the year was as follows:
30/9/23 30/9/22

Management and administrative 2 2
Development staff 12 12
14 14

30/9/23 30/9/22
£    £   
Directors' remuneration 253,167 208,529
Directors' pension contributions to money purchase schemes 32,067 30,895

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

Money purchase schemes 4 4

Information regarding the highest paid director is as follows:
30/9/23 30/9/22
£    £   
Emoluments etc 131,325 105,779
Pension contributions to money purchase schemes 21,315 10,251

UK Allied Associates Limited (Registered number: 07167784)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

5. NET FINANCE COSTS
30/9/23 30/9/22
£    £   
Finance costs:
Interest on lease liability 2,957 4,068

6. LOSS BEFORE INCOME TAX

The loss before income tax is stated after charging:
30/9/23 30/9/22
£    £   
Cost of inventories recognised as expense 472,153 -
Depreciation - owned assets 62,819 62,644
Loss on disposal of fixed assets 83 64
Auditors' remuneration 7,400 7,000
Foreign exchange differences 48 2,600

7. INCOME TAX

Analysis of tax income
30/9/23 30/9/22
£    £   
Current tax:
Income not taxable (194,851 ) (197,106 )
Total tax income in statement of profit or loss (194,851 ) (197,106 )

Factors affecting the tax expense
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30/9/23 30/9/22
£    £   
Loss before income tax (322,387 ) (135,495 )
Loss multiplied by the standard rate of corporation tax in the UK of
19% (2022 - 19%)

(61,254

)

(25,744

)

Effects of:
Expenses not deductible in determining taxable profit 260 420
Income not taxable (194,851 ) (197,106 )
Unutilised tax losses carried forward 64,986 25,116
Permanent capital allowances in excess of depreciation (3,992 ) 208
qualifying for tax allowances
Tax income (194,851 ) (197,106 )

UK Allied Associates Limited (Registered number: 07167784)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

8. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Leasehold Right of and
improvement use fittings Computers Totals
£    £    £    £    £   
COST
At 1 October 2022 73,253 257,470 16,129 75,664 422,516
Additions - - - 29,535 29,535
Disposals - - - (640 ) (640 )
Impairments - (152,334 ) - - (152,334 )
At 30 September 2023 73,253 105,136 16,129 104,559 299,077
DEPRECIATION
At 1 October 2022 73,253 214,789 14,670 56,662 359,374
Charge for year - 51,443 571 10,805 62,819
Eliminated on disposal - - - (407 ) (407 )
Impairments - (257,470 ) - - (257,470 )
At 30 September 2023 73,253 8,762 15,241 67,060 164,316
NET BOOK VALUE
At 30 September 2023 - 96,374 888 37,499 134,761
At 30 September 2022 - 42,681 1,459 19,002 63,142

9. TRADE AND OTHER RECEIVABLES

30/9/23 30/9/22
£    £   
Current:
Trade debtors 221,420 220,582
Other receivables 17,384 17,147
Prepayments 76,242 64,520
315,046 302,249

Trade debtors disclosed above are classified as loans and receivables and are therefore measured at amortized cost.

Trade receivables - credit risk

Fair value of trade receivables
The directors consider that the carrying amount of debtors is approximately equal to their fair value.

No significant balances are impaired at the reporting end date.

10. CASH AND CASH EQUIVALENTS

30/9/23 30/9/22
£    £   
Cash in hand 220 220
Bank accounts 445,606 569,393
445,826 569,613

UK Allied Associates Limited (Registered number: 07167784)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30/9/23 30/9/22
value: £    £   
1,000 Ordinary £1 1,000 1,000

12. RESERVES
Retained
earnings
£   

At 1 October 2022 663,920
Deficit for the year (127,536 )
At 30 September 2023 536,384


13. TRADE AND OTHER PAYABLES

30/9/23 30/9/22
£    £   
Current:
Trade creditors 46,765 6,894
Social security and other taxes 116,860 143,353
Accruals 97,554 73,704
261,179 223,951

14. FINANCIAL LIABILITIES - BORROWINGS

30/9/23 30/9/22
£    £   
Current:
Leases (see note 15) 50,983 46,133

Non-current:
Leases (see note 15) 46,087 -

Terms and debt repayment schedule

1 year or
less 1-2 years Totals
£    £    £   
Leases 50,983 46,087 97,070

15. LEASING

UK Allied Associates Limited (Registered number: 07167784)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

15. LEASING - continued

Lease liabilities

Minimum lease payments fall due as follows:

30/9/23 30/9/22
£    £   
Gross obligations repayable:
Within one year 57,155 46,133
Between one and five years 49,091 -

106,246 46,133

Finance charges repayable:
Within one year 6,172 -
Between one and five years 3,004 -
9,176 -

Net obligations repayable:
Within one year 50,983 46,133
Between one and five years 46,087 -
97,070 46,133

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date as set out below.

The fair value of the company's lease obligations is approximately equal to their carrying amount.

16. ULTIMATE PARENT COMPANY

The company is a wholly owned subsidiary of Allied Associates International Inc., a company incorporated in the United States. Therefore Allied Associates International Inc.is the ultimate parent company.

17. EVENTS AFTER THE REPORTING PERIOD

On 25 October 2023, UKA2's parent company, Allied Associates International, Inc. (A2I), was purchased by Redhorse Corporation ("Redhorse"), a U.S.-based federal government contractor organized under Delaware law and headquartered in Arlington, Virginia. The transaction resulted in Redhorse owning a 100% interest in A2I and UKA2, whereby UKA2 remained a wholly owned subsidiary of A2I. The transaction agreement included negotiated calculations for the amount of cash on A2I and UKA2 balance sheets that would be distributed to the shareholders of A2I. Per those terms, UKA2 delivered £142,841 on 23 October 2023, which was then distributed to A2I shareholders.

18. ULTIMATE CONTROLLING PARTY

There is no ultimate controlling party.

19. CAPITAL RISK MANAGEMENT

The company is not subject to any externally imposed capital requirements.