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REGISTERED NUMBER: 04633912 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023

for

Loadbalancer.org Limited

Loadbalancer.org Limited (Registered number: 04633912)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 9

Statement of Financial Position 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 13


Loadbalancer.org Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: K J Turnbull
M R Turnbull





REGISTERED OFFICE: Compass House
Compass Road
Portsmouth
Hampshire
PO6 4PS





REGISTERED NUMBER: 04633912 (England and Wales)





AUDITORS: The Barnbrook Sinclair Partnership LLP
Chartered Accountants
Statutory Auditor
Chancery House
30 St Johns Road
Woking
Surrey
GU21 7SA

Loadbalancer.org Limited (Registered number: 04633912)

Strategic Report
for the Year Ended 31 December 2023

The directors submit their strategic report of Loadbalancer.org Limited (Company Registration No. 04633912) for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company during the year was that of the supply of computer hardware and related consultancy services.

REVIEW OF THE BUSINESS
The company reported a good performance in the year with turnover increasing from £4,025,160 to £4,491,069.

The company maintained its level of expenditure which is mainly staff costs to deliver existing products and develop new products to ensure it has the infrastructure for future growth. The operating profit therefore increased from £590,906 to £885,643.

The company's balance sheet also improved with net assets of £3,430,579 (2022: £2,833,418).

The strategic objective of the company continues to be the leading provider of IT Loadbalancing solutions.

FUTURE DEVELOPMENTS

The company is forecasting 2024 and beyond to be years with significant growth when it believes it will benefit from all the current research and development.

KEY PERFORMANCE INDICATORS
The company considers its Key Performance Indicators to be turnover, operating profit, net assets and cash at bank.

2023 2022 2021
£    £    £   

Sales 4,491,069 4,025,160 3,936,078

Operating profit 885,643 590,906 771,600

Net assets 3,430,579 2,833,418 2,617,126

Cash at bank 3,221,479 2,819,813 2,279,963


Loadbalancer.org Limited (Registered number: 04633912)

Strategic Report
for the Year Ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The company's principal financial instruments comprise bank balances, inventories, trade debtors and trade creditors. The main purpose of these instruments is to provide funds for the company's operations. Their existence exposes the company to a number of financial risks, which have been considered and are managed as follows:

Credit risk
The company has a significant and diverse customer base, invoicing in advance of the provision of the support. This combined with undertaking stringent credit checks and the implementation of further safeguards, where necessary, minimises credit risk.

Operational risk:
Operational risk is the risk of a direct or indirect loss resulting from the inadequacies or failures of processes or controls due to technology, staff, organisation or external factors. To monitor and control operational risk, the company maintains a system of comprehensive policies and a control framework which is designed to provide a sound and well-controlled operational environment.

Liquidity risk:
Liquidity risk is the risk that the company will have insufficient resources to meet its financial liabilities as they fall due. The company's strategy to managing liquidity risk is to maintain significant cash balances within the business.

Price risk:
Price risk is the risk that financial performance of the company will be adversely affected by pricing changes or price pressure from competitors. The company's main cost is it's staff and so with annual reviews can plan and mitigate that risk. The company invoices in advance which mitigates the risk on changes arising from competitor pricing.

Currency risk:
Currency risk is the risk that the financial performance of the company will be adversely affected by fluctuations in foreign currencies used by the company. The company manages its exposure to short term fluctuations in currency .
by holding sufficient cash reserves in currencies used in the business avoiding the need to convert currencies on a short term basis.

The directors review the principal risks and uncertainties facing the company on a regular basis and ensure systems and policies are continuously updated to reflect any changes, they work in an efficient manner to minimise those risks and help achieve the company's objectives.

GOING CONCERN
The company's business activities, together with the factors likely to affect its future development, performance and position are set out above.

After making enquiries, the directors have an expectation that the company's net assets as at 31 December 2023 of £3.4m and the company's cash position, forecasts and projections for a period of 12 months from the accounts signing date are more than sufficient to provide adequate resources to continue in operational existence for the foreseeable future. The directors have therefore concluded that it is appropriate to prepare the financial statements on a going concern basis.

ON BEHALF OF THE BOARD:





K J Turnbull - Director


12 March 2024

Loadbalancer.org Limited (Registered number: 04633912)

Report of the Directors
for the Year Ended 31 December 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the supply of computer hardware and related consultancy services.

DIVIDENDS
Interim dividends of £322,553 (2022: £542,553) were paid in the year. The directors recommend that no final dividend be paid.

RESEARCH AND DEVELOPMENT
The company is engaged in ongoing research and development aimed at developing further Loadbalancing solutions.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

K J Turnbull
M R Turnbull

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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.

Loadbalancer.org Limited (Registered number: 04633912)

Report of the Directors
for the Year Ended 31 December 2023


AUDITORS
The auditors, The Barnbrook Sinclair Partnership LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





K J Turnbull - Director


12 March 2024

Report of the Independent Auditors to the Members of
Loadbalancer.org Limited

Opinion
We have audited the financial statements of Loadbalancer.org Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, 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 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 December 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.

Report of the Independent Auditors to the Members of
Loadbalancer.org 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 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.

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.

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 obtained an understanding of the legal and regulatory framework that the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context include the Companies Act and tax legislation. In addition we considered the provisions of other laws and regulations that do not have an effect on the financial statements but compliance with which may be fundamental to the company's ability to incur or to avoid a material penalty, including the company's operating licences and environmental regulations.

Our procedures in response to the risks identified included reviewing the financial statements disclosures and testing supporting documentation to assess compliance with the provisions of relevant laws and regulations considered to have a direct effect in the financial statements, enquiring of management concerning actual or potential litigation and claims, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, reading minutes of meetings of those charged with governance, reviewing correspondence with relevant regulatory authorities and in addressing the risk of fraud through management override of controls, 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.

We also communicated relevant identified laws and regulations and potential audit risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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
Loadbalancer.org 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.




Andrew Carpenter (Senior Statutory Auditor)
for and on behalf of The Barnbrook Sinclair Partnership LLP
Chartered Accountants
Statutory Auditor
Chancery House
30 St Johns Road
Woking
Surrey
GU21 7SA

12 March 2024

Loadbalancer.org Limited (Registered number: 04633912)

Statement of Income and
Retained Earnings
for the Year Ended 31 December 2023

31/12/23 31/12/22
Notes £    £   

REVENUE 4 4,491,069 4,025,160

Cost of sales (161,438 ) (192,011 )
GROSS PROFIT 4,329,631 3,833,149

Administrative expenses (3,443,988 ) (3,242,243 )
OPERATING PROFIT 6 885,643 590,906

Interest receivable and similar income 7 53,647 835
PROFIT BEFORE TAXATION 939,290 591,741

Tax on profit 8 (19,576 ) 167,104
PROFIT FOR THE FINANCIAL YEAR 919,714 758,845

Retained earnings at beginning of year 2,833,318 2,617,026

Dividends 9 (322,553 ) (542,553 )

RETAINED EARNINGS AT END OF
YEAR

3,430,479

2,833,318

Loadbalancer.org Limited (Registered number: 04633912)

Statement of Financial Position
31 December 2023

31/12/23 31/12/22
Notes £    £   
FIXED ASSETS
Property, plant and equipment 10 1,784,187 1,850,689

CURRENT ASSETS
Inventories 11 162,261 129,695
Debtors 12 1,009,134 942,530
Cash at bank and in hand 3,221,479 2,819,813
4,392,874 3,892,038
CREDITORS
Amounts falling due within one year 13 (2,628,328 ) (2,810,731 )
NET CURRENT ASSETS 1,764,546 1,081,307
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,548,733

2,931,996

PROVISIONS FOR LIABILITIES 14 (118,154 ) (98,578 )
NET ASSETS 3,430,579 2,833,418

CAPITAL AND RESERVES
Called up share capital 15 100 100
Retained earnings 16 3,430,479 2,833,318
SHAREHOLDERS' FUNDS 3,430,579 2,833,418

The financial statements were approved by the Board of Directors and authorised for issue on 12 March 2024 and were signed on its behalf by:





K J Turnbull - Director


Loadbalancer.org Limited (Registered number: 04633912)

Statement of Cash Flows
for the Year Ended 31 December 2023

31/12/23 31/12/22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 414,679 1,111,005
Tax received 308,886 -
Net cash from operating activities 723,565 1,111,005

Cash flows from investing activities
Purchase of tangible fixed assets (81,343 ) (29,437 )
Sale of tangible fixed assets 28,350 -
Interest received 53,647 835
Net cash from investing activities 654 (28,602 )

Cash flows from financing activities
Equity dividends paid (322,553 ) (542,553 )
Net cash from financing activities (322,553 ) (542,553 )

Increase in cash and cash equivalents 401,666 539,850
Cash and cash equivalents at beginning of
year

2

2,819,813

2,279,963

Cash and cash equivalents at end of year 2 3,221,479 2,819,813

Loadbalancer.org Limited (Registered number: 04633912)

Notes to the Statement of Cash Flows
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31/12/23 31/12/22
£    £   
Profit before taxation 939,290 591,741
Depreciation charges 121,319 119,110
Profit on disposal of fixed assets (1,825 ) -
Finance income (53,647 ) (835 )
1,005,137 710,016
Increase in inventories (32,566 ) (56,153 )
(Increase)/decrease in trade and other debtors (375,528 ) 270,764
(Decrease)/increase in trade and other creditors (182,364 ) 186,378
Cash generated from operations 414,679 1,111,005

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 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 3,221,479 2,819,813
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 2,819,813 2,279,963


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 2,819,813 401,666 3,221,479
2,819,813 401,666 3,221,479
Total 2,819,813 401,666 3,221,479

Loadbalancer.org Limited (Registered number: 04633912)

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

1. STATUTORY INFORMATION

Loadbalancer.org 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. 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.

Turnover
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Subscription revenue is recognised on a straight-line basis over the term of the software maintenance contract. Revenue relating to future periods is classified as deferred income on the Statement of Financial Position to reflect the transfer of risk and reward.

Tangible fixed assets
Fixed assets are stated at cost, net of depreciation and any provision for impairment.

Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimate residual value on a straight line basis over its expected useful life, as follows:-

Freehold property - 2% on cost
Improvements to property - straight line over 10 years
Plant and machinery - 25% on reducing balance
Computer equipment - 33 % on cost
Fixtures and fittings - 33% on cost
Motor vehicles - 25% on reducing balance
Freehold land is not depreciated.

Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life.

Stocks
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 statement of financial position date.


Loadbalancer.org Limited (Registered number: 04633912)

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

3. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the date of the statement of financial position. 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.

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.

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102, in full, to all of its financial instruments.

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument, and are offset only when the company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets

Debtors
Debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Where an arrangement with a debtor constitutes a financing transaction, the debtor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

A provision for impairment of debtors is established when there is evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occuring after the impairment loss was recognised, are recognised immediately in profit or loss.


Loadbalancer.org Limited (Registered number: 04633912)

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

3. ACCOUNTING POLICIES - continued

Financial liabilities and equity
Financial instruments are classified as liabilities and equity instruments according to the substance of the contractual arrangements entered into.An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Equity instruments
Financial instruments classified as equity instruments are recorded at the fair value of the cash or other resources received or receivable, net of direct costs of issuing the equity instruments.

Creditors
Creditors which are payable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Derecognition of financial assets and liabilities
A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

Critical accounting estimates and areas of judgement
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 company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The directors do not believe that there are any estimates or assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities of the company.

4. REVENUE

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

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

31/12/23 31/12/22
£    £   
Software 4,186,994 3,820,414
Hardware 304,075 204,746
4,491,069 4,025,160

Loadbalancer.org Limited (Registered number: 04633912)

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

4. REVENUE - continued

An analysis of revenue by geographical market is given below:

31/12/23 31/12/22
£    £   
United Kingdom 1,231,179 1,341,709
Europe 867,421 259,570
United States of America 2,219,016 2,380,630
Asia 69,036 -
Canada 44,116 43,251
Middle East 42,453 -
Australia and New Zealand 17,848 -
4,491,069 4,025,160

5. EMPLOYEES AND DIRECTORS
31/12/23 31/12/22
£    £   
Wages and salaries 2,113,320 2,237,347
Social security costs 231,092 244,933
Other pension costs 168,215 114,590
2,512,627 2,596,870

The average number of employees during the year was as follows:
31/12/23 31/12/22

Finance & Management 9 9
Sales & Marketing 18 19
Support & Solutions 10 16
Development 10 9
47 53

31/12/23 31/12/22
£    £   
Directors' remuneration 26,780 23,628

6. OPERATING PROFIT

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

31/12/23 31/12/22
£    £   
Depreciation - owned assets 121,320 119,110
Profit on disposal of fixed assets (1,825 ) -
Auditors' remuneration 11,500 11,050
Research and development costs 13,856 19,516

Loadbalancer.org Limited (Registered number: 04633912)

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

7. INTEREST RECEIVABLE AND SIMILAR INCOME
31/12/23 31/12/22
£    £   
Interest receivable 53,647 835

8. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
31/12/23 31/12/22
£    £   
Current tax:
UK corporation tax - (143,836 )
Prior year under / (over) provision - (165,088 )
Total current tax - (308,924 )

Deferred tax 19,576 141,820
Tax on profit 19,576 (167,104 )

UK corporation tax has been charged at 23.50% (2022 - 19%).

Reconciliation of total tax charge/(credit) 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:

31/12/23 31/12/22
£    £   
Profit before tax 939,290 591,741
Profit multiplied by the standard rate of corporation tax in the UK of
23.500% (2022 - 19%)

220,733

112,431

Effects of:
Expenses not deductible for tax purposes 690 1,321
Adjustments to tax charge in respect of previous periods - (165,088 )
Research & Development (201,847 ) (115,768 )


Total tax charge/(credit) 19,576 (167,104 )

On 1 April 2023 the UK government increased the main rate of corporation tax to 25% from 19% resulting in an effective tax rate to 23.5% in the year to 31 December 2023.

9. DIVIDENDS
31/12/23 31/12/22
£    £   
Ordinary Shares shares of £1 each
Interim 322,553 542,553

Loadbalancer.org Limited (Registered number: 04633912)

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

10. PROPERTY, PLANT AND EQUIPMENT
Improvements
Freehold to Plant and
property property machinery
£    £    £   
Cost
At 1 January 2023 1,467,500 533,434 7,123
Additions - - -
Disposals - - -
At 31 December 2023 1,467,500 533,434 7,123
Depreciation
At 1 January 2023 140,117 116,134 3,917
Charge for year 20,018 53,283 802
Eliminated on disposal - - -
At 31 December 2023 160,135 169,417 4,719
Net book value
At 31 December 2023 1,307,365 364,017 2,404
At 31 December 2022 1,327,383 417,300 3,206

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
Cost
At 1 January 2023 92,889 153,040 170,739 2,424,725
Additions 7,865 49,993 23,485 81,343
Disposals - (97,650 ) - (97,650 )
At 31 December 2023 100,754 105,383 194,224 2,408,418
Depreciation
At 1 January 2023 74,168 94,869 144,831 574,036
Charge for year 8,335 17,515 21,367 121,320
Eliminated on disposal - (71,125 ) - (71,125 )
At 31 December 2023 82,503 41,259 166,198 624,231
Net book value
At 31 December 2023 18,251 64,124 28,026 1,784,187
At 31 December 2022 18,721 58,171 25,908 1,850,689

11. INVENTORIES
31/12/23 31/12/22
£    £   
Stocks 162,261 129,695

Loadbalancer.org Limited (Registered number: 04633912)

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

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/12/22
£    £   
Trade debtors 921,978 526,168
Other debtors and prepayments 87,156 107,438
Tax - 308,924
1,009,134 942,530

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/12/22
£    £   
Trade creditors 66,121 46,661
Tax (39 ) -
Social security and other taxes 71,937 135,626
VAT 32,351 15,457
Other creditors and accruals 43,459 106,811
Deferred income 2,414,499 2,506,176
2,628,328 2,810,731

14. PROVISIONS FOR LIABILITIES
31/12/23 31/12/22
£    £   
Deferred tax 118,154 98,578

Deferred
tax
£   
Balance at 1 January 2023 98,578
Charge to Income Statement during year 19,576
Balance at 31 December 2023 118,154

The provision for liabilities and charges is in respect of deferred taxation showing the amount provided and the full potential liability/(asset), primarily due to capital allowance claims in excess of qualifying depreciation.The timing of the reversal of the provision is uncertain due to the offset of excess depreciation of existing assets and accelerated capital allowances being claimed on future purchases.

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/12/23 31/12/22
value: £    £   
100 Ordinary Shares £1 100 100

The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company.

16. RESERVES

Retained earnings represents cumulative profits or losses, net of dividends and other adjustments.

Loadbalancer.org Limited (Registered number: 04633912)

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

17. RELATED PARTY DISCLOSURES

The company trades with the following companies, Loadbalancer.org Appliances Ltd, registered in Canada,
Loadbalancer.org GmbH, registered in Germany and Loadbalancer.org Inc, registered in the USA, which are all related to the company by virtue of common control.

During the year the company made sales of £2,163,811 (2022: £2,380,630) to Loadbalancer.org Inc. At the year end it was owed £780,331 (2022: £302,687) by Loadbalancer.org Inc.

During the year the company made sales of £234,373 (2022: £259,570) to Loadbalancer.org GmbH. At the year end it was owed £10,668 (2022: £30,060) by Loadbalancer.org GmbH.

During the year the company made sales of £42,546 (2022: £43,251) to Loadbalancer.org Appliances Ltd. At the year end it owed £839 (2022: £826 owed by) to Loadbalancer.org Appliances Ltd.

18. ULTIMATE CONTROLLING PARTY

The directors consider the ultimate controlling party to be the board of directors.