Company registration number SC270886 (Scotland)
SOFTWARE ALLIANCE LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
SOFTWARE ALLIANCE LIMITED
CONTENTS
Page
Directors' report
1 - 2
Balance sheet
3 - 4
Notes to the financial statements
5 - 8
SOFTWARE ALLIANCE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

The directors present their annual report and financial statements for the year ended 31 May 2023.

Software Alliance Limited (“SAL”) is a specialist software house focused on the development of financial modelling and related software primarily for the life insurance industry. Our principal software product is the Mo.net Financial Modelling Platform, which is used by actuaries and other risk professionals to perform a range of critical business activities, including but not limited to product pricing, profit testing, valuation & reserving, capital management, and front / back-office policy illustrations & servicing.

The global marketplace for SAL’s products is dominated by the first generation of financial modelling software released in the mid-1990s. These products are now approaching end-of-life, with many customers actively looking at alternatives to these legacy tools. The flexible, modern & open architecture of the Mo.net platform, together with an increasing range of accelerator tools to help support the migration effort, leaves us well placed to respond to the next generation of financial modelling requirements.

Business Structure

In April 2023 SAL became an independent software house for the first time in its history. This followed the restructuring of OAC and the divestment of any interest in SAL. This change in business structure provides an opportunity to develop new strategic propositions & partnerships and removes any dependency on services historically provided by OAC.

Philosophy

SAL’s business philosophy is encapsulated as follows:

Strategic Focus

The strategic focus for the business continues to be developing a range of innovative and extensible on-premise, cloud-based and hybrid financial modelling software & associated services appropriate to the current and emerging needs of the global life insurance industry. We continue to target all stages of the life insurance lifecycle, include front-office illustrations & quotations, back-office policy administration calculations, and more traditional actuarial pricing, valuation, and reserving activities. By closely aligning our tools & services to the needs of our strategic markets & territories we can offer a genuine alternative to the traditional tools & vendors.

Growth

Over the last 12 months our recurring annual license revenue has grown by 12.8%. There has also been encouraging growth of new clients in emerging strategic markets, as well as steady interest from the domestic market enabling a positive outlook for the coming year.

Cost Management

During the year, we have continued to focus on minimising all operational costs and to streamline many of our key business processes. However, we have also invested in people and initiatives where there are clear and tangible benefits to the business.

Customers

Providing exceptional customer service & support remains a cornerstone of the business, and key to our strategic goal of winning new clients who are considering moving away from legacy platforms & providers. We have continued to increase visibility of our brand across our target markets & segments through a diverse selection of industry events and by engaging with a broader range of technology & consulting partners.

SOFTWARE ALLIANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 2 -

Products & Services

New versions of the core Mo.net platform continue to be released in line with our strategic product roadmap, which is heavily influenced by customer requirements and our own R&D activity. We have also extended our product set to offer a more diverse range of components to complement the core modelling platform, with specific focus on end-user computing. Following the demerger from OAC we have formed our own consulting practice to offer a range of consultancy support & training to existing & new clients.

Opportunities

The most significant opportunities relate to the replacement of first generation / legacy financial modelling platforms. Many insurers are now actively investigating alternative technologies offering more flexibility, lower cost of ownership, better vendor support, and a clear pathway for migration.

Risks & Challenges

The principal risk to our business is the loss of any of our major clients to a competitor. We are therefore focusing on maintaining client satisfaction and ensuring clients receive exemplary customer service & support.

People

Following our demerger from OAC we sought to bolster our management team by the appointment of an Operations Director and a Finance Director as well as a new Chairperson on the Board. These positions have now been filled.

The satisfaction of all staff is monitored through a quarterly satisfaction survey, as well as indirectly through our performance management framework. Staff satisfaction continues to be high.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

S Curle
G Shepherd CDIr FIoD
L Schopp CDir ACA
(Appointed 30 March 2023)
OAC Limited
(Resigned 30 March 2023)
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
G Shepherd CDIr FIoD
Director
17 January 2024
SOFTWARE ALLIANCE LIMITED
BALANCE SHEET
AS AT
31 MAY 2023
31 May 2023
- 3 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
6,698
5,307
Current assets
Debtors
6
154,579
643,040
Cash at bank and in hand
521,425
74,590
676,004
717,630
Creditors: amounts falling due within one year
7
(361,844)
(372,712)
Net current assets
314,160
344,918
Total assets less current liabilities
320,858
350,225
Creditors: amounts falling due after more than one year
8
(10)
(10)
Net assets
320,848
350,215
Capital and reserves
Called up share capital
1,191
1,191
Share premium account
199,998
199,998
Capital redemption reserve
39
39
Profit and loss reserves
119,620
148,987
Total equity
320,848
350,215

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

SOFTWARE ALLIANCE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MAY 2023
31 May 2023
- 4 -
The financial statements were approved by the board of directors and authorised for issue on 17 January 2024 and are signed on its behalf by:
G Shepherd CDIr FIoD
Director
Company registration number SC270886 (Scotland)
SOFTWARE ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 5 -
1
Accounting policies
Company information

Software Alliance Limited is a private company limited by shares incorporated in Scotland.

The registered office is Summit House, 4-5 Mitchell Street, Edinburgh, EH6 7BD.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

 

The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts.

 

For licence fees, the majority of the income is recognised on commencement of the licence. However a proportion of the licence fee attributable to ongoing service and support is deferred and released to income over the length of the licence.

 

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Company's activities.

1.3
Tangible fixed assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

 

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

IT and office equipment
20% straight line
1.4
Trade Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

 

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

SOFTWARE ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 6 -
1.5
Taxation

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Current tax

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

1.6
Employee benefits

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold suffcient assets to pay all employees the benefits relating to employee service in the current and prior periods.

 

Contributions to defined contribution pension plans are recognised as employee benefit expense when they are due.

1.7

Share capital

Ordinary shares are classified as equity. equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

1.8

Dividends

Dividend distributions to the company's ordinary shareholders are recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Fixed dividends to the company's preference shareholders are accrued as a liability over the period they are due, irrespective of when payment is to be made.

2
Judgements and key sources of estimation uncertainty

Income recognition with regard to licence fees.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
9
9
4
Dividends
2023
2022
£
£
Final paid
77,674
33,711
SOFTWARE ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
4
Dividends
(Continued)
- 7 -

Preference dividends in arrears total £17,500 (2022 - £52,500).

5
Tangible fixed assets
IT and office equipment
Total
£
£
Cost
At 1 June 2022
21,795
21,795
Additions
5,532
5,532
At 31 May 2023
27,327
27,327
Depreciation
At 1 June 2022
16,488
16,488
Depreciation charged in the year
4,141
4,141
At 31 May 2023
20,629
20,629
Carrying amount
At 31 May 2023
6,698
6,698
At 31 May 2022
5,307
5,307
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
96,852
80,466
Amounts owed by group undertakings
-
0
555,853
Other debtors
57,727
6,721
154,579
643,040
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
24,577
11,531
Amounts owed to group undertakings
-
0
21,762
Corporation tax
29,800
17,887
Other taxation and social security
58,570
54,999
Dividends payable
17,500
52,500
Other creditors
34,096
15,438
Accruals and deferred income
197,301
198,595
361,844
372,712
SOFTWARE ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Preference share capital
10
10
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