Company registration number 05162098 (England and Wales)
CONNECT SOFTWARE SOLUTIONS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
CONNECT SOFTWARE SOLUTIONS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
CONNECT SOFTWARE SOLUTIONS LIMITED
BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
4,252,191
4,260,109
Tangible assets
4
143,940
176,759
4,396,131
4,436,868
Current assets
Debtors
5
589,902
624,472
Cash at bank and in hand
91,833
1,091,069
681,735
1,715,541
Creditors: amounts falling due within one year
6
(6,654,084)
(6,138,487)
Net current liabilities
(5,972,349)
(4,422,946)
Total assets less current liabilities
(1,576,218)
13,922
Provisions for liabilities
(623,086)
(828,685)
Net liabilities
(2,199,304)
(814,763)
Capital and reserves
Called up share capital
7
130
130
Share premium account
2,495
2,495
Profit and loss reserves
(2,201,929)
(817,388)
Total equity
(2,199,304)
(814,763)

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

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

The director acknowledges his responsibilities for complying with the requirements of the Act 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.

 

 

CONNECT SOFTWARE SOLUTIONS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JULY 2023
31 July 2023
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 15 March 2024
Mr C J D Reid
Director
Company Registration No. 05162098
CONNECT SOFTWARE SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
1
Accounting policies
Company information

Connect Software Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Richard House, 9 Winckley Square, Preston, PR1 3HP. The company's place of business is Foundations House, 16 Lindred Road, Lomeshaye Industrial Estate, Nelson, BB9 5SR.

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
Going concern

The company has also made a retained loss for the year due to its continued planned investment in to nursery management software.

 

The parent company, Connect Childcare Group Limited, will support the company moving forward.

 

After considering the impact of the above, at the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised 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 volume rebates.

Revenue from contracts for the provision of professional services is recognised 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 recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

CONNECT SOFTWARE SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

1.6
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Straight line over 10 years
Plant and machinery
Straight line over 3 years
Fixtures and fittings
Straight line over 3 years
Computer equipment
Straight line over 3 years
Website development
Straight line over 3 years

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 credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

CONNECT SOFTWARE SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 5 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified 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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

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

CONNECT SOFTWARE SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 6 -
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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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 realised. 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 relate to taxes levied by the same tax authority.

1.12
Employee benefits

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

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

1.14
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 in the period are included in profit or loss.

CONNECT SOFTWARE SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 7 -
2
Employees

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

2023
2022
Number
Number
Total
71
70
3
Intangible fixed assets
Other
£
Cost
At 1 August 2022
5,375,522
Additions
983,426
At 31 July 2023
6,358,948
Amortisation and impairment
At 1 August 2022
1,115,413
Amortisation charged for the year
991,344
At 31 July 2023
2,106,757
Carrying amount
At 31 July 2023
4,252,191
At 31 July 2022
4,260,109

During financial year 2023, the company has amended their amortisation policy from 10 years to 5 years.

 

CONNECT SOFTWARE SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
4
Tangible fixed assets
Leasehold property improvements
Plant and machinery etc
Website development
Total
£
£
£
£
Cost
At 1 August 2022
188,303
306,800
68,168
563,271
Additions
-
0
13,162
6,667
19,829
At 31 July 2023
188,303
319,962
74,835
583,100
Depreciation and impairment
At 1 August 2022
67,025
251,319
68,168
386,512
Depreciation charged in the year
18,830
31,873
1,945
52,648
At 31 July 2023
85,855
283,192
70,113
439,160
Carrying amount
At 31 July 2023
102,448
36,770
4,722
143,940
At 31 July 2022
121,278
55,481
-
0
176,759
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
130,693
41,623
Corporation tax recoverable
337,849
424,697
Other debtors
121,360
158,152
589,902
624,472
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
62,873
99,649
Amounts owed to group undertakings
6,041,363
5,518,198
Taxation and social security
229,434
198,414
Other creditors
320,414
322,226
6,654,084
6,138,487
CONNECT SOFTWARE SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
125
125
125
125
Ordinary B of £1 each
5
5
5
5
130
130
130
130

The different classes of shares carry equal voting rights and rights to participate in a distribution except that dividends can be voted on one class of shares and not on another.

2023-07-312022-08-01false19 March 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityMr C J D ReidMs A J Blackfalsefalse051620982022-08-012023-07-31051620982023-07-31051620982022-07-3105162098core:IntangibleAssetsOtherThanGoodwill2023-07-3105162098core:IntangibleAssetsOtherThanGoodwill2022-07-3105162098core:LandBuildings2023-07-3105162098core:OtherPropertyPlantEquipment2023-07-3105162098core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-07-3105162098core:LandBuildings2022-07-3105162098core:OtherPropertyPlantEquipment2022-07-3105162098core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-07-3105162098core:CurrentFinancialInstrumentscore:WithinOneYear2023-07-3105162098core:CurrentFinancialInstrumentscore:WithinOneYear2022-07-3105162098core:CurrentFinancialInstruments2023-07-3105162098core:CurrentFinancialInstruments2022-07-3105162098core:ShareCapital2023-07-3105162098core:ShareCapital2022-07-3105162098core:SharePremium2023-07-3105162098core:SharePremium2022-07-3105162098core:RetainedEarningsAccumulatedLosses2023-07-3105162098core:RetainedEarningsAccumulatedLosses2022-07-3105162098core:ShareCapitalOrdinaryShares2023-07-3105162098core:ShareCapitalOrdinaryShares2022-07-3105162098bus:Director12022-08-012023-07-3105162098core:IntangibleAssetsOtherThanGoodwill2022-08-012023-07-3105162098core:LeaseholdImprovements2022-08-012023-07-3105162098core:PlantMachinery2022-08-012023-07-3105162098core:FurnitureFittings2022-08-012023-07-3105162098core:ComputerEquipment2022-08-012023-07-3105162098core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-08-012023-07-31051620982021-08-012022-07-3105162098core:IntangibleAssetsOtherThanGoodwill2022-07-3105162098core:LandBuildings2022-07-3105162098core:OtherPropertyPlantEquipment2022-07-3105162098core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-07-31051620982022-07-3105162098core:LandBuildings2022-08-012023-07-3105162098core:OtherPropertyPlantEquipment2022-08-012023-07-3105162098core:WithinOneYear2023-07-3105162098core:WithinOneYear2022-07-3105162098bus:PrivateLimitedCompanyLtd2022-08-012023-07-3105162098bus:SmallCompaniesRegimeForAccounts2022-08-012023-07-3105162098bus:FRS1022022-08-012023-07-3105162098bus:AuditExemptWithAccountantsReport2022-08-012023-07-3105162098bus:CompanySecretary12022-08-012023-07-3105162098bus:FullAccounts2022-08-012023-07-31xbrli:purexbrli:sharesiso4217:GBP