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Parser Limited

Registered number: 10712549
Annual report and consolidated financial statements
For the year ended 31 December 2023

 
PARSER LIMITED
 
 
COMPANY INFORMATION


Directors
H Griboff 
R C Moral 




Registered number
10712549



Registered office
The Scalpel
18th Floor, 52 Lime Street

London

EC3M 7AF




Independent auditor
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor

One St. Peter's Square

Manchester

M2 3DE





 
PARSER LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 6
Independent Auditor's Report
 
7 - 10
Consolidated Statement of Comprehensive Income
 
11
Consolidated Statement of Financial Position
 
12
Company Statement of Financial Position
 
13
Consolidated Statement of Changes in Equity
 
14
Company Statement of Changes in Equity
 
15
Consolidated Statement of Cash Flows
 
16 - 17
Notes to the Financial Statements
 
18 - 39


 
PARSER LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their strategic report for the year ended 31 December 2023.

Business review
 
Parser is an IT and software development company that helps clients build innovative technology products and unleash the potential of technology teams. It achieves this by providing a wide range of services including strategic and management consulting, managed engineering teams, and highly specialised talent. The company is headquartered in the UK and it also operates in the US, Spain, Portugal, Argentina, Uruguay, Chile, and Colombia.
Over the past five years, our company has experienced significant growth, with a remarkable annual increase. From 2018 to 2023, Parser achieved a Compound Annual Growth Rate (CAGR) of approximately 107%. Revenue increased from £526,122 to £19,924,782 during this period, showcasing substantial and consistent growth. This impressive CAGR highlights the company's successful strategies and strong market performance over the past five years.
In 2023, the global economic climate presented substantial challenges, leading to a widespread reduction in corporate spending on new product development. This adverse environment resulted in a temporary contraction of our revenues and impacted our EBITDA during the year (15% revenue reduction compared with 2022 and a final EBITDA as a percentage of revenue of 9.4%). Despite these obstacles, we managed to keep the company profitable and cash flow positive.
We are pleased to report that 2024 marks a positive turning point, with a projected return to growth in both revenue and EBITDA, underscoring our resilience and the enduring value of our services in the digital product development sector.
The business continues to successfully develop existing and new relationships with customers and suppliers, having consolidated the latest subsidiary in Colombia which should allow Parser to further grow in the US market.

Principal risks and uncertainties
 
Market Conditions
The success of our business is closely tied to the market conditions in which we operate. Recently, the market has been recovering from a general slowdown and is beginning to show signs of growth. As we continue to rebound from a minor decline in turnover caused by the challenging economic climate, our management remains vigilant and responsive to new developments. We are prepared to act swiftly to mitigate any potential impacts from market fluctuations, ensuring we maintain our positive trajectory.
A continued economic slowdown could affect sales, so senior management constantly monitors economic conditions. In the event of a severe economic crisis, marketing and commercial strategies can be modified to reflect the new conditions. This could also result in a redefinition of the way we provide services to our clients, adapting the profiles we hire, the scope of the services, or changing the geographical distribution of our team members.
 
- 1 -

 
PARSER LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Credit Risk
Where the company supplies its services to a client in advance of payment, the company runs the risk that the customer will fail to make payments.
To mitigate the risk associated with supplying services in advance of payment, our company has implemented robust credit control policies. These policies encompass specific procedures for accepting new customers and establishing credit limits. Additionally, they outline clear deadlines for payment and provide guidelines for managing overdue amounts. In cases of delinquent payers, our policies detail the appropriate actions to be taken.
Overhead Expenditure
Management constantly oversees fixed overhead expenses, specifically salaries, rent leases, and insurance costs, aiming to control expenditures and optimize operational efficiencies. This thorough review occurs regularly, involving discussions with each budget owner to identify and capitalize on potential savings opportunities.
People
Retaining talent is crucial for our company's success. At Parser, we prioritise the creation of an exceptional work environment that fosters outstanding career opportunities for our team members.
Our strategy centres on a comprehensive approach, focusing on key factors such as offering a competitive compensation, promoting work-life balance, facilitating career growth, fostering a positive working culture, implementing recognition and appreciation programs, fostering effective communication, and cultivating a strong leadership team.
These combined efforts aim to maximise employee retention across diverse areas.
Foreign exchange risk
The foreign exchange rate risk pertains to the potential variability of profits resulting from fluctuations in foreign currency exchange rates. Such risks are inherent when engaging in international trade, affecting businesses  irrespective of whether they directly conduct transactions in a foreign currency.
To effectively manage this risk, the group aligns collections and payments made in different currencies, primarily in USD. This strategic approach ensures that sudden changes in foreign currency exchange rates do not leave the company with high unpaid balances or compel it to purchase foreign currency at unfavourable rates.

- 2 -

 
PARSER LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
The company views its gross margin of 45% and EBITDA as a percentage of revenue of 9.4% as key financial performance indicators for the year. These metrics highlight the stability and resilience of our business, even amid adverse economic conditions.
These are closely monitored, together with overhead expenses as a percentage of sales to ensure a healthy balance between investment in future growth and working capital and other liquidity metrics.

Other key performance indicators
 
The company actively monitors key Accounts Receivable metrics, including Days Sales Outstanding and Current Accounts Receivable Ratio, as part of its comprehensive approach to managing credit risk. In addition, other critical liquidity metrics, such as the current assets to current liabilities ratio, are closely tracked.
To ensure effective cost management, the company relies on Budget Variance metrics. These metrics play a crucial role in monitoring overhead expenditure and identifying potential savings opportunities.


This report was approved by the board on 31 July 2024 and signed on its behalf.



R C Moral
Director

- 3 -

 
PARSER LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Economic impact of global events

UK businesses are currently facing many uncertainties such as the consequences of Brexit, Covid 19, environmental, sustainability and geopolitical events such as the Russian invasion of Ukraine. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working.
The directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The directors have taken account of these potential impacts in their going concern assessment.
Parser Limited continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.

- 4 -

 
PARSER LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Results and dividends

Over the past five years, our company has experienced significant growth, with a remarkable annual increase. From 2018 to 2023, Parser achieved a Compound Annual Growth Rate (CAGR) of approximately 107%. Revenue increased from £526,122 to £19,924,782 during this period, showcasing substantial and consistent growth. This impressive CAGR highlights the company's successful strategies and strong market performance over the past five years.
In 2023, the global economic climate presented substantial challenges, leading to a widespread reduction in corporate spending on new product development. This adverse environment resulted in a temporary contraction of our revenues and impacted our EBITDA during the year (15% revenue reduction compared with 2022 and a final EBITDA as a percentage of revenue of 9.4%). Despite these obstacles, we managed to keep the company profitable and cash flow positive.
We are pleased to report that 2024 marks a positive turning point, with a projected return to growth in both revenue and EBITDA, underscoring our resilience and the enduring value of our services in the digital product development sector.

The profit for the year, after taxation, amounted to £1,145,447 (2022: £2,739,824).

Directors

The directors who served during the year were:

H Griboff 
R C Moral 

Going concern

These financial statements have been prepared on a going concern basis. The directors, having considered the financial position of the Company for a period of at least twelve months from the date of signing these financial statements, consider the use of the going concern basis of accounting to be appropriate.
On forming this opinion, the directors have considered the reserves of the Company and regularly review the financial and trading information of the Company. This information comprises of, but not limited to: accounts forecasts and cashflow projections.

- 5 -

 
PARSER LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Auditor

The auditor, Forvis Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 31 July 2024 and signed on its behalf.
 




R C Moral
Director

- 6 -

 
PARSER LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARSER LIMITED
 

Opinion

We have audited the financial statements of Parser Limited (the ‘Parent Company’) and its subsidiaries (the 'Group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Position, the Consolidated and Company Statement of Changes in Equity and the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. 
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 Group's and Parent Company’s affairs as at 31 December 2023 and of the Group's and Parent Company's 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and Parent 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 Group's and the Parent 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.
 
- 7 -

 
PARSER LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARSER LIMITED
 


Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.
 
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 course of 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Group and Parent Company and their environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, by the Parent Company or returns adequate for our audit have not been received from branches not visited by us; or
the Parent Company 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.

- 8 -

 
PARSER LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARSER LIMITED
 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 is 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 Group's and Parent 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 intend either to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor’s report 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.
 
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 

Based on our understanding of the Group and Parent Company and their industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the Group and Parent Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Group and Parent Company company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006. 
- 9 -

 
PARSER LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARSER LIMITED
 

In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the cut-off assertion) and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 auditor’s report.

Use of the audit 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 an auditor's report 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.




John Daly (Senior Statutory Auditor)

  
for and on behalf of

Forvis Mazars LLP
Chartered Accountants and Statutory Auditor 
One St. Peter's Square
Manchester
M2 3DE

31 July 2024
- 10 -

 
PARSER LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
19,924,782
23,590,768

Cost of sales
  
(10,961,362)
(13,585,487)

Gross profit
  
8,963,420
10,005,281

Administrative expenses
  
(8,071,904)
(7,192,928)

Other operating income
 5 
667,247
506,056

Operating profit
 6 
1,558,763
3,318,409

Share of profit in associate
 14 
131,810
146,994

Disposal of investment in associate
 14 
(101,312)
-

Interest payable and similar expenses
 9 
(40,066)
(22,046)

Profit before taxation
  
1,549,195
3,443,357

Tax on profit
 10 
(403,748)
(703,533)

Profit for the financial year
  
1,145,447
2,739,824

  

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

The notes on pages 18 to 39 form part of these financial statements.

- 11 -

 
PARSER LIMITED
REGISTERED NUMBER: 10712549

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
404,794
547,663

Tangible assets
 13 
239,702
285,869

Investments
 14 
323,937
293,439

  
968,433
1,126,971

Current assets
  

Debtors: amounts falling due within one year
 15 
2,206,124
3,291,181

Cash at bank and in hand
 16 
2,925,724
3,005,557

  
5,131,848
6,296,738

Creditors: amounts falling due within one year
 17 
(2,028,751)
(3,144,188)

Net current assets
  
 
 
3,103,097
 
 
3,152,550

Total assets less current liabilities
  
4,071,530
4,279,521

Provisions for liabilities
  

Deferred taxation
 18 
(15,761)
(19,774)

  
 
 
(15,761)
 
 
(19,774)

Net assets
  
4,055,769
4,259,747


Capital and reserves
  

Called up share capital 
 19 
4
4

Foreign exchange reserve
 20 
(370,368)
(20,943)

Profit and loss account
 20 
4,426,133
4,280,686

  
4,055,769
4,259,747


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 July 2024.


R C Moral
Director

The notes on pages 18 to 39 form part of these financial statements.

- 12 -

 
PARSER LIMITED
REGISTERED NUMBER: 10712549

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 14 
1,855,896
1,757,378

  
1,855,896
1,757,378

Current assets
  

Debtors: amounts falling due within one year
 15 
581,280
622,870

Cash at bank and in hand
 16 
27,195
78,894

  
608,475
701,764

Creditors: amounts falling due within one year
 17 
(238,255)
(55,364)

Net current assets
  
 
 
370,220
 
 
646,400

Net assets
  
2,226,116
2,403,778


Capital and reserves
  

Called up share capital 
 19 
4
4

Profit and loss account
 20 
2,226,112
2,403,774

  
2,226,116
2,403,778


The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the Parent Company for the period was £822,338 (2022: £2,041,193).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 July 2024.



R C Moral
Director

The notes on pages 18 to 39 form part of these financial statements.

- 13 -

 
PARSER LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Foreign exchange reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
4
(46,095)
2,940,862
2,894,771


Comprehensive income for the year

Profit for the year
-
-
2,739,824
2,739,824

Exchange differences on retranslation of subsidiary undertakings
-
25,152
-
25,152
Total comprehensive income for the year
-
25,152
2,739,824
2,764,976


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(1,400,000)
(1,400,000)


Total transactions with owners
-
-
(1,400,000)
(1,400,000)



At 1 January 2023
4
(20,943)
4,280,686
4,259,747


Comprehensive income for the year

Profit for the year
-
-
1,145,447
1,145,447

Exchange differences on retranslation of subsidiary undertakings
-
(349,425)
-
(349,425)
Total comprehensive income for the year
-
(349,425)
1,145,447
796,022


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(1,000,000)
(1,000,000)


Total transactions with owners
-
-
(1,000,000)
(1,000,000)


At 31 December 2023
4
(370,368)
4,426,133
4,055,769


The notes on pages 18 to 39 form part of these financial statements.

- 14 -

 
PARSER LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
4
1,762,581
1,762,585


Comprehensive income for the year

Profit for the year
-
2,041,193
2,041,193
Total comprehensive income for the year
-
2,041,193
2,041,193


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,400,000)
(1,400,000)


Total transactions with owners
-
(1,400,000)
(1,400,000)



At 1 January 2023
4
2,403,774
2,403,778


Comprehensive income for the year

Profit for the year
-
822,338
822,338
Total comprehensive income for the year
-
822,338
822,338


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,000,000)
(1,000,000)


Total transactions with owners
-
(1,000,000)
(1,000,000)


At 31 December 2023
4
2,226,112
2,226,116


The notes on pages 18 to 39 form part of these financial statements.

- 15 -

 
PARSER LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,145,447
2,739,824

Adjustments for:

Amortisation of intangible assets
142,869
23,811

Depreciation of tangible assets
134,103
108,068

Interest paid
40,066
22,046

Income from investments in associates
(131,810)
(146,994)

Taxation charge
403,748
703,533

Decrease/(increase) in debtors
1,058,290
(781,711)

(Decrease)/increase in creditors
(987,472)
788,071

Corporation tax (paid)
(508,959)
(910,036)

Movement on foreign exchange reserve
(349,425)
25,152

Net cash generated from operating activities

946,857
2,571,764


Cash flows from investing activities

Purchase of intangible fixed assets
-
(571,474)

Purchase of tangible fixed assets
(113,761)
(254,389)

Sale of tangible fixed assets
25,825
-

Disposal of share in associates
101,312
-

Net cash from investing activities

13,376
(825,863)
- 16 -

 
PARSER LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

Dividends paid
(1,000,000)
(1,400,000)

Interest paid
(40,066)
(22,046)

Net cash used in financing activities
(1,040,066)
(1,422,046)

Net (decrease)/increase in cash and cash equivalents
(79,833)
323,855

Cash and cash equivalents at beginning of year
3,005,557
2,681,702

Cash and cash equivalents at the end of year
2,925,724
3,005,557


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,925,724
3,005,557

2,925,724
3,005,557


- 17 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Parser Limited (the “Company”) is a private company, limited by shares and registered in England and Wales, registered number 10712549. The registered office is The Scalpel, 18th Floor, 52 Lime Street, London, EC3M 7AF.
The nature of the Group's operation and its principal activity is that of the provision of information technology consultancy services.

2.Accounting policies

  
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

  
2.3

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
 
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

- 18 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Going concern

These financial statements have been prepared on a going concern basis. The directors, having considered the financial position of the Company for a period of at least twelve months from the date of signing these financial statements, consider the use of the going concern basis of accounting to be appropriate.  
On forming this opinion, the directors have considered the reserves of the Company and regularly review the financial and trading information of the Company. This information comprises of, but not limited to: accounts forecasts and cashflow projections.

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP, rounded to the nearest £.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

- 19 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

- 20 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Development expenditure
-
4
years

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

- 21 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Statement of Financial Position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

- 22 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

- 23 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.19

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
 
- 24 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.19
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
 
- 25 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.19
Financial instruments (continued)


Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
 
Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

- 26 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Critical judgements in applying the accounting policies
In the application of the Group's and 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 recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
(ii) Recoverability of receivables
The Group and Company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors have considered factors such as the ageing of the receivables, past experience of recoverability, and the credit profile of individual or groups of customers.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
(i) Determining residual values and useful economic lives of property, plant and equipment
The Group depreciate tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value management aim to assess the amount that the Group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.
(ii) Determining useful economic lives of intangible assets
The Group amortise intangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on management’s assessment of the period over which the asset is expected to generate future economic benefit for the Group. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, consumer trends and other external factors such as brand reputation and economic conditions.

- 27 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
9,409,158
11,132,517

Rest of Europe
152,290
23,200

Rest of the world
10,363,334
12,435,051

19,924,782
23,590,768


The whole of the turnover is attributable to the principal activity of the Group.


5.


Other operating income

2023
2022
£
£

Other operating income
667,247
506,056

667,247
506,056



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
198,222
12,126

Depreciation on tangible fixed assets
134,103
108,068

Amortisation of intangible assets
142,869
23,811

Defined contribution scheme expense
11,436
12,347

- 28 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditor's remuneration

During the year, the Group obtained the following services from the Group's auditors:


2023
2022
£
£

Fees payable to the Group's auditor for the audit of the Company's financial statements
23,100
21,000


Fees payable to the Group's auditor for the audit of the subsidiaries financial statements
45,650
41,500


8.


Employees

Staff costs were as follows:


Group
Group
2023
2022
£
£


Wages and salaries
10,048,182
9,533,133

Social security costs
725,288
673,143

Cost of defined contribution scheme
11,436
12,347

10,784,906
10,218,623


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Average
149
148


9.


Interest payable and similar expenses

2023
2022
£
£


Other interest payable
40,066
22,046

- 29 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
409,218
690,186


Total current tax
409,218
690,186

Deferred tax


Origination and reversal of timing differences
(5,470)
13,586

Adjustments in respect of previous periods - deferred tax
-
(239)

Total deferred tax
(5,470)
13,347


Taxation on profit on ordinary activities
403,748
703,533
- 30 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 -higher than) the standard rate of corporation tax in the UK of 23.5% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,549,195
3,443,357


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 -19%)
364,061
654,238

Effects of:


Expenses not deductible for tax purposes
52,841
40,464

Fixed asset differences
(25)
(3,806)

Overseas tax
(5,459)
41,820

Adjustments to tax charge in respect of prior periods - deferred tax
-
(239)

Non-taxable income
-
(27,929)

Remeasurement of deferred tax for changes in tax rates
-
3,166

Other differences leading to an increase (decrease) in the tax charge
(7,670)
(4,181)

Total tax charge for the year
403,748
703,533


Factors that may affect future tax charges

From 1 April 2023, the rate of corporation tax in the United Kingdom increased from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.

- 31 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Dividends

2023
2022
£
£


Ordinary share dividends
1,000,000
1,400,000


12.


Intangible assets

Group 





Development expenditure

£



Cost


At 1 January 2023
571,474



At 31 December 2023

571,474



Amortisation


At 1 January 2023
23,811


Charge for the year
142,869



At 31 December 2023

166,680



Net book value



At 31 December 2023
404,794



At 31 December 2022
547,663



- 32 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets

Group






Office equipment

£



Cost


At 1 January 2023
468,849


Additions
113,761


Disposals
(50,037)



At 31 December 2023

532,573



Depreciation


At 1 January 2023
182,980


Charge for the year
134,103


Disposals
(24,212)



At 31 December 2023

292,871



Net book value



At 31 December 2023
239,702



At 31 December 2022
285,869

- 33 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Fixed asset investments

Group





Investments in associates
Unlisted investments
Total

£
£
£



Cost and net book value


At 1 January 2023
273,439
20,000
293,439


Disposals
(101,312)
-
(101,312)


Transfer between classes
(303,937)
303,937
-


Share of profit
131,810
-
131,810



At 31 December 2023
-
323,937
323,937




Company





Investments in subsidiary companies
Investments in associates
Unlisted investments
Total

£
£
£
£



Cost


At 1 January 2023
1,698,278
39,100
20,000
1,757,378


Additions
98,518
-
-
98,518


Transfer between classes
-
(39,100)
39,100
-



At 31 December 2023
1,796,796
-
59,100
1,855,896




Within Investments there is a share in a company called CloudX Tech Inc. The current shareholding is 15% (2022: 20%) and the company is not currently deemed to be an associate. In our capacity as the minority shareholder with a 15% stake in CloudX, we hold extensive contractual rights that could afford us significant control over their decision-making. While we have chosen not to exercise these rights fully, granting CloudX's management considerable autonomy in their daily operations, we retain the authority to assert our influence at any future point, including claiming a seat on their board of directors. Therefore, based on our present degree of involvement, we do not consider CloudX as an associate in the current financial year.

- 34 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Parser UK Limited
The Scalpel, 18th Floor, 52 Lime Street, London, EC3m 7AF
Ordinary
100%
Parser Digital S.L.
Pl. del Gas, Bloque B, Ciutat Vella, 08003 Barcelona, Recepcion 1st floor, Spain
Ordinary
100%
Parser Poland*
ul. Choldna 52, 00-872 Warsaw
Ordinary
100%
Parser Digital S.A.
Lote 38 Mza 13, B. Los Cerevos, Valle Escondido, Cordoba, Argentina, CP 5003
Ordinary
99%
Parser Digital Uruguay S.A.**
Colonia número 810 oficina 403., Montevido.
Ordinary
100%
Parser Digital, Unipessoal, Lda**
Rua Carlos Alberto da Mota Pinto, 17 - 2. A, 1070-313 Lisboa
Ordinary
100%
PEXT Limited
The Scalpel, 18th Floor, 52 Lime Street, London, EC3M 7AF
Ordinary
100%
Parser Digital Chile**
Pdte, Riesco 5535 Of 603 P^ EX 533 Comuna Las Condes
Ordinary
100%
Parser US Limited
251 Little Falls Drive, Wilmington, DE 19808
Ordinary
100%
Parser Digital Colombia**
 Calle 102A#47 A-09, Colombia
Ordinary
100%

* 99% of the shares held in Parser Poland are owned by Parser Digital S.L.
**These entities are 100% owned subsidiaries of Parser Digital S.L.

- 35 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,455,686
2,458,762
-
-

Amounts owed by group undertakings
-
-
171,582
256,709

Amounts owed by related parties
258,028
239,940
258,028
239,940

Other debtors
270,782
238,003
18,688
1,911

Prepayments and accrued income
201,326
305,950
132,982
124,310

Tax recoverable
20,302
48,526
-
-

2,206,124
3,291,181
581,280
622,870


Amounts owed by group undertakings are interest free and repayable on demand.


16.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
2,925,724
3,005,557
27,195
78,894

2,925,724
3,005,557
27,195
78,894



17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
632,927
1,040,508
100,565
44,076

Amounts owed to group undertakings
-
-
111,851
-

Corporation tax
543,465
671,430
-
-

Other taxation and social security
513,491
967,824
-
-

Other creditors
72,197
379,667
-
-

Accruals and deferred income
266,671
84,759
25,839
11,288

2,028,751
3,144,188
238,255
55,364


Amounts owed to group undertakings are interest free and repayable on demand.

- 36 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(19,774)
(6,583)


Charged to profit or loss
5,470
(13,191)


Foreign exchange differences
(1,457)
-



At end of year
(15,761)
(19,774)




2023
2022



Group
Group
2023
2022
£
£

Fixed asset differences
(19,464)
(20,328)

Short term timing differences
3,703
554

(15,761)
(19,774)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



8,000 (2022 -8,000) Ordinary shares of £0.0005 each
4
4


- 37 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Reserves

Foreign exchange reserve

The foreign exchange reserve represents accumulated gains or losses on translation of foreign entities on consolidation.

Profit and loss account

The profit & loss account represents the accumulated undistributed reserves of the Company and Group.

21.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

3,005,557

(79,833)

2,925,724


3,005,557
(79,833)
2,925,724


22.


Contingent liabilities

The Company is defending a legal claim brought against it by a supplier. Although liability is not admitted, if the defence against the action is unsuccessful, then the Company would be liable for fines and legal costs. The fines and legal costs at this early stage of the action can not reliably be estimated. Based on the legal advice given, management believes that the defence against the action will be unsuccessful.


23.


Pension commitments

A company within the group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable to the fund and amounted to £11,436 (2022: £12,347). Contributions totalling £1,766 (2022: £7,917) were payable to the fund at the balance sheet date and are included within other creditors.

- 38 -

 
PARSER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
36,518
128,107

36,518
128,107

25.


Related party transactions

The Company has taken advantage of the exemption permitted by Section 33 'Related Party Disclosures' not to provide disclosures of transactions entered into with wholly owned subsidiaries within the group.
At year end date, the Group was owed £258,028 (2022: £239,940) by Parser Ventures, a related party.
Total remuneration received by key management personnel in the year through dividends amounted to £1,000,000 (2022: £1,400,000).


26.


Controlling party

In the Directors opinion there is no ultimate controlling party.

- 39 -