Registered number:
FOR THE YEAR ENDED 30 NOVEMBER 2023
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WORKFRONT, LTD.
COMPANY INFORMATION
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WORKFRONT, LTD.
CONTENTS
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WORKFRONT, LTD.
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
The principal activity of the Company in the period under review was that of providing on a subscription basis a modern work management platform and our technical support, based on the number of users. Revenue is also generated from implementation services, training, and other types of professional services.
The results for the year and financial position are as shown in the annexed financial statements. The executive management team reviews regularly information covering a range of financial and non-financial key performance indicators, which they consider are effective in measuring delivery of their strategy, and which assist in the management of the business. The Company had operations turnover of £19,156,161 for the period from 1 December 2022 to 30 November 2023. This represents a 3% decrease over the previous year’s turnover of £19,765,688. Operating profit was £5,856,278 compared to last year’s operating profit of £1,683,887. The increased profits are largely the result of reduced headcount and reduced marketing costs, as the operations of the company continue to be integrated into the wider group. The Company ended the reporting period with £6,556,537 net current assets compared to £1,965,572 in 2022.
There are a variety of competitive and economic factors that impact the way the Company manages its business and influence how the Company maintains and continually improves its work management platform.
The following principal risks and uncertainties for the Company have been identified: Competition The overall market for enterprise work and project management software is rapidly evolving and subject to changing technology, shifting customer needs and frequent introductions of new applications. Many of the Company’s competitors have greater brand name recognition, longer operating histories and significantly greater resources than the Company does. Some of the Company’s smaller competitors may offer applications on a stand-alone basis at a lower price than us due to lower overheads or other factors, while some of the Company’s larger competitors may offer applications at a lower price in an attempt to cross-sell additional products in the future or retain a customer using a different application.
People
It is key to the Company’s success to attract, retain, develop and motivate the best people with the appropriate capabilities at all levels of the organization. Performance could be negatively impacted by the loss of key individuals or the inability to obtain suitable replacements in a timely manner. The Company endeavors to retain key employees by ensuring that appropriate levels of incentives are in place and by having a unique work culture and environment. Currency risk The Company is exposed to foreign exchange risk in connection with its transactions with both its customers and suppliers as the Company makes sales and purchases in euros and US dollars. Credit risk Credit risk may arise because of the non-payment by customers. This risk is partially mitigated by the majority of customers paying in advance of most services.
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WORKFRONT, LTD.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
Liquidity risk
The Company seeks to manage and forecast cash flow to ensure that sufficient liquidity is available to meet foreseeable needs. Future developments Following the acquisition of Workfront by Adobe in December 2020, and Workfront products integration into Adobe’s digital experience segment, the combination of both products continue to provide a unified work management application to enable teams to work more efficiently, with tools to strategize, plan, execute, review and deliver on complex workflows.
This report was approved by the board and signed on its behalf.
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WORKFRONT, LTD.
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
The director presents his report and the financial statements for the year ended 30 November 2023.
The director who served during the year was:
The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Company'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 Company will continue in business.
The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £4,206,953 (2022: £1,472,140).
The directors do not recommend the payment of a dividend (2022: £nil).
Following the acquisition of Workfront by Adobe in December 2020, and Workfront products integration into Adobe’s digital experience segment, the combination of both products continue to provide a unified work management application to enable teams to work more efficiently, with tools to strategize, plan, execute, review and deliver on complex workflows.
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WORKFRONT, LTD.
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
There have been no significant events affecting the Company since the year end.
The auditors, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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WORKFRONT, LTD.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORKFRONT, LTD.
We have audited the financial statements of Workfront, Ltd. (the 'Company') for the year ended 30 November 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is 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.
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WORKFRONT, LTD.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORKFRONT, LTD. (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's report.
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WORKFRONT, LTD.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORKFRONT, LTD. (CONTINUED)
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 Auditors' 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.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
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 Auditors' report.
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WORKFRONT, LTD.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORKFRONT, LTD. (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants and Statutory Auditor
Reading Bridge House
George Street
Berkshire
RG1 8LS
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WORKFRONT, LTD.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
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WORKFRONT, LTD.
REGISTERED NUMBER: 06466672
BALANCE SHEET
AS AT 30 NOVEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 24 form part of these financial statements.
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WORKFRONT, LTD.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2022
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WORKFRONT, LTD.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
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WORKFRONT, LTD.
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 NOVEMBER 2023
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WORKFRONT, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
Workfront, Ltd. is a private company limited by shares, domiciled in England and Wales, registration number 06466672. The registered office address is Market House, 34 - 38 Market Street, Maidenhead, Berkshire, SL6 8AD.
The principal activity of the Company is the provision of software services.
2.Accounting policies
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 management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis as the ultimate parent company, Adobe Inc., has sufficient financial resources to provide financial support for at least 12 months from the date of signing the balance sheet and the forseeable future if required.
Adobe Inc. has adequate liquidity for Worldwide operations for at least 12 months from the date of signing the balance sheet. This is based on cash balances, projected customer payments and the ability to draw on existing credit facilities.
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WORKFRONT, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
2.Accounting policies (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:
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.
In the 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 Company's cash management.
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties.
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WORKFRONT, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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WORKFRONT, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
Impairment of trade debtors The Company reviews trade debtors regularly and estimates the impairment of trade debtors. In determining the impairment of trade debtors, assumptions and estimates are made in relation to the likelihood of trade debtors not being recovered based on the Company's knowledge of the customer, credit terms and payment history. Share based payment The group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share based payment transactions requires determination of the most appropriate inputs to the valuation model including the expected life of the share option and volatility and making assumptions about them. The assumptions and model used for estimating fair value for share-based payment transactions are disclosed in note 16 of the financial statements.
Analysis of turnover by country of destination:
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WORKFRONT, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
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WORKFRONT, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
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WORKFRONT, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
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WORKFRONT, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
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WORKFRONT, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
Share based payment reserve
Profit and loss account
ADOBE’s stock-based compensation programs are long-term retention programs that are intended to attract, retain and provide incentives for employees, officers and directors, and to align stockholder and employee interests. ADOBE has the following stock-based compensation plans and programs:
Restricted Stock Units ADOBE grants restricted stock units to eligible employees under the 2019 Equity Incentive Plan (“2019 Plan”). Restricted stock units generally vest over four years. Certain grants have other vesting periods approved by the Executive Compensation Committee of ADOBE’s Board of Directors. Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period, which is generally the vesting period.
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WORKFRONT, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
The Company operates a defined contributions 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 by the Company to the fund and amounted to £201,407 (2022: £311,970).
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WORKFRONT, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
The Company's immediate parent undertaking is
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