Caseware UK (AP4) 2023.0.135 2023.0.135 2023-11-302023-11-30falsefalsefalsefalse2022-12-01No description of principal activity3859 06466672 2022-12-01 2023-11-30 06466672 2021-12-01 2022-11-30 06466672 2023-11-30 06466672 2022-11-30 06466672 2021-12-01 06466672 1 2022-12-01 2023-11-30 06466672 1 2021-12-01 2022-11-30 06466672 2 2022-12-01 2023-11-30 06466672 2 2021-12-01 2022-11-30 06466672 5 2022-12-01 2023-11-30 06466672 5 2021-12-01 2022-11-30 06466672 d:Exceptional 1 2022-12-01 2023-11-30 06466672 d:Exceptional 1 2021-12-01 2022-11-30 06466672 e:Director1 2022-12-01 2023-11-30 06466672 e:RegisteredOffice 2022-12-01 2023-11-30 06466672 d:ComputerEquipment 2022-12-01 2023-11-30 06466672 d:ComputerEquipment 2023-11-30 06466672 d:ComputerEquipment 2022-11-30 06466672 d:ComputerEquipment d:OwnedOrFreeholdAssets 2022-12-01 2023-11-30 06466672 d:CurrentFinancialInstruments 2023-11-30 06466672 d:CurrentFinancialInstruments 2022-11-30 06466672 d:Non-currentFinancialInstruments 2023-11-30 06466672 d:Non-currentFinancialInstruments 2022-11-30 06466672 d:CurrentFinancialInstruments d:WithinOneYear 2023-11-30 06466672 d:CurrentFinancialInstruments d:WithinOneYear 2022-11-30 06466672 d:ReportableOperatingSegment2 2022-12-01 2023-11-30 06466672 d:ReportableOperatingSegment2 2021-12-01 2022-11-30 06466672 d:ReportableOperatingSegment3 2022-12-01 2023-11-30 06466672 d:ReportableOperatingSegment3 2021-12-01 2022-11-30 06466672 d:ReportableOperatingSegment5 2022-12-01 2023-11-30 06466672 d:ReportableOperatingSegment5 2021-12-01 2022-11-30 06466672 f:UnitedKingdom 2022-12-01 2023-11-30 06466672 f:UnitedKingdom 2021-12-01 2022-11-30 06466672 f:RestEuropeOutsideUK 2022-12-01 2023-11-30 06466672 f:RestEuropeOutsideUK 2021-12-01 2022-11-30 06466672 f:RestWorldOutsideUK 2022-12-01 2023-11-30 06466672 f:RestWorldOutsideUK 2021-12-01 2022-11-30 06466672 d:UKTax 2022-12-01 2023-11-30 06466672 d:UKTax 2021-12-01 2022-11-30 06466672 d:ShareCapital 2023-11-30 06466672 d:ShareCapital 2022-11-30 06466672 d:ShareCapital 2021-12-01 06466672 d:OtherMiscellaneousReserve 2022-12-01 2023-11-30 06466672 d:OtherMiscellaneousReserve 2023-11-30 06466672 d:OtherMiscellaneousReserve 2 2022-12-01 2023-11-30 06466672 d:OtherMiscellaneousReserve 2022-11-30 06466672 d:OtherMiscellaneousReserve 2021-12-01 06466672 d:OtherMiscellaneousReserve 2 2021-12-01 2022-11-30 06466672 d:RetainedEarningsAccumulatedLosses 2022-12-01 2023-11-30 06466672 d:RetainedEarningsAccumulatedLosses 2023-11-30 06466672 d:RetainedEarningsAccumulatedLosses 2 2022-12-01 2023-11-30 06466672 d:RetainedEarningsAccumulatedLosses 2021-12-01 2022-11-30 06466672 d:RetainedEarningsAccumulatedLosses 2022-11-30 06466672 d:RetainedEarningsAccumulatedLosses 2021-12-01 06466672 d:RetainedEarningsAccumulatedLosses 2 2021-12-01 2022-11-30 06466672 e:OrdinaryShareClass1 2022-12-01 2023-11-30 06466672 e:OrdinaryShareClass1 2023-11-30 06466672 e:OrdinaryShareClass1 2022-11-30 06466672 e:FRS102 2022-12-01 2023-11-30 06466672 e:Audited 2022-12-01 2023-11-30 06466672 e:FullAccounts 2022-12-01 2023-11-30 06466672 e:PrivateLimitedCompanyLtd 2022-12-01 2023-11-30 06466672 g:PoundSterling 2022-12-01 2023-11-30 06466672 f:UnitedStates 2022-12-01 2023-11-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06466672










WORKFRONT, LTD.










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2023

 
WORKFRONT, LTD.
 

COMPANY INFORMATION


Director
M Higgins 




Registered number
06466672



Registered office
Market House
34 - 38 Market Street

Maidenhead

Berkshire

SL6 8AD




Independent auditors
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS





 
WORKFRONT, LTD.
 

CONTENTS



Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Analysis of net debt
13
Notes to the financial statements
14 - 24


 
WORKFRONT, LTD.
 

STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023

Business review
 
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.

Principal risks and uncertainties
 
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.
 
Page 1

 
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.





M Higgins
Director

Date: 8 August 2024

Page 2

 
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.

Director

The director who served during the year was:

M Higgins 

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the 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 2006He 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.

Results and dividends

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).

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.

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he 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's auditors are aware of that information.

Page 3

 
WORKFRONT, LTD.
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsJames Cowper Kreston Auditwill 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.
 





M Higgins
Director

Date: 8 August 2024

Page 4

 
WORKFRONT, LTD.
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORKFRONT, LTD.
 

Opinion


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 policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 November 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.


Conclusions relating to going concern


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.


Other information


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 ReportOur 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.


Page 5

 
WORKFRONT, LTD.
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORKFRONT, LTD. (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the 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.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
WORKFRONT, LTD.
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORKFRONT, LTD. (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.


Page 7

 
WORKFRONT, LTD.
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORKFRONT, LTD. (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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.





Alan Poole BA (Hons) FCA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS

12 August 2024
Page 8

 
WORKFRONT, LTD.
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
19,156,161
19,765,688

Cost of sales
  
(7,672,112)
(8,273,810)

Gross profit
  
11,484,049
11,491,878

Administrative expenses
  
(5,627,771)
(9,807,991)

Operating profit
 5 
5,856,278
1,683,887

Tax on profit
 9 
(1,649,325)
(211,747)

Profit for the financial year
  
4,206,953
1,472,140

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 24 form part of these financial statements.

Page 9

 
WORKFRONT, LTD.
REGISTERED NUMBER: 06466672

BALANCE SHEET
AS AT 30 NOVEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
13,353
18,639

  
13,353
18,639

Current assets
  

Debtors: amounts falling due after more than one year
 11 
-
42,807

Debtors: amounts falling due within one year
 11 
20,514,124
14,241,900

Cash at bank and in hand
 12 
2,283,685
2,137,444

  
22,797,809
16,422,151

Creditors: amounts falling due within one year
 13 
(16,241,272)
(14,456,579)

Net current assets
  
 
 
6,556,537
 
 
1,965,572

Total assets less current liabilities
  
6,569,890
1,984,211

  

Net assets
  
6,569,890
1,984,211


Capital and reserves
  

Called up share capital 
 14 
1
1

Capital contribution reserve
 15 
1,877,493
1,498,767

Profit and loss account
 15 
4,692,396
485,443

  
6,569,890
1,984,211


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




M Higgins
Director

Date: 8 August 2024

The notes on pages 14 to 24 form part of these financial statements.

Page 10

 
WORKFRONT, LTD.
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023


Called up share capital
Capital contribution reserve
Profit and loss account
Total equity

£
£
£
£

At 1 December 2022
1
1,498,767
485,443
1,984,211



Profit for the year
-
-
4,206,953
4,206,953

Share based payments
-
378,726
-
378,726


At 30 November 2023
1
1,877,493
4,692,396
6,569,890



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2022


Called up share capital
Capital contribution reserve
Profit and loss account
Total equity

£
£
£
£

At 1 December 2021
1
663,949
(986,697)
(322,747)



Profit for the year
-
-
1,472,140
1,472,140

Share based payments
-
834,818
-
834,818


At 30 November 2022
1
1,498,767
485,443
1,984,211


The notes on pages 14 to 24 form part of these financial statements.

Page 11

 
WORKFRONT, LTD.
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
4,206,953
1,472,140

Adjustments for:

Share based payment charge
378,726
834,818

Depreciation of tangible assets
7,936
9,747

Loss on disposal of tangible assets
-
7,513

Taxation charge
1,649,325
211,747

Decrease/(increase) in debtors
49,512
(16,421)

(Increase) in amounts owed by groups
(3,150,723)
(1,496,513)

(Decrease) in creditors
(1,546,050)
(1,827,471)

Corporation tax (paid)
(1,380,000)
(561,415)

Net cash generated from operating activities

215,679
(1,365,855)


Cash flows from investing activities

Purchase of tangible fixed assets
(2,650)
(8,332)

Net cash from investing activities

(2,650)
(8,332)


Net increase/(decrease) in cash and cash equivalents
213,029
(1,374,187)

Cash and cash equivalents at beginning of year
2,070,334
3,444,521

Cash and cash equivalents at the end of year
2,283,363
2,070,334


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,283,685
2,137,444

Bank overdrafts
(322)
(67,110)

2,283,363
2,070,334


The notes on pages 14 to 24 form part of these financial statements.

Page 12

 
WORKFRONT, LTD.
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 NOVEMBER 2023




At 1 December 2022
Cash flows
At 30 November 2023
£

£

£

Cash at bank and in hand

2,137,444

146,241

2,283,685

Bank overdrafts

(67,110)

66,788

(322)


The notes on pages 14 to 24 form part of these financial statements.

Page 13

 
WORKFRONT, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

1.


General information

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

 
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 management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

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.  

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company 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.
Page 14

 
WORKFRONT, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.4

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.

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:

Computer equipment
-
25% Straight line

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.

 
2.5

Debtors

Short term debtors are measured at transaction price, less any impairment. 

 
2.6

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. 
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.

 
2.7

Financial instruments

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.

 
2.8

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.

Page 15

 
WORKFRONT, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.9

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

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 resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.10

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Taxation

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 balance sheet date in the countries where the Company operates and generates income.

 
2.13

Share-based payments

The ultimate holding company, ADOBE Inc., operates equity-settled, share based compensation plans for its employees, which include employees of the Company. Details of the plan and related disclosures are available in Note 16. 

Page 16

 
WORKFRONT, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements.
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. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Intercompany revenue
210,388
622,033

Software subscription revenue
18,460,027
18,096,102

Service revenue
485,746
1,047,553

19,156,161
19,765,688


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
10,345,572
10,933,985

Rest of Europe
7,542,393
7,999,215

Rest of the world
1,268,196
832,488

19,156,161
19,765,688


Page 17

 
WORKFRONT, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation on owned assets
7,936
9,747

Exchange differences
(5,128)
(25,964)

Other operating lease rentals
16,564
108,724


6.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
24,000
22,500

Fees payable to the Company's auditors in respect of taxation compliance services
4,120
3,850


7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
4,135,040
6,715,739

Social security costs
522,280
880,377

Cost of defined contribution scheme
201,407
311,970

4,858,727
7,908,086


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


        2023
        2022
            No.
            No.







Admin
3
6



Marketing
14
20



Sales
21
33

38
59

Page 18

 
WORKFRONT, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

8.


Director's remuneration



None of the UK directors received any remuneration during the year.  No re-charges have been made in respect of director services from the parent entity.  
During the year £Nil (2022: £Nil) was paid in remuneration and benefits to key management personnel.  


9.


Taxation


2023
2022
£
£


Current tax on profits for the year
1,359,647
211,747

Adjustments in respect of previous periods
289,678
-

1,649,325
211,747

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.01% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
5,856,278
1,683,887


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.01% (2022 - 19%)
1,347,530
319,939

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
102,136
160,084

Capital allowances for year in excess of depreciation
(61)
(1,913)

Adjustments to tax charge in respect of prior periods
181,733
-

Deferred tax not recognised
17,987
(266,363)

Total tax charge for the year
1,649,325
211,747

Page 19

 
WORKFRONT, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

10.


Tangible fixed assets





Computer equipment

£



Cost or valuation


At 1 December 2022
34,862


Additions
2,650



At 30 November 2023

37,512



Depreciation


At 1 December 2022
16,223


Charge for the year
7,936



At 30 November 2023

24,159



Net book value



At 30 November 2023
13,353



At 30 November 2022
18,639

Page 20

 
WORKFRONT, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

11.


Debtors

2023
2022
£
£

Due after more than one year

Prepayments and accrued income
-
42,807


2023
2022
£
£

Due within one year

Trade debtors
2,985,158
2,991,134

Amounts owed by group undertakings
17,416,941
10,868,688

Other debtors
30,037
933

Prepayments and accrued income
2,584
32,417

Tax recoverable
79,404
348,728

20,514,124
14,241,900


Amounts owed by group undertakings are non-interest bearing and deemed repayable on demand.


12.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
2,283,685
2,137,444

Less: bank overdrafts
(322)
(67,110)



13.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
322
67,110

Trade creditors
29,578
207,817

Amounts owed to group undertakings
7,414,268
4,016,737

Other taxation and social security
361,259
472,309

Other creditors
71,491
100,378

Accruals and deferred income
8,364,354
9,592,228

16,241,272
14,456,579


Amounts owed to group undertakings are non-interest bearing and deemed repayable on demand.

Page 21

 
WORKFRONT, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

14.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



102 (2022 - 102) ordinary shares of £0.01 each
1
1



15.


Reserves

Share based payment reserve

The share based payment reserve relates to an RSU and ESPP scheme.

Profit and loss account

The profit and loss account represents cumulative profits available for distribution.


16.


Share based payments

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.

Page 22

 
WORKFRONT, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

The Company's restricted stock unit activity for fiscal year 2023 was as follows:


2023
Number of shares



Beginning outstanding balance
2,386

Awarded
1,217

Released
(1,061)

Forfeited
(354)

Ending outstanding balance
2,188

Employee Share Purchase Plan
ADOBE’s Employee Share Purchase Plan (“ESPP”) allows eligible employee participants to purchase shares of ADOBE’s common stock at a discount through payroll deductions. The ESPP consists of twenty-four-month offering periods with four six-month purchase periods in each offering period. Employees purchase shares in each purchase period at 85% of the market value of ADOBE’s common stock at either the beginning of the offering period or the end of the purchase period, whichever price is lower. If the market value of ADOBE’s common stock at the end of a purchase period is lower than the market value at the beginning of the offering period, participants are rolled over into the subsequent offering, resulting in a reset of the offering price and the twenty-four month offering period. 
The ESPP will continue until the earlier of termination by ADOBE’s Board of Directors or the date on which all of the shares available for issuance under the plan have been issued.
ADOBE uses the Black-Scholes option pricing model to determine the fair value of ESPP purchase rights. This fair value is affected by the share price as well as assumptions regarding a number of complex and subjective variables. These variables include the expected share price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviours, a risk-free interest rate and any expected dividends.
ADOBE uses a 24-month expected term, which approximates the offering period. ADOBE estimates the volatility of its common stock by using a blend of historical volatility of ADOBE’s stock and implied volatility in markettraded options. ADOBE bases the risk-free interest rate on zero-coupon yields implied from U.S. Treasury issues with remaining terms similar to the expected term. ADOBE does not anticipate paying any cash dividends in the foreseeable  future and therefore uses an expected dividend yield of zero in the option pricing model.


17.


Pension commitments

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). 


18.


Related party transactions

In accordance with the exemption allowed by FRS 102, transactions with Workfront Inc., Adobe Inc., and fellow group members have not been disclosed in these accounts.

Page 23

 
WORKFRONT, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

19.


Controlling party

The Company's immediate parent undertaking is Workfront Inc., a company incorporated in the United States of America and registered at 251 Little Falls, Wilmington DE, 19808, United States of America. The smallest and largest group in which the financial statements of the Company are consolidated is that headed by Adobe Inc., the ultimate parent undertaking and controlling party. 

Page 24