Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31true312023-01-01falseNo description of principal activity33truefalse 11309966 2023-01-01 2023-12-31 11309966 2022-01-01 2022-12-31 11309966 2023-12-31 11309966 2022-12-31 11309966 2022-01-01 11309966 c:PriorPeriodIncreaseDecrease 2023-01-01 2023-12-31 11309966 1 2023-01-01 2023-12-31 11309966 1 2022-01-01 2022-12-31 11309966 e:CompanySecretary1 2023-01-01 2023-12-31 11309966 e:Director2 2023-01-01 2023-12-31 11309966 e:Director3 2023-01-01 2023-12-31 11309966 e:Director4 2023-01-01 2023-12-31 11309966 e:RegisteredOffice 2023-01-01 2023-12-31 11309966 c:Buildings c:LongLeaseholdAssets 2023-01-01 2023-12-31 11309966 c:Buildings c:LongLeaseholdAssets 2023-12-31 11309966 c:Buildings c:LongLeaseholdAssets 2022-12-31 11309966 c:FurnitureFittings 2023-01-01 2023-12-31 11309966 c:ComputerEquipment 2023-01-01 2023-12-31 11309966 c:ComputerEquipment 2023-12-31 11309966 c:ComputerEquipment 2022-12-31 11309966 c:ComputerEquipment c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 11309966 c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 11309966 c:CurrentFinancialInstruments 2023-12-31 11309966 c:CurrentFinancialInstruments 2022-12-31 11309966 c:Non-currentFinancialInstruments 2023-12-31 11309966 c:Non-currentFinancialInstruments 2022-12-31 11309966 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 11309966 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 11309966 c:Non-currentFinancialInstruments c:AfterOneYear 2023-12-31 11309966 c:Non-currentFinancialInstruments c:AfterOneYear 2022-12-31 11309966 c:ShareCapital 2023-12-31 11309966 c:ShareCapital 2022-12-31 11309966 c:ShareCapital 2022-01-01 11309966 c:SharePremium 2023-01-01 2023-12-31 11309966 c:SharePremium 2023-12-31 11309966 c:SharePremium c:PriorPeriodIncreaseDecrease 2023-01-01 2023-12-31 11309966 c:SharePremium 1 2023-01-01 2023-12-31 11309966 c:SharePremium 2022-12-31 11309966 c:SharePremium 2022-01-01 11309966 c:SharePremium 1 2022-01-01 2022-12-31 11309966 c:OtherMiscellaneousReserve 2023-12-31 11309966 c:OtherMiscellaneousReserve c:PriorPeriodIncreaseDecrease 2023-01-01 2023-12-31 11309966 c:OtherMiscellaneousReserve 1 2023-01-01 2023-12-31 11309966 c:OtherMiscellaneousReserve 2022-12-31 11309966 c:OtherMiscellaneousReserve 2022-01-01 11309966 c:OtherMiscellaneousReserve 1 2022-01-01 2022-12-31 11309966 c:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 11309966 c:RetainedEarningsAccumulatedLosses 2023-12-31 11309966 c:RetainedEarningsAccumulatedLosses c:PriorPeriodIncreaseDecrease 2023-01-01 2023-12-31 11309966 c:RetainedEarningsAccumulatedLosses 1 2023-01-01 2023-12-31 11309966 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 11309966 c:RetainedEarningsAccumulatedLosses 2022-12-31 11309966 c:RetainedEarningsAccumulatedLosses 2022-01-01 11309966 c:RetainedEarningsAccumulatedLosses 1 2022-01-01 2022-12-31 11309966 e:FRS102 2023-01-01 2023-12-31 11309966 e:Audited 2023-01-01 2023-12-31 11309966 e:FullAccounts 2023-01-01 2023-12-31 11309966 e:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 11309966 c:WithinOneYear 2023-12-31 11309966 c:WithinOneYear 2022-12-31 11309966 c:BetweenOneFiveYears 2023-12-31 11309966 c:BetweenOneFiveYears 2022-12-31 11309966 e:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 11309966 c:AcceleratedTaxDepreciationDeferredTax 2023-12-31 11309966 c:AcceleratedTaxDepreciationDeferredTax 2022-12-31 11309966 c:TaxLossesCarry-forwardsDeferredTax 2023-12-31 11309966 c:TaxLossesCarry-forwardsDeferredTax 2022-12-31 11309966 2 2023-01-01 2023-12-31 11309966 f:PoundSterling 2023-01-01 2023-12-31 11309966 c:ShareCapital c:PriorPeriodErrorIncreaseDecrease 2023-01-01 2023-12-31 11309966 c:RetainedEarningsAccumulatedLosses c:PreviouslyStatedAmount 2022-12-31 11309966 c:PreviouslyStatedAmount 2022-12-31 iso4217:GBP xbrli:pure
Registered number: 11309966 (England and Wales)














VALIDITY INTERNATIONAL LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
VALIDITY INTERNATIONAL LIMITED
 
 
COMPANY INFORMATION


Directors
M R Briggs 
T Reardon 
J J Quagliaroli 




Company secretary
Fieldfisher Secretaries Limited



Registered number
11309966



Registered office
Fieldfisher
Riverbank House

2 Swan Lane

London

United Kingdom

EC4R 3TT




Independent auditors
ZEDRA Corporate Reporting Services (UK) Limited





 
VALIDITY INTERNATIONAL LIMITED
 

CONTENTS



Page
Balance Sheet
 
1 - 2
Statement of Changes in Equity
 
3
Notes to the Financial Statements
 
4 - 12


 
VALIDITY INTERNATIONAL LIMITED
REGISTERED NUMBER:11309966

BALANCE SHEET
AS AT 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 4 
17,370
19,975

  
17,370
19,975

Current assets
  

Debtors: amounts falling due after more than one year
 5 
54,000
54,000

Debtors: amounts falling due within one year
 5 
2,444,965
2,088,843

Bank and cash balances
  
747,030
852,629

  
3,245,995
2,995,472

Creditors: amounts falling due within one year
 6 
(430,340)
(470,576)

Net current assets
  
 
 
2,815,655
 
 
2,524,896

Total assets less current liabilities
  
2,833,025
2,544,871

Creditors: amounts falling due after more than one year
 7 
(37,501)
(44,118)

Provisions for liabilities
  

Deferred tax
 8 
-
(2,703)

  
 
 
-
 
 
(2,703)

Net assets
  
2,795,524
2,498,050

Page 1

 
VALIDITY INTERNATIONAL LIMITED
REGISTERED NUMBER:11309966
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
  
1,002
1,002

Share premium account
 9 
1,931,731
1,931,731

Capital contribution reserve
 9 
171,310
153,207

Profit and loss account
 9 
691,481
412,110

  
2,795,524
2,498,050


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

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

M R Briggs
Director

Date: 5 September 2024

The notes on pages 4 to 12 form part of these financial statements.

Page 2

 
VALIDITY INTERNATIONAL LIMITED
 

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


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

£
£
£
£
£


At 1 January 2022
1,002
1,931,731
98,110
43,351
2,074,194


Comprehensive income for the year

Profit for the year
-
-
-
368,759
368,759

Share based payment expense
-
-
55,097
-
55,097



At 1 January 2023 (as previously stated)
1,002
1,931,731
153,207
404,401
2,490,341

Prior year adjustment
-
-
-
7,709
7,709


At 1 January 2023 (as restated)
1,002
1,931,731
153,207
412,110
2,498,050


Comprehensive income for the year

Profit for the year
-
-
-
279,371
279,371

Share based payment expense
-
-
18,103
-
18,103


At 31 December 2023
1,002
1,931,731
171,310
691,481
2,795,524


The notes on pages 4 to 12 form part of these financial statements.

Page 3

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

1.Accounting policies

 
1.1

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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

 
1.2

Going concern

The Company is in a net asset position primarily as a result of the net amount owed by group undertakings. Despite this position, due to the Company's business model being solely a transfer pricing agreement with the parent company, Validity Holding Inc., it is reliant on the continued support of that company in order to remain a going concern. 
Validity International Limited has received written confirmation from its ultimate parent company, Validity Holdings, Inc. that it will continue to provide financial support for a period of at least 12 months from the date of signing these financial statements. 
In assessing the Company's ability to continue as a going concern, the directors have considered the availability of financing from the ultimate parent company through a review of the group’s position and the budgeted cash requirements of the Company. The directors are confident that the Company will continue to be able to meet its obligations as liabilities fall due. For these reasons, the directors continue to prepare the financial statements on a going concern basis.

 
1.3

Turnover

Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Rendering of services

Turnover is recognised on a cost plus 9% basis, in line with the intercompany service agreement with the parent company, Validity, Inc. Intercompany turnover is recognised when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the intercompany service agreement;
the costs incurred under the intercompany service agreement can be measured reliably.

Page 4

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

1.Accounting policies (continued)

 
1.4

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.

 
1.5

Rents receivable

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

 
1.6

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:

Leasehold improvements
-
5 to 10 years
Fixtures and fittings
-
5 years
Computer equipment
-
3 years

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.

Page 5

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

1.Accounting policies (continued)

  
1.7

Debtors

Short term debtors are measured at transaction price. Amounts owed by group undertakings are intercompany loans measured at cost. These loans are unsecured, interest free and repayable on demand.

 
1.8

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 held on deposit by service providers is included within bank and cash balances, as these amounts are highly liquid and repayable without penalty on notice of not more than 24 hours.

  
1.9

Creditors

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

 
1.10

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.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
1.11

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
1.12

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.

Page 6

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

1.Accounting policies (continued)

  
1.13

Share based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Balance Sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). 
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

 
1.14

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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 balance sheet date.

 
1.15

Provisions for liabilities

Provisions are recognised then an event had 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 net 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. 

Page 7

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

2.


Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2023 was unqualified.

The audit report was signed on 6 September 2024 by Edward Wallis ACA (Senior Statutory Auditor) on behalf of ZEDRA Corporate Reporting Services (UK) Limited.


3.


Employees

The average monthly number of employees during the year was 31 (2022 - 33).


4.


Tangible fixed assets





Leasehold improvements
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2023
21,495
34,896
56,391


Disposals
-
(28,925)
(28,925)



At 31 December 2023

21,495
5,971
27,466



Depreciation


At 1 January 2023
1,520
34,896
36,416


Charge for the year on owned assets
2,605
-
2,605


Disposals
-
(28,925)
(28,925)



At 31 December 2023

4,125
5,971
10,096



Net book value



At 31 December 2023
17,370
-
17,370



At 31 December 2022
19,975
-
19,975

Page 8

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

5.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
54,000
54,000

54,000
54,000


Other debtors falling due after more than one year comprise of rental deposits of £54,000 (2022: £54,000). The lease is due to expire in 2030.

As restated
2023
2022
£
£

Due within one year

Amounts owed by group undertakings
2,310,665
1,788,929

Other debtors
17,268
134,698

Prepayments and accrued income
113,084
165,216

Deferred taxation
3,948
-

2,444,965
2,088,843



6.


Creditors: Amounts falling due within one year

As restated
2023
2022
£
£

Trade creditors
30,077
99,925

Corporation tax
692
26,555

Accruals and deferred income
399,571
344,096

430,340
470,576


Page 9

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

7.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Accruals and deferred income
37,501
44,118

37,501
44,118


Other creditors due after more than one year are in relation to lease incentives deferred over the life of the operating leases held. 


8.


Deferred taxation




2023


£






At beginning of year
(2,703)


Charged to profit or loss
6,651



At end of year
3,948

The deferred taxation balance is made up as follows:

2023
2022
£
£


Fixed asset timing differences
2,726
(4,272)

Short term timing differences
1,222
1,569

3,948
(2,703)

Page 10

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

9.


Capital contribution reserve

Certain employees of the Company along with other group employees have been granted options over the shares in the Company's parent. The options are granted at an independently determined fair value and 25% of the options are exercisable one year after the date of grant and then quarterly for each of the three years thereafter.
An expense equivalent to the fair value of the share options on the date of grant is recognised evenly over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied, with a corresponding amount being recognised within the capital contribution reserve. Management use the Black Scholes inputs to calculate the best estimated fair value of the share options. 

Share premium account

Share premium represents the excess paid for shares over their par value. 


10.


Prior year adjustment

In the prior year, accrued commissions, accrued bonuses and other professional fees were understated by £85,632, a prior year adjustment has been made to correct this position, together with the corresponding cost plus impact. The adjustments have affected the following areas of the financial statements:
 
turnover has increased by £93,338
administrative expenses have increased by £139,159;
taxation charge has reduced by £53,528;
liabilities have increased by £90,308, and
assets have increased by £98,017.

The net effect on the profit and loss reserve is an increase in profits bought forward of £7,709.


11.


Commitments under operating leases

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

As restated
2023
2022
£
£


Not later than one year
271,328
271,328

Later than one year and not later than five years
180,885
452,213

452,213
723,541

Page 11

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

12.


Controlling party

Validity Holdings, Inc. is the parent company of the smallest group for which consolidated financial statements are drawn up of which the Company is a member. The registered office of the parent company is: 100 Summer Street, Floor 29, Boston, MA 02110, USA. 


13.


Post balance sheet events

There were no adjusting or non-adjusting events occurring between the end of the reporting period and the date these financial statements were approved.

Page 12