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REGISTERED NUMBER: 09348602 (England and Wales)













Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 December 2023

for


Siteground Hosting Ltd.


Siteground Hosting Ltd. (Registered number: 09348602)







Contents of the Financial Statements

for the Year Ended 31 December 2023





Page



Company Information  

1



Strategic Report  

2



Report of the Director  

4



Report of the Independent Auditors  

5



Statement of Comprehensive Income

8



Balance Sheet  

9



Statement of Changes in Equity  

10



Cash Flow Statement  

11



Notes to the Cash Flow Statement  

12



Notes to the Financial Statements

13




Siteground Hosting Ltd.


Company Information

for the Year Ended 31 December 2023









DIRECTOR:

Ms I Takova Zaharieva







REGISTERED OFFICE:

7th Floor


50 Broadway


London


SW1H 0DB







REGISTERED NUMBER:

09348602 (England and Wales)







AUDITORS:

Zenith Audit Ltd


Statutory Auditors


First Floor


18 Devonshire Row


London


EC2M 4RH


Siteground Hosting Ltd. (Registered number: 09348602)


Strategic Report

for the Year Ended 31 December 2023


The Director presents their strategic report for the year ended 31 December 2023.


PRINCIPAL ACTIVITY


The principal activity of the company during the year was that of web hosting services.  The company offers a variety of web hosting services including shared hosting, cloud hosting, reseller hosting, enterprise hosting solutions, reselling of domain names and a high number of extra services and tools.


REVIEW OF BUSINESS

The profit for the year 2023 after taxation, is £1,729,921 (2022: £3,082,193). The Director makes no recommendation for dividend distribution as of the date of this report.


Turnover and other operating income follow the continuing upward trend and in 2023 it has increased by 9.9% to £44,008,723 (2022: £40,058,105). This is due to the growing number of customers and to renewals of existing customers, which is a result of the successful marketing and advertising strategy and also attests to the quality of the services provided and satisfaction of the customers.


Following the increase in turnover, the operating profit of the company increased by 10.5% to £2,200,436 (2022: £1,992,224), while the profit after tax decreased by 43.9% to £1,729,921 (2022: £3,082,193). This is mainly due to negative fluctuations of foreign exchange.


Shareholder's equity decreased by 43.9% to £1,730,921 (2022: £3,083,193) due to retained earnings and in particular - due to current year profits.


The company's 'current ratio' (current assets to current liabilities) in 2023 is 69.2% (2022: 39.5%) *. The increase is a result of the increase in cash and cash equivalents due loans repayments in 2023.


*The calculation of the current ratio excludes Debtors amounts falling due after more than one year, as detailed in Note 10.



Siteground Hosting Ltd. (Registered number: 09348602)


Strategic Report

for the Year Ended 31 December 2023


PRINCIPAL RISKS AND UNCERTAINTIES

Risks are those business factors that may expose a company to the possibility of loss or damage. The Company is affected by a number of risks and uncertainties, not all of which are wholly within its control. Although many of the risks and uncertainties are macro-economic and are likely to affect the performance of the business generally, others are specific to the Company's operations.


Since SiteGround Hosting Ltd is part of an international Group, its major risks are also inherent to the Group and are being managed on group level. In general, the Group and the risk management approach aim to actively monitor the internal and external threats and to regularly identify the different forms of risk encountered during the pursuit of business activity, and to assess them according to both potential damage and probability of occurrence, as well as to implement corrective action plans to prevent and control those risks.


External Risks/Macro-economic

External risks refer to those risks that the market players are not able to influence, or only to a very limited extent. These mainly entail the general state of economy with direct influence on the web hosting industry. Web hosting providers depend to a large extent on the overall state of the economy, especially in the markets where their clients are located.


Business and market risks

The primary business-related risk is the risk of customer changing the service provider if not satisfied with the quality. To serve our customers best the Group provides 24/7/365 customer support.


Another risk related to the market is the risk of implementing not appropriate marketing strategy and activities so that they cannot reach the target audience. SiteGround Hosting Ltd has diversified its product portfolio to offer different and flexible hosting services to ensure that we meet customers' changing needs. At Group level we constantly explore market and customer trends and expand our product portfolio.


Operational risk - Supply (digital) and servicing risks

The web hosting industry involves digitalized operations, network and information systems which in turn is related to the risks involving system failures, cyber - attacks, downtime as well as the risk of disruptions in delivery and poor quality of the connections ensured by Internet suppliers. The Company bears the risk of information systems non-performance. A technical infrastructure that may not meet the current needs of the market or the security requirements could inhibit a web hosting company from achieving its business goals. These risks are managed at Group level by employing people who have the necessary skills and knowledge and providing regular trainings to them as well as implementing internal control system and performance management system, such as: performing regular backups, updating the level of protection and ensuring restricted access, performing multiple tests on pilot versions, etc.


Financial risks - Currency risks

Potential exposures to foreign currency exchange rate movements in all currencies in which the company trades are monitored on a daily basis by the finance department and appropriate action is taken to manage net open foreign currency positions. The company does not trade in currency derivatives.


Financial risks - Liquidity risks

Liquidity risk refers to the risk that the company may be unable to fund its on-going cash requirements. The company retains sufficient cash and cash equivalents to ensure it has adequate funds available for operations.


FUTURE DEVELOPMENTS

The director expects the general level of activity to increase in the forthcoming year as a result of improving the quality of the products and services.


EVENTS AFTER THE BALANCE SHEET DATE

There have been no significant events, which have taken place since the balance sheet date.


ON BEHALF OF THE BOARD:






Ms I Takova Zaharieva - Director



3 May 2024


Siteground Hosting Ltd. (Registered number: 09348602)


Report of the Director

for the Year Ended 31 December 2023


The director presents her report with the financial statements of the company for the year ended 31 December 2023.


PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of web hosting services.

DIVIDENDS

In 2023, a final dividend of £3,082,192 was paid to the shareholder of Siteground Hosting Ltd.


DIRECTOR

Ms I Takova Zaharieva held office during the whole of the period from 1 January 2023 to the date of this report.


STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she 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 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 enable her to ensure that the financial statements comply with the Companies Act 2006. She 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors,  Zenith Audit Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.


ON BEHALF OF THE BOARD:






Ms I Takova Zaharieva - Director



3 May 2024


Report of the Independent Auditors to the Members of

Siteground Hosting Ltd.


Opinion

We have audited the financial statements of Siteground Hosting Ltd. (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 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 31 December 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 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 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 director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.


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.


In connection with our audit of the financial statements, 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 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Strategic Report and the Report of the Director 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 Report of the Director.


We have nothing to report in respect of the following matters where 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.


Report of the Independent Auditors to the Members of

Siteground Hosting Ltd.



Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, 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 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 has no realistic alternative but to do so.


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 a Report of the Auditors 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.


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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:


We performed risk assessment procedures and obtained an understanding of the Company and its environment, the applicable financial reporting framework, the applicable laws and regulations, the Company's system of internal control and the fraud risk factors relevant to the Company that affect the susceptibility of assertions to material misstatement due to fraud. We made enquiries with management regarding actual or suspected fraud, non-compliance with laws and regulations, potential litigation and claims. The engagement partner led a discussion among the audit team with particular emphasis on how and where the Company's financial statements may be susceptible to material misstatement due to fraud, including how fraud might occur. The engagement partner assessed that the engagement team collectively had the appropriate competence and capability to identify or recognise non-compliance with laws and regulations.


We considered compliance with UK Companies Act 2006 and the applicable tax legislation as the key laws and regulations which non-compliance cold directly lead to material misstatement due to fraud at the financial statement level. We evaluated whether the selection and application of accounting policies by the Company may be indicative of fraudulent financial reporting. Our audit procedures responsive to assessed risks of material misstatement due to fraud at the assertion level included but were not limited to:


- Testing the appropriateness of manual journal entries recorded in the general ledger and other adjustments made  in the preparation of the financial statements;

- Making inquiries of individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries;

- Selecting and testing journal entries and other adjustments made at the end of a reporting period and throughout the period;

- Reviewing accounting estimates for biases that could represent a risk of material misstatement due to fraud;


Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements due to irregularities, including fraud, may not be detected, even though we have properly planned and performed our audit in accordance with the auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, override of internal controls, or collusion.


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 Report of the Auditors.


Report of the Independent Auditors to the Members of

Siteground Hosting Ltd.



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 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 a Report of the Auditors 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.





Filip Lyapov (Senior Statutory Auditor)

for and on behalf of Zenith Audit Ltd

Statutory Auditors

First Floor

18 Devonshire Row

London

EC2M 4RH


3 May 2024


Siteground Hosting Ltd. (Registered number: 09348602)


Statement of Comprehensive Income

for the Year Ended 31 December 2023



31.12.23


31.12.22


Notes

£   

£   



TURNOVER

43,413,097


39,294,724




Cost of sales

(8,202,961

)

(6,940,581

)


GROSS PROFIT

35,210,136


32,354,143




Other operating expenses

(745,519

)

-



Administrative expenses

(32,859,807

)

(31,125,300

)


1,604,810


1,228,843




Other operating income

595,626


763,381



OPERATING PROFIT

4

2,200,436


1,992,224




Exchange gain/(loss) on financial instruments

(617,334

)

1,436,878



Interest receivable and similar income

6

745,441


380,224



PROFIT BEFORE TAXATION

2,328,543


3,809,326




Tax on profit

7

(598,622

)

(727,133

)


PROFIT FOR THE FINANCIAL YEAR

1,729,921


3,082,193




OTHER COMPREHENSIVE INCOME

-


-



TOTAL COMPREHENSIVE INCOME FOR

THE YEAR

1,729,921


3,082,193




Siteground Hosting Ltd. (Registered number: 09348602)


Balance Sheet

31 December 2023



31.12.23


31.12.22


Notes

£   

£   


CURRENT ASSETS

Debtors

10

10,405,442


16,844,758



Cash at bank

11

12,768,909


6,533,915



23,174,351


23,378,673



CREDITORS

Amounts falling due within one year

12

(19,804,665

)

(17,943,263

)


NET CURRENT ASSETS

3,369,686


5,435,410



TOTAL ASSETS LESS CURRENT

LIABILITIES

3,369,686


5,435,410




CREDITORS

Amounts falling due after more than one year

13

(1,638,765

)

(2,352,217

)


NET ASSETS

1,730,921


3,083,193




CAPITAL AND RESERVES

Called up share capital

15

1,000


1,000



Retained earnings

16

1,729,921


3,082,193



SHAREHOLDERS' FUNDS

1,730,921


3,083,193




The financial statements were approved by the director and authorised for issue on 3 May 2024 and were signed by:






Ms I Takova Zaharieva - Director



Siteground Hosting Ltd. (Registered number: 09348602)


Statement of Changes in Equity

for the Year Ended 31 December 2023



Called up



share


Retained


Total


capital


earnings


equity

£   

£   

£   


Balance at 1 January 2022

1,000


1,572,978


1,573,978




Changes in equity

Dividends

-


(1,572,978

)

(1,572,978

)


Total comprehensive income

-


3,082,193


3,082,193



Balance at 31 December 2022

1,000


3,082,193


3,083,193




Changes in equity

Dividends

-


(3,082,193

)

(3,082,193

)


Total comprehensive income

-


1,729,921


1,729,921



Balance at 31 December 2023

1,000


1,729,921


1,730,921




Siteground Hosting Ltd. (Registered number: 09348602)


Cash Flow Statement

for the Year Ended 31 December 2023



31.12.23


31.12.22


Notes

£   

£   


Cash flows from operating activities

Cash generated from operations

1

3,774,751


2,297,431



Tax paid

(987,934

)

(426,232

)


Net cash from operating activities

2,786,817


1,871,199




Cash flows from investing activities

Loans granted to related parties

-


(16,036,372

)


Loans repaid by related parties

6,092,784


13,021,062



Interest received

437,586


318,940



Net cash from investing activities

6,530,370


(2,696,370

)



Cash flows from financing activities

Equity dividends paid

(3,082,193

)

(1,572,978

)


Net cash from financing activities

(3,082,193

)

(1,572,978

)



Increase/(decrease) in cash and cash equivalents

6,234,994


(2,398,149

)


Cash and cash equivalents at beginning of year

2

6,533,915


8,932,064




Cash and cash equivalents at end of year

2

12,768,909


6,533,915




Siteground Hosting Ltd. (Registered number: 09348602)


Notes to the Cash Flow Statement

for the Year Ended 31 December 2023


1.

RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS


31.12.23


31.12.22

£   

£   



Profit before taxation

2,328,543


3,809,326




Finance income

(128,107

)

(1,817,102

)


2,200,436


1,992,224




Decrease in trade and other debtors

37,052


162,195




Increase in trade and other creditors

1,537,263


143,012




Cash generated from operations

3,774,751


2,297,431




2.

CASH AND CASH EQUIVALENTS



The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:



Year ended 31 December 2023


31.12.23


1.1.23

£   

£   



Cash and cash equivalents

12,768,909


6,533,915




Year ended 31 December 2022


31.12.22


1.1.22

£   

£   



Cash and cash equivalents

6,533,915


8,932,064





3.

ANALYSIS OF CHANGES IN NET FUNDS



At 1.1.23

Cash flow

At 31.12.23

£   

£   

£   



Net cash



Cash at bank

6,533,915


6,234,994


12,768,909



6,533,915


6,234,994


12,768,909




Total

6,533,915


6,234,994


12,768,909




Siteground Hosting Ltd. (Registered number: 09348602)


Notes to the Financial Statements

for the Year Ended 31 December 2023


1.

STATUTORY INFORMATION



Siteground Hosting Ltd. is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.


2.

ACCOUNTING POLICIES



Basis of preparing the financial statements


These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.  



The financial statements have been prepared in £ Sterling and this is also considered by the director to be the company's functional currency. The rounding in the financial statements is to the nearest pound.



Turnover


The company offers a variety of web hosting services including shared hosting, cloud hosting, reseller hosting, enterprise hosting solutions, reselling of domain names and a high number of extra services and tools.



The company commence revenue recognition when all of the following conditions are satisfied:


  - the amount of revenue can be measured reliably;


  - it is probable that the economic benefits associated with the transaction will flow to the entity;


  - the stage of completion of the transaction at the end of the reporting period can be measured reliably; and


  - the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.



Turnover is recognised at the point in time where the company has a right to receive payment for its services. Customers are billed, generally in advance, based on their selected contract term. Service contracts are time apportioned to the respective accounting periods. Cash received in advance is recorded as deferred revenue.



Turnover is measured net of discounts, Value Added Tax and Goods and Services Tax.



Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised at 20% per annum. As of 31.12.2023 it is fully amortised.


Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.


Cash and cash equivalents

Cash equivalents are amounts of cash held by the payment processors, that the company uses for cash collection, that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. They normally qualify as a cash equivalent only if the maturity is three months or less from the date of collection.

Siteground Hosting Ltd. (Registered number: 09348602)


Notes to the Financial Statements - continued

for the Year Ended 31 December 2023


2.

ACCOUNTING POLICIES - continued



Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences on trading activities are taken into account in arriving at the operating result. Exchange differences on financial activities are presented in interest receivable and similar income.


Classification of expenses


Costs of sales are direct costs which the Company incurs related to the services provided to customers. Costs of sales are in connection to use of server functionality, domain names and licensing fees paid for third-party productivity applications.



Marketing and advertising expenses represent the costs for attracting and acquiring customers, primarily consisting of expenses for affiliate program commissions. These expenses also include fees paid for marketing and advertising campaigns, online display, social media and event sponsorships.



Administrative and other operating expenses primarily consist of management charges for intercompany services, payment processing fees, personnel costs for administrative functions, professional service fees and other general costs.



Going concern


After reviewing the company's forecasts and projections, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The director therefore continues to adopt the going concern basis in preparing the financial statements.



Critical accounting judgement and key sources of estimation uncertainty


In preparing these financial statements, the Director has made the following judgements:



Provisions


Due to uncertainty in the timing of payments regarding affiliate commissions and in order to present fairly the financial performance of the company, a year-end review has been made, based on which provisions for affiliate commissions have been calculated.



The director has assessed the potential impact of uncertainty on the company's ability to continue as a going concern. This assessment considers the risks and uncertainties associated with the economic environment, market conditions, regulatory changes, and other external factors that could affect the company's financial position and performance. Based on this assessment, the director has concluded that there is sufficient evidence to support the going concern assumption for the next 12 months.



The Director is of the opinion that there are no other critical judgments or significant estimates that would have a significant effect on the amounts recognised in the financial statements.



Provisions for affiliate commissions


A provision is recognised when the company has a present obligation as a result of a past event and it is probable that a transfer of economic benefits will be required to settle the obligation as well as a reliable estimate can be made of the amount of the obligation.



Trade and other debtors, including loans receivable


Trade and other debtors, including loans receivable, are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts.



Trade and other creditors


Trade and other creditors are initially recognised at the transaction price thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.


Siteground Hosting Ltd. (Registered number: 09348602)


Notes to the Financial Statements - continued

for the Year Ended 31 December 2023


3.

EMPLOYEES AND DIRECTORS


31.12.2331.12.22
££
Wages and salaries12,00012,000
Social security costs400431
12,40012,431

The average number of employees during the year was NIL (2022 - NIL).


31.12.23


31.12.22

£   

£   



Director's remuneration

12,000


12,000




4.

OPERATING PROFIT


The operating profit is stated after charging:

31.12.2331.12.22
££
Outsourcing services29,926,41128,271,103

5.

AUDITORS' REMUNERATION


31.12.23


31.12.22

£   

£   



Fees payable to the company's auditors for the audit of the company's financial

statements

14,500


14,500




6.

INTEREST RECEIVABLE AND SIMILAR INCOME




Interest Receivable and Similar Income is comprised of the following items:




2023


2022





£


£




Bank interest


139,315


27,659




Interest receivable


606,126


352,565





745,441


380,224




7.

TAXATION



Analysis of the tax charge


The tax charge on the profit for the year was as follows:


31.12.23


31.12.22

£   

£   



Current tax:


UK corporation tax

588,484


718,770




Withholding tax on foreign


loan interest

10,138


8,363





Tax on profit

598,622


727,133




Siteground Hosting Ltd. (Registered number: 09348602)


Notes to the Financial Statements - continued

for the Year Ended 31 December 2023


7.

TAXATION - continued



Reconciliation of total tax charge included in profit and loss


The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:



31.12.23


31.12.22

£   

£   



Profit before tax

2,328,543


3,809,326




Profit multiplied by the standard rate of corporation tax in the UK of 23.521% (2022 -

19%)  

547,697


723,772





Effects of:


Expenses not deductible for tax purposes

1,549


3,361




Adjustment due to change in corporation tax rates  

(12

)

-




Additional tax as a result of transfer pricing adjustment for 2023

30,660


-




Additional tax as a result of transfer pricing adjustment for 2022

18,728


-




Total tax charge

598,622


727,133




8.

DIVIDENDS


31.12.23


31.12.22

£   

£   



Ordinary shares of 1 each


Final

3,082,193


1,572,978




9.

INTANGIBLE FIXED ASSETS


Computer


software

£   



COST


At 1 January 2023


and 31 December 2023

15,438




AMORTISATION


At 1 January 2023


and 31 December 2023

15,438




NET BOOK VALUE


At 31 December 2023

-




At 31 December 2022

-




Siteground Hosting Ltd. (Registered number: 09348602)


Notes to the Financial Statements - continued

for the Year Ended 31 December 2023


10.

DEBTORS


31.12.2331.12.22
£   £   
Amounts falling due within one year:
Trade debtors32,01226,250
Amounts owed by group undertakings 123,039-
Prepayments194,764223,525
Accrued income1,560138,652
Interest receivable from group undertakings392,61910,241
Interest receivable from related parties74,167158,906
818,161557,574
Amounts falling due after more than one year:
Loans receivable from group undertakings7,852,3758,306,338
Loans receivable from related parties1,734,9067,980,846
10,405,44216,844,758

The loans carry interest rates ranging between 4.50 % - 5.00% and their maturity is 5 years. There is no collateral on the loans.

11.

CASH AT BANK




31.12.23


31.12.22




£   


£   




Cash and cash equivalents in AUD


1,364,529


1,016,834




Cash and cash equivalents in EUR


234,477


501,596




Cash and cash equivalents in GBP


4,458,072


3,483,672




Cash and cash equivalents in USD


6,711,831


1,531,813





12,768,909


6,533,915




12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR



31.12.2331.12.22
£   £   
Payments on account5,6125,612
Trade creditors600,971279,161
Amounts owed to group undertakings2,451,3301,396,577
Taxation and social security901,4121,174,624
Deferred income15,508,47414,336,538
Accruals210,029611,877
Provisions for affiliates (Note 14)126,837138,874
19,804,66517,943,263

13.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR



31.12.2331.12.22
£   £   
Deferred income1,638,7652,352,217
1,638,7652,352,217

Siteground Hosting Ltd. (Registered number: 09348602)


Notes to the Financial Statements - continued

for the Year Ended 31 December 2023


14.

PROVISIONS FOR LIABILITIES


Other



provisions


£   



Balance at 1 January 2023

138,874




Provided during year

126,837




Utilised during year

(138,874

)



Balance at 31 December 2023

126,837




Due to uncertainty in the timing and amount of payments regarding affiliate commissions and in order to present fairly the financial performance of Siteground Hosting Ltd, a year end review has been made, based on which provisions for affiliate commissions have been calculated. The amounts shown are expected to be utilised in 2024.

15.

CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:


Number:

Class:

Nominal

31.12.23


31.12.22


value:

£   

£   



1,000

Ordinary

1

1,000


1,000




16.

RESERVES


Retained earningsTotals
££
At 1 January 20233,082,1933,082,193
Profit for the year1,729,9211,729,921
Dividend distribution(3,082,193)(3,082,193)
At 31 December 20231,729,9211,729,921

17.

RELATED PARTY DISCLOSURES



The company has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions.



The company is part of a group where the parent company, SiteGround Capital Ltd with registered office at 8 Michail Karaoli Street, Flat/Office 106, CY-1095, Nicosia, Cyprus, prepares the consolidated financial statements.


18.

ULTIMATE CONTROLLING PARTY



The parent company is SiteGround Capital Ltd and the ultimate controlling party is Mr. Ivo Tzenov.


19.

AUDITOR LIABILITY LIMITATION AGREEMENT



An auditors' limitation of liability agreement has been approved by the members for the financial year ended 31 December 2023. The principal terms and conditions are as below:



- The agreement limits the amount of any liability owed to the Company by the auditors in respect of any negligence default, breach of duty or breach of trust, occurring in the course of audit of the Company's accounts and pursuant to this agreement the auditor may be guilty in relation to the Company.


- The agreement also stipulates the maximum aggregated amount payable in event of any of the circumstances stated above.