Company Registration No. 07786718 (England and Wales)
SHARPCLOUD SOFTWARE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SHARPCLOUD SOFTWARE LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
SHARPCLOUD SOFTWARE LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
5
3,647,914
2,583,832
Tangible assets
4
47,976
43,211
Investments
6
32
32
3,695,922
2,627,075
Current assets
Debtors
8
2,236,518
2,047,978
Cash at bank and in hand
316,347
698,653
2,552,865
2,746,631
Creditors: amounts falling due within one year
9
(1,961,017)
(1,512,239)
Net current assets
591,848
1,234,392
Total assets less current liabilities
4,287,770
3,861,467
Provisions for liabilities
(910,765)
(639,824)
Net assets
3,377,005
3,221,643
Capital and reserves
Called up share capital
2,453
2,438
Share premium account
6,490,622
6,490,485
Capital redemption reserve
20
20
Profit and loss reserves
12
(3,116,090)
(3,271,300)
Total equity
3,377,005
3,221,643
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 10 September 2024 and are signed on its behalf by:
C Gomersall
Director
Company Registration No. 07786718
SHARPCLOUD SOFTWARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
2,414
6,490,485
20
(3,378,241)
3,114,678
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
106,941
106,941
Issue of share capital
24
-
-
24
Balance at 31 December 2022
2,438
6,490,485
20
(3,271,300)
3,221,643
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
155,210
155,210
Issue of share capital
15
137
-
-
152
Balance at 31 December 2023
2,453
6,490,622
20
(3,116,090)
3,377,005
SHARPCLOUD SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Sharpcloud Software Limited (the 'company') is a private company limited by shares incorporated in England and Wales. The registered office is South Bank Technopark, 90 London Road, London, United Kingdom, SE1 6LN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. 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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
The company is reliant on external investment to fund the continued development and marketing its products. The Directors have taken adequate steps to satisfy themselves that sufficient funds are available to ensure the company can meet its financial liabilities as they fall due for the foreseeable future. They therefore believe it is appropriate to adopt the going concern basis in preparing these financial statements.true
1.3
Turnover
Turnover represents the value, net of value added tax and discounts, of work carried out in respect of services provided to customers. The company recognises income as the point where it obtains the right to consideration.
Revenue from the provision of software licences is recognised equally over the period the licence relates to.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
SHARPCLOUD SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website
5 years
Development Costs
5 years
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
15% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.
1.10
Financial instruments
The company applies the provisions of Section 11 ‘Basic Financial Instruments' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
SHARPCLOUD SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
SHARPCLOUD SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
28
26
SHARPCLOUD SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
58,941
Additions
11,776
At 31 December 2023
70,717
Depreciation and impairment
At 1 January 2023
15,730
Depreciation charged in the year
7,011
At 31 December 2023
22,741
Carrying amount
At 31 December 2023
47,976
At 31 December 2022
43,211
5
Intangible fixed assets
Website
Development costs
Total
£
£
£
Cost
At 1 January 2023
23,000
3,634,613
3,657,613
Additions
1,707,853
1,707,853
At 31 December 2023
23,000
5,342,466
5,365,466
Amortisation and impairment
At 1 January 2023
1,073,781
1,073,781
Amortisation charged for the year
643,771
643,771
At 31 December 2023
1,717,552
1,717,552
Carrying amount
At 31 December 2023
23,000
3,624,914
3,647,914
At 31 December 2022
23,000
2,560,832
2,583,832
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
32
32
SHARPCLOUD SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
7
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sharpcloud Software Inc
USA
Ordinary
100.00
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
644,445
528,054
Corporation tax recoverable
235,771
438,367
Amounts owed by group undertakings
1,318,670
1,034,532
Other debtors
37,632
47,025
2,236,518
2,047,978
9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
102,237
84,086
Taxation and social security
162,007
95,819
Other creditors
1,696,773
1,332,334
1,961,017
1,512,239
10
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated revenue deductions
910,765
639,824
2023
Movements in the year:
£
Liability at 1 January 2023
639,824
Charge to profit or loss
270,941
Liability at 31 December 2023
910,765
SHARPCLOUD SOFTWARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Catherine Cooper FCCA
Statutory Auditor:
Azets Audit Services
12
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
(3,271,300)
(3,378,241)
Profit for the year
155,210
106,941
At the end of the year
(3,116,090)
(3,271,300)
13
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
193,326
2023-12-312023-01-01false17 September 2024CCH SoftwareCCH Accounts Production 2024.210No description of principal activityThis audit opinion is unqualifiedS KhanR JohnsonA GovindarajanM SutherlandD YoungR BrittsC GomersallFirst Inital C C LaslettMr. M ListerMr. N T Rzemienieckifalsefalse077867182023-01-012023-12-31077867182023-12-31077867182022-12-3107786718core:ComputerSoftware2023-12-3107786718core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3107786718core:ComputerSoftware2022-12-3107786718core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3107786718core:OtherPropertyPlantEquipment2023-12-3107786718core:OtherPropertyPlantEquipment2022-12-3107786718core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3107786718core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3107786718core:CurrentFinancialInstruments2023-12-3107786718core:CurrentFinancialInstruments2022-12-3107786718core:ShareCapital2023-12-3107786718core:ShareCapital2022-12-3107786718core:SharePremium2023-12-3107786718core:SharePremium2022-12-3107786718core:CapitalRedemptionReserve2023-12-3107786718core:CapitalRedemptionReserve2022-12-3107786718core:RetainedEarningsAccumulatedLosses2023-12-3107786718core:RetainedEarningsAccumulatedLosses2022-12-3107786718core:ShareCapital2021-12-3107786718core:SharePremium2021-12-3107786718core:CapitalRedemptionReserve2021-12-3107786718core:RetainedEarningsAccumulatedLosses2021-12-3107786718core:RetainedEarningsAccumulatedLosses2022-12-3107786718bus:Director72023-01-012023-12-3107786718core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31077867182022-01-012022-12-3107786718core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3107786718core:ShareCapital2022-01-012022-12-3107786718core:SharePremium2022-01-012022-12-3107786718core:ShareCapital2023-01-012023-12-3107786718core:SharePremium2023-01-012023-12-3107786718core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3107786718core:FurnitureFittings2023-01-012023-12-3107786718core:OtherPropertyPlantEquipment2022-12-3107786718core:OtherPropertyPlantEquipment2023-01-012023-12-3107786718core:ComputerSoftware2022-12-3107786718core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-31077867182022-12-3107786718core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3107786718core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3107786718core:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3107786718core:ComputerSoftware2023-01-012023-12-3107786718core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3107786718core:OtherSubsidiariesTotalIndividuallyImmaterialSubsidiaries12023-01-012023-12-310778671812023-01-012023-12-3107786718core:WithinOneYear2023-12-3107786718core:WithinOneYear2022-12-3107786718bus:PrivateLimitedCompanyLtd2023-01-012023-12-3107786718bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3107786718bus:FRS1022023-01-012023-12-3107786718bus:Audited2023-01-012023-12-3107786718bus:Director12023-01-012023-12-3107786718bus:Director22023-01-012023-12-3107786718bus:Director32023-01-012023-12-3107786718bus:Director42023-01-012023-12-3107786718bus:Director52023-01-012023-12-3107786718bus:Director62023-01-012023-12-3107786718bus:Director82023-01-012023-12-3107786718bus:Director92023-01-012023-12-3107786718bus:Director102023-01-012023-12-3107786718bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP