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Registered number: 14720929









INTERWORKS EMEA LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2023

 
INTERWORKS EMEA LIMITED
 
 
COMPANY INFORMATION


Director
B Jahanshahi (appointed 10 March 2023)




Company secretary
B Jahanshahi



Registered number
14720929



Registered office
Unit 1 Christchurch Business Park
Radar Way

Christchurch

Dorset

BH23 4FL




Independent auditors
Ecovis Wingrave Yeats LLP
Chartered Accountants and Statutory Auditor

3rd Floor, Waverley House

7-12 Noel Street

London

W1F 8GJ





 
INTERWORKS EMEA LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1
Director's Report
 
2 - 4
Independent Auditors' Report
 
5 - 8
Consolidated Statement of Comprehensive Income
 
9
Consolidated Balance Sheet
 
10
Company Balance Sheet
 
11
Consolidated Statement of Changes in Equity
 
12
Company Statement of Changes in Equity
 
13
Consolidated Statement of Cash Flows
 
14
Consolidated Analysis of Net Debt
 
15
Notes to the Financial Statements
 
16 - 36


 
INTERWORKS EMEA LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

Introduction
 
The Group is engaged in consulting services pertaining to data analytics. This includes provision and sales of on-premise and SaaS technology as well as related professional services. Our strategy going forward is to continue to provide best of class technology consulting services and software products to enable clients to create maximum business value from their data.

Business review
 
The financial results for the year are set out on pages 9 and 10 of these financial statements. The business performed to target in the financial year and the Directors are confident the Group's services and product solutions will be in demand for the foreseeable future.

Principal risks and uncertainties
 
The Group is subject to general economic and market conditions that could affect the company’s business plans. The success of the activities of the company may be affected by general economic and market conditions like interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, and U.K. and international political circumstances. Unexpected volatility or illiquidity could impair profitability or result in losses. We participate in the data analytics and engineering industry, providing a bespoke consulting approach on best in-class technology platforms. Competitive pressure exists from both incumbent and new consultancies as well as disruptive technologies, which may adversely affect our business and operating results. We face significant competition from companies that operate in the UK and across Europe. It is critical for us to remain at the cutting edge of data consulting services and product solution offerings, requiring continuing skills and technology evolution.

Financial key performance indicators
 
Management consider the following to be the main KPI's that are driving the growth of the business:
 
Services revenue
Recurring service & support revenue
Software resale profit margin 
Operating profit
Opportunity pipeline
Consulting team utilisation.


This report was approved by the board on 12 September 2024 and signed on its behalf.



B Jahanshahi
Director

Page 1

 
INTERWORKS EMEA LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

The director presents his report and the financial statements for the period ended 31 December 2023. The period covers the date of incorporation, 10 March 2023, to 31 December 2023.

Director

The director who served during the period was:

B Jahanshahi (appointed 10 March 2023)

Principal activity

The prinicpal activity of the Company is that of a holding company for the Group.
The principal activity of the Group is information technology consultancy activities.

Results and dividends

The loss for the period, after taxation and minority interests, amounted to £325,324.

The director does not propose the payment of a dividend for the current period.

Director's responsibilities statement

The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 2

 
INTERWORKS EMEA LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Future developments

Our plan is to focus on delivering great service to clients, invest in building relationships with partners and to continue to improve the quality and experience of our consulting team. We are reviewing our post-covid business model to make sure the business returns to a model of delivering consulting projects on-site mixed with remote delivery and that the model is calibrated to today's economy and is agile to adapt to client's ever changing needs and challenges. We will continue to offer a relatively narrow selection of data technologies which represent the market leaders and best data analytics technology stack but we also have the flexibility to work with any technology stack ensuring that our staff are highly focused and highly trained and that we can assist services for the entirety of the data journey. We will focus on further integration and alignment of systems and process with our US parent company which will lead onto system optimisation and automation to improve efficiency and keep admin staff overheads from increasing as the business continues to grow. We continue to have policy of only hiring the best consultants and therefore we don't have recruitment drives, it is an organic process and leads to slower but more sustainable headcount and revenue growth.

Financial risk management

The management have assessed the major risks facing the business and are confident of their plans put in place to mitigate these risks. Principal risks include client's dealing directly with OEM software vendors or clients switching to other resellers to purchase their services and/or software licences. Whilst we do see a small amount of client attrition to these it is not a material volume of business and we believe our investment in relationships with clients and the quality of our service largely mitigates risk of customer attrition. There is a risk that OEM vendors switch to a purely direct to customer model, removing the need for partner resellers, however, we feel that OEM vendors benefit from the involvement of partners, essentially improving the successful adoption and use of their products so it is unlikely OEM vendors would completely remove partner resellers. There is a risk that existing customer projects finish and are not replaced with new or follow on projects, this would mean a drop in services revenue but the business has successfully continued to work with existing clients for many years and has acquired numerous new customers every year which brings in new projects and mitigates the risks. Management is aware of and recognises macro economic financial risks, for example, inflation, interest rates and currency rates. The management use measures to mitigate these risks such as ensuring the customer order and associated vendor purchase is matched in currency pairing therefore mitigating the risk of currency pairs fluctuating in value. The company does not hold any debt and does not rely on passive investment income linked to interest rates therefore interest rate changes have limited impact. Inflation and increasing costs are part of the financial models used by management to forecast gross margins required to cover overheads and are reviewed regularly.  

Post balance sheet events

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

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 and the Group'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 and the Group's auditors are aware of that information.

Auditors

The auditorsEcovis Wingrave Yeats LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 3

 
INTERWORKS EMEA LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

This report was approved by the board on 12 September 2024 and signed on its behalf.
 





B Jahanshahi
Director

Page 4

 
INTERWORKS EMEA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTERWORKS EMEA LIMITED
 

Opinion


We have audited the financial statements of Interworks EMEA Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's loss for the period 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 Group 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 Group's or the parent 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.


Page 5

 
INTERWORKS EMEA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTERWORKS EMEA LIMITED (CONTINUED)


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.


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 Group Strategic Report and the Director's Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 2, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 6

 
INTERWORKS EMEA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTERWORKS EMEA LIMITED (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 Group 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 determined that the laws and regulations which are directly relevant to the financial statements are those that relate to the reporting framework Financial Reporting. Standard 102 and the relevant tax compliance regulations in the jurisdictions in which the Company operates. We evaluated the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. 
In addition, there are other significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements being those laws and regulations. For these laws and regulations, the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through withdrawal of trading licences or regulatory approval of products, fines or litigation being imposed. As required by the auditing standards, auditing procedures in respect of non-compliance with these identified laws and regulations are limited to enquiry of the director and other management and inspection of regulatory and legal correspondence, if any.
We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur, by meeting with a number of individuals, including with individuals outside of the finance function, and conducted interviews to understand where they considered there was susceptibility to fraud. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to areas of estimate and judgement in the financial.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations and fraud risks identified in the paragraphs above. In addition to the audit procedures, we remained alert to any indications of non-compliance throughout the audit. The specific audit procedures performed included:
°Review of large and unusual bank transactions;
°Identifying and testing journal entries.


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

 
INTERWORKS EMEA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTERWORKS EMEA LIMITED (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.





Sally Casson (Senior Statutory Auditor)
  
for and on behalf of
Ecovis Wingrave Yeats LLP
 
Chartered Accountants and Statutory Auditor
  
3rd Floor, Waverley House
7-12 Noel Street
London
W1F 8GJ

12 September 2024
Page 8

 
INTERWORKS EMEA LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023

2023
Note
£

  

Turnover
 4 
8,845,415

Cost of sales
  
(6,925,276)

Gross profit
  
1,920,139

Administrative expenses
  
(2,180,557)

Operating loss
 5 
(260,418)

Interest payable and similar expenses
 8 
(35,757)

Loss before taxation
  
(296,175)

Tax on loss
 9 
(29,149)

Loss for the financial period
  
(325,324)

  

Currency translation differences
  
(6,692)

Other comprehensive income for the period
  
(6,692)

Total comprehensive income for the period
  
(332,016)

Loss for the period attributable to:
  

Non-controlling interests
  
(32,532)

Owners of the parent Company
  
(292,792)

  
(325,324)

Total comprehensive income for the period attributable to:
  

Non-controlling interest
  
(32,532)

Owners of the parent Company
  
(299,484)

  
(332,016)

There were no recognised gains and losses for 2023 other than those included in the consolidated statement of comprehensive income.

The notes on pages 16 to 36 form part of these financial statements.

Page 9

 
INTERWORKS EMEA LIMITED
REGISTERED NUMBER: 14720929

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
Note
£

Fixed assets
  

Goodwill
 10 
7,381

Tangible assets
 11 
136,323

  
143,704

Current assets
  

Debtors: amounts falling due within one year
 13 
4,182,747

Cash at bank and in hand
 14 
992,133

  
5,174,880

Creditors: amounts falling due within one year
 15 
(4,804,064)

Net current assets
  
 
 
370,816

Total assets less current liabilities
  
514,520

Creditors: amounts falling due after more than one year
 16 
(587,892)

Net liabilities
  
(73,372)


Capital and reserves
  

Called up share capital 
 18 
1

Foreign exchange reserve
 19 
(6,692)

Profit and loss account
 19 
(292,792)

Equity attributable to owners of the parent Company
  
(299,483)

Non-controlling interests
  
226,111

Shareholders' deficit
  
(73,372)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 September 2024.




B Jahanshahi
Director

The notes on pages 16 to 36 form part of these financial statements.

Page 10

 
INTERWORKS EMEA LIMITED
REGISTERED NUMBER: 14720929

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
Note
£

Fixed assets
  

Investments
 12 
2,392,585

  
2,392,585

Current assets
  

Debtors: amounts falling due within one year
 13 
1,466,571

  
1,466,571

Creditors: amounts falling due within one year
 15 
(1,840,206)

Net current liabilities
  
 
 
(373,635)

Total assets less current liabilities
  
2,018,950

  

Creditors: amounts falling due after more than one year
 16 
(587,892)

  

Net assets
  
1,431,058


Capital and reserves
  

Called up share capital 
 18 
1

Profit and loss account
  
1,431,057

Shareholders' funds
  
1,431,058


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 September 2024.


B Jahanshahi
Director

The notes on pages 16 to 36 form part of these financial statements.

Page 11

 

 
INTERWORKS EMEA LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023



Called up share capital
Foreign exchange reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£



Comprehensive income for the period


Loss for the period
-
-
(292,792)
(292,792)
(32,532)
(325,324)


Currency translation differences
-
(6,692)
-
(6,692)
-
(6,692)


Acquired on acquisition of subsidiary
-
-
-
-
258,643
258,643

Total comprehensive income for the period
-
(6,692)
(292,792)
(299,484)
226,111
(73,373)


Shares issued during the period
1
-
-
1
-
1



At 31 December 2023
1
(6,692)
(292,792)
(299,483)
226,111
(73,372)

The notes on pages 16 to 36 form part of these financial statements.

Page 12

 
INTERWORKS EMEA LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


Comprehensive income for the period

Profit for the period
-
1,431,057
1,431,057

Shares issued during the period
1
-
1


At 31 December 2023
1
1,431,057
1,431,058

The notes on pages 16 to 36 form part of these financial statements.

Page 13

 
INTERWORKS EMEA LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2023
£

Cash flows from operating activities

Loss for the financial period
(325,324)

Adjustments for:

Amortisation of intangible assets
376

Depreciation of tangible assets
34,797

Loss on disposal of tangible assets
2,759

Interest expense
35,757

Taxation charge
29,149

Increase in debtors
(2,227,873)

Increase in creditors
1,944,418

Corporation tax paid
(91,422)

Net cash generated from operating activities

(597,363)


Cash flows from investing activities

Purchase of tangible fixed assets
(22,227)

Sale of tangible fixed assets
556

Cash flow on acquisition net of cash acquired
1,821,319

Net cash from investing activities

1,799,648

Cash flows from financing activities

Deferred consideration paid
(209,908)

Interest paid
(244)

Net cash used in financing activities
(210,152)

Net increase in cash and cash equivalents
992,133

Cash and cash equivalents at the end of period
992,133


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
992,133

992,133


The notes on pages 16 to 36 form part of these financial statements.

Page 14

 
INTERWORKS EMEA LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 DECEMBER 2023



Cash flows
At 31 December 2023
£

£

Cash at bank and in hand

992,133

992,133


992,133
992,133

The notes on pages 16 to 36 form part of these financial statements.

Page 15

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

1.


General information

Interworks EMEA Limited is a private company, limited by shares, incorporated in England and Wales, registration number 14720929. The registered office is Unit 1 Christchurch Business Park, Radar Way, Christchurch, Dorset, BH23 4FL. The Group consists of Interworks EMEA Limited and its subsidiaries. The period covers the date of incorporation, 10 March 2023, to 31 December 2023. The consolidation covers the period 7 July 2023 to 31 December 2023.

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
All intra-group transactions, balances and unrealised gains on transactions between group entities are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the assets transferred.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.
These financial statements represent the largest and smallest group of which the Company is a member for which the Group accounts are prepared.

Page 16

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The Group has made a loss before tax for the period of £296,175 and has a net liabilities of £73,372 at the balance sheet date. Included within net liabilities are cash reserves totalling £992,133.
The Director is committed to ensuring that the Group continues to meet its liabilities as and when they fall due for a period of at least 12 months from the date of approval of these financial statements, and therefore consider it appropriate that these financial statements be prepared on the going concern basis.

 
2.4

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.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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:

Sale of Licences
Revenue from the sale of licences is recognised when the licence has been granted to the buyer, the amount of revenue can be measured reliably and is probate that the economic benefits in respect of the transaction can be measured reliably.
Consultancy income
Consultancy income is recognised immediately after the entity have provided the consultancy services.
Commission revenue
Commission revenue is recognised when the buyer has purchased the licence from the vendor.

Page 17

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Operating leases: the Group as lessee

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

  
2.7

Interest income

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

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

Page 18

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. 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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.

 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
10
years straight line

Page 19

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

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, on a reducing balance basis.

Depreciation is provided on the following basis:

Long-term leasehold property
-
10%
reducing balance
Motor vehicles
-
33%
reducing balance
Fixtures and fittings
-
25%
reducing balance
Computer equipment
-
33%
reducing balance

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.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

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 equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.


 
2.16

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 20

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are recognised when an event has 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 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.

 
2.18

Financial instruments

Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 21

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 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 the reporting date and amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. 
Useful life of tangible fixed assets
Tangible assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing in the assets' lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.
Useful economic life and impairment of Goodwill
Goodwill identified and valued on the business combinations is deemed to be fully recoverable from future trading and the Director has deemed this asset to have an appropriate useful economic lives. The Company considers whether the goodwill should be impaired. At the reporting date, where an indication of impairment is identified the recoverable value is estimated.
Deferred consideration
During the period, the Company acquired a subsidiary and an element of the consideration is deferred. Unsettled amounts of consideration, amounting to £961,527, are held at fair value within other creditors at the year end. The discount rate used for the deferred consideration is 6.5%. The Director deems this to be the market rate of interest that would be applied to a comparable third party loan. The deferred consideration is expected to be settled in full by the end of June 2026.
Accounting for business combinations
The acquisition of Interworks Europe Group Limited, as explained in note 12, has been accounted for using the purchase method. This requires assets and liabilities to be remeasured at fair value at acquisition date. The directors do not believe that there would be material differences between the book values and fair values at acquisition date and as such, the book values have been used.
Recognition of deferred tax asset
Management is required to assess whether it is appropriate to recognise a deferred tax asset relating to taxable losses available to each individual Company. The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future against which the reversal of losses and other deductions can be deducted. To determine the future taxable profits, reference is made to the latest available forecasts. Therefore, this involves judgement regarding the future financial performance of each company in which a deferred tax asset has been recognised. As such, a deferred tax asset of £31,940 has been recognised in relation to Interworks Europe Limited and a deferred tax asset of £13,878 has been recognised in relation to Interworks Netherlands B.V. as at 31 December 2023.

Page 22

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

4.


Turnover

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


2023
£

Consultancy services
1,823,229

Sales of licenses
6,842,537

Commissions
125,955

Other income
53,694

8,845,415


Analysis of turnover by country of destination:

2023
£



United Kingdom
8,303,198

Rest of Europe
417,600

Rest of the World
124,617

8,845,415



5.


Operating loss

The operating loss is stated after charging:

2023
£

Defined contribution pension cost
246,655

Exchange differences
18,605

Depreciation
34,797

Amortisation
376

Auditors renumeration
54,000

Page 23

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

6.


Auditors' remuneration

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


2023
£

Fees payable to the Company's auditors for the audit of the consolidated, parent and subsidiaries Company's financial statements
54,000




Fees payable to the Group's auditor in respect of:

2023
£



Other services relating to taxation
11,733

All other services
11,645

23,378


7.


Employees

Staff costs were as follows:


Group
Company
2023
2023
£
£


Wages and salaries
2,181,740
-

Social security costs
299,149
-

Cost of defined contribution scheme
267,914
-

2,748,803
-


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



Group
Company
        2023
        2023
            No.
            No.







Employees
61
1

The Company's director was not remunerated by the Group in the period.

Page 24

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

8.


Interest payable and similar expenses

2023
£


Bank interest payable
244

Unwinding of discount on deferred consideration
35,513

35,757


9.


Taxation


2023
£

Corporation tax


Current tax on profits for the period
105,190


105,190


Total current tax
105,190

Deferred tax


Origination and reversal of timing differences
(76,041)

Total deferred tax
(76,041)


Tax on loss
29,149
Page 25

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
 
9.Taxation (continued)


Factors affecting tax charge for the period

The tax assessed for the period is higher than the standard rate of corporation tax in the UK of 23.52%. The differences are explained below:
2023
£


Loss on ordinary activities before tax
(296,175)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52%
(69,660)

Effects of:


Expenses not deductible for tax purposes
3,887

Fixed asset differences
(87)

Adjustments to tax charge in respect of prior periods
642

Movement in deferred tax
75,236

Remeasurement of deferred tax for changes in tax rates
(3,997)

Different tax rated on overseas earning
23,128

Total tax charge for the period
29,149


Factors that may affect future tax charges

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2021. Income taxes in the income statement are measured at 23.5% (blended average) and deferred taxes at the balance sheet date are measured at 25%.
Germany:
There were no factors that may affect future tax charges.
Corporation tax (CIT) is levied at a uniform rate of 15% which is then subject to a surcharge of 5.5% (solidarity surcharge). This results in a total tax rate of 15.825%.
The trade tax (Gewerbesteuer) rate is a combination of a uniform tax rate of 3.5% (base rate) and a municipal tax rate multiple (Hebesatz) depending on where the PEs of the business are located. 
Therefore, the effective corporate income tax rate remains at 32-38%. This is a combined rate consisting of 15% CIT, a solidarity surcharge that applies as a percentage of the CIT (5.5% of 15% = 0.825%) plus 7-21% trade tax depending on local trade tax multiplier and add backs to be considered in accordance with the corporate tax legislation. 
Netherlands:
There were no factors that may affect future tax charges.
The corporate income tax rate during 2023 was 19% and will remain at 19% in 2024.
Page 26

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

10.


Intangible assets

Group




Goodwill

£



Cost


On acquisition of subsidiaries
7,757



At 31 December 2023

7,757



Amortisation


Charge for the period
376



At 31 December 2023

376



Net book value



At 31 December 2023
7,381

On 7th July 2023 the Company acquired 90% of the share capital of Interworks Europe Group Limited for £2,516,106. The fair value of assets acquired and liabilities assumed were deemed to be equal to their carrying value as at the acquisition date. The difference between the consideration and carrying value of the net assets resulted in Goodwill.



Page 27

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

11.


Tangible fixed assets

Group






Long-term leasehold property
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


Additions
-
1,982
-
20,245
22,227


Assets transferred on acquisition of subsidiary
2,520
37,317
446
111,925
152,208


Disposals
-
-
-
(16,791)
(16,791)



At 31 December 2023

2,520
39,299
446
115,379
157,644



Depreciation


Charge for the period
134
7,374
64
27,225
34,797


Disposals
-
-
-
(13,476)
(13,476)



At 31 December 2023

134
7,374
64
13,749
21,321



Net book value



At 31 December 2023
2,386
31,925
382
101,630
136,323

Page 28

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

12.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 7 July 2023
-


Additions
2,392,585



At 31 December 2023
2,392,585





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Interworks Europe Group Limited
Unit 1 Christchurch Business Park, RadarWay, Christchurch, Dorset, BH23 4FL
Ordinary
90%
Interworks Netherlands B.V.
Stationsplein 8-K, 6221 BT Maastricht, Netherlands
Ordinary
90%
Interworks GmbH
Unit 1 Christchurch  Business Park, Radar Way, Christchurch, Dorset, BH23 4FL
Ordinary
90%
Interworks Europe Limited
Unit 1 Christchurch Business Park, Radar Way, Christchurch, Dorset, BH23 4FL
Ordinary
90%

On the 7th July 2023, the Company acquired a 90% shareholding in Interworks Europe Group Limited. The consideration, in accordance with the Share Purchase Agreement, has been disclosed in note 20.
The principal activity of all subsidiaries is information technology consultancy activities.
The Company's investments in Interworks Netherlands B.V., Interworks GmbH and Interworks Europe Limited are indirect ownership. The investment in Interworks Europe Group Limited is direct ownership.
During the period, the Company received dividends of £1,466,570 from Interworks Europe Group Limited.

Page 29

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the period ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Interworks Europe Group Limited
1,000
1,466,570

Interworks Netherlands B.V.
(57,901)
(91,562)

Interworks GmbH
462,864
231,688

Interworks Europe Limited
507,577
(203,719)


13.


Debtors

Group
Company
2023
2023
£
£


Trade debtors
3,972,180
-

Amounts owed by group undertakings
-
1,466,570

Other debtors
8,128
-

Called up share capital not paid
1
1

Prepayments and accrued income
74,603
-

Tax recoverable
82,017
-

Deferred taxation
45,818
-

4,182,747
1,466,571


Amounts owed by group undertakings are interest free, unsecured and repayable on demand.


14.


Cash and cash equivalents

Group
Company
2023
2023
£
£

Cash at bank and in hand
992,133
-


The bank overdrafts are secured by way of a fixed and floating charge over all of the assets of the Company.

Page 30

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

15.


Creditors: Amounts falling due within one year

Group
Company
2023
2023
£
£

Trade creditors
2,348,751
-

Amounts owed to group undertakings
-
1,466,571

Corporation tax
209,056
-

Other taxation and social security
363,638
-

Other creditors
342,974
-

Accruals and deferred income
1,166,010
-

Deferred consideration
373,635
373,635

4,804,064
1,840,206


Amounts owed to group undertakings are interest free, unsecured and repayable on demand.
The deferred consideration is secured by way of a fixed and floating charge over the share capital of the Company. The discount rate used for the deferred consideration is 6.5%. The deferred consideration is payable quarterly in equal instalments and is expected to be settled in full by the end of June 2026.


16.


Creditors: Amounts falling due after more than one year

Group
Company
2023
2023
£
£

Deferred consideration
587,892
587,892


See note 15 for further details on the deferred consideration.

Page 31

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

17.


Deferred taxation


Group



2023


£






At beginning of period
-


Transferred on acquisition of subsidiary
(30,223)


Credited to profit or loss
76,041



At end of period
45,818

Company


2023





At beginning of period
-


Charged to profit or loss
-



At end of period
-
The deferred tax asset is made up as follows:

Group
2023
£

Fixed asset timing differences
(26,261)

Short term timing differences
(11,314)

Losses and other deductions
83,393

45,818

Page 32

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

18.


Share capital

2023
£
Allotted, called up and unpaid


1 Ordinary share of £1.00
1


During the period, the Company issued 1 £1 Ordinary share at par.
The share has attached to it full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.


19.


Reserves

Foreign exchange reserve

The foreign exchange reserve account represents movements as a result of the yearly translation of  balances.

Profit and loss account

The profit and loss account comprises of accumulated losses.

Page 33

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

20.
 

Business combinations

On the 7th July 2023, the Company acquired a 90% shareholding in Interworks Europe Group Limited and its subsidiaries as defined in note 12. The business combination was accounted for under the purchase method of accounting.

Acquisition of Interworks Europe Group Limited

Recognised amounts of identifiable assets acquired and liabilities assumed

Book value
Fair value adjustments
Fair value
£
£
£

Fixed assets

Tangible assets
152,802
-
152,802

152,802
-
152,802

Current assets

Debtors
1,909,056
-
1,909,056

Cash at bank and in hand
2,827,981
-
2,827,981

Total assets
4,889,839
-
4,889,839

Creditors

Due within one year
(2,216,067)
-
(2,216,067)

Deferred taxation
(30,301)
-
(30,301)

Total identifiable net assets
2,643,471
-
2,643,471


Non-controlling interests
(258,643)

Goodwill
7,757

Total purchase consideration
2,392,585

Consideration

£


Cash
1,006,662

Cash to satisfy directors loan account
250,000

Deferred consideration (notes 15 and 16)
1,135,923

Total purchase consideration
2,392,585

Page 34

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

20.Business combinations (continued)

Cash outflow on acquisition

£


Purchase consideration settled in cash, as above
1,006,662

1,006,662

Less: cash and cash equivalents acquired
(2,827,981)

Net cash outflow on acquisition
(1,821,319)

The goodwill arising on acquisition is attributable to the difference between the consideration and carrying value of the net assets acquired.

The results of Interworks Europe Group Limited and its subsidiaries since acquisition are as follows:

Current period since acquisition
£

Turnover
8,845,415

Loss for the period since acquisition
(289,811)


21.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £246,655. Contributions totalling £12,858 were payable to the fund at the balance sheet date and are included in creditors.


22.


Commitments under operating leases

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


Group
2023
£

Not later than 1 year
848

848

On 28 June 2024, Interworks Europe Limited entered into a new 6-year lease with annual rent commitments of £26,827.

Page 35

 
INTERWORKS EMEA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

23.


Related party transactions

The Group has taken the exemption under FRS 102, section 33 Related Party Disclosures paragraph 33.1A, whereby the Company is not required to disclose transactions with other wholly owned group undertakings.
During the period, the Group paid £825,119 for consultancy services, and made sales of £94,491 to companies under common control. Balances due from/to these companies at the balance sheet date in respect of these transactions amounted to £32,685 and £202,024 respectively and are included in trade debtors and trade creditors.


24.


Controlling party

The ultimate controlling party is Behfar Jahanshahi.

 
Page 36