Company registration number 01593831 (England and Wales)
CAPITA SECURE INFORMATION SOLUTIONS LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CAPITA SECURE INFORMATION SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
D Howitt on behalf of Capita Corporate Director Limited
A Whalley
Secretary
Capita Group Secretary Limited
Company number
01593831
Registered office
65 Gresham Street
London
England
EC2V 7NQ
Banker
Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP
CAPITA SECURE INFORMATION SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1 - 6
Directors' report
7 - 8
Income statement
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
CAPITA SECURE INFORMATION SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The Directors present the Strategic Report and financial statements for the year ended 31 December 2023.

Principal activities

Capita Secure Information Solutions Limited (“the Company”) is a wholly owned subsidiary (indirectly held) of Capita plc. Capita plc along with its subsidiaries are hereafter referred to as “the Group”.

 

After the transfer of its entire Public Services business and Technology, Software and Solution (TSS) business to fellow group companies pursuant to a business and assets transfer agreement ('BTA'), the Company has consequently ceased trading in 2022. Accordingly, the Director’s after careful review of future business have concluded that the use of going concern for the preparation of the financial statement is not appropriate.

Review of the business

With effect from 1 October 2023, the Company’s immediate parent company, Capita Justice & Secure Services Holdings Limited, transferred its 100% shareholding in the Company to Capita Business Services Ltd, a fellow Group subsidiary Company.

 

As shown in Company's income statement on page 9, the Company's profit before tax has reduced from £26,251,864 in 2022 to a loss before tax of £4,685,173 in 2023 mainly on account of impairment of intercompany receivables and loss on disposal of subsidiaries.

The balance sheet on page 10 of the financial statements shows the financial position at the year end. Net assets decreased from £73,382,409 in 2022 to £68,522,659 in 2023 on account of losses incurred during the year.

 

Details of the amounts owed by/to its parent company and fellow subsidiary companies are shown in notes 11 and 13 to the financial statements.

 

The Company has not identified any key performance indicators due to the nature of its operations described in the principal activities section above.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The Company is exposed to a range of risks that, should they materialise, could have a detrimental impact on financial performance, reputation or operational resilience. The Company’s risk management framework provides a consistent approach to the identification, assessment, monitoring and reporting of risks and opportunities. The risk management process is based on risk registers and risk reporting at the established risk governance committees. Key risks are documented in the risk registers and have assigned risk owners who review them regularly, and report on them at least quarterly, as part of the risk reporting process. The strength of existing controls is evaluated to determine whether any further mitigating actions are needed to manage the risk level to within the risk appetite set by the Board.

 

The principal risks for the Company are:

 

Cyber security

Protect our systems, networks and programs from unauthorised use and access.

 

Safety and Health

Protect the safety, health and duty of care of all Capita’s employees, the people we work with and those affected by our acts and omissions.

 

Data governance and data privacy

Manage our data effectively (both clients and Capita) as a strategic asset across the organisation.

 

As a subsidiary of Capita plc, the Company is subject to controls and risk governance techniques applied across all the Group's businesses. Details of the specific risk assessments and mitigating actions are outlined on pages 57-63 of the Group's 2023 Annual Report.

Section 172 statement
Capita plc's section 172 statement applies to both the Division and the Company to the extent it relates to the Company's activities. Common policies and practices are applied across the Group through divisional management teams and a common governance framework. The following disclosure describes how the Directors have regard to the matters set out in section 172(1)(a) to (f) and forms the Directors' statement as required under section 414CZA of the Companies Act 2006.

Further details of the Group's approach to each stakeholder are provided in Capita plc's section 172 statement on pages 45, 46 and 47 of Capita plc's 2023 Annual Report.
CAPITA SECURE INFORMATION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

Our People

 

Why they are important

They deliver our business strategy; they support the organisation to build a values-based culture; and they deliver our products and services ensuring client satisfaction.

 

What matters to them

Flexible working; learning and development opportunities leading to career progression; fair pay and benefits as a reward for performance; and two-way communication and feedback.

 

How we engaged

 

Topics of engagement

 

Outcomes and actions

The 2023 employee survey showed key indices had either improved or remained steady with a five-point increase in the eNPS compared with 2022. 63% of colleagues who responded felt proud to work at Capita. We are developing and delivering a range of action plans, including ensuring our leaders feel confidence in, and ownership of Capita’s strategy, plans and successes, developing inclusive opportunities for internal career mobility.

 

In December 2023, the Board agreed that while the appointment of employee directors had been successful, it was appropriate for the Board to consider a wider level of engagement with colleagues, including site visits arranged for individual directors to meet with local management and colleagues at Capita’s businesses. In addition, the Board has appointed Nneka Abulokwe as the designated non-executive director to engage with colleagues. Adolfo Hernandez, our new CEO, has also commenced a series of breakfast sessions to meet with colleagues of differing seniority and at different locations throughout the Group. Janine Goodchild stepped down from the Board as an employee director on 31 December 2023.

 

The UK real living wage increase was applied from 1 April 2023. At the end of 2023, we took the difficult decision to withdraw from the UK’s real living wage. Since 2020, the Group has increased the salaries of our lowest earners by 22% and the 2024 real living wage increase of 10.1% was not something we could commit to given the need for Capita to remain cost competitive and reflecting the fact that this is not a cost we are able to pass on to clients.

 

The global career path framework which defines career levels, career job content, and reward framework within Capita was launched during the year..

 

In October 2023, Capita was recognised by Forbes, as being one of the top companies for women, ranking at number 18 out of 400 global companies on their list. We continued to promote our Speak Up policy throughout the organisation.

 

Risks to stakeholder relationship

 

Key metrics

Voluntary attrition, employee NPS, employee engagement Index and people survey completion level.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

Clients and customers

 

Why they are important

They are recipients of Capita’s services; and Capita’s reputation depends on consistent and timely delivery of the services they need from us.

 

What matters to them

High-quality service delivery; delivery of transformation projects within agreed timeframes; and responsible and sustainable business credentials.

 

How we engaged

 

Topics of engagement

 

Outcomes and actions

Feedback provided to business units to address any issues raised; client value proposition teams supporting divisions with co-creation ideas; direct customer and sector feedback; and senior client partner programme undertaking client-focused growth sprints to build understanding of client issues and ideas to help address them.

 

Risks to stakeholder relationship

 

Key metrics

Customer NPS; specific feedback on client engagements.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

Suppliers and Partners

 

Why they are important

They share our values and help us deliver our purpose; maintain high standards in our supply chain; and achieve social, economic and environmental benefits aligned to the Social Value Act. Our suppliers and partners provide additional expertise, skill and technology, elevating our offering.

 

What matters to them

Payments made within agreed payment terms; clear and fair procurement process; building lasting commercial relationships; and working inclusively with all types of business.

 

How we engaged

 

Topics of engagement

 

Outcomes and actions

Our supplier charter, which is available on our website, remains at the core of strengthening our commitments and sets out how we conduct business in an open, honest and transparent manner, and what we expect of our suppliers. This year, it was refreshed and relaunched.

 

To understand Capita’s Scope 3 carbon footprint, a supplier engagement programme was also undertaken with suppliers accounting for £1bn annual spend (over 50% of the supply chain by spend) to ask them to disclose their carbon emissions to CDP.

 

During 2023, 99% of our suppliers were paid within 60 days.

 

Risks to stakeholder relationship

 

Key metrics

99% of supplier payments within agreed terms; SME spend allocation; and supplier diversity profile.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

Society

 

Why they are important

Capita is a provider of key services to government impacting a large proportion of the population.

 

What matters to them

Social mobility; youth skills and jobs; digital inclusion; diversity and inclusion; climate change; business ethics; accreditations and benchmarking; and cost of living crisis.

 

How we engaged

 

Topics of engagement

 

Outcomes and actions

Youth and employability programme such as Social Shifters; ranked 18 on the Forbes Global list of top employers for women; a 5% reduction in our gender pay gap (compared with 2022); awarded Employer’s Network for Equality and Inclusion; achieved a silver Tidemark and an A CDP (Carbon Disclosure Project) score as well as a silver medal in EcoVadis for Capita plc.

 

Risks to stakeholder relationship

 

Key metrics

Community investment, workforce diversity and ethnicity data, including pay gaps.

On behalf of the board

D Howitt on behalf of Capita Corporate Director Limited
Director
5 September 2024
CAPITA SECURE INFORMATION SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -

The Directors present their Directors’ report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 9.

The Company has not paid or proposed any interim or final dividend during the year (2022: £nil).

Directors

The Directors who held office during the year and up to the date of signature of the financial statements were as follows:

D Howitt on behalf of Capita Corporate Director Limited
J Cowan
(Resigned 2 May 2023)
S Frewing
(Resigned 4 April 2024)
A Whalley
(Appointed 30 May 2024)
Qualifying third party indemnity provisions

The Company has granted an indemnity to the Directors of the Company against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. This qualifying third-party indemnity provision remains in force as at the date of approving the Directors' report.

Employee involvement

The Company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

Details of number of employees and related costs can be found in note 17 to the financial statements.

 

Post balance sheet date events

There are no significant events which have occurred after the reporting period.

Environment

The Company recognises the importance of its environmental responsibilities, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by the it’s activities. The Company operates in accordance with Group policies, which are described in the Group’s 2023 annual report that does not form part of this report. Initiatives designed to minimise the Company’s impact on the environment include safe disposal of waste, recycling and reducing energy consumption.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Statement of Directors' responsibilities

The Directors are responsible for preparing the Strategic Report, the Directors’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 101 Reduced Disclosure Framework.

Under company law the Directors must not approve the financial statements unless they are 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 Directors are required to:     

 

The Directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

 

Strategic report

In accordance with s414c(11) of the Companies Act 2006, the Company has set out certain information in its Strategic report that is otherwise required to be disclosed in the Directors' report. This includes information regarding results and activities and a description of the principle risks and uncertainties facing the Company.

On behalf of the board
D Howitt on behalf of Capita Corporate Director Limited
Director
5 September 2024
CAPITA SECURE INFORMATION SOLUTIONS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Revenue
3
-
32,316,040
Cost of sales
-
0
(26,583,367)
Gross profit
-
5,732,673
Administrative expenses
(390,309)
(6,549,766)
Operating loss
4
(390,309)
(817,093)
Investment (expenses)/ income
5
(344,693)
27,291,825
Impairments
6
(3,864,956)
(851,416)
Net finance (cost)/income
7
(85,215)
628,548
(Loss)/profit before tax
(4,685,173)
26,251,864
Income tax (charge)/credit
8
(174,577)
127,926
(Loss)/profit and total comprehensive (expense)/income for the year
(4,859,750)
26,379,790

The income statement has been prepared on the basis that the Company has ceased all its operations.

The notes and information on pages 12 to 24 form an integral part of these financial statements.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
Current assets
Property, plant and equipment
9
-
0
833
Trade and other receivables
11
69,178,616
81,618,749
Cash and cash equivalents
12
46,000
-
0
Deferred tax assets
-
0
1,161,396
Income tax receivable
870,934
-
0
Total assets
70,095,550
82,780,978
Current liabilities
Trade and other payables
13
1,572,891
7,180,205
Financial liabilities
14
-
0
490,797
Provisions
15
-
0
612,754
Income tax payable
-
0
1,114,813
Total liabilities
1,572,891
9,398,569
Net assets
68,522,659
73,382,409
Capital and reserves
Issued share capital
16
3,036,847
3,036,847
Capital redemption reserve
8,196,023
8,196,023
Retained earnings
57,289,789
62,149,539
Total equity
68,522,659
73,382,409

The notes and information on pages 12 to 24 form an integral part of these financial statements.

For the financial year ended 31 December 2023, the Company was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.

The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the Company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements were approved by the board of directors and authorised for issue on
5 September 2024
05 September 2024
and are signed on its behalf by:
D Howitt on behalf of Capita Corporate Director Limited
Director
Company registration number 01593831 (England and Wales)
CAPITA SECURE INFORMATION SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Capital redemption reserve
Retained earnings
Total equity
£
£
£
£
At 1 January 2022
3,036,847
8,196,023
35,769,749
47,002,619
Profit for the year
-
-
26,379,790
26,379,790
Transactions with owners:
Contribution in respect of share based payment charge
-
-
135,119
135,119
Settlement of share based payment charged by intercompany
-
-
(135,119)
(135,119)
At 31 December 2022
3,036,847
8,196,023
62,149,539
73,382,409
Loss for the year
-
-
(4,859,750)
(4,859,750)
Transactions with owners:
Contribution in respect of share based payment charge
-
-
15,181
15,181
Settlement of share based payment charged by intercompany
-
-
(15,181)
(15,181)
At 31 December 2023
3,036,847
8,196,023
57,289,789
68,522,659
Share capital

The nominal proceeds on issue of the Company's equity share capital, comprising 3,036,847 ordinary shares of £1.

Capital redemption reserve

The Company can redeem shares by repaying the market value to the shareholder, whereupon the shares are cancelled. Redemption must be from distributable profits. The capital redemption reserve represents the nominal value of the shares redeemed.

Retained earnings

Net profits kept to accumulate in the Company after dividends are paid and retained in the business as working capital.

The notes and information on pages 12 to 24 form an integral part of these financial statements.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
1.1
Basis of preparation

Capita Secure Information Solutions Limited is a private company limited by shares incorporated in England and Wales.

In determining the appropriate basis of preparation for the annual report and financial statements for the year ended 31 December 2023, the Company’s Directors (‘the Directors’) are required to consider whether the Company can continue in operational existence for the foreseeable future, being a period of at least twelve months following the approval of these accounts.

 

The principal activity of the Company ceased when the business was transferred to other group subsidiaries on 1 November 2022. The Directors have therefore prepared the financial statements on the basis that the Company is no longer a going concern.

 

The financial statements have been prepared on a breakup basis as at 31 December 2023. As a consequence, the Directors have considered the adjustments required to prepare the financial statement on a breakup basis. The expected realisable and settlement values for current assets and liabilities are not considered to be materially different from their carrying value at the balance sheet date. Therefore, the Directors have considered that no further adjustments are required as a result of preparing the financial statements on a breakup basis.

1.2
Compliance with accounting standards

The Company has applied FRS101 – Reduced Disclosure Framework in the preparation of its financial statements.

 

The Company has prepared and presented these financial statements by applying the recognition, measurement and disclosure requirements of international accounting standards in conformity with the requirements of the Companies Act 2006 .

 

The Company's ultimate parent company, Capita plc, includes the Company in its consolidated statements. The consolidated financial statements are prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and with UK-adopted International Financial Reporting Standards ('IFRSs') and the Disclosure and the Transparency Rules of the UK's Financial Conduct Authority. They are available to the public and may be obtained from Capita plc’s website on https://www.capita.com/investors .

 

In these financial statements, the Company has applied the disclosure exemptions available under FRS 101 in respect of the following disclosures:

 

Since the consolidated financial statements of Capita plc include equivalent disclosures, the Company has also taken the disclosure exemptions under FRS 101 available in respect of the following disclosure:

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.3
Change in accounting policies

The Company has adopted the new amendments to standards detailed below but they do not have a material effect on the Company's financial statements.

New amendments or interpretations

Effective date

IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts

1 January 2023

Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)    

1 January 2023

Definition of Accounting Estimates (Amendments to IAS 8)

1 January 2023

Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)

1 January 2023

International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12)

1 January 2023

1.4
Revenue

The Company operates a number of businesses and therefore it uses a variety of methods for revenue recognition based on the principles set out in IFRS 15. Many of the contracts entered are long term and complex in nature given the breadth of solutions the Company offers.

 

The revenue and profits recognised in any period are based on the delivery of performance obligations and an assessment of when control is transferred to the customer.

 

In determining the amount of revenue and profits to record, and related balance sheet items (such as contract fulfilment assets, capitalisation of costs to obtain a contract, trade receivables, accrued income and deferred income) to recognise in the period, management is required to form a number of key judgements and assumptions. This includes an assessment of the costs the Company incurs to deliver the contractual commitments and whether such costs should be expensed as incurred or capitalised. These judgements are inherently subjective and may cover future events such as the achievement of contractual milestones, performance KPIs and planned cost savings. In addition, for certain contracts, key assumptions are made concerning contract extensions and amendments, as well as opportunities to use the contract developed systems and technologies on other similar projects.

 

Revenue is recognised either when the performance obligation in the contract has been performed (so 'point in time' recognition) or 'over time' as control of the performance obligation is transferred to the customer.

 

For all contracts, the Company determines if the arrangement with a customer creates enforceable rights and obligations. This assessment results in certain Master Service Agreements (‘MSA’s’) not meeting the definition of a contract under IFRS 15 and as such the individual call-off agreements, linked to the MSA, are treated as individual contracts.

 

The Company enters into contracts which contain extension periods, where either the customer or both parties can choose to extend the contract or there is an automatic annual renewal, and/or termination clauses that could impact the actual duration of the contract. Judgement is applied to assess the impact that these clauses have when determining the appropriate contract term. The term of the contract impacts both the period over which revenue from performance obligations may be recognised and the period over which contract fulfilment assets and capitalised costs to obtain a contract are expensed.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Property, plant and equipment

Property, plant and equipment are stated at cost less depreciation.

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:

Leasehold improvements
over life of the lease
1.6
Investments

The Company has investments in subsidiaries.

 

Investments in subsidiaries are initially recorded at cost. Subsequently they are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

 

At each balance sheet date, the Company assesses whether there are indicators to reverse the previously recognised impairment loss. The reversals of impairment are only recognised where there has been a change in the estimates used to determine the investment’s recoverable amount since the last impairment loss was recognised.

1.7
Financial instruments

Trade and other receivables

Trade and other receivables have been measured and presented at their expected realisable values.

 

Trade and other payables

Trade and other payables have been measured and presented at their expected realisable values.

 

Cash and cash equivalents

Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with original maturities of three months or less that are readily convertible in to known amounts of cash and which are subject to an insignificant risk of change in value. Bank overdrafts are shown within current financial liabilities.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.8
Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

 

Deferred tax is provided, using the liability method, on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

 

Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax assets and unused tax losses can be utilised, except where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

 

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

 

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

1.9
Provisions

Provisions are recognised when the Company has a present legal or constructive obligation arising from past events, it is probable that cash will be paid to settle it, and the amount can be estimated reliably.

 

If the effect of the time value of money is material, provisions are discounted using the yield on government bonds which have a similar timing and currency of cash flows to the provision being discounted. Where required adjustments are made to the yields to reflect the risks specific to the cash flows being discounted. The unwinding of the discount is recognised as a financing cost in the income statement.

 

The value of the provision is determined based on assumptions and estimates in relation to the amount, timing and likelihood of actual cash flows, which are dependent on future events. Where no reliable basis of estimation can be made, no provision is recorded. However, contingent liabilities disclosures are given when there is a greater than remote probability of outflow of economic benefits.

 

On an ongoing basis, management monitor provisions and their accurate estimation when compared to final outcomes.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.10
Share-based payments

The fair value of the equity instrument granted is measured at grant date and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined using an option pricing model, only taking into account vesting conditions linked to the price of the shares of the Company (market conditions).

 

No expense is recognised for awards that do not ultimately vest as a result of not meeting performance or service conditions. Where all service and performance vesting conditions are met, the awards are treated as vesting, irrespective of whether or not the market condition is satisfied, since market conditions have been reflected in the fair value of the equity instruments.

 

At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management’s best estimate of the achievement or otherwise of non-market conditions, the number of equity instruments that will ultimately vest or, in the case of an instrument subject to a market condition, be treated as vesting as described above. The movement in cumulative expense since the previous balance sheet date is recognised in the income statement, with a corresponding adjustment to equity.

 

Where the terms of an award are modified or a new award is designated as replacing a cancelled or settled award, the cost based on the original award terms continues to be recognised over the original vesting period adjusted for the incremental fair value of any modification i.e., the difference between the fair value of the original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognised if this difference is negative.

 

Where an award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in the income statement for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from equity, with any excess over the fair value being treated as an expense in the income statement.

1.11
Leases

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of twelve months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in the income statement on a straight-line basis over the lease term.

1.12
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into British pounds sterling at the rates of exchange ruling at the balance sheet date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. All foreign exchanges gains/losses are recognised in the income statement.

1.13
Group accounts

These financial statements present information about the Company as an individual company and not about its Group. The Company has not prepared Group accounts because it is fully exempt from the requirement to do so by section 400 of the Companies Act 2006 since it is a subsidiary company of Capita plc, a company incorporated in England and Wales, and is included in the consolidated financial statements of that company.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2
Significant accounting judgements, estimates and assumptions

The preparation of financial statements in accordance with generally accepted accounting principles requires the Directors to make judgements and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported income and expense during the presented periods. Although these judgements and assumptions are based on the Directors’ best knowledge of the amount, events or actions, actual results may differ.

3
Revenue

The total revenue of the Company in the previous year was derived from its principal activity primarily undertaken in the United Kingdom.

4
Operating loss
Notes
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Expense/(income) from foreign exchange differences
264,919
(538,280)
Depreciation of property, plant and equipment
9
31
684,229
Depreciation of right-of-use assets
9
-
233,339
Loss on disposal of property, plant and equipment
802
-
Short term lease rentals
-
0
80,780
5
Investment (expenses)/ income
2023
2022
£
£
Dividend income from shares in subsidiary companies
-
0
851,416
Net (loss)/ income on disposal of investments
(344,693)
26,994,439
Business disposal costs
-
(554,030)
(344,693)
27,291,825

On 7 June 2023, the Company agreed to sell its 100% shareholding in its subsidiaries Capita Retain Limited and Capita Workforce Management Limited to Adv People Holding Limited (‘Adv’).

 

The sale was completed on 31 July 2023, with a consideration of £10,088,648 received from Adv of which £8,869,858 was utilised to settle liabilities owed to the Capita group entities by the subsidiary against which it incurred disposal costs of £1,563,483 resulting in a loss on disposal of £344,693.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
6
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in the income statement:

2023
2022
£
£
Impairment of investments in subsidiaries
-
0
851,416
Impairment of trade and other receivables
3,864,956
-
0
3,864,956
851,416

 

In 2023, the Company wrote-off receivables from Capita Retain Limited which were offset by the write back of payables.

7
Net finance (cost)/income
2023
2022
£
£
Interest income
Interest receivable from Group companies
-
0
637,088
-
0
637,088
Interest expense
Interest expense on bank overdrafts and loans
(85,215)
(4,811)
Interest expense on lease liabilities
-
(3,729)
(85,215)
(8,540)
Total net finance (cost)/income
(85,215)
628,548
8
Income tax
The major components of income tax charge/(credit) are:
2023
2022
£
£
Current tax
UK corporation tax
(82,352)
115,887
Adjustments in respect of prior periods
(904,467)
285,998
(986,819)
401,885
Deferred tax
Origination and reversal of temporary differences
(209)
(146,599)
Adjustment in respect of prior periods
1,161,605
(383,212)
1,161,396
(529,811)
Total tax charge/(credit)
174,577
(127,926)
CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Income tax
(Continued)
- 19 -

The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:

2023
2022
£
£
(Loss)/profit before taxation
(4,685,173)
26,251,864
Expected tax (credit)/charge based on the weighted average Corporation Tax rate of 23.52% (2022: 19.00%)
(1,101,953)
4,987,854
Expenses not deductible for tax purpose
1,022,367
307,330
Non-taxable income
(13,856)
(5,290,712)
Losses on discontinued operations not recognised
10,893
-
0
Adjustment in respect of prior years
257,138
(97,214)
Impact of changes in statutory tax rates
(12)
(35,184)
Total adjustments
1,276,530
(5,115,780)
Total tax charge/(credit) reported in the income statement
174,577
(127,926)
Balance sheet
Income statement
2023
2022
2023
2022
£
£
£
£
Deferred tax assets
Decelerated capital allowances
-
0
185,716
185,716
1,298,526
Tax losses
-
0
971,371
971,371
(1,848,227)
Other short term timing difference
-
0
4,309
4,309
19,890
Deferred tax assets
-
0
1,161,396
Deferred tax charge/(credit) to income statement
1,161,396
(529,811)

The Company has gross unrecognised losses of £46,313 (2022: £nil) in the statutory accounts due to the uncertainty of future use.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
9
Property, plant and equipment
Leasehold improvements
£
Cost
At 1 January 2023
925
Disposals
(925)
At 31 December 2023
-
0
Accumulated depreciation and impairment
At 1 January 2023
92
Charge for the year
31
Disposals
(123)
At 31 December 2023
-
0
Net book value
At 31 December 2023
-
0
At 31 December 2022
833
10
Investments
Investments
£
Cost
At 1 January 2023
4,851,419
Derecognition ▼
(4,851,416)
Disposals ◄
(2)
At 31 December 2023
1
Impairment
At 1 January 2023
4,851,419
Derecognition
(4,851,416)
Disposals ◄
(2)
At 31 December 2023
1
Net book value
At 31 December 2023
-
At 31 December 2022
-
CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Investments
(Continued)
- 21 -

Details of the Company's direct and indirect subsidiaries at 31 December 2023 are:

Name of Company

 

Address

Nature of Business

Class of shares

Direct (%)

Indirect (%)

Retain International (Holdings) Limited

 

65 Gresham Street, London, England, EC2V 7NQ

Dormant

Ordinary

100

 

Retain International Limited

 

65 Gresham Street, London, England, EC2V 7NQ

Dormant

Ordinary

 

100

 

 

 

 

 

 

 

▼ The Company has derecognised its investments of £2,666,600 in Call Vision Technologies Ltd, £1,333,400 in Emercom Ltd, £851,416 in Security Watchdog Limited following their dissolution in accordance with the wider Group restructuring plan. There is no impact on the income statement in the current year or the net book value of the investments as a result of this derecognition.

◄ During the year, the Company disposed of its subsidiaries Capita Retain Limited and Capita Workforce Management Limited to Adv People Holding Limited.

11
Trade and other receivables
Current
2023
2022
£
£
Trade receivables
1,549,620
1,670,933
VAT recoverable
52,688
100,568
Amounts due from Group companies
67,576,308
79,820,705
Other receivables
-
0
290
Accrued income
-
0
5,566
Prepayments
-
0
20,687
69,178,616
81,618,749

Amounts due from parent and fellow subsidiary companies are repayable on demand and are not chargeable to interest. For 2022, the amounts due from Capita Plc were charged interest as per the prevailing Bank of England rates.

12
Cash and cash equivalents
2023
2022
£
£
Cash at bank and in hand
46,000
-
0
46,000
-
0
CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
13
Trade and other payables
Current
2023
2022
£
£
Trade payables
1,572,891
1,549,620
Amount due to Group companies
-
0
5,529,913
Accruals
-
0
98
Other payables
-
0
100,574
1,572,891
7,180,205
14
Financial liabilities
Current
2023
2022
£
£
Bank overdrafts
-
0
490,797
-
0
490,797
15
Provisions
2023
2022
£
£
Current
-
612,754
-
0
612,754
Dilapidations
Business exit
Total
£
£
£
At 1 January 2023
523,398
89,356
612,754
Additions made during the year
-
0
1,472
1,472
Released during the year
(123,398)
-
0
(123,398)
Utilised during the year
(400,000)
(90,828)
(490,828)
At 31 December 2023
-
0
-
0
-
0

 

The Company is required to perform repairs on leased properties prior to the properties being vacated at the end of their lease term. Dilapidation provisions for such costs are made where a legal obligation is identified, and the liability can be reasonably quantified.

 

Business exit provision relates to the costs of exiting businesses through disposal or closure including professional fees related to business exits and the costs of separating the businesses being disposed.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
16
Share capital
2023
2022
2023
2022
Number
Number
£
£
Allotted, called up and fully paid
Ordinary shares of £1 each
At 1 January and 31 December
3,036,847
3,036,847
3,036,847
3,036,847
17
Employees

The average monthly number of employees were:

2023
2022
Number
Number
Sales
-
0
2
Operational
1
7
Administration
1
172
Total
2
181

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
756
6,137,676
Social security costs
114
1,156,257
Pension costs
-
0
503,274
Share based payments
15,181
135,119
16,051
7,932,326
18
Directors' remuneration

For the year ended 2023, all Directors are paid by other companies within the Capita Group. The Company has not paid any fees or other remuneration to the Group based Directors related to the directorship role they provided to the Company as a part of their Group-wide executive management role. The Company has estimated that allocation of the qualifying services that these Group based Directors provided to the Company is inconsequential.

CAPITA SECURE INFORMATION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
19
Related party transactions

During the year the Company entered into the following transactions with related parties:

Purchase of goods/services
2023
2022
£
£
Entrust Support Services Limited
-
509

As at 31 December 2023, no amounts were outstanding to Entrust Support Services Limited.

20
Controlling party

The Company's immediate parent company is Capita Business Services Ltd., a company incorporated in England and Wales. The Company's ultimate parent company is Capita plc, a Company incorporated in England and Wales. The accounts of Capita plc are available from the registered office at 65 Gresham Street, London, England, EC2V 7NQ.

21
Post balance sheet date events

There are no significant events which have occurred after the reporting period.

2023-12-312023-01-01D Howitt on behalf of Capita Corporate Director LimitedJ CowanS FrewingA WhalleyCapita Group Secretary LimitedfalseCCH SoftwareiXBRL Review & Tag 2022.2The members have not required the Company to obtain an audit of its financial statements for the year in question in accordance with section 476.The company is not entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companiesThe accounts have not been prepared in accordance with the provisions of the small companies regime015938312023-01-012023-12-3101593831bus:Director12023-01-012023-12-3101593831bus:Director42023-01-012023-12-3101593831bus:CompanySecretary12023-01-012023-12-3101593831bus:Director22023-01-012023-12-3101593831bus:Director32023-01-012023-12-3101593831bus:RegisteredOffice2023-01-012023-12-3101593831bus:Agent12023-01-012023-12-31015938312023-12-31015938312022-01-012022-12-310159383112023-01-012023-12-310159383112022-01-012022-12-3101593831core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31015938312022-12-3101593831core:CurrentFinancialInstruments2023-12-3101593831core:CurrentFinancialInstruments2022-12-3101593831core:ShareCapital2023-12-3101593831core:ShareCapital2022-12-3101593831core:CapitalRedemptionReserve2023-12-3101593831core:CapitalRedemptionReserve2022-12-3101593831core:RetainedEarningsAccumulatedLosses2023-12-3101593831core:RetainedEarningsAccumulatedLosses2022-12-3101593831core:ShareCapital2021-12-3101593831core:CapitalRedemptionReserve2021-12-3101593831core:RetainedEarningsAccumulatedLosses2021-12-31015938312021-12-3101593831core:CapitalRedemptionReserve2023-01-012023-12-3101593831core:LeasedAssets2023-01-012023-12-3101593831core:LeasedAssets2022-01-012022-12-3101593831core:ContinuingOperations2023-01-012023-12-3101593831core:AcceleratedTaxDepreciationDeferredTax2023-12-3101593831core:AcceleratedTaxDepreciationDeferredTax2022-12-3101593831core:TaxLossesCarry-forwardsDeferredTax2023-12-3101593831core:TaxLossesCarry-forwardsDeferredTax2022-12-3101593831core:OtherDeferredTax2023-12-3101593831core:OtherDeferredTax2022-12-3101593831core:AcceleratedTaxDepreciationDeferredTax2023-01-012023-12-3101593831core:AcceleratedTaxDepreciationDeferredTax2022-01-012022-12-3101593831core:TaxLossesCarry-forwardsDeferredTax2023-01-012023-12-3101593831core:TaxLossesCarry-forwardsDeferredTax2022-01-012022-12-3101593831core:OtherDeferredTax2023-01-012023-12-3101593831core:OtherDeferredTax2022-01-012022-12-3101593831core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2022-12-3101593831core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2023-12-3101593831core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3101593831core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2022-12-3101593831core:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities2022-12-3101593831core:FurtherSpecificTypeProvisionContingentLiability3ComponentTotalProvisionsContingentLiabilities2022-12-3101593831core:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities2023-12-3101593831core:FurtherSpecificTypeProvisionContingentLiability3ComponentTotalProvisionsContingentLiabilities2023-12-3101593831core:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities2023-01-012023-12-3101593831core:FurtherSpecificTypeProvisionContingentLiability3ComponentTotalProvisionsContingentLiabilities2023-01-012023-12-310159383112023-01-012023-12-3101593831bus:PrivateLimitedCompanyLtd2023-01-012023-12-3101593831bus:FRS1012023-01-012023-12-3101593831bus:AuditExempt-NoAccountantsReport2023-01-012023-12-3101593831bus:EntityNoLongerTradingButTradedInPast2023-01-012023-12-3101593831bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP