Company registration number 02275625 (England and Wales)
COMPUTERLAND UK LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
COMPUTERLAND UK LIMITED
COMPANY INFORMATION
Directors
Capita Corporate Director Limited
G Shilston
Secretary
Capita Group Secretary Limited
Company number
02275625
Registered office
65 Gresham Street
London
England
EC2V 7NQ
COMPUTERLAND UK LIMITED
CONTENTS
Page
Directors' report
1 - 2
Income statement
3
Balance sheet
4 - 5
Statement of changes in equity
6
Notes to the financial statements
7 - 20
COMPUTERLAND UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

Computerland UK 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'.

The Company’s principal activity continued to be that of acting as an agent and is a single point contact for all the IT related procurement of the Group. Hence, the revenue and expenses have been disclosed considering the agent accounting under IFRS 1.

On 1 September 2023, in accordance with the Group’s wider restructuring and entity rationalisation programme, the Directors transferred the Company's technology software and solutions business and associated trade and assets to Capita Shared Services Limited, another Group company, and consequently ceased trading. The Directors plan to liquidate the Company within twelve months from the approval of these financial statements and therefore have prepared the financial statements on the basis that the Company is no longer a going concern.

As shown in Company's income statement on page 3, revenue has decreased from £539,297 in 2022 to £132,433 in 2023 mainly on account of business transfer during the year and the Company's operating profit has reduced from £427,145 in 2022 to an operating loss £564,788 in 2023 mainly on account of higher depreciation of right of use assets and its impairment which is partially set off by the property cost recharge income.

The balance sheet on pages 4 to 5 of the financial statements shows the financial position at the year end. Net assets have decreased from £15,478,727 in 2022 to £5,361,995 in 2023 primarily due to dividend payment to the holding company and gain on business transfer.

Details of the amounts owed by/to its parent company and fellow subsidiary companies are shown in notes 9, 10 and 18 to the financial statements.

Results and dividends

The results for the year are set out on page 3.

Interim dividend of £12,000,000 was paid during the year (2022: £nil).

Directors

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

Capita Corporate Director Limited
G Shilston
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 remains in force as at the date of approving the Directors' report.

Political donations

The Company made no political donations and incurred no political expenditure during the year (2022: £nil).

Post balance sheet date events

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

COMPUTERLAND UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Statement of Directors' responsibilities

The Directors are responsible for preparing 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.

 

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
G Shilston
Director
18 September 2024
COMPUTERLAND UK LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
2023
2022
Notes
£
£
Revenue
3
132,433
539,297
Cost of sales
(90,184)
(24,472)
Gross profit
42,249
514,825
Administrative expenses
(1,526,727)
(773,123)
Other income
5
919,690
685,443
Operating (loss)/profit
4
(564,788)
427,145
Gain on business transfer
19
2,211,106
-
0
Net finance income/(cost)
6
198,588
(123,733)
Profit before tax
1,844,906
303,412
Income tax credit
7
38,362
12,467
Profit and total comprehensive income for the year
1,883,268
315,879

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

The notes and information on pages 7 to 20 form an integral part of these financial statements.

COMPUTERLAND UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 4 -
2023
2022
Notes
£
£
Current assets
Property, plant and equipment
8
151,394
139,177
Right-of-use assets
8
5,619,012
3,688,985
Trade and other receivables
9
6,744,350
21,858,683
Deferred tax assets
459,834
452,449
Total assets
12,974,590
26,139,294
Current liabilities
Trade and other payables
10
98,011
5,632,509
Lease liabilities
11
7,035,124
4,423,734
Financial liabilities
12
-
0
279,580
Provisions
13
372,751
147,814
Income tax payable
106,709
176,930
Total liabilities
7,612,595
10,660,567
Net assets
5,361,995
15,478,727
COMPUTERLAND UK LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
2023
2022
Notes
£
£
- 5 -
Capital and reserves
Issued share capital
14
1
208,971
Share premium
-
0
1,558,557
Retained earnings
5,361,994
13,711,199
Total equity
5,361,995
15,478,727

The notes and information on pages 7 to 20 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 have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

These financial statements were approved by the board of directors and authorised for issue on
18 September 2024
18 September 2024
and are signed on its behalf by:
G Shilston
Director
Company registration number 02275625 (England and Wales)
COMPUTERLAND UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Share capital
Share premium
Retained earnings
Total equity
£
£
£
£
At 1 January 2022
208,971
1,558,557
13,395,320
15,162,848
Profit for the year
-
-
315,879
315,879
At 31 December 2022
208,971
1,558,557
13,711,199
15,478,727
Profit for the year
-
-
1,883,268
1,883,268
Transactions with owners:
Dividends paid
-
-
(12,000,000)
(12,000,000)
Reduction in
(208,970)
(1,558,557)
1,767,527
-
0
At 31 December 2023
1
-
0
5,361,994
5,361,995
Share capital

The balance classified as share capital is the nominal proceeds on issue of the Company's equity share capital, comprising 1 ordinary share of £1.

 

On 25 October 2023, the Company reduced its ordinary share capital to 1 ordinary share of £1 nominal value through the cancellation of 208,970 ordinary shares of £1 each.

Share premium

The amount paid to the Company by the shareholders, in cash or other consideration, over and above the nominal value of the shares issued to them.

 

On 25 October 2023, the Company reduced its entire share premium of £1,558,557 by transferring that to retained earnings.

Retained earnings

Net profits kept to accumulate in the Company after dividends are paid.

 

On 12 December 2023, the Company has paid an interim dividend-in-specie of £12,000,000 to Capita IT Services Holdings Limited.

The notes and information on pages 7 to 20 form an integral part of these financial statements.

COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
1
Accounting policies
1.1
Basis of preparation

Computerland UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 65 Gresham Street, London, England, EC2V 7NQ.

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 financial statements.

On 1 September 2023, in accordance with the Group’s wider restructuring and entity rationalisation programme, the Directors transferred the Company's technology software and solutions business and associated trade and assets to Capita Shared Services Limited, another Group company, and consequently ceased trading. The Directors plan to liquidate the Company within twelve months from the approval of these financial statements and therefore have 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. Consequently the Directors have considered the adjustments required to prepare the financial statement on a breakup basis. The expected realisable and settlement values for assets and liabilities are not considered to be materially different from their carrying value at the balance sheet date. Therefore, the Directors consider 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:

COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 8 -
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 in the service sector rendering IT related procurement services to the Group.

 

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.

 

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.

 

Transactional (Point in time) contracts

The Company delivers goods or services that are transactional for which revenue is recognised at the point-in-time when control of the goods or services has transferred to the customer. This may be at the point of physical delivery of goods and acceptance by a customer or when the customer obtains control of an asset or service in a contract with customer-specified acceptance criteria.

 

Principal versus agent

The Company has arrangements with some of its customers whereby it needs to determine if it acts as a principal or an agent because more than one party is involved in providing the goods and services to the customer. The Company acts as a principal if it controls a promised good or service before transferring that good or service to the customer. The Company is an agent if its role is to arrange for another entity to provide the goods or services. Factors considered in making this assessment are most notably the discretion the Company has in establishing the price for the specified good or service, whether the Company has inventory risk and whether the Company is primarily responsible for fulfilling the promise to deliver the service or good.

 

This assessment of control requires judgement in particular in relation to certain service contracts. Where the Company is acting as a principal, revenue is recorded on a gross basis. Where the Company is acting as an agent revenue is recorded at a net amount reflecting the margin earned.

1.5
Property, plant and equipment

Property, plant and equipment other than freehold land are stated at cost less depreciation and impairment. Freehold land is not depreciated. Depreciation is provided at rates calculated to write-off the cost less estimated residual value of each asset over its expected useful life, as follows:

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 the period of the lease
COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 9 -
1.6
Impairment of tangible assets

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, the Company makes a formal estimate of the asset's recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use is determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

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 settlement 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.

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.

COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -
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.

1.10
Pensions

The Company operates defined contribution pension schemes and contributions are charged to the income statement in the year in which they are due. These pension schemes are funded and the payment of contributions are made to separately administered trust funds. The assets of the pension schemes are held separately from the Company.

 

The Company remits monthly pension contributions to Capita Business Services Limited, a fellow subsidiary undertaking of Capita plc, which pays the group liability centrally. Any unpaid pension contributions at the year end have been accrued in the accounts of that company.

1.11
Leases

The Company has taken land and buildings on lease.

 

The determination whether an arrangement is, or contains, a lease is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. At the inception of the lease, the Company recognises a right-of-use asset at cost, which comprises the present value of minimum lease payments determined at the inception of the lease. Right-of-use assets are depreciated using the straight-line method over the shorter of estimated life or the lease term.

 

Depreciation is included within administrative expenses in the income statement. Amendment to lease terms resulting in a change in payments or the length of the lease results in an adjustment to the right-of-use asset and liability. Right-of-use assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be fully recoverable. Right-of-use assets exclude leases with low values and terms of twelve months or less.

COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -

The Company as a lessee - Right-of-use assets and lease liabilities

The Company recognises lease liabilities where a lease contract exists and right-of-use assets representing the right to use the underlying leased assets. At lease commencement date, the Company recognises lease liabilities measured at the present value of the lease payments to be made over the lease term.

 

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, over a similar term and with a similar security, the funds necessary to acquire an asset of a similar value to the right-of-use asset in a similar economic environment. Incremental borrowing rates are determined monthly and depend on the term, currency and start date of the lease. The incremental borrowing rate is determined based on a series of inputs including: the risk-free rate based on swap market data; a credit risk adjustment; and an entity-specific adjustment. The lease liability is subsequently remeasured (with a corresponding adjustment to the related right-of-use asset) when there is a change in future lease payments due to a renegotiation or market rent review, a change of an index or rate or a reassessment of the lease term.

 

Lease payments are apportioned between a finance charge and a reduction of the lease liability based on the constant interest rate applied to the remaining balance of the liability. Interest expense is included within net finance costs in the income statement. Lease payments comprise fixed payments, including in-substance fixed payments such as service charges and variable lease payments that depend on an index or a rate, initially measured using the minimum index or rate at inception date. The payments also include any lease incentives and any penalty payments for terminating the lease, if it is anticipated that the Company will exercise that option.

 

The lease term determined comprises the non-cancellable period of the lease contract. Periods covered by an option to extend the lease are included if the Company has reasonable certainty that the option will be exercised, and periods covered by an option to terminate are included if it is reasonably certain that this will not be exercised.

 

The Company has elected to apply the practical expedient in IFRS 16 paragraph 15 not to separate non-lease components such as service charges from lease rental charges.

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 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss 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.

COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.13
Common control transactions

Where a business is transferred from one legal entity to another legal entity within the Capita Group under a Business Transfer Agreement ('BTA'), this is treated as a business combination under common control, and would therefore fall outside of the scope of IFRS 3. As such, an accounting policy choice has been made for how common control transactions are dealt with across the Group, as follows:

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 for the year has been derived from its principal activity largely undertaken in the United Kingdom.

4
Operating (loss)/profit
Notes
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
(Income)/expense from foreign exchange differences
(115,172)
10,705
Depreciation of property, plant and equipment
8
34,591
208,542
Depreciation of right-of-use assets
8
403,979
247,307
Loss on disposal of property, plant and equipment
1,487
-
Impairment of right-of-use assets
8
490,804
-
0
Impairment of property, plant and equipment
8
-
0
434,839
5
Other income
2023
2022
£
£
Income from leased properties
919,690
685,443

Other income relates to property cost recharges made to a fellow Group company.

COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
6
Net finance income/(cost)
2023
2022
£
£
Interest income
Interest income on bank balance
4,475
4,933
Interest receivable from Group companies
574,349
128,581
578,824
133,514
Interest expense
Interest expense on lease liabilities
(380,236)
(257,247)
(380,236)
(257,247)
Total net finance income/(cost)
198,588
(123,733)
7
Income tax
The major components of income tax credit are:
2023
2022
£
£
Current tax
UK corporation tax
(73,220)
179,929
Adjustments in respect of prior periods
42,243
-
0
(30,977)
179,929
Deferred tax
Origination and reversal of temporary differences
(7,383)
(136,976)
Adjustment in respect of prior periods
(2)
(55,420)
(7,385)
(192,396)
Total tax credit
(38,362)
(12,467)
COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Income tax
(Continued)
- 14 -

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

2023
2022
£
£
Profit before taxation
1,844,906
303,412
Expected tax charge based on the weighted average Corporation Tax rate of 23.52% (2022: 19.00%)
433,932
57,648
Expenses not deductible for tax purpose
(511,772)
18,179
Non-taxable income
(2,326)
-
0
Impact of changes in statutory tax rates
(437)
(32,874)
Adjustments in respect of deferred income tax of prior years
42,241
(55,420)
Total adjustments
(472,294)
(70,115)
Total tax credit reported in the income statement
(38,362)
(12,467)
Balance sheet
Income statement
2023
2022
2023
2022
£
£
£
£
Deferred tax assets
Decelerated capital allowances
459,167
452,449
(7,385)
(192,396)
Deferred tax assets
459,167
452,449
Deferred tax credit to income statement
(7,385)
(192,396)

A change to the main UK corporation tax rate was substantively enacted on 24 May 2021. The rate applicable from 1 April 2023 increases from 19% to 25%. The deferred tax asset at 31 December 2023 has been calculated based on this rate.

COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
8
Property, plant and equipment
Leasehold improvements
£
Cost
At 1 January 2023
162,237
Additions
48,295
Disposals
(1,487)
At 31 December 2023
209,045
Accumulated depreciation and impairment
At 1 January 2023
23,060
Charge for the year
34,591
At 31 December 2023
57,651
Net book value
At 31 December 2023
151,394
At 31 December 2022
139,177
Right-of-use assets
Land and buildings
£
Net book value at 1 January 2023
3,688,985
Depreciation charge
(403,979)
Impairment
(490,804)
Other movements*
2,824,810
Net book value at 31 December 2023
5,619,012

*Other movements include amendments to existing leases and terminations.

9
Trade and other receivables
Current
2023
2022
£
£
Trade receivables
13,972
24,032
VAT recoverable
62,228
26,656
Amounts due from Group companies
6,618,626
21,753,083
Prepayments
49,524
54,912
6,744,350
21,858,683

The amounts due from Group companies are repayable on demand and are not chargeable to interest, except for amount due from Capita Plc, on which interest is charged as per the prevailing Bank of England rates.

COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
10
Trade and other payables
Current
2023
2022
£
£
Trade payables
24,331
5,492,606
Amount due to Group companies
38,181
128,347
Accruals
35,499
11,556
98,011
5,632,509

The amounts due to fellow subsidiary companies are repayable on demand and are not chargeable to interest.

11
Lease liabilities
2023
2022
£
£
Current liabilities
7,035,124
4,423,734
2023
2022
Amounts recognised in the income statement include the following:
£
£
Interest on lease liabilities
380,236
257,247

The total cash outflow for leases was £594,470 (2022: £427,474) consisting of interest paid of £380,236 (2022: £257,247) and capital element of £214,234 (2022: £170,227).

2023
2022
Maturity analysis - contractual undiscounted cash flows
£
£
Less than one year
613,230
418,918
One to two years
633,220
423,107
More than two years
9,229,370
5,780,868
Total undiscounted liabilities at 31 December
10,475,820
6,622,893
12
Financial liabilities
Current
2023
2022
£
£
Bank overdrafts
-
0
279,580
-
0
279,580
COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
13
Provisions
2023
2022
£
£
Current
372,751
147,814
372,751
147,814
Property
Cost reduction
Total
£
£
£
At 1 January 2023
147,814
-
147,814
Additions made during the year
-
0
372,751
372,751
Released during the year
(71,483)
-
(71,483)
Utilised during the year
(76,331)
-
(76,331)
At 31 December 2023
-
0
372,751
372,751

The property provision is for the forecasted future costs of the part of mothballed area of the property prior to being sublet at a later date during its lease term.

The cost reduction provision relates to unavoidable running costs of leasehold properties, such as insurance and security, and dilapidation provisions, where properties are exited as a result of the cost reduction programme.

14
Share capital
2023
2022
2023
2022
Number
Number
£
£
Allotted, called up and fully paid
Ordinary shares of £1 each
At 1 January 2023
208,971
208,971
208,971
208,971
Cancellation of share capital
(208,970)
-
(208,970)
-
At 31 December 2023
1
208,971
1
208,971

The balance classified as share capital is the nominal proceeds on issue of the Company's equity share capital, comprising 1 ordinary share of £1.

 

On 25 October 2023, the Company reduced its ordinary share capital to 1 ordinary share of £1 nominal value through the cancellation of 208,970 ordinary shares of £1 each.

COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
15
Employees

The average monthly number of employees (including directors) year were:

2023
2022
Number
Number
Operations
-
0
2
Administration
2
1
Total
2
3

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
43,330
68,528
Social security costs
4,362
7,769
Pension costs
2,218
3,149
49,910
79,446

The above includes payroll costs for temporary staff as well as recharges from other Group entities in respect of various services received by the Company throughout the year.

16
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.

17
Employee benefits

The pension charge for the defined contribution pension schemes for the year is £2,218 (2022: £3,149).

COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
18
Related party transactions

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

Sale of goods
Purchase of goods
2023
2022
2023
2022
£
£
£
£
Entities with joint control or significant influence over the Company -
Entrust Support Services Limited
278,359
549,314
25,644
8,303
RE (Regional Enterprise) Limited
-
623
-
-
Fera Science Limited
487
-
-
-
Smart DCC Limited
375
-
-
-
279,221
549,937
25,644
8,303

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Entrust Support Services Limited
-
0
1,116
19
Common control transaction

As a part of the legal entity reorganisation programme within the Capita Group, the trade and assets related to technology software and solutions business and group support services business were transferred into Capita Shared Services Limited (CSSL) within the Group by way of a Business Transfer Agreement (“BTA”) at the assessed market value. As both transferor and transferee entities for these BTAs were ultimately controlled by Capita plc, these are deemed to be business combinations under common control, with an accounting policy choice made as detailed in note 1.13. The following table shows the gross assets and gross liabilities transferred as part of the BTA:

 

 

Name of company

Date of

transfer

Assets

£

Liabilities

£

Consideration*

£

Gain on BTA

£

Capita Shared Services

Limited

1 September

2023

(3,715,016)

3,893,207

(2,032,915)

(2,211,106)

 

* Consideration was settled via intercompany loan

20
Controlling party

The Company's immediate parent company is Capita IT Services Holdings Limited, a company incorporated in England and Wales.

 

The Company's ultimate parent company is Capita plc, a company incorporated in England and Wales. The consolidated financial statements of Capita plc are available from its registered office 65 Gresham Street, London, United Kingdom, EC2V 7NQ.

COMPUTERLAND UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
21
Post balance sheet date events

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

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