Company registration number 05247414 (England and Wales)
HASGROVE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
HASGROVE LIMITED
COMPANY INFORMATION
Directors
P Sanders
G Taylor
S Dance
Company number
05247414
Registered office
5th Floor
24 Mount Street
Manchester
M2 3NX
Auditor
Champion Accountants LLP
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
HASGROVE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 29
HASGROVE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

 

Principal Activities

The principal activity of the group during the year continues to be the development and licensing of intranet software as a service and the provision of related professional services.

 

It’s principal subsidiary, Interact, is a market leader and is the only vendor to be named a leader by Gartner, IDC and Clearbox.

Overview and Strategy

During the reporting period the group’s operating companies, Odyssey Interactive Limited and its subsidiaries Interact Intranet, Inc and Sideways6. (together 'Interact'), have delivered significant growth in bookings (sales orders) and gross profit whilst also delivering significant strategic progress. The group has benefited from strong growth in enterprise-size customers.

 

Interact has performed extremely well and continues to grow sales orders, revenues and profits As with prior years there is a continuing increase in deferred income, which will be recognised as revenue for statutory purposes in future periods. As at 31 December 2023 the figure for deferred income, included in creditors due within one year, was £18.3m (2022: £15.7m).

 

The number of shares in issue at the end of the year was 6,303,758 (2022: 6,676,719).

 

On 6th April 2023 the group acquired the entire share capital of, Sideways 6 Limited. (“S6”), a cloud software ideation company works with companies of all sizes to assist engagement with employees, enabling innovation by sharing and implementing the best ideas thereby delivering improvements.

 

Risks

The principal risk facing the group relates to any unforeseen changes in software development, which could have an adverse impact on the group's software sales. However, the Board and management teams are closely involved in the group's businesses on a day-to-day basis and are appropriately qualified and experienced to identify and deal with any such issues that may arise.

 

Operational Review

Interact is a leading global supplier of intelligent social intranet software for businesses. Companies using Interact Software report improved efficiency, greater productivity, increased employee engagement, better decision-making and cost savings.

 

Odyssey delivered revenues of £19.5m (2022: £17.5m) and operating profits before management charges of £10.4m (2022: £9.6m). Interact Intranet, Inc. delivered statutory revenues of £16.4m in the year (2022: £11.9m) and an operating profit of £2.2m (2022: profit £898k).

 

The group continues to invest in product development, sales and marketing and our people. During 2022 significant development efforts, particularly in the areas of mobile, integration and block editor resulted in the enhancement of our product offering and £0.5m of development costs, net of amortisation, were capitalised.

 

Interact continues to benefit from its growth and opportunities in the US market, its increasing focus on enterprise customers and the importance of the digital workplace.

 

HASGROVE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Financial Results

The results for the Group are presented based on the operations of Odyssey and its subsidiaries Interact Intranet Inc, and the post acquisition performance of Sideways6 Ltd.

 

The group's revenue was £37.0m (2022: £29.4m) and the operating profit was £9.6m (2022: £8.1m). Profit before tax was £9.9m (2022: £8.1m). The increase in profits in 2023 is after a charge of £3.4m representing the amortisation of intangible assets including goodwill (2022: £2.6m). Earnings Before Interest Tax Depreciation and Amortisation were £13.2m (2022: £10.8m).

 

The group's year end cash position was £15.2m (31 December 2022: £14.4m).

 

On behalf of the board

P Sanders
Director
23 September 2024
HASGROVE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Directors

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

P Sanders
G Taylor
S Dance
Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Auditor

The auditor, Champion Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the 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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HASGROVE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
P Sanders
Director
23 September 2024
HASGROVE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HASGROVE LIMITED
- 5 -
Opinion

We have audited the financial statements of Hasgrove Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' 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 and 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

HASGROVE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HASGROVE LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine 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 directors are responsible for assessing 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 directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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 financial statements.

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

As part of our planning process:

 

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 & GDPR.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment

accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

 

 

 

 

 

 

 

 

 

 

 

HASGROVE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HASGROVE LIMITED
- 7 -

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to deferred income, depreciation methods & cut-off.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Performing a physical verification of key assets.

- Obtaining third-party confirmation of material bank balances.

- Documenting and verifying all significant related party balances and transactions.

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's 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.

Mark Turner FCA (Senior Statutory Auditor)
For and on behalf of Champion Accountants LLP
23 September 2024
Chartered Accountants
Statutory Auditor
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
HASGROVE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
37,032,061
29,388,234
Cost of sales
(15,628,242)
(12,274,150)
Gross profit
21,403,819
17,114,084
Administrative expenses
(11,868,651)
(9,049,197)
Other operating income
26,767
-
Operating profit
4
9,561,935
8,064,887
Interest receivable and similar income
8
373,146
50,916
Interest payable and similar expenses
9
(28,415)
(16,913)
Profit before taxation
9,906,666
8,098,890
Tax on profit
10
(1,656,436)
(1,097,235)
Profit for the financial year
8,250,230
7,001,655
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(2,441)
2,540
Total comprehensive income for the year
8,247,789
7,004,195
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
HASGROVE LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
6,280,411
3,804,671
Other intangible assets
11
4,184,870
3,305,673
Total intangible assets
10,465,281
7,110,344
Tangible assets
12
792,006
783,468
11,257,287
7,893,812
Current assets
Debtors
15
8,792,697
9,309,969
Cash at bank and in hand
15,181,857
14,374,834
23,974,554
23,684,803
Creditors: amounts falling due within one year
16
(21,766,137)
(18,351,933)
Net current assets
2,208,417
5,332,870
Total assets less current liabilities
13,465,704
13,226,682
Creditors: amounts falling due after more than one year
17
(22,499)
-
Provisions for liabilities
Deferred tax liability
19
99,066
90,314
(99,066)
(90,314)
Net assets
13,344,139
13,136,368
Capital and reserves
Called up share capital
21
630,375
667,671
Share premium account
1,525,674
1,565,679
Capital redemption reserve
1,937,427
1,900,131
Other reserves
357,369
20,395
Profit and loss reserves
8,893,294
8,982,492
Total equity
13,344,139
13,136,368
The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
23 September 2024
P Sanders
Director
Company registration number 05247414 (England and Wales)
HASGROVE LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
5,509,090
6,465,614
Current assets
Debtors
15
1,062,906
-
0
Cash at bank and in hand
2,099
1,543
1,065,005
1,543
Creditors: amounts falling due within one year
16
(524,542)
(3,722,224)
Net current assets/(liabilities)
540,463
(3,720,681)
Net assets
6,049,553
2,744,933
Capital and reserves
Called up share capital
21
630,375
667,671
Share premium account
1,525,674
1,565,679
Capital redemption reserve
1,937,427
1,900,131
Profit and loss reserves
1,956,077
(1,388,548)
Total equity
6,049,553
2,744,933

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £11,344,638 (2022 - £2,477,214 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
23 September 2024
P Sanders
Director
Company registration number 05247414 (England and Wales)
HASGROVE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
667,671
1,565,679
1,900,131
(103,423)
2,102,115
6,132,173
Year ended 31 December 2022:
Profit for the year
-
-
-
-
7,001,655
7,001,655
Other comprehensive income:
Currency translation differences
-
-
-
-
2,540
2,540
Total comprehensive income
-
-
-
-
7,004,195
7,004,195
Transfers
-
-
-
123,818
(123,818)
-
Balance at 31 December 2022
667,671
1,565,679
1,900,131
20,395
8,982,492
13,136,368
Year ended 31 December 2023:
Profit for the year
-
-
-
-
8,250,230
8,250,230
Other comprehensive income:
Currency translation differences
-
-
-
-
(2,441)
(2,441)
Total comprehensive income
-
-
-
-
8,247,789
8,247,789
Own shares acquired
-
-
-
-
(8,000,013)
(8,000,013)
Redemption of shares
21
(37,296)
(40,005)
37,296
-
-
(40,005)
Transfers
-
-
-
336,974
(336,974)
-
Balance at 31 December 2023
630,375
1,525,674
1,937,427
357,369
8,893,294
13,344,139
HASGROVE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
667,671
1,565,679
1,900,131
1,088,666
5,222,147
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(2,477,214)
(2,477,214)
Balance at 31 December 2022
667,671
1,565,679
1,900,131
(1,388,548)
2,744,933
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
11,344,638
11,344,638
Own shares acquired
-
-
-
(8,000,013)
(8,000,013)
Redemption of shares
21
(37,296)
(40,005)
37,296
-
(40,005)
Balance at 31 December 2023
630,375
1,525,674
1,937,427
1,956,077
6,049,553
HASGROVE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
15,612,731
14,205,888
Interest paid
(28,415)
(16,913)
Income taxes paid
(969,803)
(1,454,707)
Net cash inflow from operating activities
14,614,513
12,734,268
Investing activities
Purchase of business
(3,335,668)
-
Purchase of intangible assets
(2,596,627)
(2,017,641)
Purchase of tangible fixed assets
(205,791)
(119,070)
Proceeds from disposal of tangible fixed assets
3,835
450
Interest received
373,146
50,916
Net cash used in investing activities
(5,761,105)
(2,085,345)
Financing activities
Redemption of shares
(40,005)
-
0
Purchase of treasury shares
(8,000,013)
-
0
Repayment of borrowings
(38,866)
-
Repayment of bank loans
32,499
-
Net cash used in financing activities
(8,046,385)
-
Net increase in cash and cash equivalents
807,023
10,648,923
Cash and cash equivalents at beginning of year
14,374,834
3,725,911
Cash and cash equivalents at end of year
15,181,857
14,374,834
HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Hasgrove Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 5th Floor, 24 Mount Street, Manchester, M2 3NX.

 

The group consists of Hasgrove Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Hasgrove Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. 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.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development costs
20% straight line
1.9
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
10% straight line
Fixtures and fittings
20% reducing balance
Computers
33% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
37,032,061
29,388,234
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
10,813,130
8,989,994
Overseas
26,218,931
20,398,240
37,032,061
29,388,234
2023
2022
£
£
Other revenue
Interest income
373,146
50,916
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(303,784)
(206,964)
Research and development costs
106,758
-
Depreciation of owned tangible fixed assets
190,040
155,620
Loss on disposal of tangible fixed assets
11,258
5,018
Amortisation of intangible assets
3,406,764
2,625,164
Operating lease charges
472,591
457,396
HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,000
13,000
Audit of the financial statements of the company's subsidiaries
17,800
13,000
29,800
26,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administrative
22
4
-
-
Direct
177
144
-
-
Management
3
3
3
3
Total
202
151
3
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
14,515,689
11,262,597
948,153
1,033,528
Social security costs
960,512
651,761
165,539
149,482
Pension costs
16,053
-
0
-
0
-
0
15,492,254
11,914,358
1,113,692
1,183,010
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
948,153
1,033,528
HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 22 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
547,962
597,967
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
373,146
50,916
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
1,824
-
Other interest on financial liabilities
26,094
16,913
Other interest
497
-
Total finance costs
28,415
16,913
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,647,684
998,496
Deferred tax
Origination and reversal of timing differences
8,752
76,876
Changes in tax rates
-
0
21,863
Total deferred tax
8,752
98,739
Total tax charge
1,656,436
1,097,235
HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 23 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
9,906,666
8,098,890
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
2,330,048
1,538,789
Tax effect of expenses that are not deductible in determining taxable profit
28,740
11,248
Tax effect of utilisation of tax losses not previously recognised
-
0
(7,748)
Unutilised tax losses carried forward
624
-
0
Effect of change in corporation tax rate
-
21,675
Permanent capital allowances in excess of depreciation
(385)
-
Depreciation on assets not qualifying for tax allowances
10,874
8,784
Amortisation on assets not qualifying for tax allowances
796,486
498,781
Research and development tax credit
(1,147,244)
(881,709)
Effect of overseas tax rates
(247,705)
(87,705)
Foreign exchange differences
(114,378)
-
0
Enhanced capital allowance
(624)
(4,880)
Taxation charge
1,656,436
1,097,235
11
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 January 2023
8,785,296
6,784,696
15,569,992
Additions - internally developed
-
0
2,156,302
2,156,302
Additions - separately acquired
-
0
440,325
440,325
Additions - business combinations
4,165,074
-
0
4,165,074
At 31 December 2023
12,950,370
9,381,323
22,331,693
Amortisation and impairment
At 1 January 2023
4,980,625
3,479,023
8,459,648
Amortisation charged for the year
1,689,334
1,717,430
3,406,764
At 31 December 2023
6,669,959
5,196,453
11,866,412
Carrying amount
At 31 December 2023
6,280,411
4,184,870
10,465,281
At 31 December 2022
3,804,671
3,305,673
7,110,344
HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Intangible fixed assets
(Continued)
- 24 -
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
12
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
745,974
115,419
407,756
1,269,149
Additions
-
0
8,398
197,393
205,791
Business combinations
-
0
3,563
35,188
38,751
Disposals
-
0
(205)
(117,798)
(118,003)
Exchange adjustments
-
0
-
0
(3,999)
(3,999)
At 31 December 2023
745,974
127,175
518,540
1,391,689
Depreciation and impairment
At 1 January 2023
214,555
53,934
217,192
485,681
Depreciation charged in the year
74,616
13,383
102,041
190,040
Eliminated in respect of disposals
-
0
(158)
(102,752)
(102,910)
Exchange adjustments
-
0
-
0
(1,558)
(1,558)
Business combinations
-
0
1,389
27,041
28,430
At 31 December 2023
289,171
68,548
241,964
599,683
Carrying amount
At 31 December 2023
456,803
58,627
276,576
792,006
At 31 December 2022
531,419
61,485
190,564
783,468
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
5,509,090
6,465,614
HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
6,465,614
Impairment
At 1 January 2023
-
Impairment losses
956,524
At 31 December 2023
956,524
Carrying amount
At 31 December 2023
5,509,090
At 31 December 2022
6,465,614
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Hasgrove UK Limited
England
Ordinary
100.00
0
Interact Intranet Inc
USA
Ordinary
0
100.00
Interact Software Solutions Limited
England
Ordinary
100.00
0
Odyssey Interactive Limited
England
Ordinary
100.00
0
Sideways 6 Limited
England
Ordinary
0
100.00
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,813,880
6,462,927
-
0
-
0
Amounts owed by group undertakings
-
-
1,062,466
-
Other debtors
94,314
92,211
440
-
0
Prepayments and accrued income
2,884,503
2,754,831
-
0
-
0
8,792,697
9,309,969
1,062,906
-
HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
10,000
-
0
-
0
-
0
Trade creditors
739,851
601,789
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
3,037,623
Corporation tax payable
929,425
251,544
-
0
-
0
Other taxation and social security
839,129
671,127
503,782
412,859
Deferred income
18,261,408
15,654,822
-
0
-
0
Other creditors
203,874
292,389
-
0
-
0
Accruals
782,450
880,262
20,760
271,742
21,766,137
18,351,933
524,542
3,722,224
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
22,499
-
0
-
0
-
0
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
32,499
-
0
-
0
-
0
Payable within one year
10,000
-
0
-
0
-
0
Payable after one year
22,499
-
0
-
0
-
0

Bank loans are unsecured.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
99,066
90,314
The company has no deferred tax assets or liabilities.
HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Deferred taxation
(Continued)
- 27 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
90,314
-
Charge to profit or loss
8,752
-
Liability at 31 December 2023
99,066
-

 

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
16,053
-

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 10p each
6,303,758
6,676,719
630,375
667,671

During the year the company purchased back and cancelled 372,961 of its own shares.

22
Reserves

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs.

 

Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company.

 

Profit and loss account - This reserve records retained earnings and accumulated losses.

HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
23
Acquisition of a business

On 6 April 2023 the group acquired 100 percent of the issued capital of Sideways 6 Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
10,321
-
10,321
Trade and other receivables
372,055
-
372,055
Cash and cash equivalents
142,567
-
142,567
Borrowings
(38,866)
-
(38,866)
Trade and other payables
(1,172,916)
-
(1,172,916)
Total identifiable net assets
(686,839)
-
(686,839)
Goodwill
4,165,074
Total consideration
3,478,235
The consideration was satisfied by:
£
Cash
3,478,235
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,176,810
Loss after tax
(627,343)
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
494,642
386,944
-
-
Between two and five years
399,538
685,593
-
-
894,180
1,072,537
-
-
HASGROVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
948,153
1,033,528
Transactions with related parties

The group takes advantage of Para 33.1A of FRS 102 exempting it to disclosure transactions within a 100% owned group whose accounts are consolidated.

26
Directors' transactions

During 2023 the company bought back 38,796 shares from directors at a cost of £832,182.

27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
8,250,230
7,001,655
Adjustments for:
Taxation charged
1,656,436
1,097,235
Finance costs
28,415
16,913
Investment income
(373,146)
(50,916)
Loss on disposal of tangible fixed assets
11,258
5,018
Amortisation and impairment of intangible assets
3,406,764
2,625,164
Depreciation and impairment of tangible fixed assets
190,040
155,620
Movements in working capital:
Decrease/(increase) in debtors
889,327
(1,117,094)
(Decrease)/increase in creditors
(1,053,179)
200,406
Increase in deferred income
2,606,586
4,271,887
Cash generated from operations
15,612,731
14,205,888
28
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
14,374,834
807,023
15,181,857
Borrowings excluding overdrafts
-
(32,499)
(32,499)
14,374,834
774,524
15,149,358
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100No description of principal activityP SandersG TaylorS 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