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Registration number: 07360219

Cloudhouse Technologies Ltd

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Cloudhouse Technologies Ltd

Contents

Company Information

1

Statement of Directors' Responsibilities

2

Balance Sheet

3

Notes to the Financial Statements

4 to 9

 

Cloudhouse Technologies Ltd

Company Information

Directors

G D Chapman

M P Clothier

S Corbett

C E S Green

T Steel

Registered office

1 Ariel Way
London
W12 7SL

Auditors

Ballards LLP
Statutory Auditors, Chartered Accountants
Oakmoore Court
11C Kingswood Road
Hampton Lovett
Droitwich
Worcestershire
WR9 0QH

 

Cloudhouse Technologies Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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 also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Cloudhouse Technologies Ltd

(Registration number: 07360219)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

877,434

1,754,868

Current assets

 

Debtors

5

14,655,365

12,501,863

Cash at bank and in hand

 

47,536

1,642,269

 

14,702,901

14,144,132

Creditors: Amounts falling due within one year

6

(3,400,858)

(4,200,491)

Net current assets

 

11,302,043

9,943,641

Total assets less current liabilities

 

12,179,477

11,698,509

Creditors: Amounts falling due after more than one year

6

(1,488,350)

(2,748,953)

Net assets

 

10,691,127

8,949,556

Capital and reserves

 

Called up share capital

1

1

Retained earnings

10,691,126

8,949,555

Shareholders' funds

 

10,691,127

8,949,556

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 30 August 2024 and signed on its behalf by:
 

.........................................
G D Chapman
Chairman

   
 

Cloudhouse Technologies Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
1 Ariel Way
London
W12 7SL

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

The company's parent company, Data Cloud Limited, has stated that it intends to continue to provide sufficient finance for the company to meet its liabilities when they fall due for a period of at least 12 months from the date of approval of these financial statements.

Having taken into account the forecast revenues and the company's ongoing operational expenditure together with the likely capital additions and likely capital repayments, the company's directors have concluded that it is appropriate that these financial statements are prepared and presented using the going concern principal due to continued support of the parent company's investor base.

Going concern

The financial statements are prepared on a going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. The parent company and group has confirmed in writing they intend to support the company, if required, for a period of at least 12 months from the signing of these financial statements.

Audit report
The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 30 August 2024 was Benjamin Powell MSci ACA, who signed for and on behalf of Ballards LLP.

 

Cloudhouse Technologies Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Revenue recognition

Turnover is derived from four main sources:
Software as a service (SaaS) - the software is licensed on a subscription basis, and revenue is recognised straight-line over the period of the subscription term.

Perpetual license - a license is purchased for a defined period of time, and the associated revenue is recognised in full at the date the license is granted.

Support and maintenance - a period of support and maintenance is defined period by contract with the customer, and revenue is recognised straight-line over the period of the contract term.

Professional services – initial feasibility work and one off project revenue is recognised as income when the costs are incurred in delivering the project.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% on cost

Fixtures and fittings

25% on cost

Computer equipment

25% on cost

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of aquisition over the company's interest in the net fair value of the indentifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Cloudhouse Technologies Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Customer list

5 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Cloudhouse Technologies Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.


Research and development
Expenditure on research and development is written off in the year in which it is incurred.

Deferred tax
Deferred tax is recognised on all timing differences where the transactions or events give the company an obligation to pay more tax in the future, or a right to pay less tax in the future has occurred by the balance sheet date. Deferred tax assets are recognised when it is more likely than not that they will be recovered. Deferred tax is measured using rates that have been enacted or substantively enacted by the balance sheet date.

The accumulated losses have resulted in significant tax allowable losses being built up which can be offset against future trading profits. At present the directors are uncertain as to whether sufficient profits will be realised against which to offset these losses and accordingly no deferred tax asset has been recognised in the financial statements.

Foreign currency
Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

Functional currency
The functional currecny used is Pound Sterling (£).

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 7 (2022 - 7).

 

Cloudhouse Technologies Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

4

Intangible assets

Customer list
£

Total
£

Cost or valuation

At 1 January 2023

4,387,169

4,387,169

At 31 December 2023

4,387,169

4,387,169

Amortisation

At 1 January 2023

2,632,301

2,632,301

Amortisation charge

877,434

877,434

At 31 December 2023

3,509,735

3,509,735

Carrying amount

At 31 December 2023

877,434

877,434

At 31 December 2022

1,754,868

1,754,868

The customer list was purchased in 2020 at a cost of £4,387,169. As part of the transaction, the company also acquired support contracts which were novated to the company. The company has acquired the right to this income and hence has recognised the provision of the support contract services in revenue over the life of the contracts.

5

Debtors

Note

2023
£

2022
£

Trade debtors

 

1,579,809

2,341,283

Amounts owed by related parties

7

13,048,145

10,129,836

Prepayments

 

27,411

30,744

   

14,655,365

12,501,863

 

Cloudhouse Technologies Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

6

Creditors

2023
 £

2022
 £

Due within one year

Trade creditors

13,427

32,693

Other creditors

39,677

35,914

Deferred income

3,347,754

4,131,884

3,400,858

4,200,491

Due after one year

Deferred income

1,488,350

2,748,953

7

Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, not to disclose related party transactions with group companies.

8

Parent and ultimate parent undertaking

The company's immediate parent is Data Cloud Limited, incorporated in England and Wales.

 

9

Share options

The company operates a share option scheme for certain employees of group companies. The options only vest in the event of a sale of the business. At the year end, there were 4,226,178 share options in the parent company in existence (2022: 4,732,282) for employees with exercise prices ranging from £0.1825 to £0.268 per share for all but 60,000 options which have an exercise price of £0.925 per share. Based on the directors’ assessment of the valuation of the company’s shares and the probability of a vesting event occurring, the directors have concluded that the charge both in the current year and cumulatively to date is immaterial and no entries are included in these financial statements in relation to the share option schemes. The directors will reassess the assumptions at each financial year end.