Deltek GB Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 02549484 (England and Wales)
Deltek GB Limited
Company Information
Directors
E Hutner
J Conley
(Appointed 4 March 2024)
B Cross
(Appointed 4 March 2024)
T Schampers
J Stipancich
Secretary
Taylor Wessing Secretaries Limited
Company number
02549484
Registered office
5 New Street Square
London
United Kingdom
EC4A 3TW
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Deltek GB Limited
Contents
Page
Strategic report
1 - 5
Directors' report
6 - 8
Directors' responsibilities statement
9
Independent auditor's report
10 - 13
Statement of comprehensive income
14
Balance sheet
15
Statement of changes in equity
16
Notes to the financial statements
17 - 35
Deltek GB Limited
Strategic Report
For the year ended 31 December 2023
Page 1

The directors present the Strategic Report of Deltek GB Limited (the "Company") for the year ended 31 December 2023.

 

Principal activities

The principal activities of the Company during the year were those of the licensing of software products, providing maintenance and support, and providing consulting services for those products. The Company will continue to trade under the same principal activities.

 

Corporate developments

Consistent with 2022, the continued rise in domestic inflation has placed pressure on the supply of services, most notably, labour prices. Where possible these have been mitigated via long term contracts, and any customer pass through will be in line with contractual terms.

 

 

Results and performance

The results for the Company are set out on page 14 and show a loss before tax of £1.5m (2022: loss before tax of £5.2m). This improved result is largely due to a decrease in the intangible asset impairment of £0.5m (2022: £4.4m).

 

The directors monitor the Company's performance with reference to the below key performance indicators, which are used to monitor financial performance and position on a regular basis.

 

 

2023

2022

 

 

 

Increase in total revenue %

11

8

Average number of employees (No)

196

205

Net (liabilities)/assets (£'000)

(8,392)

(6,929)

Cash at bank and in hand (£'000)

16,947

17,304

 

 

Compared with 2022, revenues increased by £4.4m and 11% from £40.0m to £44.4m, reflecting higher demand for our products across our core markets. The Company reported a trend in movement from its on-premise customers converting to the cloud, as well as a trend in customers moving from Deltek competitors. In addition, Deltek, Inc acquired Replicon, Inc in August 2023 and the Company benefited from an increase of revenues of approximately £0.7m.

 

Turnover has increased by £4.4m from £40.0m in 2022, and cost of sales have increased by £6.6m from £12.9m in 2022 which has resulted in an overall gross profit decrease of 12% (2022: decrease, 8%). The increase in costs of sales is the result of intergroup transfer pricing agreements for arm’s length transactions.

 

Cash at bank and in hand decreased slightly versus 2022 due to the timing of cash collections and accounts payable disbursements.

 

 

Deltek GB Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 2

Business risk

The business is exposed to the risk that adverse global economic or financial conditions may reduce or defer the demand for project-based enterprise applications software and solutions. The primary business risks relate to competitor activity and the need to maintain competitive advantage through ongoing innovation in our product line.

 

The demand for project-based enterprise applications software and solutions has historically fluctuated based upon a variety of factors, including the business and financial condition of our customers and on economic and financial conditions that affect the key sectors in which our customers operate such as services firms, architecture, and engineering.

 

At Deltek, we take pride in the support we provide to our customers. We understand that effective and reliable customer care can make all the difference in a customer's ability to compete effectively and grow their business. We also realize that our success is mutual. When customers invest in Deltek solutions to meet their business requirements, we know they entrust a significant part of their success to us - and we take that very seriously. Customers expect timely, high-quality support for their mission-critical software. When an issue arises, customers need to ensure productivity is maintained and that their team has all of the tools they need to meet their objectives.

 

The Company's operations expose it to a variety of financial risks, principally credit risk and liquidity risk. The business risk to the Company’s operations is assessed as low, because risk exposure is mitigated through transfer pricing agreements with the Group. These transfer pricing arrangements shift the operations risk to the Group level.

 

The directors have delegated the responsibility of monitoring financial risk management to senior management at the ultimate parent company (Roper Technologies, Inc.) and to its Board of Directors. The policies set by the Board of Directors are implemented and enforced by the Company. The policies aim to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk at a business unit level.

 

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. This risk mainly pertains to the ability of our customers to pay us for products and services provided.

 

Credit risk is managed at an individual customer level. The Company has standard credit terms listed within the Deltek Global Credit and Hold Policy. The Company monitors receivables closely and takes appropriate action where necessary to ensure that any risk is kept to an acceptable level.

 

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with short-term financial liabilities. The Company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets throughout the Company. In addition, the Company will continue to receive financial support from the intermediary parent company (Deltek, Inc.) as required. The Company has no external debt.

 

Market risk

Market risk arises from the Company's use of interest bearing, tradeable and foreign currency financial instruments. It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in interest rates (interest rate risk), foreign exchange rates (currency risk) and other market factors (other price risk).

 

Deltek GB Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 3
Other information and explanations

 

Future developments

The directors expect the general level of activity to remain consistent with 2023 in the forthcoming financial year.

Section 172 statement

Under section 172 of the Companies Act 2006, the Board of Directors must act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to -

 

  1. the likely consequences of any decision in the long term,

  2. the interests of the Company's employees,

  3. the need to foster the Company's business relationships with suppliers, customers and others,

  4. the impact of the Company's operations on the community and the environment,

  5. the desirability of the Company maintaining a reputation for high standards of business conduct, and

  6. the need to act fairly as between members of the Company.

 

The Board of Directors, in line with their duties as set above, act in a way they consider to be in the best interest of the Company and its stakeholders. The Board of Directors believe the success of the Company, especially its long-term success, must be supported by a commitment to high integrity and mutual respect, our customers, and other stakeholders. This is evident in the Corporate Responsibility Statement, Code of Ethics and Supplier Code of Conduct - all of which can be found on the website of our ultimate parent company (http://www.ropertech.com).

 

Our reporting structures and frequent communication throughout the business together with our internal controls, which include Sarbanes Oxley controls and review by the Roper internal audit function, ensure that the Board has complete information and is aware of all strategic and material decisions providing confidence that the right decisions are being made at the right time in line with section 172.

 

The Board of Directors delegate all day-to-day management and decision-making to its senior management team.

 

Deltek GB Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 4
Investing in People

The Company has comprehensive HR policies in place to support and develop employees and to create a culture that values all employees, including an Equal Employment Opportunity policy and an Education and Training policy. We engage with our employees through clear communication of our core strategy and goals and support the development of our people through extensive training and development programs.

 

The Company has identified and implemented human capital priorities, including providing competitive wages and benefits, and promoting a diverse, equitable and inclusive. work environment that supports our large global workforce and helps us innovate for our customers. The Company is committed to creating a values-driven environment in which team members are comfortable bringing their authentic selves to work each day. Our employees should always feel valued, included, and empowered to share ideas, innovate, and grow. We believe that our corporate values are only enhanced by the variety of unique identities, experiences, and perspectives that our diverse group of employees bring to the organization. We continue to focus on building a pipeline for talent to create more opportunities for workplace diversity and to support greater representation within the Company.

 

High levels of employee engagement are essential to the Company, and these are measured through a variety of employee surveys. Communication with all employees continues through quarterly company-wide and Business Unit Town Hall meetings, which include briefings on strategic and team initiatives, economic and financial performance of the Company, key product updates, and people updates.

 

In 2023, Deltek was a winner of the Association for Talent Development’s (ATD) BEST Award. Deltek was recognized for the fourth time by ATD for its culture of continuous learning, which invites growth and development through innovative discussion, collaborative thinking, and the ability to explore alternative approaches.

Our customers

Customer feedback is one component that drives the future development of our solutions and as a result we encourage the business to maintain multiple channels. and methods of communication to have an open and productive dialogue to further understand the needs and demands of our customers.

 

As a part of our ongoing commitment to the Deltek customer community, we host Customer Town Hall webinars offered exclusively for current users of our products featuring tips on using our solutions, updates on product releases and roadmaps and informative customer care offerings.

 

Replicon, acquired by Deltek, Inc. in August 2023 was named to Inc. Business Media’s Power Partner award, honouring B2B organizations across the globe that have proven track records supporting entrepreneurs and helping start-ups grow.

 

In 2022, Deltek was recognized by J.D. Power on providing "An Outstanding Customer Service Experience" for our Technology Service & Support Program. The J.D. Power recognition is based on the successful completion of an audit and exceeding customer satisfaction benchmarks through a survey of recent servicing interactions.

 

 

Deltek GB Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 5
The environment and our communities

Our operations are subject to laws and regulations relating to environmental protection, including those governing air emissions, water discharges, waste management and workplace safety. The Company is committed to minimizing environmental risk through company operations. Employees are also encouraged to act in a socially and environmentally responsible way.

 

As a part of our social responsibility initiatives, the Company encourages all employees to engage with local communities through acts such as volunteerism and financial giving. We live our values by providing tangible support to communities and causes which include historically marginalized and underserved populations. One such program is our new partnership with Save the Children, a global organization founded on the mission that all children have the right to grow up healthy, educated, and safe.

 

The directors have considered all the required elements within section 172 and have nothing further to disclose in respect of the remaining factors.

Approved by the Board of Directors and signed on its behalf by:

T Schampers
Director
25 September 2024
Deltek GB Limited
Directors' Report
For the year ended 31 December 2023
Page 6

The directors present their report and the audited financial statements of Deltek GB ("the Company") for the year ended 31 December 2023. Certain information required by the Companies Act 2006 relating to information to be provided in the Directors' report is set out in the Strategic report. This includes the principal activities of the Company, details of principal risks, results, and performance and future developments.

 

Going Concern

The results for the year show a loss of £1.6m (2022: loss of £6.8m). Despite the loss, the Company is cash generative as evidenced by the maintenance of its cash reserve at £16.9m as of 31 December 2023 compared with £17.3m in 2022. At the balance sheet date, the Company has net liabilities of £8.4m (2022: net liabilities of £6.9m). The directors of Deltek Inc., the intermediary parent of the Company, have assessed and confirmed that they will support the Company to enable it to meet its third-party liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements.

 

This expectation has been concluded as the result of the directors making appropriate inquiries and management's preparation of future cash flow forecasts which consider the Company's ability to make sufficient sales to cover at least 12 months of future commitments from the date of approval of the financial statements. As a result, the directors continue to adopt the going concern basis in preparing the Company's financial statements.

 

 

Branches

The Company has a branch, as defined in S1046 (3) of the Companies Act 2006, outside of the UK which is based in Italy.

Results and dividends

The results for the year are set out on page 14.

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

Directors

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

E Hutner
J Conley
(Appointed 4 March 2024)
B Cross
(Appointed 4 March 2024)
M Krone
(Resigned 4 March 2024)
T Schampers
J Stipancich
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Research and development

The Company continues to add new functionality and features to its products to meet the needs of the customers and its markets.

Business relationships

Details of engagement with suppliers, customers and others can be found in the Strategic Report, and the section 172 Statement.

Deltek GB Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 7
Energy and carbon report

Energy efficiency actions

This report outlines the Company's Greenhouse Gas {GHG) emissions and energy usage for the year ended 31 December 2023. The scope of the Company's reporting encompasses electricity, heating, and gas associated with office properties from which it operates in the UK, as well as transport usage. The Company's total emissions for the reporting period were 178,862 kWh, compared to 231,256 kWh reported in 2022.

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
178,862
231,256
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
37,038.00
53,914.00
- Fuel consumed for owned transport
-
-
37,038.00
53,914.00
Scope 2 - indirect emissions
- Electricity purchased
-
-
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
-
-
Total gross emissions
37,038.00
53,914.00
Intensity ratio
Tonnes CO2e per full-time employee
188.97
263.00
Quantification and reporting methodology

The following methodology has been applied to calculate the required energy and carbon data for this report.

 

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

Deltek GB Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 8
Measures taken to improve energy efficiency

During 2023, we have taken several steps to improve energy efficiency and reduce our carbon footprint. The Company has implemented remote/hybrid working where possible and emissions associated with employees traveling to work have reduced significantly when compared to pre-pandemic levels. We have also implemented awareness campaigns which suggest actions employees can take to reduce their carbon footprint. Energy usage decreased versus the prior year primarily due to the reduction of office space with lease renewals. The Company is currently working to reduce the office footprint, which should result in a decrease in energy usage.

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
T Schampers
Director
25 September 2024
Deltek GB Limited
Directors' Responsibilities Statement
For the year ended 31 December 2023
Page 9

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 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 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.

Deltek GB Limited
Independent Auditor's Report
To the Members of Deltek GB Limited
Page 10
Opinion

We have audited the financial statements of Deltek GB Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity 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 FRS 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 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 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.

Deltek GB Limited
Independent Auditor's Report (Continued)
To the Members of Deltek GB Limited
Page 11

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its 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 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 company or to cease operations, or have no realistic alternative but to do so.

Deltek GB Limited
Independent Auditor's Report (Continued)
To the Members of Deltek GB Limited
Page 12
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

Deltek GB Limited
Independent Auditor's Report (Continued)
To the Members of Deltek GB Limited
Page 13

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Jonathan Sutcliffe
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
26 September 2024
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
Deltek GB Limited
Statement of Comprehensive Income
For the year ended 31 December 2023
Page 14
2023
2022
Notes
£
£
Turnover
3
44,403,891
40,014,055
Cost of sales
(19,535,352)
(12,933,604)
Gross profit
24,868,539
27,080,451
Administrative expenses
(25,889,771)
(31,280,295)
Operating loss
4
(1,021,232)
(4,199,844)
Interest receivable and similar income
7
626,357
-
0
Interest payable and similar expenses
8
(1,120,626)
(1,036,117)
Loss before taxation
(1,515,501)
(5,235,961)
Tax on loss
9
(69,675)
(1,518,061)
Loss for the financial year
(1,585,176)
(6,754,022)

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

Deltek GB Limited
Balance Sheet
As at 31 December 2023
Page 15
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
2,364,100
3,937,630
Other intangible assets
11
30,267
-
0
Total intangible assets
2,394,367
3,937,630
Tangible assets
12
522,833
257,930
Investments
13
8,354,599
8,354,599
11,271,799
12,550,159
Current assets
Debtors falling due after more than one year
15
369,099
328,413
Debtors falling due within one year
15
26,207,729
18,379,847
Cash at bank and in hand
16,947,052
17,303,976
43,523,880
36,012,236
Creditors: amounts falling due within one year
16
(47,274,377)
(40,507,810)
Net current liabilities
(3,750,497)
(4,495,574)
Total assets less current liabilities
7,521,302
8,054,585
Creditors: amounts falling due after more than one year
17
(15,912,948)
(14,983,842)
Net liabilities
(8,391,646)
(6,929,257)
Capital and reserves
Called up share capital
21
5,200,001
5,200,001
Equity reserve
15,003,696
15,003,696
Other reserves
461,125
338,338
Profit and loss reserves
(29,056,468)
(27,471,292)
Total equity
(8,391,646)
(6,929,257)
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
T Schampers
Director
Company Registration No. 02549484
Deltek GB Limited
Statement of Changes in Equity
For the year ended 31 December 2023
Page 16
Share capital
Equity reserve
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
5,200,001
15,003,696
237,452
(20,717,270)
(276,121)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(6,754,022)
(6,754,022)
Credit to equity for equity settled share-based payments
-
-
100,886
-
0
100,886
Balance at 31 December 2022
5,200,001
15,003,696
338,338
(27,471,292)
(6,929,257)
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
-
(1,585,176)
(1,585,176)
Credit to equity for equity settled share-based payments
-
-
122,787
-
0
122,787
Balance at 31 December 2023
5,200,001
15,003,696
461,125
(29,056,468)
(8,391,646)
Deltek GB Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 17
1
Accounting policies
Company information

Deltek GB Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 New Street Square, London, United Kingdom, EC4A 3TW.

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 has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Deltek GB Limited is a wholly owned subsidiary of Deltek Danmark A/S and the results of Deltek GB Limited are included in the consolidated financial statements of Roper Technologies, Inc., which are publicly available.

This 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:

 

 

Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 18
1.2
Going concern

The results for the year show a loss of £true1.6m (2022: loss of £6.8m). Despite the loss, the Company is cash generative as evidenced by the maintenance of its cash reserve at £16.9m as of 31 December 2023 compared with £17.3m in 2022. At the balance sheet date, the Company has net liabilities of £8.4m (2022: net liabilities of £6.9m). The directors of Deltek Inc., the intermediary parent of the Company, have assessed and confirmed that they will support the Company to enable it to meet its third-party liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements.

 

This expectation has been concluded as the result of the directors making appropriate inquiries and management's preparation of future cash flow forecasts which consider the Company's ability to make sufficient sales to cover at least 12 months of future commitments from the date of approval of the financial statements. As a result, the directors continue to adopt the going concern basis in preparing the Company's financial statements.

 

1.3
Turnover

The Company's turnover is generated primarily from licensing of its software products, providing maintenance and support for those products, providing consulting services for those products and transfer pricing revenues.

 

The Company recognises its licenses turnover upon execution of a signed agreement and delivery of the software provided that the arrangement fees are fixed or determinable and the collection of the resulting receivable is probable. On-premise license turnover is recognised up front and subscription and Saas (Software as a Service) turnover is recognised over the contract period.

 

Maintenance turnover is recognised on a straight line basis over the life of the agreement.

 

Consulting turnover is recognised in the period that the service is performed on a time and material used basis or occasionally on a fixed price basis. Intercompany consulting revenue is recognised when Company resources are utilised by other group entities and recharged with a mark up.

 

The turnover shown in the Statement of Comprehensive Income is recognised as above, exclusive of Value Added Tax.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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.

 

 

 

 

 

Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 19
1.5
Intangible fixed assets other than goodwill

Purchased intangible assets, which have arisen on the transfer of trade and assets from certain subsidiary undertakings, are capitalised in the Statement of Financial Position at the fair value of the consideration paid and amortised over their useful economic life. Amortisation of technology related intangible assets is recognised as part of cost of sales in the Statement of Comprehensive Income and amortisation of all other intangible assets is recognised as part of administrative expenses in the Statement of Comprehensive Income.

 

Intangible assets are measured at fair value less any accumulated amortisation and impairment losses. They are reviewed annually for indicators of impairment. If there are any indicators of impairment, an assessment is performed to determine if there is actual impairment. If there is an actual impairment, any impairment losses are charged to the Statement of Comprehensive Income. Intangible assets are amortised over their expected useful lives.

 

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed 10 years. The customer relationships useful life is estimated based on continuing relationships with the customer base. The technology & trade names useful life is estimated based on the co-brand with Deltek and re-development of products over time.

 

Please refer to note 10 for details of the Purchased goodwill, Technology & trade names, and Customer relationships. Customer relationships are included in Other intangible assets in the financial statements.

 

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:

Computer software
0 - 5 years straight line
Trademarks, patents and licences
0 - 5 years straight line
Other intangible assets
8 years straight line
1.6
Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

 

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to Statement of Comprehensive Income during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives as follows:

Leasehold improvements
depreciated over the life of the lease
Fixtures and fittings
7 years straight line
Computer equipment
3 years straight line
Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 20

*Some of the leasehold improvements above are depreciated using 5 years straight line method.

 

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

 

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 credited or charged to profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the company 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.

1.9
Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 21
1.10
Financial instruments

Basic financial instruments include cash and bank balances, trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

 

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount. of the cash or other consideration, expected to be paid or received.

 

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

 

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

 

Investments

Investments in subsidiaries are measured at cost less impairment.

 

Management review the carrying value of ·the investments annually for indicators of impairment and if there is an indicator, an impairment review is then undertaken and any impairment is charged to the Statement of Comprehensive Income.

1.11
Equity instruments

Equity instruments issued by the company 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 company.

1.12
Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. Current or deferred tax assets and liabilities are not discounted.

Current tax

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 22
Deferred tax

Deferred tax assets/liabilities are computed based on the difference between the financial statement and tax bases of assets and liabilities and are measured by applying enacted tax rate. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:

 

 

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

1.13
Employee benefits

The Company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements, share options, and defined contribution pension plans.

 

Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

1.14
Retirement benefits

The Company operates a defined contribution pension scheme. The amount charged to the Statement of Comprehensive Income in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the Statement of Financial Position.

1.15
Share-based payments

The Company issues equity-settled share options and restricted stock units to certain employees within the Group. Equity-settled share-based payment transactions are measured at fair value (excluding the effect of non market-based vesting conditions) at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed over the vesting period, based on the Group's estimate of shares that will eventually vest and adjusted for the effect of non market-based vesting conditions.

 

Fair value is measured by use of the Black Scholes pricing model which is considered by management to be the most appropriate method of valuation. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.

 

The Company also operates a cash settled share-based payment scheme. The Group's liability is calculated at each reporting date using the market value of the share and the number of share options that are expected to vest, taking into account the terms and conditions on which the bonus is awarded and the extent to which the employees have rendered the necessary service. Movements in the liability other than cash payments are recognised in the Statement of Comprehensive Income.

Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 23
1.16
Foreign exchange

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

 

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains/losses are recognised in other operating income/expense.

 

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.

 

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within finance income or costs.

1.17

Trade and other debtors

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

1.18

Trade and other creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

1.19

Related party transactions

The Company has intercompany receivables and payables for which the expectations are that all will be fully paid and received without a premium or discount. The Company does not disclose transactions with members of the same group that are wholly owned.

Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 24
2
Judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 1, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities. The estimates and associated assumptions are based on historical experience and other factors including expectations of future events that are believed to be reasonable. Actual results may differ from these estimates.

 

In preparing these financial statements, the directors have made the following estimates:

 

Intercompany receivables

The Company has intercompany receivables for which it considers whether there are any indicators of impairment by reference to various factors. In assessing the recoverability of amounts owed to the Company by fellow group undertakings, Management has considered the anticipated cash flows within the wider group and the support from the ultimate parent company. In 2023, we have concluded that a provision against amounts owed by group companies were required of £632,370.

 

Related party transactions

The Company considers the estimates involved in determining whether transactions with other subsidiary undertakings of the Group have been conducted on an arm's length basis. These decisions involve the input of internal and external tax advisors to the Company, including analysis of comparable companies and groups who operate in similar markets to the Group.

 

In preparing these financial statements, the directors have made the following judgements:

 

Impairment of Intangible fixed assets

The Company considers whether there are any indicators of impairment of intangible assets, goodwill and investments held by reference to various internal and external factors, including consideration of the technological, market, economic or legal environment in which the entity operates, changes to market interest rates, any business decision that might impact the entity and evidence from internal reporting in regard to the economic performance of the entity. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs).

 

The recoverable amount for each CGU has been estimated using a discounted cash flow and compared with its carrying value. For those intangible assets, goodwill or investments, for which the carrying value exceeds the recoverable amount, impairment loss is recognised in the Statement of Comprehensive Income to bring the carrying value equal to the future cash flow. In 2023, we have concluded that indicators of impairment exist for the goodwill for £527,157.

 

The Company has made estimates relating to its intangible assets useful economic life. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed 10 years. The customer relationships useful life is estimated based on continuing relationships with the customer base. The technology and trade names useful life is estimated based on the co-brand with Deltek and re­-development of products over time.

Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 25
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Consulting
6,581,721
7,122,668
Licences
27,276,433
22,714,635
Maintenance
10,545,737
10,176,752
44,403,891
40,014,055
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
32,689,468
32,472,505
Rest of the World
11,714,423
7,541,550
44,403,891
40,014,055
4
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(228,652)
458,582
Research and development costs
2,268,060
2,131,697
Depreciation of owned tangible fixed assets
226,886
214,640
Amortisation of intangible assets
1,103,755
3,461,411
Impairment of intangible assets
474,657
4,430,059
Provision against amounts owed by group companies
632,370
-
Operating lease charges
652,165
842,423
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 company
78,500
75,000
For other services
All other non-audit services
8,500
-
0
Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 26
6
Employees

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

2023
2022
Number
Number
Sales and consultancy
82
86
Adminstration
114
119
Total
196
205

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
16,485,546
16,805,626
Social security costs
2,124,734
2,068,500
Pension costs
859,506
771,622
19,469,786
19,645,748
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
626,357
-
0
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
64,227
44,197
Interest payable to group undertakings
1,056,399
991,920
1,120,626
1,036,117
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
111,550
504,038
Adjustments in respect of prior periods
(1,148)
986,414
Total current tax
110,402
1,490,452
Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
9
Taxation
2023
2022
£
£
(Continued)
Page 27
Deferred tax
Origination and reversal of timing differences
(40,727)
27,609
Total tax charge
69,675
1,518,061

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

2023
2022
£
£
Loss before taxation
(1,515,501)
(5,235,961)
Expected tax credit based on the standard rate of corporation tax in the UK of 25% (2022: 19%)
(378,875)
(994,833)
Tax effect of expenses that are not deductible in determining taxable profit
191,086
1,258
Tax effect of income not taxable in determining taxable profit
(734)
(211)
Adjustments in respect of prior years
(71,711)
977,831
Effect of change in corporation tax rate
1,765
8,686
Depreciation and amortisation not qualifying for tax allowances
368,226
1,507,789
Share based payment charge
(40,082)
16,611
Effect of overseas tax rates
-
0
930
Taxation charge for the year
69,675
1,518,061
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Goodwill
11
474,657
1,820,743
Intangible assets
11
-
0
2,609,316
Recognised in:
Administrative expenses - Goodwill impairment
474,657
4,430,059
Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 28
11
Intangible fixed assets
Goodwill
Computer software
Trademarks, patents and licences
Other Intangibles
Total
£
£
£
£
£
Cost
At 1 January 2023
27,236,074
2,465,291
557,950
14,718,592
44,977,907
Additions
-
0
35,149
-
0
-
0
35,149
At 31 December 2023
27,236,074
2,500,440
557,950
14,718,592
45,013,056
Amortisation and impairment
At 1 January 2023
23,298,444
2,465,291
557,950
14,718,592
41,040,277
Amortisation charged for the year
1,098,873
4,882
-
0
-
0
1,103,755
Impairment losses
474,657
-
0
-
0
-
0
474,657
At 31 December 2023
24,871,974
2,470,173
557,950
14,718,592
42,618,689
Carrying amount
At 31 December 2023
2,364,100
30,267
-
0
-
0
2,394,367
At 31 December 2022
3,937,630
-
0
-
0
-
0
3,937,630

Goodwill and intangible assets are reviewed for any impairment to the carrying value as of the balance sheet date.

More information on impairment movements in the year is given in note 10.

Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 29
12
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
897,545
1,124,417
181,111
2,203,073
Additions
380,407
-
0
111,382
491,789
Disposals
-
0
-
0
(1,254)
(1,254)
At 31 December 2023
1,277,952
1,124,417
291,239
2,693,608
Depreciation and impairment
At 1 January 2023
717,399
1,057,571
170,173
1,945,143
Depreciation charged in the year
137,358
65,394
24,134
226,886
Eliminated in respect of disposals
-
0
-
0
(1,254)
(1,254)
At 31 December 2023
854,757
1,122,965
193,053
2,170,775
Carrying amount
At 31 December 2023
423,195
1,452
98,186
522,833
At 31 December 2022
180,146
66,846
10,938
257,930
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
14
8,354,599
8,354,599
14
Subsidiaries

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

Name of undertaking
Nature of business
Class of shares held
% Held
Direct
Indirect
Union Square Software Limited
Supply of software services
Ordinary shares of £1 each
100
-
Union Square Software (International) Limited
Dormant
Ordinary shares of £1 each
0
100
Union Square Software Pty Limited
Supply of software services
Ordinary shares of A $1 each
0
100
Union Square Software Inc.
Supply of software services
Ordinary shares of C $1 each
0
100
Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
14
Subsidiaries
(Continued)
Page 30

Registered office addresses (all UK unless otherwise indicated):

1
5 New Street, London, England, EC4A 3TW
2
Blue Square House, 272 Bath Street, Glasgow, G2 4JR
3
Level 12, 1 Pacific Highway, Sydney, NSW2060
4
398 - 2416, Main Street, Vancouveer, BC, VST 3E2
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
16,824,611
13,777,182
Corporation tax recoverable
427,700
957,000
Amounts owed by group undertakings
6,588,896
824,948
Other debtors
996,945
1,299,753
Prepayments and accrued income
1,369,577
1,520,964
26,207,729
18,379,847
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
15,662
15,703
Deferred tax asset (note 18)
353,437
312,710
369,099
328,413
Total debtors
26,576,828
18,708,260

Trade receivables include a provision for impairments of £0.2m (2022: £0.0m). Included within prepayments and accrued income is £0.6m (2022: £0.6m) prepayments and £0.8m (2022: £0.9m) accrued income.

 

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

Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 31
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Trade creditors
262,229
388,869
Amounts owed to group undertakings
18,183,914
16,650,928
Corporation tax
-
0
654,988
Other taxation and social security
3,022,407
2,825,394
Deferred income
23,987,543
18,070,211
Other creditors
217,900
184,524
Accruals and deferred income
1,600,384
1,732,896
47,274,377
40,507,810

The amounts owed to Group undertakings includes a loan of £1.4m (2022: £1.3m) with Union Square Software Limited, which is unsecured, with interest at 6.5%, repayable by 11 January 2019. However, Union Square Software Limited has not yet called the loan and Deltek GB continues to pay interest on the loan. All other amounts owed to Group undertakings due within one year are repayable on demand, interest free and unsecured.

17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Amounts owed to group undertakings
13,296,207
13,296,207
Accruals and deferred income
2,616,741
1,687,635
15,912,948
14,983,842

The amounts owed to Group undertakings comprises a loan of £13.3m (2022: £13.3m) with Roper Swiss Finance Gmbh which is unsecured, with interest at 6.5%, repayable by 16 June 2027.

The prior year comparatives have been amended to reflect £1.4m of loan interest, due on the principle amount shown above, that falls due after more than one year from amounts falling due within one year. This reflects the terms of the agreement. The 2023 figures fairly reflect these terms and includes £2.3m of interest due after more than one year.

18
Deferred taxation

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

Assets
Assets
2023
2022
Balances:
£
£
Deferred tax asset
353,437
312,710
Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
18
Deferred taxation
(Continued)
Page 32
2023
Movements in the year:
£
Asset at 1 January 2023
(312,710)
Credit to profit or loss
(40,727)
Asset at 31 December 2023
(353,437)
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
859,506
771,622

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share-based payment transactions

Equity-settled share-based payment schemes

This relates to equity settled costs of the ultimate holding company, Roper Technologies, Inc ., granted to its employees, officers and directors.

 

Equity settled options are typically granted at prices not less than 100% of market value of the underlying stock at the date of grant. Equity settles typically vest over a period of three to five years from the grant date and expire ten years after the grant date. The Company recorded £122,787 (2022: £100,885) of compensation expense relating to outstanding options during 2023 within administrative expenses.

Details of the share options outstanding during the financial year are as follows:

Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 January 2023
5,639
6,029
346.59
293.00
Granted
1,602
2,176
428.07
443.00
Forfeited
(3,166)
(458)
279.75
435.00
Exercised
(258)
(2,108)
444.76
280.00
Outstanding at 31 December 2023
3,817
5,639
429.60
347.00
Exercisable at 31 December 2023
2
249
401.27
217.31
Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
20
Share-based payment transactions
(Continued)
Page 33

The exercise price of options outstanding at 31 December 2023 ranged between US$36.27 to US$453.46 (2022: US$36.27 and US$453.46) and their weighted average contractual life was 7.31 years (2022: 8.53 years). Of the total number of options outstanding at the end of the year, 2 (2022: 1,883) had vested and were exercisable at the end of the year.

The Company estimates the fair value of its option awards using the Black-Scholes option valuation model. The stock volatility for each grant is measured using the weighted-average of historical daily price changes of the Company's common stock over the most recent period equal to the expected life of the grant. The expected term of options granted is derived from historical data to estimate option exercises and employee forfeitures and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

 

The Company weighted average fair value of options granted in 2023 was US$128.92 (2022: US$117.09) with risk free interest rate of 3.73% (2022: 2.20%). The average expected option life is 5.65 years (2022: 5.62 years). The expected volatility percentage is 26.02% (2022: 25.18%) and expected dividend yield is 0.64% (2022: 0.58%).

 

Cash-settled share-based payment schemes

During 2016 and 2022, the Company granted 2,000 shares and 510 shares of cash-settled stock, respectively, to certain employee and director participants under its share-based compensation plans. Cash-settled generally vest over a period of 1 to 3 years. The Company recorded £94,685 (2022: £7,445) of compensation expense related to outstanding shares of cash-settled held by employees and directors during 2023. The Company's non-vested shares at the end of the year 2023 were 510 shares (2022: 4,768 shares). The Company vested 2,108 shares in 2023 and the non-vested shares at the end of the current year were 510. The average expected option life is 1 year (2022: 1 year). The weighted average grant date fair value was US$444.62 (2022: US$444.62).

 

The Company recognised total expenses of £313,658 and £140,017 related to equity-settled share-based payment transactions in 2023 and 2022 respectively. Additionally, there were share-based payment expenses in 2023 and 2022.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
5,200,001
5,200,001
5,200,001
5,200,001
Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
21
Share capital
(Continued)
Page 34

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

 

Capital contribution reserves

The capital contribution reserves represent a contribution by the Company's immediate parent, Deltek Denmark A/S, in exchange for extinguishment of debt due to immediate parent. There was no difference between the carrying value of the debt and the fair value of the capital contribution.

 

Profit and loss account

The profit and loss account represents the cumulative profits and losses of the Company less any distribution made to the owners of the company.

 

Share based payments reserve

The reserve arises in connection with the share scheme established to facilitate the operation of the long-term incentive scheme for senior management.

22
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
434,324
652,165
Between two and five years
1,257,392
93,001
1,691,716
745,166

The lease commitments above include land and buildings commitments of £434,324 (2022: £643,430) within 1 year, and £1,257,392 (2022: £93,000) later than 1 year and not later than 5 years; and car commitments of £nil (2022: £8,735) within 1 year.

 

The company has a rent deposit deed charge over all money due to or that becomes due to the lessor.

23
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 the Republic of Ireland", not to disclose related party transactions with wholly owned entities within the Group.

Deltek GB Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 35
24
Ultimate controlling party

The immediate parent Company at the date of the Statement of Financial Position was Deltek Danmark A/S, a company incorporated in Denmark.

The smallest and largest entity for which consolidated financial statements are prepared as at the date of the Statement of Financial Position was Roper Technologies, Inc., a Company incorporated in the United States of America. The consolidated financial statements can be obtained from Roper Technologies, Inc. 6496 University Parkway, Sarasota, FL 34240. The ultimate controlling party at the date of the Statement of Financial Position is Roper Technologies, Inc.

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