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Registered number: 06193446









CASTLETON TECHNOLOGIES LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
CASTLETON TECHNOLOGIES LIMITED
 
 
COMPANY INFORMATION


Directors
J A Ensign 
P J Ghilani 
R Telerman 




Registered number
06193446



Registered office
9 King Street

London

EC2V 8EA




Independent auditors
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors

Charles Lake House

Claire Causeway

Crossways Business Park

Dartford

Kent

DA2 6QA





 
CASTLETON TECHNOLOGIES LIMITED
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9
Statement of changes in equity
 
10
Notes to the financial statements
 
11 - 21


 
CASTLETON TECHNOLOGIES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report accompanying the financial statements for the period ended 31
December 2023.

Business review
 
The profit before tax for the year ending 31 December 2023 is £0.9m, an increase on the prior period profit before tax of £0.4m. 
Turnover increased from £13.9m for the period ended 31 December 2022 to £14.1m for the year ended 31 December 2023. Annualized, this is an increase of 1.9% over the prior period. This is primarily the result of an increase in recurring revenue, from new sales closed during the year. 
As a result, the directors are confident in the core financial metrics of the company.

Principal risks and uncertainties
 
The principal risks and uncertainties faced by the company are those of general market and economic risks in common with other businesses in the current economic climate. The directors aim to manage these risks and uncertainties going forward in order to maintain and improve on the current level of performance.

Financial key performance indicators
 
The key financial performance indicators are as follows:
- Revenue per employee
- Ratio of employment costs to annually recurring revenue
- Ratio of recurring revenue to total revenue
The directors consider the above ratios to be at acceptable levels for the period ended 31 December 2023.


This report was approved by the board on 23 September 2024 and signed on its behalf.



R Telerman
Director

Page 1

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £376,677 (2022 - £393,569).

The directors do not recommend the payment of a final dividend.

Directors

The directors who served during the year were:

J A Ensign 
P J Ghilani 
R Telerman 

Future developments

The company is budgeted to continue to trade profitably and to pursue opportunities to improve its financial performance and financial position in the year to 31 December 2024.

Page 2

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 23 September 2024 and signed on its behalf.
 





R Telerman
Director

Page 3

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CASTLETON TECHNOLOGIES LIMITED
 

Opinion


We have audited the financial statements of Castleton Technologies 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 the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 4

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CASTLETON TECHNOLOGIES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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.


Page 5

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CASTLETON TECHNOLOGIES LIMITED (CONTINUED)


Auditors' 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 Auditors' 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.


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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows:
•  The engagement partner ensured that the engagement team collectively had the appropriate     competence, capabilities and skills to identify or recognise non-compliance with applicable laws and    regulations;
•  We identified the laws and regulations applicable to the company through discussion with directors and    other management, and from our commercial knowledge and experience of the software and technology   sector in which the company operates;
•  The specific laws and regulations which we considered may have a direct material effect on the financial   statements or the operations of the company, are as follows;
 •  Companies Act 2006
 •  FRS102
 •  Health and Safety legislation
 •  Employment legislation
 •  Tax legislation
•  We assessed the extent of compliance with the laws and regulations identified above through making    enquiries of management, reviewing board minutes and inspecting relevant legal and other      correspondence; and
•  Laws and regulations were communicated within the audit team at the planning meeting, and during the    audit as any further laws and regulation were identified. The audit team remained alert to instances of    non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:
•  Making enquires of management as to where they consider there was susceptibility to fraud and their    knowledge of actual suspected and alleged fraud;
•  Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and    regulations;
•  Reviewing the financial statements and testing the disclosures against supporting documentation;
•  Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
•  Inspecting and testing journal entries to identify unusual or unexpected transactions;
•  Assessing whether judgement and assumptions made in determining significant accounting estimates,
 including certain year end accruals and provisions, were indicative of management bias; and investigating    the rationale behind significant transactions, or transactions that are unusual or outside the company’s    usual course of business.
 
Page 6

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CASTLETON TECHNOLOGIES LIMITED (CONTINUED)


The areas that we identified as being susceptible to misstatement through fraud were:
•  Management bias in the estimates and judgements made;
•  Management override of controls; and
•  Posting of unusual journals or transactions.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.





Mario Cientanni (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors
Charles Lake House
Claire Causeway
Crossways Business Park
Dartford
Kent
DA2 6QA

 
Date: 
26 September 2024
Page 7

 
CASTLETON TECHNOLOGIES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
14,136,040
13,878,682

Cost of sales
  
(3,384,586)
(3,264,235)

Gross profit
  
10,751,454
10,614,447

Administrative expenses
  
(10,016,400)
(10,170,285)

Other operating income
 5 
179,038
-

Operating profit
 6 
914,092
444,162

Tax on profit
 9 
(537,415)
(50,593)

Profit for the financial year
  
376,677
393,569

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 11 to 21 form part of these financial statements.

Page 8

 
CASTLETON TECHNOLOGIES LIMITED
REGISTERED NUMBER: 06193446

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
229,862
275,941

Investments
 11 
163
163

  
230,025
276,104

Current assets
  

Debtors: amounts falling due within one year
 12 
18,525,478
29,793,295

  
18,525,478
29,793,295

Creditors: amounts falling due within one year
 13 
(12,063,659)
(23,754,232)

Net current assets
  
 
 
6,461,819
 
 
6,039,063

Total assets less current liabilities
  
6,691,844
6,315,167

  

Net assets
  
6,691,844
6,315,167


Capital and reserves
  

Called up share capital 
 15 
136
136

Share premium account
  
79,211
79,211

Profit and loss account
  
6,612,497
6,235,820

  
6,691,844
6,315,167


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




R Telerman
Director

Date: 23 September 2024

The notes on pages 11 to 21 form part of these financial statements.

Page 9

 
CASTLETON TECHNOLOGIES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
136
79,211
6,235,820
6,315,167



Profit for the year
-
-
376,677
376,677


At 31 December 2023
136
79,211
6,612,497
6,691,844


The notes on pages 11 to 21 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 January 2022 (as previously stated)
136
79,211
6,267,695
6,347,042

Prior year adjustment
-
-
(425,444)
(425,444)

At 1 January 2022 (as restated)
136
79,211
5,842,251
5,921,598



Profit for the year
-
-
393,569
393,569


At 31 December 2022
136
79,211
6,235,820
6,315,167


The notes on pages 11 to 21 form part of these financial statements.

Page 10

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Castleton Technologies Limited is a private company limited by share capital and incorporated in England and Wales. The address of the registered office is 9 King Street, London, EC2V 8EA. The principal activity of the company is that of the provision of IT infrastructure and support for businesses, provision of document management, process management, customer relationship management solutions, provision of IT consultancy, IT solutions and software support to the housing association sector.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

 •  the requirements of Section 7 Statement of Cash Flows;
 •  the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
 •  the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of MRI Software Limited as at 31 December 2023 and these financial statements may be obtained from 9 King Street, London, EC2V 8EA.

 
2.3

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

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 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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 11

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Licence revenue, including SaaS (Software-as-a-Service) contracts and similar contracts which include maintenance and software support, is recognised from the point at which the customer makes a commitment to purchase the product, and will then be recognised on a straight line basis over the life of the contract.
Income from development and consultancy, including training, is recognised as these services are provided to the customer.

 
2.5

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 12

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge 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.

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

 
2.8

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.

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


Fixtures and fittings
-
33 % straight line
Computer equipment
-
33 % straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

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.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 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.

Page 13

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

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.

 
2.13

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
 
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.14

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Page 14

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

a) Critical judgements in applying the company's accounting policies
No significant judgements have had to be made by the company in preparing these financial statements.
b) Key accounting estimates and assumptions
Usefuel economic lives of tangible fixed assets
The company has made key assumptions regarding the useful economic life of tangible fixed assets and this is further described in note 2.9 of the accounting policies. 
Bad debt provision
The company has made key estimates in respect of the level of bad debt provision required. A general provision is held, as well as specific provisions being made where the recoverability of debts is uncertain.
Commissions and bonus accruals
The company makes key estimates in respect of the level of commissions and bonuses to accrue into the financial statements at the year end. Management makes this estimate based on the bookings made and the corresponding remuneration package as at the year end for commissions and an expected percentage of salary regarding bonuses


4.


Turnover

The whole of the turnover is attributable to the principal activity of the company, which continued to be the provision of IT infrastructure and support for businesses, provision of document management, process management, customer relationship management solutions, provision of IT consultancy, IT solutions and software support to the housing association sector.
A geographical analysis of turnover has not been provided as permitted by the Companies Act 2006.


5.


Other operating income

2023
2022
£
£

Profit on sale of property
179,038
-

179,038
-


Page 15

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(2,568)
1,179

Other operating lease rentals
2,475
8,489

Pension
175,463
189,929

Depreciation
182,467
171,089


7.


Auditors' remuneration

The annual audit fees of £19,650 (2022: £18,250) are borne by fellow group companies. The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the group accounts of the parent company.





8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
5,815,095
6,397,380

Social security costs
639,826
750,210

Cost of defined contribution scheme
175,463
189,929

6,630,384
7,337,519


The average monthly number of employees, including directors, during the year was 96 (2022 - 102).

Page 16

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
29,200
-

Adjustments in respect of previous periods
-
(29,321)


Total current tax
29,200
(29,321)

Deferred tax


Origination and reversal of timing differences
508,215
79,914


Tax on profit
537,415
50,593

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 19%/25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
914,092
444,162


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19/25% (2022 - 19%)
214,999
84,391

Effects of:


Expenses not deductible for tax purposes/(income not chargeable), other than goodwill amortisation and impairment
40,504
(30,013)

Capital allowances for year in excess of depreciation
(7,091)
(54,378)

Utilisation of tax losses
(177,101)
-

Deferred tax movement
508,215
79,914

Adjustments to tax charge in respect of prior periods
-
(29,321)

Non-taxable income
(42,111)
-

Total tax charge/(credit) for the year
537,415
50,593


Factors that may affect future tax charges

The company has tax losses carried forward of £Nil (2022: £752,968) to use against future trading profits.

Page 17

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Tangible fixed assets





Office equipment

£



Cost or valuation


At 1 January 2023
994,911


Additions
136,388



At 31 December 2023

1,131,299



Depreciation


At 1 January 2023
718,970


Charge for the year on owned assets
182,467



At 31 December 2023

901,437



Net book value



At 31 December 2023
229,862



At 31 December 2022
275,941


11.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
163



At 31 December 2023
163




Page 18

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Subsidiary undertaking


The following was a subsidiary undertaking of the company:

Name

Class of shares

Holding

Castleton Technology Pty Limited
Ordinary
100%

Castleton Technology Pty Limited is engaged in location based software development and consultancy.


12.


Debtors

2023
2022
£
£


Trade debtors
5,889,134
5,549,550

Amounts owed by group undertakings
11,972,923
23,063,633

Other debtors
-
32,061

Prepayments and accrued income
545,663
522,078

Deferred taxation
117,758
625,973

18,525,478
29,793,295



13.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
952,138
767,618

Amounts owed to group undertakings
340,045
12,531,132

Corporation tax
7,772
-

Other taxation and social security
698,132
561,690

Other creditors
20,828
(635)

Accruals and deferred income
10,044,744
9,894,427

12,063,659
23,754,232


Page 19

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Deferred taxation




2023
2022


£

£






At beginning of year
625,973
705,887


Utilised in year
(508,215)
(79,914)



At end of year
117,758
625,973

The deferred tax asset is made up as follows:

2023
2022
£
£


Accelerated capital allowances
23,679
29,544

Other timing differences (bad debt provision)
94,079
51,640

Tax losses carried forward
-
544,789

117,758
625,973


15.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



6,667 (2022 - 6,667) Ordinary A shares of £0.01 each
67
67
3,333 (2022 - 3,333) Ordinary B shares of £0.01 each
33
33
3,554 (2022 - 3,554) Ordinary C shares of £0.01 each
36
36

136

136



16.


Prior year adjustment

In the prior year it has been noted that management charges had been incorrectly classified in the profit or loss, as such, this has been corrected in the current year by a prior year adjustment to ensure the disclosure is consistent with the current year.
The impact of this adjustment is a reduction in other operating income of £1,976,401 and a decrease in administrative expenses of £1,976,401.

Page 20

 
CASTLETON TECHNOLOGIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Commitments under operating leases

The company had no commitments under non-cancellable operating leases at the balance sheet date.


18.


Controlling party

The ultimate parent company in the UK is MRI Software Limited, a company incorporated in England and
Wales. MRI Software Limited produces financial statements incorporating the results of Castleton Technologies Limited which can be obtained from 9 King Street, London, EC2V 8EA.
MRI Software Limited is a wholly owned subsidiary of MRI Software LLC, a limited liability company
incorporated in Delaware, USA. The ultimate parent company is MRI Intermediate Holdings LLC, a limited liability company incorporated in Delaware, USA.

 
Page 21