Company registration number SC270886 (Scotland)
SOFTWARE ALLIANCE LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
SOFTWARE ALLIANCE LIMITED
CONTENTS
Page
Directors' report
1 - 2
Balance sheet
3 - 4
Notes to the financial statements
5 - 8
SOFTWARE ALLIANCE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Software Alliance Limited (“SAL”) is a specialist software house focused on the development of financial modelling and related software primarily for the life insurance industry. Our principal software product is the Mo.net Financial Modelling Platform, which is used by actuaries and other risk professionals to perform a range of critical business activities, including but not limited to product pricing, profit testing, valuation & reserving, capital management, and front / back-office policy illustrations & servicing.

The global marketplace for SAL’s products is dominated by the first generation of financial modelling software released in the mid-1990s. These products are now approaching end-of-life, with many customers actively looking at alternatives to these legacy tools. The flexible, modern & open architecture of the Mo.net platform, together with an increasing range of accelerator tools to help support the migration effort, leaves us well placed to respond to the next generation of financial modelling requirements.

Philosophy

SAL’s business philosophy is encapsulated as follows:

Strategic Focus

The strategic focus for the business continues to be developing a range of innovative and extensible on-premise, cloud-based and hybrid financial modelling software & associated services appropriate to the current and emerging needs of the global life insurance industry. We continue to target all stages of the life insurance lifecycle, include front-office illustrations & quotations, back-office policy administration calculations, and more traditional actuarial pricing, valuation, and reserving activities. By closely aligning our tools & services to the needs of our strategic markets & territories we can offer a genuine alternative to the traditional tools & vendors.

Growth

Over the last 12 months our recurring annual license revenue has grown by 9.9%. There has also been encouraging growth of new clients in emerging strategic markets, as well as steady interest from the domestic market giving a positive outlook for the coming year.

Cost Management

During the year, we have continued to focus on minimising all operational costs and to streamline many of our key business processes. However, we have also invested in people and initiatives where there are clear and tangible benefits to the business.

Customers

Providing exceptional customer service & support remains a cornerstone of the business, and key to our strategic goal of winning new clients who are considering moving away from legacy platforms & providers. We have continued to increase visibility of our brand across our target markets & segments through a diverse selection of industry events and conferences.

Partners

Since becoming an independent business In April 2023, SAL has developed its own Partner Programme to complement our existing consultancy offering. The primary purpose of the programme is to allow us to better support our international clients, although we have had an encouraging level of interest from domestic partners too.

SOFTWARE ALLIANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

Products & Services

New versions of the core Mo.net platform continue to be released in line with our strategic product roadmap, which is heavily influenced by customer requirements and our own R&D activity. New features this year include our first steps into generative AI and our first SaaS-based service. This year we have also mobilised our Mo.net Training Academy & Certification Programme to help existing & new clients develop their Mo.net expertise.

Opportunities

The most significant opportunities relate to the replacement of first generation / legacy financial modelling platforms. Many insurers are now actively investigating alternative technologies offering more flexibility, lower cost of ownership, better vendor support, and a clear pathway for migration.

Risks & Challenges

The principal risk to our business is the loss of any of our major clients to a competitor. We are therefore focusing on maintaining client satisfaction and ensuring clients receive exemplary customer service & support. Given the focus on information security & governance, especially with the move to cloud-based services, we are also embarking on a path to ISO-27001 accreditation.

People

The business & culture continues to evolve as the business grows with new members of staff joining when appropriate.

The satisfaction of all staff is monitored through a quarterly satisfaction survey, as well as indirectly through our performance management framework. Staff satisfaction continues to be high.

Directors

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

S Curle
G Shepherd CDIr FIoD
L Schopp CDir ACA
Small companies exemption

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

On behalf of the board
G Shepherd CDIr FIoD
Director
17 October 2024
SOFTWARE ALLIANCE LIMITED
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 3 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
8,395
6,698
Current assets
Debtors
6
109,322
154,579
Cash at bank and in hand
690,046
521,425
799,368
676,004
Creditors: amounts falling due within one year
7
(402,652)
(361,844)
Net current assets
396,716
314,160
Total assets less current liabilities
405,111
320,858
Creditors: amounts falling due after more than one year
8
(10)
(10)
Net assets
405,101
320,848
Capital and reserves
Called up share capital
1,191
1,191
Share premium account
199,998
199,998
Capital redemption reserve
39
39
Profit and loss reserves
203,873
119,620
Total equity
405,101
320,848

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

SOFTWARE ALLIANCE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MAY 2024
31 May 2024
- 4 -
The financial statements were approved by the board of directors and authorised for issue on 17 October 2024 and are signed on its behalf by:
G Shepherd CDIr FIoD
Director
Company registration number SC270886 (Scotland)
SOFTWARE ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 5 -
1
Accounting policies
Company information

Software Alliance Limited is a private company limited by shares incorporated in Scotland.

The registered office is Summit House, 4-5 Mitchell Street, Edinburgh, EH6 7BD.

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 as applicable to companies subject to the small companies regime.

 

The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

1.2
Turnover

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts.

 

For licence fees, the majority of the income is recognised on commencement of the licence. However a proportion of the licence fee attributable to ongoing service and support is deferred and released to income over the length of the licence.

 

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Company's activities.

1.3
Tangible fixed assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

 

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

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

IT and office equipment
20% straight line
1.4
Trade Creditors

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

 

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

SOFTWARE ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 6 -
1.5
Taxation

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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 taxable income.

1.6
Employee benefits

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

 

Contributions to defined contribution pension plans are recognised as employee benefit expense when they are due.

1.7

Share capital

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

1.8

Dividends

Dividend distributions to the company's ordinary shareholders are recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Fixed dividends to the company's preference shareholders are accrued as a liability over the period they are due, irrespective of when payment is to be made.

2
Judgements and key sources of estimation uncertainty

Income recognition with regard to licence fees.

3
Employees

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

2024
2023
Number
Number
Total
11
9
4
Dividends
2024
2023
£
£
Final paid
33,163
77,674
SOFTWARE ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
4
Dividends
(Continued)
- 7 -

Preference dividends in arrears total £17,500 (2023 - £17,500).

5
Tangible fixed assets
IT and office equipment
Total
£
£
Cost
At 1 June 2023
27,327
27,327
Additions
4,774
4,774
At 31 May 2024
32,101
32,101
Depreciation
At 1 June 2023
20,629
20,629
Depreciation charged in the year
3,077
3,077
At 31 May 2024
23,706
23,706
Carrying amount
At 31 May 2024
8,395
8,395
At 31 May 2023
6,698
6,698
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
78,540
96,852
Other debtors
30,782
57,727
109,322
154,579
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
15,523
24,577
Corporation tax
42,878
29,800
Other taxation and social security
66,399
58,570
Dividends payable
17,500
17,500
Other creditors
12,626
34,096
Accruals and deferred income
247,726
197,301
402,652
361,844
SOFTWARE ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Preference share capital
10
10
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