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COMPANY REGISTRATION NUMBER: 03538201
Zalaris UK Ltd
Financial Statements
31 December 2023
Zalaris UK Ltd
Financial Statements
Year ended 31 December 2023
Contents
Page
Strategic report
1
Director's report
3
Independent auditor's report to the members
5
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13
Zalaris UK Ltd
Strategic Report
Year ended 31 December 2023
Business Review The company has set out in this report a fair review of the business and the position of the company at the end of the financial year ended 31 December 2023 and a description of the principal risks and uncertainties facing the company (known as a 'business review'). The company provides outsourcing and consulting services related to sales, system, implementations and operations of human resources processes and functionality. The company is 100% owned by Zalaris ASA and is part of a group with operations across Europe. The group activity in 2023 has seen a greater focus on HCM SAP cloud solutions across our international operations as the market moves from on premise to cloud-based solutions. The board believes our geographic footprint is a significant benefit to customers implementing cross border HCM solutions. Principle risks and uncertainties The key company level risks identified by the directors are referred to as commercial risk, competition risk and financial management risk. Commercial risk The nature of commercial risk reflects the normal risks associated with a company operating in a competitive market. These risks include: Economic, political and market conditions which could affect the company's sales growth and profitability. Failure to achieve the company's financial forecasts due to the inability to secure new contracts and re-negotiate existing contracts. Full appreciation of the how the COVID-19 global pandemic has ultimately hit specific industry segments currently engaging with, or potentially engaging with, Zalaris products and services. Maintaining adequate human resources that are suitably trained to meet our customer's demands. Ensuring that the company's systems and infrastructure are sufficiently resilient to cope with future demands. Competition risk The market for the supply of design and implementation of human capital management solutions and services in the UK is highly competitive. There is strong competition in supplying the product and services requirements of our customers, and there are low barriers to entry. As a result of competitive pressures, changes to the company's pricing models may result in price reductions which would adversely affect sales and profitability. Competition puts pressure on product prices and increases the cost of of service delivery. Managing this risk requires continuous focus on process efficacy and reducing costs. Financial management risk. Credit risk The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit which is reassessed based on the on-going market conditions and at least once annually by the board.
This report was approved by the board of directors on 19 September 2024 and signed on behalf of the board by:
H-P Mellerud
Director
Registered office:
Hersham Place Technology Park
41-61 Molesey Road
Walton-on-Thames
KT12 4RZ
Zalaris UK Ltd
Director's Report
Year ended 31 December 2023
The director presents his report and the financial statements of the company for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
H-P Mellerud
W P Jackson
(Resigned 1 June 2023)
Dividends
The director does not recommend the payment of a dividend.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is 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. He is 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 19 September 2024 and signed on behalf of the board by:
H-P Mellerud
Director
Registered office:
Hersham Place Technology Park
41-61 Molesey Road
Walton-on-Thames
KT12 4RZ
Zalaris UK Ltd
Independent Auditor's Report to the Members of Zalaris UK Ltd
Year ended 31 December 2023
Opinion
We have audited the financial statements of Zalaris UK Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of 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: - 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; - 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 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 director's 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 director 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. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. This is the first year the company financial statements have been audited. Although we have not audited the comparative figures, we have taken steps to obtained appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period's financial statements, as per ISA (UK) 710.
Opinions 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's 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 director's 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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: Irregularities- ability to detect We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management (as required by auditing standards), the polices and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the company is is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statement, for instance through the imposition of fines or litigation. We indentified areas as those most likely to have such an effect: anti bribery and certain aspects of company legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to inquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatement in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as we any audit there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 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. 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.
Thomas McManners ACA Bsc ACMI
(Senior Statutory Auditor)
For and on behalf of
TTCA Ltd
Chartered accountants & statutory auditor
269 Farnborough Road
Farnborough
Hampshire
GU14 7LY
19 September 2024
Zalaris UK Ltd
Statement of Comprehensive Income
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
6,833,023
4,333,677
Cost of sales
5,002,464
2,820,004
------------
------------
Gross profit
1,830,559
1,513,673
Administrative expenses
727,341
723,551
------------
------------
Operating profit
5
1,103,218
790,122
Other interest receivable and similar income
8
95,004
13,846
------------
------------
Profit before taxation
1,198,222
803,968
Tax on profit
9
282,168
154,754
------------
---------
Profit for the financial year and total comprehensive income
916,054
649,214
------------
---------
All the activities of the company are from continuing operations.
Zalaris UK Ltd
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
10
23,979
14,841
Current assets
Debtors
11
3,043,945
2,644,391
Cash at bank and in hand
3,511,057
1,975,070
------------
------------
6,555,002
4,619,461
Creditors: amounts falling due within one year
12
3,306,977
2,233,241
------------
------------
Net current assets
3,248,025
2,386,220
------------
------------
Total assets less current liabilities
3,272,004
2,401,061
------------
------------
Net assets
3,272,004
2,401,061
------------
------------
Capital and reserves
Called up share capital
14
10,100
10,100
Share premium account
15
140,000
140,000
Other reserves, including the fair value reserve
15
110,011
155,122
Profit and loss account
15
3,011,893
2,095,839
------------
------------
Shareholders funds
3,272,004
2,401,061
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 19 September 2024 , and are signed on behalf of the board by:
H-P Mellerud
Director
Company registration number: 03538201
Zalaris UK Ltd
Statement of Changes in Equity
Year ended 31 December 2023
Called up share capital
Share premium account
Other reserves, including the fair value reserve
Profit and loss account
Total
£
£
£
£
£
At 1 January 2022
10,100
140,000
88,725
1,446,625
1,685,450
Profit for the year
649,214
649,214
--------
---------
--------
------------
------------
Total comprehensive income for the year
649,214
649,214
Equity-settled share-based payments
66,397
66,397
--------
---------
--------
------------
------------
Total investments by and distributions to owners
66,397
66,397
At 31 December 2022
10,100
140,000
155,122
2,095,839
2,401,061
Profit for the year
916,054
916,054
--------
---------
---------
------------
------------
Total comprehensive income for the year
916,054
916,054
Equity-settled share-based payments
( 45,111)
( 45,111)
----
----
--------
----
--------
Total investments by and distributions to owners
( 45,111)
( 45,111)
--------
---------
---------
------------
------------
At 31 December 2023
10,100
140,000
110,011
3,011,893
3,272,004
--------
---------
---------
------------
------------
Zalaris UK Ltd
Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
916,054
649,214
Adjustments for:
Depreciation of tangible assets
12,046
7,026
Other interest receivable and similar income
( 95,004)
( 13,846)
Gains on disposal of tangible assets
( 300)
Tax on profit
282,168
154,754
Accrued income
( 14,888)
( 109,704)
Decrease in amounts owed by groups
(25,663)
Value of share options granted
(45,111)
66,397
Changes in:
Trade and other debtors
( 377,099)
( 740,818)
Trade and other creditors
674,887
133,066
------------
---------
Cash generated from operations
1,353,053
120,126
Interest received
95,004
13,846
Tax paid
( 186,395)
( 127,993)
------------
---------
Net cash from operating activities
1,261,662
5,979
------------
---------
Cash flows from investing activities
Purchase of tangible assets
( 21,184)
( 10,631)
Proceeds from sale of tangible assets
300
------------
---------
Net cash used in investing activities
( 21,184)
( 10,331)
------------
---------
Cash flows from financing activities
Proceeds from loans from group undertakings
295,509
131,957
------------
---------
Net cash from financing activities
295,509
131,957
------------
---------
Net increase in cash and cash equivalents
1,535,987
127,605
Cash and cash equivalents at beginning of year
1,975,070
1,847,465
------------
------------
Cash and cash equivalents at end of year
3,511,057
1,975,070
------------
------------
Zalaris UK Ltd
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Hersham Place Technology Park, 41-61 Molesey Road, Walton-on-Thames, KT12 4RZ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis The financial statements are prepared in sterling, which is the functional currency of the entity.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Zalaris ASA which can be obtained from PO Box 1053 Hoff, NO-0218 Oslo, Norway. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) Disclosures in respect of each class of share capital have not been presented. (b) No cash flow statement has been presented for the company. (c) Disclosures in respect of financial instruments have not been presented. (d) Disclosures in respect of share-based payments have not been presented. (e) No disclosure has been given for the aggregate remuneration of key management personnel.
Judgements and key sources of estimation uncertainty
The Company makes judgements, estimates and assumptions that effect the application of policies and reported amounts of assets and liabilities, income and expenses. The resulting accounting estimates calculated using these judgements and assumptions will, by definition, seldom equal the related actual results exactly but are based on historical experience and expectations of future events. The estimates are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in in which the estimate is revised if the revision effects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The estimates and assumptions that have a significant effect on the amounts recognised in the financial statements are those related to the recognition of contract revenue during the year.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax. When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period. When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Equipment
-
33% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
6,833,023
4,333,677
------------
------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2023
2022
£
£
United Kingdom
6,772,989
4,322,716
Overseas
60,034
10,961
------------
------------
6,833,023
4,333,677
------------
------------
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
12,046
7,026
Gains on disposal of tangible assets
( 300)
Foreign exchange differences
19,346
( 23,321)
--------
--------
6. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2023
2022
No.
No.
Administrative staff
4
4
Management staff
1
1
Consultants
40
38
Sales and marketing
3
3
----
----
48
46
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
2,552,086
2,254,875
Social security costs
312,511
280,755
Other pension costs
105,297
93,998
------------
------------
2,969,894
2,629,628
------------
------------
7. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
133,215
149,763
Company contributions to defined contribution pension plans
5,159
6,938
---------
---------
138,374
156,701
---------
---------
8. Other interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
95,004
13,846
--------
--------
9. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
282,168
154,754
---------
---------
Tax on profit
282,168
154,754
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 23.50 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
1,198,222
803,968
------------
---------
Profit on ordinary activities by rate of tax
281,582
152,754
Effect of expenses not deductible for tax purposes
2,631
3,291
Effect of capital allowances and depreciation
( 2,045)
( 1,291)
------------
---------
Tax on profit
282,168
154,754
------------
---------
10. Tangible assets
Equipment
£
Cost
At 1 January 2023
54,019
Additions
21,184
Disposals
( 7,453)
--------
At 31 December 2023
67,750
--------
Depreciation
At 1 January 2023
39,178
Charge for the year
12,046
Disposals
( 7,453)
--------
At 31 December 2023
43,771
--------
Carrying amount
At 31 December 2023
23,979
--------
At 31 December 2022
14,841
--------
11. Debtors
2023
2022
£
£
Trade debtors
1,662,757
1,140,758
Amounts owed by group undertakings
34,180
68,192
Prepayments and accrued income
73,488
24,710
Amounts recoverable on long term contracts
1,258,614
1,397,923
Other debtors
14,906
12,808
------------
------------
3,043,945
2,644,391
------------
------------
12. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
138,998
71,348
Amounts owed to group undertakings
465,780
170,271
Accruals and deferred income
2,204,643
1,597,555
Corporation tax
204,664
108,891
Social security and other taxes
292,892
285,176
------------
------------
3,306,977
2,233,241
------------
------------
13. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 105,297 (2022: £ 93,998 ).
14. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
10,100
10,100
10,100
10,100
--------
--------
--------
--------
15. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Share option reserve - This reserve records the value received in relation to the issue of share options. Profit and loss account - This reserve records retained earnings and accumulated losses.
16. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
1,975,070
1,535,987
3,511,057
Debt due within one year
(170,271)
(295,509)
(465,780)
------------
------------
------------
1,804,799
1,240,478
3,045,277
------------
------------
------------
17. Controlling party
The ultimate parent and controlling party is Zalaris ASA, a company incorporated in Norway. These ultimate group accounts are available from the parents offices at Hovfaret 4B, NO-0218 Olso, Norway.