Caseware UK (AP4) 2023.0.135 2023.0.135 The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The Company has taken advantage of the following disclosure exemptions under FRS 101: the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payment the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations the requirements of paragraph 33(c) of IFRS 5 Non Current Assets Held For Sale and Discontinued Operations the requirements of IFRS 7 Financial Instruments: Disclosures the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of: - paragraph 79(a)(iv) of IAS 1; - paragraph 73(e) of IAS 16 Property, Plant and Equipment; - paragraph 118(e) of IAS 38 Intangible Assets; - paragraphs 76 and 79(d) of IAS 40 Investment Property; and - paragraph 50 of IAS 41 Agriculture the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements the requirements of IAS 7 Statement of Cash Flows the requirements of paragraph 17 and 18A of IAS 24 Related Party DisclosuresDepreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the reducing balance and straight line methods. 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.The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below: Financial assets and financial liabilities are initially measured at fair value. All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.16273180The ultimate parent undertaking of the company is Papercut Foreign Services Pty Ltd, a company incorporated in Australia. The smallest and largest consolidation presented are that of PaperCut Software International Pty Ltd. These are publicly available from the Australian Securities and Investments Commission, GPO Box 9827, Brisbane QLD 4001.Interest income is recognised in profit or loss using the effective interest method. Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.true2023-07-01truefalsetruetruetruetruetruetruetruetruetruetruetruetrue3035true 10376361 2023-07-01 2024-06-30 10376361 2022-07-01 2023-06-30 10376361 2024-06-30 10376361 2023-06-30 10376361 2022-07-01 10376361 c:PriorPeriodIncreaseDecrease 2022-07-01 2023-06-30 10376361 c:RestatedAmount 2022-07-01 10376361 1 2023-07-01 2024-06-30 10376361 d:CompanySecretary1 2023-07-01 2024-06-30 10376361 d:Director1 2023-07-01 2024-06-30 10376361 d:Director2 2023-07-01 2024-06-30 10376361 d:RegisteredOffice 2023-07-01 2024-06-30 10376361 d:Agent1 2023-07-01 2024-06-30 10376361 c:Buildings c:LongLeaseholdAssets 2023-07-01 2024-06-30 10376361 c:Buildings c:LongLeaseholdAssets 2024-06-30 10376361 c:Buildings c:LongLeaseholdAssets 2023-06-30 10376361 c:PlantMachinery 2023-07-01 2024-06-30 10376361 c:PlantMachinery 2024-06-30 10376361 c:PlantMachinery 2023-06-30 10376361 c:PlantMachinery c:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 10376361 c:FurnitureFittings 2023-07-01 2024-06-30 10376361 c:FurnitureFittings 2024-06-30 10376361 c:FurnitureFittings 2023-06-30 10376361 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 10376361 c:OfficeEquipment 2023-07-01 2024-06-30 10376361 c:OfficeEquipment 2024-06-30 10376361 c:OfficeEquipment 2023-06-30 10376361 c:OfficeEquipment c:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 10376361 c:OtherPropertyPlantEquipment 2023-07-01 2024-06-30 10376361 c:OtherPropertyPlantEquipment 2024-06-30 10376361 c:OtherPropertyPlantEquipment 2023-06-30 10376361 c:OtherPropertyPlantEquipment c:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 10376361 c:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 10376361 c:CurrentFinancialInstruments 2024-06-30 10376361 c:CurrentFinancialInstruments 2023-06-30 10376361 c:Non-currentFinancialInstruments 2024-06-30 10376361 c:Non-currentFinancialInstruments 2023-06-30 10376361 c:UKTax 2023-07-01 2024-06-30 10376361 c:UKTax 2022-07-01 2023-06-30 10376361 c:ShareCapital 2024-06-30 10376361 c:ShareCapital 2023-06-30 10376361 c:ShareCapital 2022-07-01 10376361 c:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 10376361 c:RetainedEarningsAccumulatedLosses 2024-06-30 10376361 c:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 10376361 c:RetainedEarningsAccumulatedLosses 2023-06-30 10376361 c:RetainedEarningsAccumulatedLosses c:PriorPeriodIncreaseDecrease 2022-07-01 2023-06-30 10376361 c:RetainedEarningsAccumulatedLosses 2022-07-01 10376361 c:RetainedEarningsAccumulatedLosses c:RestatedAmount 2022-07-01 10376361 d:OrdinaryShareClass1 2023-07-01 2024-06-30 10376361 d:OrdinaryShareClass1 2022-07-01 2023-06-30 10376361 d:OrdinaryShareClass1 2024-06-30 10376361 d:OrdinaryShareClass1 2023-06-30 10376361 d:FRS101 2023-07-01 2024-06-30 10376361 d:Audited 2023-07-01 2024-06-30 10376361 d:FullAccounts 2023-07-01 2024-06-30 10376361 d:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 10376361 c:FinancialInstrumentsFairValueThroughProfitOrLoss 2023-07-01 2024-06-30 10376361 c:FinancialLiabilitiesAmortisedCost 2023-07-01 2024-06-30 10376361 c:FinancialInstrumentsDesignatedFairValueThroughProfitOrLoss 2023-07-01 2024-06-30 10376361 c:FinanceLeases c:WithinOneYear 2024-06-30 10376361 c:FinanceLeases c:WithinOneYear 2023-06-30 10376361 c:FinanceLeases c:BetweenOneFiveYears 2024-06-30 10376361 c:FinanceLeases c:BetweenOneFiveYears 2023-06-30 10376361 c:FinanceLeases 2024-06-30 10376361 c:FinanceLeases 2023-06-30 iso4217:GBP xbrli:shares xbrli:pure

img624c.png






Financial Statements
Papercut Services UK Limited
For the year ended 30 June 2024





































Registered number: 10376361

 
Papercut Services UK Limited
 

Company Information


Directors
Christopher John Dance 
Matthew Doran 




Company secretary
Jamie Charles Fergusson



Registered number
10376361



Registered office
Maxis 1
43 Western Road

Bracknell

Berkshire

RG12 1RF

United Kingdom




Independent auditor
Grant Thornton
Chartered Accountants & Statutory Auditors

13-18 City Quay

Dublin 2




Bankers
HSBC UK
Birmingham

B1 1HQ

United Kingdom




Solicitors
Shakespeare Martineau LLP
1 Colmore Row

Birmingham

B4 6AA

United Kingdom





 
Papercut Services UK Limited
 

Contents



Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20


 
Papercut Services UK Limited
 
 
Directors' report
For the year ended 30 June 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Principal activity

The principal activity of the company was that of business support service activities. The previous year financial statements were unaudited.

Results and dividends

The profit for the year, after taxation, amounted to £188,931 (2023: £181,812).

The directors have recommended a dividend of £Nil (2023: £Nil).

Directors

The directors who served during the year were:

Christopher John Dance 
Matthew Doran 

Future developments

The Company plans to continue its present activities.

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

Post balance sheet events

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

Auditor

The auditor, Grant Thorntonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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


Christopher John Dance
Director

Date: 2 October 2024

Page 1

 
Papercut Services UK Limited
 

Directors' responsibilities statement
For the year ended 30 June 2024

The directors are responsible for preparing 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 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies and 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.

On behalf of the board

  
Christopher John Dance   
Director      

Date: 2 October 2024
Page 2

 
 
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Independent auditor's report to the members of Papercut Services UK Limited
 
Opinion


We have audited the financial statements of Papercut Services UK Limited, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity for the financial year ended 30 June 2024, and the related notes to the financial statements, 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 Financial Reporting Standard 101 ‘Reduced Disclosure Framework’.


In our opinion, Papercut Services UK Limited's financial statements:


give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the assets, liabilities and financial position of the Company as at 30 June 2024 and of its financial performance for the financial year then ended; 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 'Responsibilities of the auditor 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, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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 the date 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 3

 
 
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Independent auditor's report to the members of Papercut Services UK Limited (continued)



Other information


Other information comprises the information included in the annual report, other than the financial statements and our Auditor's report thereon, including the Directors' report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the 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 statementsour 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 in the financial statements, 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.


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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements, and 
the Directors' report  has 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 we have obtained in the course of the audit, we have not identified material misstatements in 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.
Page 4

 
 
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Independent auditor's report to the members of Papercut Services UK Limited (continued)

Responsibilities of management and those charged with governance for the financial statements
 

Management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS101 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, management 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 management either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.


Those charged with governance are responsible for overseeing the Company's financial reporting process.

Responsibilities of the auditor for the audit of the financial statements
 

The objectives of an auditor 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 their 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.

A further description of an auditor's 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 auditor's report.

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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to compliance with data protection and Employment laws, Health and Safety Regulation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulation that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and UK tax legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.
Page 5

 
 
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Independent auditor's report to the members of Papercut Services UK Limited (continued)

Responsibilities of the auditor for the audit of the financial statements (continued)

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

In response to these principal risks, our audit procedures included but were not limited to:
inquiries of management and board on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
inspection of the Company’s regulatory and legal correspondence and review of minutes of board meetings during the year to corroborate inquiries made;
gaining an understanding of the internal controls established to mitigate risk related to fraud;
discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;
identifying and testing journal entries to address the risk of inappropriate journals and management override of controls;
designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
challenging assumptions and judgements made by management in their significant accounting estimates, including impairment assessment of investments in subsidiaries; and
review of the financial statements disclosures to underlying supporting documentation and inquiries of management.

The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal control.

The purpose of our audit work and to whom we owe our responsibilities
 

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.

 
 
Tracy Sullivan (Senior statutory auditor)
for and on behalf of
Grant Thornton
Chartered Accountants &
Statutory Auditors
Dublin 2
2 October 2024
Page 6

 
Papercut Services UK Limited
 

Statement of comprehensive income
For the year ended 30 June 2024

2024
2023
Note
£
£

  

Turnover
 4 
3,630,282
3,571,951

Cost of sales
  
-
(552)

Gross profit
  
3,630,282
3,571,399

Administrative expenses
  
(3,385,185)
(3,325,600)

Other operating income
 5 
-
456

Operating profit
  
245,097
246,255

Interest receivable and similar income
 7 
5,920
2,340

Interest payable and similar expenses
  
(7,388)
(13,200)

Profit before tax
  
243,629
235,395

Tax on profit
 8 
(54,698)
(53,583)

Profit for the year
  
188,931
181,812

All amounts relate to continuing operations.
There was no other comprehensive income for 2024 (2023£Nil).

The notes on pages 10 to 20 form part of these financial statements.

Page 7

 
Papercut Services UK Limited
Registered number:10376361

Statement of financial position
As at 30 June 2024

2024
2023
Note
£
£

  

Fixed assets
  

Tangible assets
 10 
125,012
226,003

  
125,012
226,003

Current assets
  

Debtors
 11 
153,104
866,130

Cash at bank and in hand
 12 
525,279
493,339

  
678,383
1,359,469

Current liabilities
  

Creditors: amounts falling due within one year
 13 
(607,916)
(647,793)

Net current assets
  
 
 
70,467
 
 
711,676

Creditors: amounts falling due after more than one year
 14 
-
(98,127)

Net assets
  
195,479
839,552


Capital and reserves
  

Called up share capital 
 15 
1
1

Profit and loss account
  
195,478
839,551

Shareholders' funds
  
195,479
839,552


The Company's financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


Christopher John Dance
Matthew Doran
Director
Director


Date: 2 October 2024

The notes on pages 10 to 20 form part of these financial statements.

Page 8

 
Papercut Services UK Limited
 

Statement of changes in equity
For the year ended 30 June 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2023
1
839,551
839,552


Comprehensive income for the year

Profit for the year
-
188,931
188,931


Contributions by and distributions to owners

Dividends: Equity capital
-
(833,004)
(833,004)


At 30 June 2024
1
195,478
195,479



Statement of changes in equity
For the year ended 30 June 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2022 (as previously stated)
1
709,717
709,718

Prior year adjustment - change in accounting policies
-
(51,978)
(51,978)

At 1 July 2022 (as restated)
1
657,739
657,740


Comprehensive income for the year

Profit for the year
-
181,812
181,812


At 30 June 2023
1
839,551
839,552


The notes on pages 10 to 20 form part of these financial statements.

Page 9

 
Papercut Services UK Limited
 
 
Notes to the financial statements
For the year ended 30 June 2024

1.


General information

Papercut Services UK Limited is a private company limited by shares and is registered and incorporated in England and Wales. The Company's registered address is Maxis 1, 43 Western Road, Bracknell, Berkshire, RG12 1RF. The principal activity of the company is that of business support service activities.

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 Section 1A of Financial Reporting Standard 101 'Reduced Disclosure Framework'  and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payment
the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations
the requirements of paragraph 33(c) of IFRS 5 Non Current Assets Held For Sale and Discontinued Operations
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
 - paragraph 79(a)(iv) of IAS 1;
 - paragraph 73(e) of IAS 16 Property, Plant and Equipment;
 - paragraph 118(e) of IAS 38 Intangible Assets;
 - paragraphs 76 and 79(d) of IAS 40 Investment Property; and
 - paragraph 50 of IAS 41 Agriculture
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures

Page 10

 
Papercut Services UK Limited
 

Notes to the financial statements
For the year ended 30 June 2024

2.Accounting policies (continued)


2.2
Financial Reporting Standard 101 - reduced disclosure exemptions (continued)

The smallest consolidated financial statements presented are that of PaperCut Software International Pty Ltd at 30 June 2024, in which equivalent consolidated disclosures can be found. These financial statements are available from the Australian Securities and Investments Commission, GPO Box 9827, Brisbane QLD 4001.

  
2.3

Impact of new international reporting standards, amendments and interpretations

New standards adopted as at 1 January 2023

Some accounting pronouncements which have become effective from 1 January 2023 and have therefore been adopted do not have a significant impact on the Company's financial results or position.
IFRS 17 "Insurance Contracts"
Amendments to IFRS 17 Insurance Contracts (Amendments to IFRS 17 and IFRS 4)
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendment to IAS 12) 
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
Definition of Accounting Estimates (Amendments to IAS 8)
International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12)

 
2.4

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.

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'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 11

 
Papercut Services UK Limited
 

Notes to the financial statements
For the year ended 30 June 2024

2.Accounting policies (continued)

 
2.5

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:

The Company has contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company adjusts the transaction prices of these contracts for the time value of money.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

Rendering of services

Revenue from providing services is recognised in the accounting period in which the services are rendered.

For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 12

 
Papercut Services UK Limited
 

Notes to the financial statements
For the year ended 30 June 2024

2.Accounting policies (continued)

 
2.9

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 reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.

 
2.10

 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, using the reducing balance and straight line methods.

Depreciation is provided on the following basis:

Long term leasehold property
-
20%
straight line
Plant and machinery
-
10%
straight line
Fixtures and fittings
-
20%
reducing balance
Office 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.

Page 13

 
Papercut Services UK Limited
 

Notes to the financial statements
For the year ended 30 June 2024

2.Accounting policies (continued)

 
2.11

 Debtors

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

 
2.12

 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.

 
2.13

 Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

 
2.14

 Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:

Financial assets and financial liabilities are initially measured at fair value. 

Financial assets

All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.

Fair value through profit or loss

All of the Company's financial assets are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses being recognised in profit or loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset. 

Impairment of financial assets

The Company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

Page 14

 
Papercut Services UK Limited
 

Notes to the financial statements
For the year ended 30 June 2024

2.Accounting policies (continued)


2.14
 Financial instruments (continued)

Financial liabilities

Fair value through profit or loss

Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship.
 
At amortised cost

Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.

 
2.15

 Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The key estimates and assumptions concerning the future and other key sources of estimation uncertainty at the financial reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: 

Estimating useful lives of depreciable assets
The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of fair values and residual values. The directors annually review these asset lives and adjust them as necessary to reflect current thinking on remaining lives in light of technological change, prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have significant impact on depreciation charges for the period. It is not practical to quantity the impact of changes in asset lives on an overall basis, as asset lives are individually determined, and there are a significant number of asset lives in use. The impact of any change would vary significantly depending on the individual changes in assets and the classes of assets impacted.


4.


Turnover

All turnover arose within the United Kingdom.

Page 15

 
Papercut Services UK Limited
 
 
Notes to the financial statements
For the year ended 30 June 2024

5.


Other operating income

2024
2023
£
£

Other operating income
-
456



6.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
2,354,264
2,313,627

Social security costs
287,721
285,213

Cost of defined contribution scheme
203,075
214,451

2,845,060
2,813,291


The average monthly number of employees, including directors, during the year was 30 (2023 - 35).


7.


Interest receivable

2024
2023
£
£


Other interest receivable
5,920
2,340


8.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
66,561
58,037

Adjustments in respect of previous periods
-
(3,053)


Deferred tax


Origination and reversal of timing differences
(11,863)
(1,401)


Taxation on profit on ordinary activities
54,698
53,583
Page 16

 
Papercut Services UK Limited
 
 
Notes to the financial statements
For the year ended 30 June 2024
 
8.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of25% (2023: 20.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
243,629
235,395


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023: 20.5%)
60,907
48,256

Effects of:


Expenses not deductible for tax purposes
7,282
2,405

Capital allowances for year in excess of depreciation
-
(16,694)

Adjustments to tax charge in respect of prior periods
(1)
(3,053)

Adjustments to tax charge in respect of prior periods - deferred tax
-
17,007

Timing not recognised in the computation
(2,021)
3,180

Remeasurement of deferred tax not recognised
-
(4,590)

Movement in deferred tax not recognised
-
7,072

Deferred tax charge
(11,863)
-

Other tax adjustments, relief and transfers
394
-

Total tax charge for the year
54,698
53,583


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


9.


Dividends

2024
2023
£
£


Dividends
833,004
-

Page 17

 
Papercut Services UK Limited
 
 
Notes to the financial statements
For the year ended 30 June 2024

10.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Fixtures and fittings
Office equipment
Right of use assets
Total

£
£
£
£
£
£



Cost or valuation


At 1 July 2023 as restated
16,761
10,346
271,644
152,656
337,281
788,688


Additions
6,781
-
3,171
30,705
-
40,657


Disposals
-
-
(3,269)
(8,518)
-
(11,787)



At 30 June 2024

23,542
10,346
271,546
174,843
337,281
817,558



Depreciation


At 1 July 2023 as restated
16,202
10,346
244,735
111,520
179,882
562,685


Charge for the year on owned assets
1,237
-
21,717
26,575
89,942
139,471


Disposals
-
-
(3,269)
(6,341)
-
(9,610)



At 30 June 2024

17,439
10,346
263,183
131,754
269,824
692,546



Net book value



At 30 June 2024 as restated
6,103
-
8,363
43,089
67,457
125,012



At 30 June 2023as restated
559
-
26,909
41,136
157,399
226,003

The right-of-use asset relates to an office building with a remaining term of 1 year. There are no leases with extension options, options to purchase, variable payments linked to an index or with lease termination options.


11.


Debtors

2024
2023
£
£

Amounts owed by group undertakings
43,708
743,774

Other debtors
23,342
18,144

Prepayments and accrued income
74,191
104,212

Deferred taxation
11,863
-

153,104
866,130


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

Page 18

 
Papercut Services UK Limited
 
 
Notes to the financial statements
For the year ended 30 June 2024

12.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
525,279
493,339



13.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
65,486
56,264

Corporation tax
66,561
53,246

Other taxation and social security
69,753
77,609

Lease liabilities
64,898
125,524

Accruals and deferred income
341,218
335,150

607,916
647,793


Lease liabilities are secured by way of the underlying asset.


14.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Lease liabilities
-
98,127


Lease liabilities are secured by way of the underlying asset.


15.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023: 1) Ordinary share of £1.00
1
1



16.


Pension commitments

The company operated a defined contributions scheme. The assets of the scheme are held separately from those of the company in an independently administered fund and amounted to £203,075 (2023: £214,451). Contributions totaling £15,643 (2023: £19,438) were payable to the fund at the reporting date.

Page 19

 
Papercut Services UK Limited
 
 
Notes to the financial statements
For the year ended 30 June 2024

17.


Commitments under leases

At 30 June 2024 the Company had future minimum lease payments due under non-cancellable leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
64,898
125,524

Later than 1 year and not later than 5 years
-
98,127

64,898
223,651


18.


Related party transactions

The Company has availed of the exemption under Financial Reporting Standard 101 section 8(k) not to disclose details of related party transactions with fellow group companies as they are 100% controlled by Papercut Foreign Services Pty Ltd.


19.


Controlling party

The ultimate parent undertaking of the company is Papercut Foreign Services Pty Ltd, a company incorporated in Australia.

The smallest and largest consolidation presented are that of PaperCut Software International Pty Ltd. These are publicly available from the Australian Securities and Investments Commission, GPO Box 9827, Brisbane QLD 4001.

Page 20