104
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false
false
false
true
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No description of principal activity
2023-03-01
Sage Accounts Production Advanced 2024 - FRS102_2024
492,924
684,212
xbrli:pure
xbrli:shares
iso4217:GBP
05463905
2023-03-01
2024-02-29
05463905
2024-02-29
05463905
2023-02-28
05463905
2022-03-01
2023-02-28
05463905
2023-02-28
05463905
2022-02-28
05463905
bus:RegisteredOffice
2023-03-01
2024-02-29
05463905
bus:OrdinaryShareClass1
2023-03-01
2024-02-29
05463905
bus:LeadAgentIfApplicable
2023-03-01
2024-02-29
05463905
bus:Director3
2023-03-01
2024-02-29
05463905
bus:Director2
2023-03-01
2024-02-29
05463905
bus:Director1
2023-03-01
2024-02-29
05463905
bus:Director3
2024-02-29
05463905
bus:Director1
2024-02-29
05463905
core:WithinOneYear
2024-02-29
05463905
core:WithinOneYear
2023-02-28
05463905
core:AfterOneYear
2024-02-29
05463905
core:AfterOneYear
2023-02-28
05463905
core:FurnitureFittings
2023-02-28
05463905
core:FurnitureFittings
2024-02-29
05463905
core:FurnitureFittings
2023-03-01
2024-02-29
05463905
core:UKTax
2023-03-01
2024-02-29
05463905
core:UKTax
2022-03-01
2023-02-28
05463905
core:RetainedEarningsAccumulatedLosses
2023-02-28
05463905
core:RetainedEarningsAccumulatedLosses
2022-02-28
05463905
core:RetainedEarningsAccumulatedLosses
2024-02-29
05463905
core:RetainedEarningsAccumulatedLosses
2023-02-28
05463905
core:ShareCapital
2024-02-29
05463905
core:ShareCapital
2023-02-28
05463905
core:DeferredTaxation
2023-03-01
2024-02-29
05463905
core:AcceleratedTaxDepreciationDeferredTax
2024-02-29
05463905
core:AcceleratedTaxDepreciationDeferredTax
2023-02-28
05463905
core:FurnitureFittings
2023-02-28
05463905
core:DeferredTaxation
2023-02-28
05463905
core:DeferredTaxation
2024-02-29
05463905
bus:LeadAgentIfApplicable
2022-03-01
2023-02-28
05463905
bus:MediumEntities
2023-03-01
2024-02-29
05463905
bus:Audited
2023-03-01
2024-02-29
05463905
bus:Medium-sizedCompaniesRegimeForAccounts
2023-03-01
2024-02-29
05463905
bus:PrivateLimitedCompanyLtd
2023-03-01
2024-02-29
05463905
bus:FullAccounts
2023-03-01
2024-02-29
05463905
bus:OrdinaryShareClass1
2024-02-29
05463905
bus:OrdinaryShareClass1
2023-02-28
05463905
core:LandBuildings
core:LongLeaseholdAssets
2023-03-01
2024-02-29
05463905
core:OfficeEquipment
2023-02-28
05463905
core:OfficeEquipment
2023-03-01
2024-02-29
05463905
core:OfficeEquipment
2024-02-29
05463905
core:OtherProvisionsContingentLiabilities
2023-02-28
05463905
core:OtherProvisionsContingentLiabilities
2023-03-01
2024-02-29
05463905
core:AllAssociates
2023-03-01
2024-02-29
COMPANY REGISTRATION NUMBER:
05463905
Year ended 29 February 2024
Independent auditor's report to the members |
5 |
|
|
Statement of income and retained earnings |
9 |
|
|
Statement of financial position |
10 |
|
|
Statement of cash flows |
11 |
|
|
Notes to the financial statements |
12 |
|
|
Year ended 29 February 2024
Introduction The Directors of the Company present their strategic report for the year ended 28 February 2024. Business review and future developments E2open Limited is a cost plus entity for e2open LLC, it operates on a transfer pricing model whereby it generates revenue from the provisioning of services to e2open LLC and is compensated for incurred costs plus a reasonable profit margin for such activities. The profit margin used to determine revenues is based on an approximate 5% mark-up over the total operating overhead expenses. The principal activities of e2open LLC during the year were and will continue to be the provision of supply chain management software and associated services. E2open solutions give customers the insight, agility and tools they need to deliver better customer service and streamline global supply chain execution, with the e2open SaaS platform businesses can anticipate disruptions and predict opportunities to help improve efficiency. drive profitability, reduce waste and operate sustainably. Principal risks and uncertainties The principal risks and uncertainties associated with the activities of the business are set out below. Strategic Risks - The main strategic risks to e20pen's business arise from deterioration in general economic conditions, increased competition and the consolidation of key customers. If economic conditions worsen, demand for e2open's products and services may fall, meaning that growth in revenues and profits is reduced or reversed. In addition, consolidation among e2open's customers could also reduce revenues as merged companies look for cost savings by reducing the number of systems they operate. Increased competition in the form of new products and services and consolidation of key customers could also reduce revenues and therefore profits. To mitigate the impact of reduced demand for e2open's products and services, the Company continues to invest in the development of new products to maintain its competitive advantage. In addition, the Company plans to continue to increase the proportion of its revenue arising from more stable recurring revenue streams such as SaaS and hosted products. Operational Risks - Key operational risks involve the delivery and support of customer projects as delays can in turn reduce revenue and profit recognition. In providing SaaS, the Company is reliant on a number of third party suppliers that provide data centres. The provision of SaaS products hosted on e2open managed servers is critical to the Company's strategy of growing recurring revenues. To mitigate against the risk of data centre failure and to ensure that a high level of service is provided to our SaaS customers the Company's Support Services teams are required to continually monitor service levels and review the disaster recovery plans that are currently in place. Where these are found to be inadequate, corrective action is taken. In addition, the Company has a number of data centre locations with no significant geographic concentration. Additional operational risks lie in customers suffering financial failure and key person loss within the Company. Financial Risks - The Company is routinely exposed to a variety of financial risks including counterparty credit risk, liquidity risk and foreign currency risk. The Company monitors these risks primarily through cash flow forecasting and sensitivity analysis, with a central treasury function identifying and evaluating financial risks in close co-operation with the group's main operational functions. For counterparty credit risk, exposure levels and credit limits applicable to each customer are reviewed on a regular basis. Financial key performance indicators Due to exiting the office lease at its breakpoint, overheads have decreased resulting in the revenue of the company slightly decreasing by 1.2% from £13,897,120 to £13,736,937.
This report was approved by the board of directors on 8 November 2024 and signed on behalf of the board by:
Registered office: |
Blue Tower Blue Tower |
14th Floor |
Media City Uk |
Salford |
England |
M50 2ST |
|
Year ended 29 February 2024
The directors present their report and the financial statements of the company for the year ended
29 February 2024
.
Directors
The directors who served the company during the year were as follows:
J Grafton |
|
S G Pittman |
(Appointed
1 April 2023) |
L L Fese |
(Resigned
1 April 2023) |
|
|
Dividends
The directors do not recommend the payment of a dividend.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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; - 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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
8 November 2024
and signed on behalf of the board by:
Registered office: |
Blue Tower Blue Tower |
14th Floor |
Media City Uk |
Salford |
England |
M50 2ST |
|
Independent Auditor's Report to the Members of
E2open Ltd. |
|
Year ended 29 February 2024
Opinion
We have audited the financial statements of E2open Ltd. (the 'company') for the year ended 29 February 2024 which comprise the statement of income and retained earnings, statement of financial position, 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 29 February 2024 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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.
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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: We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered; the nature of the industry, control environment and business performance with particular reference to the Company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets. We also consider the results of our enquiries of management, relating to their own identification and assessment of the risks of irregularities and possible related fraud. This includes reviewing available documentation on their policies and procedures and performing tests of controls to evidence their effectiveness. Throughout the audit testing we are considering the incentives that may exist within the organisation for fraud. Key areas include timing of recognising income around the year end, posting of unusual journals and manipulating the Company's performance measures to meet remuneration targets and bank covenants. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We ensure we have an understanding of the relevant laws and regulations and remain alert to possible non-compliance throughout the audit. Despite proper planning and audit work in accordance with auditing standards there are inherent limitations and unavoidable risk that we may not detect some irregularities and material misstatements in the financial statements. 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 directors. - Conclude on the appropriateness of the directors' 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.
Andrew Collyer |
(Senior Statutory Auditor) |
|
For and on behalf of |
Burgess Hodgson LLP |
Chartered accountants & statutory auditor |
Camburgh House |
27 New Dover Road |
Canterbury |
Kent |
CT1 3DN |
|
8 November 2024
Statement of Income and Retained Earnings |
|
Year ended 29 February 2024
|
2024 |
2023 |
Note |
£ |
£ |
Turnover |
4 |
13,736,937 |
13,897,120 |
|
|
|
|
|
------------- |
------------- |
Gross profit |
13,736,937 |
13,897,120 |
|
|
|
Administrative expenses |
13,073,698 |
13,234,463 |
Other operating income |
5 |
17 |
194 |
|
|
------------- |
------------- |
Operating profit |
6 |
663,256 |
662,851 |
|
|
|
|
Other interest receivable and similar income |
9 |
522 |
– |
|
------------- |
------------- |
Profit before taxation |
663,778 |
662,851 |
|
|
|
|
Tax on profit |
10 |
170,854 |
(
21,361) |
|
--------- |
--------- |
Profit for the financial year and total comprehensive income |
492,924 |
684,212 |
|
--------- |
--------- |
|
|
|
|
Retained earnings at the start of the year |
3,479,326 |
2,795,114 |
|
------------ |
------------ |
Retained earnings at the end of the year |
3,972,250 |
3,479,326 |
|
------------ |
------------ |
|
|
|
All the activities of the company are from continuing operations.
Statement of Financial Position |
|
29 February 2024
Fixed assets
Tangible assets |
11 |
113,067 |
189,410 |
|
|
|
|
Current assets
Debtors |
12 |
5,596,354 |
5,897,000 |
Cash at bank and in hand |
661,493 |
833,971 |
|
------------ |
------------ |
|
6,257,847 |
6,730,971 |
|
|
|
|
Creditors: amounts falling due within one year |
13 |
2,370,396 |
3,193,166 |
|
------------ |
------------ |
Net current assets |
3,887,451 |
3,537,805 |
|
------------ |
------------ |
Total assets less current liabilities |
4,000,518 |
3,727,215 |
|
|
|
|
Creditors: amounts falling due after more than one year |
14 |
– |
109,461 |
|
|
|
|
Provisions |
15 |
28,267 |
138,427 |
|
------------ |
------------ |
Net assets |
3,972,251 |
3,479,327 |
|
------------ |
------------ |
|
|
|
|
Capital and reserves
Called up share capital |
18 |
1 |
1 |
Profit and loss account |
3,972,250 |
3,479,326 |
|
------------ |
------------ |
Shareholders funds |
3,972,251 |
3,479,327 |
|
------------ |
------------ |
|
|
|
|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the
board of directors
and authorised for issue on
8 November 2024
, and are signed on behalf of the board by:
Company registration number:
05463905
Year ended 29 February 2024
Cash flows from operating activities
Profit for the financial year |
492,924 |
684,212 |
|
|
|
Adjustments for: |
|
|
Depreciation of tangible assets |
83,906 |
125,552 |
Other interest receivable and similar income |
(
522) |
– |
Tax on profit |
170,854 |
(
21,361) |
Accrued income |
(
191,362) |
(
167,363) |
|
|
|
Changes in: |
|
|
Trade and other debtors |
300,646 |
(
509,917) |
Trade and other creditors |
7,471 |
12,856 |
Provisions and employee benefits |
(
99,635) |
– |
|
--------- |
--------- |
Cash generated from operations |
764,282 |
123,979 |
|
|
|
Interest received |
522 |
– |
Tax received |
1 |
2,260 |
|
--------- |
--------- |
Net cash from operating activities |
764,805 |
126,239 |
|
--------- |
--------- |
|
|
|
Cash flows from investing activities
Purchase of tangible assets |
(
7,563) |
(
221,315) |
Proceeds from sale of tangible assets |
– |
154,646 |
|
--------- |
--------- |
Net cash used in investing activities |
(
7,563) |
(
66,669) |
|
--------- |
--------- |
|
|
|
Cash flows from financing activities
Proceeds from loans from group undertakings |
(
929,720) |
297,474 |
|
--------- |
--------- |
Net cash (used in)/from financing activities |
(
929,720) |
297,474 |
|
--------- |
--------- |
|
|
|
Net (decrease)/increase in cash and cash equivalents |
(
172,478) |
357,044 |
Cash and cash equivalents at beginning of year |
833,971 |
476,927 |
|
--------- |
--------- |
Cash and cash equivalents at end of year |
661,493 |
833,971 |
|
--------- |
--------- |
|
|
|
Notes to the Financial Statements |
|
Year ended 29 February 2024
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Blue Tower Blue Tower, 14th Floor, Media City Uk, Salford, M50 2ST, England.
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 under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 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:
Going concern
The financial statements have been prepared on the going concern basis as the company's parent E2Open Parent Holdings, Inc. has provided written confirmation of their willingness to provide continued financial support to the company for the forseeable future, defined as at least 12 months from the date of signing E2Open Ltd financial statements for the year ended 28 February 2023.
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.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. The turnover shown in the statement of comprehensive income, all of which is overseas turnover, represents amounts receivable from its immediate parent company, E2open, LLC. during the period for the provision of software and services, exclusive of Value Added Tax. Turnover in respect of software and services provided to E2open, LLC. is calculated as attributable costs plus a mark up, in accordance with an intercompany agreement between E2open Ltd. and E2open, LLC. 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 provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
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 amountsof 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.
Employee benefits
The cost of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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.
Operating leases
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Tangible 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
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:
|
Long-term leasehold property |
- |
Straight line over the lease term |
|
Fixtures and fittings |
- |
Straight line over 3-10 years |
|
Office equipment |
- |
Straight line over 2-3 years |
|
|
|
|
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.
Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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.
Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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.
Provisions
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. Loans and borrowings are initially recognised at the transaction price inluding transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
Defined contribution plans
For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.
4.
Turnover
Turnover arises from:
|
2024 |
2023 |
|
£ |
£ |
Rendering of services |
13,736,937 |
13,897,120 |
|
------------- |
------------- |
|
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Other operating income
|
2024 |
2023 |
|
£ |
£ |
Other operating income |
17 |
194 |
|
---- |
---- |
|
|
|
6.
Operating profit
Operating profit or loss is stated after charging/crediting:
|
2024 |
2023 |
|
£ |
£ |
Depreciation of tangible assets |
83,906 |
125,552 |
Operating lease rentals |
– |
183,305 |
Foreign exchange differences |
(
85,764) |
– |
|
-------- |
--------- |
|
|
|
7.
Auditor's remuneration
|
2024 |
2023 |
|
£ |
£ |
Fees payable for the audit of the financial statements |
11,250 |
15,300 |
|
-------- |
-------- |
|
|
|
Fees payable to the company's auditor and its associates for other services:
Other non-audit services |
3,600 |
4,235 |
|
-------- |
-------- |
|
|
|
8.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
2024 |
2023 |
|
No. |
No. |
Production staff |
104 |
93 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2024 |
2023 |
|
£ |
£ |
Wages and salaries |
9,578,216 |
8,356,567 |
Social security costs |
1,265,130 |
1,283,810 |
Other pension costs |
613,347 |
526,946 |
|
------------- |
------------- |
|
11,456,693 |
10,167,323 |
|
------------- |
------------- |
|
|
|
9.
Other interest receivable and similar income
|
2024 |
2023 |
|
£ |
£ |
Interest on bank deposits |
522 |
– |
|
---- |
---- |
|
|
|
10.
Tax on profit
Major components of tax expense/(income)
Current tax:
UK current tax expense |
181,380 |
– |
Adjustments in respect of prior periods |
(
1) |
(
60,153) |
|
--------- |
-------- |
Total current tax |
181,379 |
(
60,153) |
|
--------- |
-------- |
|
|
|
Deferred tax:
Origination and reversal of timing differences |
(
10,525) |
38,792 |
|
--------- |
-------- |
Tax on profit |
170,854 |
(
21,361) |
|
--------- |
-------- |
|
|
|
Reconciliation of tax expense/(income)
The tax assessed on the profit on ordinary activities for the year is higher than (2023: lower than) the
standard rate of corporation tax in the UK
of
25
% (2023:
19
%).
|
2024 |
2023 |
|
£ |
£ |
Profit on ordinary activities before taxation |
663,778 |
662,851 |
|
--------- |
--------- |
Profit on ordinary activities by rate of tax |
162,671 |
125,942 |
Adjustment to tax charge in respect of prior periods |
(
1) |
(
60,153) |
Effect of expenses not deductible for tax purposes |
– |
58,367 |
Effect of capital allowances and depreciation |
18,709 |
30,083 |
Other differences leading to an increase/(decrease) in the tax charge |
(
10,525) |
9,683 |
Group relief |
– |
(185,283)
|
|
--------- |
--------- |
Tax on profit |
170,854 |
(
21,361) |
|
--------- |
--------- |
|
|
|
11.
Tangible assets
|
Fixtures and fittings |
Equipment |
Total |
|
£ |
£ |
£ |
Cost |
|
|
|
At 1 March 2023 |
15,437 |
297,541 |
312,978 |
Additions |
– |
7,563 |
7,563 |
|
-------- |
--------- |
--------- |
At 29 February 2024 |
15,437 |
305,104 |
320,541 |
|
-------- |
--------- |
--------- |
Depreciation |
|
|
|
At 1 March 2023 |
15,018 |
108,550 |
123,568 |
Charge for the year |
419 |
83,487 |
83,906 |
|
-------- |
--------- |
--------- |
At 29 February 2024 |
15,437 |
192,037 |
207,474 |
|
-------- |
--------- |
--------- |
Carrying amount |
|
|
|
At 29 February 2024 |
– |
113,067 |
113,067 |
|
-------- |
--------- |
--------- |
At 28 February 2023 |
419 |
188,991 |
189,410 |
|
-------- |
--------- |
--------- |
|
|
|
|
12.
Debtors
|
2024 |
2023 |
|
£ |
£ |
Amounts owed by group undertakings |
5,576,853 |
5,808,433 |
Prepayments and accrued income |
6,635 |
– |
Other debtors |
12,866 |
88,567 |
|
------------ |
------------ |
|
5,596,354 |
5,897,000 |
|
------------ |
------------ |
|
|
|
The debtors above include the following amounts falling due after more than one year:
|
2024 |
2023 |
|
£ |
£ |
Other debtors |
6,173 |
468 |
|
------- |
---- |
|
|
|
Amounts owed by group undertaking are unsecured, interest free and repayable on demand.
13.
Creditors:
amounts falling due within one year
|
2024 |
2023 |
|
£ |
£ |
Trade creditors |
4,963 |
46,718 |
Amounts owed to group undertakings |
623,485 |
1,553,205 |
Accruals and deferred income |
1,181,532 |
1,263,433 |
Corporation tax |
181,380 |
– |
Social security and other taxes |
377,003 |
328,194 |
Other creditors |
2,033 |
1,616 |
|
------------ |
------------ |
|
2,370,396 |
3,193,166 |
|
------------ |
------------ |
|
|
|
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
14.
Creditors:
amounts falling due after more than one year
|
2024 |
2023 |
|
£ |
£ |
Accruals and deferred income |
– |
109,461 |
|
---- |
--------- |
|
|
|
15.
Provisions
|
Deferred tax (note 16) |
User defined class 1 |
Total |
|
£ |
£ |
£ |
At 1 March 2023 |
38,792 |
99,635 |
138,427 |
Charge against provision |
(
10,525) |
(
99,635) |
(
110,160) |
|
-------- |
-------- |
--------- |
At 29 February 2024 |
28,267 |
– |
28,267 |
|
-------- |
-------- |
--------- |
|
|
|
|
16.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2024 |
2023 |
|
£ |
£ |
Included in provisions (note 15) |
28,267 |
38,792 |
|
-------- |
-------- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2024 |
2023 |
|
£ |
£ |
Accelerated capital allowances |
28,267 |
38,792 |
|
-------- |
-------- |
|
|
|
17.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
613,347
(2023: £
526,946
).
18.
Called up share capital
Issued, called up and fully paid
|
2024 |
2023 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
1 |
1 |
1 |
1 |
|
---- |
---- |
---- |
---- |
|
|
|
|
|
19.
Share based payments
The E2open Parent Holdings, Inc. has adopted 2021 Omnibus Incentive Plan (2021 Incentive Plan). The 2021 Incentive Plan allows the Company to make equity and equity-based incentive awards to officers, employees, directors, and consultants. Shares issued under the 2021 Incentive Plan can be granted as stack options, restricted stock awards, restricted stock units, performance stock awards, cash awards and other equity-based awards. No award may vest earlier than the first anniversary of the date of grant, expect under limited conditions.
The E2open Parent Holdings, Inc. recharge the portion of share-based payment expense relating to the employees of the E2open Limited and E2open Limited offset this against the balance due from the parent company.
The company recognized total expenses of £458,979 (2023: £306,497) related to equity-settled share-based payment transactions as a recharge from the parent company during the year. Group share based payment charges are charged across the group based on the company to which employees are contracted.
The exercise price of options outstanding at the year-end were $6.15 (2023: $7.43) and their weighted average remaining contractual life was 2 years (2023: 2.57 years).
The exemptions available in FRS 102 from providing detailed disclosures in respect of these share-based payments have been taken.
20.
Analysis of changes in net debt
|
At 1 Mar 2023 |
Cash flows |
At 29 Feb 2024 |
|
£ |
£ |
£ |
Cash at bank and in hand |
833,971 |
(172,478) |
661,493 |
Debt due within one year |
(1,553,205) |
929,720 |
(623,485) |
|
------------ |
--------- |
--------- |
|
(
719,234) |
757,242 |
38,008 |
|
------------ |
--------- |
--------- |
|
|
|
|
21.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2024 |
2023 |
|
£ |
£ |
Not later than 1 year |
– |
91,750 |
|
---- |
-------- |
|
|
|
22.
Related party transactions
The company does not disclose transactions with its parent or with members of the same group which are wholly owned, as per the exemption under paragraph 33.1A of FRS 102.
Notes to the Financial Statements (continued) |
|
Year ended 29 February 2024
23.
Controlling party
As at year end the immediate parent company is E2open LLC, a company registered in the United States of America. The ultimate parent entity is E2open Parent Holdings Inc, a company registered in the United States of America and is head of the smallest and largest group for which consolidated financial statements including E2open Limited are prepared. E2open Parent Holdings Inc is a publicly listed company on the New York Stock Exchange.