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Registered number: 08931802 (England and Wales)














FASTLY INTERNATIONAL (HOLDINGS) LIMITED


ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
COMPANY INFORMATION


Directors
R W Kisling 
P Saikat 




Registered number
08931802



Registered office
Birchin Court
5th Floor

19-25 Birchin Lane

London

United Kingdom

EC3V 9DU




Independent auditors
ZEDRA Corporate Reporting Services (UK) Limited






 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 


CONTENTS



Page
Strategic Report
 
1
Directors' Report
 
2 - 3
Independent Auditors' Report
 
4 - 7
Statement of Comprehensive Income
 
8
Balance Sheet
 
9 - 11
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 20



 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present herewith their Strategic Report of Fastly International (Holdings) Limited (the "Company") for the year ended 31 December 2023.
The Company, incorporated in the United Kingdom ("UK") on 10 March 2014, is a wholly owned subsidiary of Fastly, Inc. (the "Ultimate Parent"), incorporated in the state of Delaware, in the United States of America. The Ultimate  Parent  company provides  a  content  delivery network  platform  and  solutions  to  customers  for  the delivery of online content. The principal activity of the Company is to provide marketing, sales support and other services to the Ultimate Parent company.

Business review
 
The loss for the financial year ended 31 December 2023 was £285,400 (2022 profit: £549,742). The Company provides support services to the Ultimate Parent company and its turnover, which consist of fees, is guaranteed per an Intercompany Service Agreement established between the Company and Ultimate Parent company. Per the agreement, the Company's fees are 100% reimbursement plus an 8% margin of all operating costs of the Company.

Principal risks and uncertainties
 
The Company's principal risks and uncertainties are integrated with the principal risks of the Ultimate Parent company and are not managed separately. The principal risks and uncertainties of the Ultimate Parent company are discussed in the 2023 annual report Form 10-K, which does not form part of this report. This may be obtained from investors.fastly.com/financials/sec-filings.
As long as the Ultimate Parent company continues to need the Company to provide marketing, sales support and other services for the UK, fees will continue to be generated to cover operating costs

Financial key performance indicators
 
Management do not consider there to be any KPIs as this is primarily a holding company.

Going concern and future developments
 
The directors  have  received  confirmation  from  the Ultimate parent company, which has agreed to provide adequate financial support for a period of at least twelve months following the approval date of the financial statements for the Company's year ended 31 December 2023 to the extent necessary to enable to Company to meet its continuing operating liabilities, as well as any known liabilities on the Company's balance sheet as at 31 December 2023, as and when they fall due.


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


R W Kisling
Director

Date: 5 November 2024

Page 1


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

R W Kisling 
P Saikat 

Results and dividends

The loss for the year, after taxation, amounted to £285,400 (2022 - profit £549,742).

No dividends were declared, paid or payable during the reporting period (2022: £NIL).

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements 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 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.

Disclosure of information to auditors

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

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

Page 2


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

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

Post balance sheet events

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

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


R W Kisling
Director

Date: 5 November 2024

Page 3


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FASTLY INTERNATIONAL (HOLDINGS) LIMITED

Opinion


We have audited the financial statements of Fastly International (Holdings) Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


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


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 4


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FASTLY INTERNATIONAL (HOLDINGS) LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FASTLY INTERNATIONAL (HOLDINGS) LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
 
the responsible individual ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
investigated the rationale behind significant or unusual transactions

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and the Company's legal advisors

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Page 6


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FASTLY INTERNATIONAL (HOLDINGS) LIMITED (CONTINUED)



Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.



Edward Wallis ACA (Senior Statutory Auditor)
for and on behalf of
ZEDRA Corporate Reporting Services (UK) Limited
Chartered Accountants and Statutory Auditors
Birchin Court
5th Floor
19-25 Birchin Lane
London
United Kingdom
EC3V 9DU


14 November 2024
Page 7


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 3 
25,332,669
19,735,634

Gross profit
  
25,332,669
19,735,634

Administrative expenses
  
(25,618,069)
(19,201,406)

Operating (loss)/profit
 4 
(285,400)
534,228

Tax on (loss)/profit
 6 
-
15,514

(Loss)/profit for the financial year
  
(285,400)
549,742

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

The notes on pages 12 to 20 form part of these financial statements.

Page 8


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
REGISTERED NUMBER:08931802


BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 7 
31,366
31,366

  
31,366
31,366

Current assets
  

Debtors due within one year
 8 
12,664,035
11,637,392

Bank and cash balances
  
1,484
10,705

  
12,665,519
11,648,097

Creditors: amounts falling due within one year
 9 
(8,354,799)
(6,926,685)

Net current assets
  
 
 
4,310,720
 
 
4,721,412

Total assets less current liabilities
  
4,342,086
4,752,778

Provisions for liabilities
  

Provision
 10 
(1,387,200)
(1,828,254)

  
 
 
(1,387,200)
 
 
(1,828,254)

Net assets
  
2,954,886
2,924,524

Page 9


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
REGISTERED NUMBER:08931802

    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

2023
2022
£
£

Capital and reserves
  

Called up share capital 
  
1,000
1,000

Capital contribution reserve
 13 
2,065,922
1,750,160

Profit and loss account
  
887,964
1,173,364

  
2,954,886
2,924,524


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

R W Kisling
Director

Date: 5 November 2024

The notes on pages 12 to 20 form part of these financial statements.

Page 10


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
REGISTERED NUMBER:08931802


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


Called up share capital
Capital contribution reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022 (as previously stated)
1,000
5,174,274
(3,093,512)
2,081,762

Prior year adjustment
-
(3,717,134)
3,717,134
-


At 1 January 2022 (as restated)
1,000
1,457,140
623,622
2,081,762



Profit for the year
-
-
549,742
549,742

Share based payment charge
-
293,020
-
293,020



At 1 January 2023
1,000
1,750,160
1,173,364
2,924,524



Loss for the year
-
-
(285,400)
(285,400)

Share based payment credit
-
315,762
-
315,762


At 31 December 2023
1,000
2,065,922
887,964
2,954,886


Page 11


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies

 
1.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 2).

The following principal accounting policies have been applied:

  
1.2

Financial reporting standard 102 - reduced disclosure exemptions

The  company has  taken  advantage  of  the  following  disclosure  exemptions  in  preparing  these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable inthe UK and Republic of Ireland":
 
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47,    11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the  requirements  of  Section  12  Other  Financial  Instruments  paragraphs  12.26  to  12.27,12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Fastly, Inc. as at 31 December 2023 and these financial statements may be obtained from investors.fastly.com/financials/sec-filings.

  
1.3

Exemption from preparing consolidated financial statements

The Company is a parent Company that is also a subsidiary included in the consolidated financial statements of its immediate parent undertaking established under the law of a non-EEA state and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006.

  
1.4

Going concern

The Company is in a net asset position supported primarily by its ultimate parent company, Fastly, Inc. 
The directors have received written confirmation from Fastly, Inc., that it will continue to provide financial support to the Company for at least 12 months from the date of signing these financial statements. Furthermore, the directors have assessed the ability of the ultimate parent company to provide this support based upon their cashflow forecasts and have concluded that the parent will have sufficient working capital to provide necessary support.
For this reason, the directors continue to adopt the going concern basis in preparing these financial statements.

Page 12


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)

 
1.5

Turnover

Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Rendering of services

Turnover is recognised on a cost plus 8% basis, in line with the intercompany service agreement with the parent company. Intercompany turnover is recognised when all of the following conditions are satisfied:
 
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the intercompany service agreement;
the costs incurred under the intercompany service agreement can be measured reliably.

  
1.6

Intercompany recharges

Intercompany recharges are the cost to reimburse subsidiary companies for their expenditure. These recharges are recognised as the related costs are incurred. 

 
1.7

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.

Page 13


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)

 
1.8

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

 
1.9

Pensions

Defined contribution pension plan

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

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

 
1.10

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

 
1.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
1.12

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.

Page 14


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)

 
1.13

Debtors

Short term debtors are measured at transaction price, less any impairment. Amounts owed by group undertakings are intercompany loans measured at costs. These loans are unsecured, interest free and repayable on demand.

 
1.14

Creditors

Short term creditors are measured at the transaction price. Amounts owed to group undertakings are intercompany loans measured at costs. These loans are unsecured, interest free and repayable on demand.

 
1.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.


2.


Judgements in applying accounting policies and key sources of estimation uncertainty

The Company makes estimates and assumptions concerning the future. Management are also required to exercise  judgement  in  the  process  of  applying  the  Company's  accounting  policies.  Estimates  and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The  estimates  and  assumptions  that  have  a  significant  risk  of  causing  a  material  adjustment  to  the carrying amounts of assets and liabilities are addressed below.
The following is the Company's key source of estimation uncertainty:
Contractors Tax Provision
The directors have made a provision for unpaid tax liabilities as described in note 10. A review of the calculations and of new hires for the suitability of a provision for them is performed annually and may vary depending on each contractors jurisdiction. In re-assessing the tax provision, factors such statute of limitation and employment regulations in each jurisdiction are taken into account. This provision is the directors best estimate of the probable future cash outflows, this may have a material impact on these financial statements. 

Page 15


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Intercompany sales
25,332,669
19,735,634

25,332,669
19,735,634


All turnover arose from the parent company incorporated in the USA.


4.


Operating (loss)/profit

The operating (loss)/profit is stated after charging/(crediting):

2023
2022
£
£

Auditors' remuneration
15,840
15,840

Exchange differences
357,813
(332,287)

Provision for contractor taxes
(441,054)
(149,729)

Share-based payment
315,762
293,020


5.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
11,557
571,388

Social security costs
856
3,733

Cost of defined contribution scheme
2,295
2,180

14,708
577,301


The average monthly number of employees during the year was as follows:


        2023
        2022
            No.
            No.







Employees
1
1

Page 16


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
(15,514)



Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The calculation is explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(285,400)
534,228


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
(67,128)
101,503

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
74,269
55,674

Remeasurement of deferred tax for changes in tax rates
450
(1,059,387)

Movement in deferred tax not recognised
-
902,209

Other differences
-
(15,513)

Utilisation of carried forward tax losses
(7,591)
-

Total tax charge for the year
-
(15,514)


Factors that may affect future tax charges

On 24 May 2021, Finance Bill 2021 was substantively enacted. The result of this is that the main rate of corporation tax for the UK has increased to 25% from 1 April 2023.

Page 17


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
31,366



At 31 December 2023
31,366





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Fastly Autralia Pty Ltd
Level 3 1049 Victoria
Road West Ryde, NSW,
Ordinary, direct
  100%
Fastly Canada Inc
Australia 2114
40 University Avenue, Ordinary,Suite 904, Toronto, M5J 1T1, Canada
Ordinary, direct
  100%
Fastly GmbH
Prielmayerstraße 3,
80335 München,
Germany
Ordinary, direct
  100%
Fastly Netherlands B.V
Markt 14, 6211CJ,
Maastricht, Netherlands
Ordinary, direct
  100%
Fastly SG Pte. Ltd.
Indirect101 Thomson Road,
#14-02/03, United
Square 307591, Singapore
Ordinary, direct
 100%
Fastly Cloud Iberica S.L.
Calle Marques de
Urquijo 26-3 IZ, Madrid, Spain, 28008
Ordinary, direct
100%
Fastly Sweden AB
Smålandsgatan 16 2tr. Ordinary,111 46, Stockholm,
Sweden
Ordinary, direct
 100%
Fastly India Private Limited
56/57, Mittal Chambers 228, Barrister Rajani Patel Marg,
Nariman Point, Mumbai - 400 021, Maharashtra, India
Ordinary, direct
99%

Page 18


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Debtors

2023
2022
£
£


Amounts owed by group undertakings
12,425,098
9,774,672

Other debtors
3,978
1,640,352

Corporation tax recoverable
234,959
222,368

12,664,035
11,637,392



9.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,744
-

Amounts owed to group undertakings
8,353,055
6,092,491

Other creditors
-
834,194

8,354,799
6,926,685



10.


Provisions





Employment tax provision

£





At 1 January 2023
1,828,254


Credited to profit or loss
(441,054)



At 31 December 2023
1,387,200

The provision has been made as the Company has an obligation for employment related taxes from several years. At the reporting date, the timing of the outflows cannot be reliably determined.


11.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000 (2022 - 1,000) Ordinary shares of £1.00 each
1,000
1,000


Page 19


 
FASTLY INTERNATIONAL (HOLDINGS) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Contingent liabilities

The Company has considered the potential outflow of resources in relation to employment related taxes in addition to those provided for which may become payable. At present an estimate of the financial effect or timing of the outflows cannot be reliably made. 


13.


Capital contribution reserve

Certain employees and contractors of the Company have been granted restricted stock units (''RSUs'') in the Company’s parent. The RSUs are granted at fair value and vest as follows:
• 25% one year after the date of grant, followed by 1/36 each month for the following three years
• 25% one year after the date of grant, followed by 1/16 quarterly for the following three years
• 25% on each anniversary for four years
• 1/48 each month for four years
An expense equivalent to the fair value of the RSUs on the date of grant, over the vesting period, is recognised in the Statement of Comprehensive Income with the corresponding entry to the capital contribution reserve.


14.


Controlling party

Fastly, Inc. is the parent of the smallest group for which consolidated financial statements are drawn up of which the Company is a member. The registered office of the parent company is: Fastly, Inc., PO Box 78266, San Francisco, CA, 94107, USA.


15.


Post balance sheet events

There were no adjusting or non-adjusting events occurring between the end of the reporting period and the date these financial statements were approved.

 
Page 20