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REGISTERED NUMBER: 01555529 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 May 2024

for

Datel Computing Limited

Datel Computing Limited (Registered number: 01555529)






Contents of the Financial Statements
for the Year Ended 31 May 2024





Page


Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


Datel Computing Limited

Company Information
for the Year Ended 31 May 2024







DIRECTORS: Mr A K Simpson
Mrs V Worsley
Mr S M Morland





REGISTERED OFFICE: Cinnamon Park
Fearnhead
Crab Lane
WARRINGTON
Cheshire
WA2 0XP





REGISTERED NUMBER: 01555529 (England and Wales)





AUDITORS: Ashworth Treasure Limited
Statutory Auditors
17-19 Park Street
Lytham
Lancashire
FY8 5LU

Datel Computing Limited (Registered number: 01555529)

Strategic Report
for the Year Ended 31 May 2024

The directors present their strategic report for the year ended 31 May 2024.

PRINCIPAL OBJECTIVES AND STRATEGIES
The principal activity of the company is the sale of business management software systems and associated implementation and support services.

Datel remains the UK's leading provider of business management systems to medium-sized enterprises and Sage's largest business partner. Businesses across diverse markets and industries have chosen Datel to deliver critical software solutions and digital transformation.

PERFORMANCE REVIEW
We achieved high levels of customer retention and satisfaction, helped by an increasingly broad portfolio of products and services that we are able to offer to maximise the benefits that customers derive from their business management systems.

Given the difficult market due to various geopolitical factors and increased investment in technology solutions to enhance business operations, we still experienced strong demand from existing and new customers and low churn of annual support, maintenance, and subscription contracts.

The company's turnover surged by nearly 12% from the previous year, reaching an impressive £33.3 million (2023: £29.8 million). The recurring margins continued to grow, now representing over 60% of the total margin at £13.3 million (2023: £ 12.3 million). Despite an expansion in our cost base, it was managed in a controlled manner. As a result, our profit before tax strengthened to an impressive £4.3 million (2023: £4.1 million).

The company generated strong cash flows during the period and finished the year with cash funds of £10.5m (2023: £8.4m) and no debt, despite some significant ad hoc payments.

Our headcount increased this year, partly due to business growth, reaching 217, compared to 204 last year.

As we end the year, we are delighted to report that our order book is stronger than ever, and our activity levels continue to soar. We are confident that 24/25 will be an incredible year for us, despite the challenges in the market.

PRINCIPAL RISKS AND UNCERTAINTIES
The company maintains a strategy of strong management, leadership and training. This strategy enables the company to react quickly to changes in the business environment, as we have seen with recent geo-political crises. In addition, our recurring revenue streams afford us a degree of protection when our variable revenue streams come under pressure, which gives us time and space to respond in a controlled and orderly manner. Our broad portfolio of solutions means we work across a broad range of industry sectors and business sizes, ensuring that macro-effects on some customers are not felt.

Accordingly, the company is well-placed to react to any future risks or uncertainties arising out of the business environment, including the ongoing war in Ukraine, high inflation and widespread supply chain issues.

KEY PERFORMANCE INDICATORS
Datel Computing utilises various metrics to monitor performance.
- Recurring margin derived from Support and Subscription contracts plays a pivotal role in our overall
success, constituting 60% of our total margins.
- Customer satisfaction measures for our support customers are still tracking at over 98%(2023: 98%)
- We continue to grow the value of our own Fusion product range, developed in-house, currently generating
revenues of £1.7m (2023 £1.5m)

We also continue to invest in our research and development activity, identifying technologies which may enhance our future offering. Total expenditure incurred on the R&D team in the year was over £0.8m.

ON BEHALF OF THE BOARD:





Mr A K Simpson - Director


19 November 2024

Datel Computing Limited (Registered number: 01555529)

Report of the Directors
for the Year Ended 31 May 2024

The directors present their report with the financial statements of the company for the year ended 31 May 2024.

DIVIDENDS
Interim dividend payments were made during the year. The directors recommend that no final dividend be paid.
The total distribution of dividends for the year ended 31 May 2024 is £1,568,000.

DIRECTORS
Mr A K Simpson has held office during the whole of the period from 1 June 2023 to the date of this report.

Other changes in directors holding office are as follows:

Mr N Swarbrick - resigned 31 May 2024
Mr A Pritchard - resigned 31 May 2024
Mrs V Worsley - appointed 31 May 2024
Mr S M Morland - appointed 31 May 2024

DISCLOSURE IN THE STRATEGIC REPORT
The strategic report on the preceding page provides information regarding research and development and the future developments of the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Ashworth Treasure Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr A K Simpson - Director


19 November 2024

Report of the Independent Auditors to the Members of
Datel Computing Limited

Opinion
We have audited the financial statements of Datel Computing Limited (the 'company') for the year ended 31 May 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 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 May 2024 and of its profit 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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 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.

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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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.

Report of the Independent Auditors to the Members of
Datel Computing Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our commercial knowledge and experience of the business sector;
- 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 legislation such as Companies Act, taxation
legislation, environmental and health and safety legislation etc.
- 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 maintained alert
to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to 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 journals to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative
of potential bias; 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;
- reviewing correspondence with HMRC etc

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.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
Datel Computing Limited


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 a Report of the Auditors 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.




Victoria Reynolds (Senior Statutory Auditor)
for and on behalf of Ashworth Treasure Limited
Statutory Auditors
17-19 Park Street
Lytham
Lancashire
FY8 5LU

19 November 2024

Datel Computing Limited (Registered number: 01555529)

Income Statement
for the Year Ended 31 May 2024

2024 2023
Notes £'000 £'000 £'000 £'000

TURNOVER 4 33,374 29,873

Cost of sales 11,161 9,494
GROSS PROFIT 22,213 20,379

Distribution costs 13,904 12,092
Administrative expenses 4,277 4,256
18,181 16,348
OPERATING PROFIT 6 4,032 4,031

Interest receivable and similar income 225 66
PROFIT BEFORE TAXATION 4,257 4,097

Tax on profit 7 1,074 766
PROFIT FOR THE FINANCIAL YEAR 3,183 3,331

Datel Computing Limited (Registered number: 01555529)

Other Comprehensive Income
for the Year Ended 31 May 2024

2024 2023
Notes £'000 £'000

PROFIT FOR THE YEAR 3,183 3,331


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

3,183

3,331

Datel Computing Limited (Registered number: 01555529)

Balance Sheet
31 May 2024

2024 2023
Notes £'000 £'000 £'000 £'000
FIXED ASSETS
Intangible assets 9 588 488
Tangible assets 10 493 502
1,081 990

CURRENT ASSETS
Debtors 11 15,085 13,036
Cash at bank and in hand 10,523 8,452
25,608 21,488
CREDITORS
Amounts falling due within one year 12 21,891 19,295
NET CURRENT ASSETS 3,717 2,193
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,798

3,183

CAPITAL AND RESERVES
Called up share capital 15 25 25
Retained earnings 16 4,773 3,158
SHAREHOLDERS' FUNDS 4,798 3,183

The financial statements were approved by the Board of Directors and authorised for issue on 19 November 2024 and were signed on its behalf by:





Mr A K Simpson - Director


Datel Computing Limited (Registered number: 01555529)

Statement of Changes in Equity
for the Year Ended 31 May 2024

Called up
share Retained Total
capital earnings equity
£'000 £'000 £'000
Balance at 1 June 2022 25 1,877 1,902

Changes in equity
Dividends - (2,050 ) (2,050 )
Total comprehensive income - 3,331 3,331
Balance at 31 May 2023 25 3,158 3,183

Changes in equity
Dividends - (1,568 ) (1,568 )
Total comprehensive income - 3,183 3,183
Balance at 31 May 2024 25 4,773 4,798

Datel Computing Limited (Registered number: 01555529)

Notes to the Financial Statements
for the Year Ended 31 May 2024

1. STATUTORY INFORMATION

Datel Computing Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

They are presented in pounds sterling and rounded to the nearest £   .

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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

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

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 expenses recognised are recoverable.

Deferred income and contract costs
Deferred income arises from the allocation of invoiced amounts over the period to which they relate and represents a future obligation to deliver a service.

Deferred contract costs represent payments made in advance of services to be received in the future. The benefit is recognised when consumed, aligning the expense to the generation of revenue.

Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed five years.

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that assets as follows:

Goodwill - straight line basis over 5-10 years

If there is an indication that there has been significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Datel Computing Limited (Registered number: 01555529)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Improvements to property - Over 15 years straight line
Fixtures and fittings - 20% on cost and Over 15 years straight line
Computer equipment - 33% on cost

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Datel Computing Limited (Registered number: 01555529)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Leasing
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

3. ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily available from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both.

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

Accruals
Management make a significant estimate for a cash bonus arrangement based on certain financial targets being met. This has been accrued based on estimated total payout over the term of the agreement, less payments already made. The total accrued at the balance sheet date was £1.5m.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£'000 £'000
Sale of products 834 935
Services and subscriptions 32,540 28,938
33,374 29,873

5. EMPLOYEES AND DIRECTORS
2024 2023
£'000 £'000
Wages and salaries 13,378 11,903
Social security costs 1,414 1,262
Other pension costs 545 504
15,337 13,669

The average number of employees during the year was as follows:
2024 2023

Sales, distribution & programming 192 173
Office and management 20 20
212 193

2024 2023
£    £   
Directors' remuneration 995,718 916,443
Directors' pension contributions to money purchase schemes 20,961 25,527

Datel Computing Limited (Registered number: 01555529)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

5. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 603,413 637,768
Pension contributions to money purchase schemes 11,561 15,906

6. OPERATING PROFIT

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

2024 2023
£'000 £'000
Depreciation - owned assets 154 112
Profit on disposal of fixed assets (3 ) (1 )
Goodwill amortisation 150 305
Auditors' remuneration 9 8
Auditors' remuneration for non audit work 18 13
Impairment of trade debtors 46 30
Operating leases 273 273
Research and development expenditure 138 192

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£'000 £'000
Current tax:
UK corporation tax 897 863

Deferred tax 177 (97 )
Tax on profit 1,074 766

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£'000 £'000
Profit before tax 4,257 4,097
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

1,064

1,024

Effects of:
Expenses not deductible for tax purposes 38 71
Income not taxable for tax purposes (10 ) -
Capital allowances in excess of depreciation (1 ) (35 )
Adjustments to tax charge in respect of previous periods 17 -
R&D expenditure (34 ) (58 )

Enhanced capital allowances - (26 )
Change in corporation tax rate - (210 )
Total tax charge 1,074 766

Datel Computing Limited (Registered number: 01555529)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

8. DIVIDENDS
2024 2023
£'000 £'000
Ordinary shares of £1 each
Interim 1,568 2,050

9. INTANGIBLE FIXED ASSETS
Goodwill
£'000
COST
At 1 June 2023 6,784
Additions 250
At 31 May 2024 7,034
AMORTISATION
At 1 June 2023 6,296
Amortisation for year 150
At 31 May 2024 6,446
NET BOOK VALUE
At 31 May 2024 588
At 31 May 2023 488

10. TANGIBLE FIXED ASSETS
Improvements Fixtures
to and Computer
property fittings equipment Totals
£'000 £'000 £'000 £'000
COST
At 1 June 2023 119 527 259 905
Additions - 28 118 146
Disposals - - (1 ) (1 )
At 31 May 2024 119 555 376 1,050
DEPRECIATION
At 1 June 2023 38 276 89 403
Charge for year 7 41 106 154
At 31 May 2024 45 317 195 557
NET BOOK VALUE
At 31 May 2024 74 238 181 493
At 31 May 2023 81 251 170 502

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£'000 £'000
Trade debtors 4,082 3,439
Amounts owed by group undertakings 4,661 4,661
Other debtors 163 205
Deferred tax asset 167 344
Deferred contract costs 5,669 4,160
Prepayments 343 227
15,085 13,036

Datel Computing Limited (Registered number: 01555529)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

Deferred tax asset
2024 2023
£'000 £'000
Accelerated capital allowances (81 ) (75 )
Other timing differences 248 419
167 344

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£'000 £'000
Trade creditors 3,176 2,430
Amounts owed to group undertakings - 848
Corporation tax 317 384
Social security and other taxes 817 697
Other creditors 4 -
Deferred income 15,237 12,553
Accrued expenses 2,340 2,383
21,891 19,295

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£'000 £'000
Within one year 273 273
Between one and five years 409 682
682 955

14. DEFERRED TAX
£'000
Balance at 1 June 2023 (344 )
Accelerated capital allowances 5
Other timing differences 172
Balance at 31 May 2024 (167 )

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £'000 £'000
25,000 Ordinary £1 25 25

16. RESERVES
Retained
earnings
£'000

At 1 June 2023 3,158
Profit for the year 3,183
Dividends (1,568 )
At 31 May 2024 4,773

Datel Computing Limited (Registered number: 01555529)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

17. ULTIMATE PARENT COMPANY

Datel Group PLC is regarded by the directors as being the company's ultimate parent company.

18. RELATED PARTY DISCLOSURES

The company has taken advantage of the exemptions not to make related party disclosures in respect of transactions with the members of the group, on the grounds that the company is a wholly owned subsidiary of Datel Group plc whose financial statements are publicly available.

Key management is the directors, the total remuneration paid to directors' is given in note 5.

19. EMPLOYEE BENEFITS

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £544,925 (2023: £503,369). The amount outstanding at the year end was £43,290 (2023 - £30,524).