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REGISTERED NUMBER: 02444909 (England and Wales)















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 May 2024

for

Datel Group plc

Datel Group plc (Registered number: 02444909)






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





Page


Company Information 1

Group Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 6

Consolidated Income Statement 9

Consolidated Other Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Cash Flow Statement 15

Notes to the Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 17


Datel Group plc

Company Information
for the Year Ended 31 May 2024







DIRECTORS: Mr A K Simpson
Mrs V Worsley





SECRETARY: Mrs V Worsley





REGISTERED OFFICE: Cinnamon Park
Fearnhead
WARRINGTON
Cheshire
WA2 0XP





REGISTERED NUMBER: 02444909 (England and Wales)





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

Datel Group plc (Registered number: 02444909)

Group Strategic Report
for the Year Ended 31 May 2024

The directors present their strategic report of the company and the group for the year ended 31 May 2024.

PRINCIPAL OBJECTIVES AND STRATEGIES
The principal activity of the Group is the sale of business management software systems and associated implementation and support services through Datel Computing, and the provision of managed services and private cloud solutions through Datel Advansys.

Datel remains the UK's leading provider of business management systems to medium sized enterprises and is Sage's largest business partner. Businesses across a diverse cross-section of 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 Group's turnover surged by over 10% from the previous year, reaching an impressive £37.8 million (2023: £34.3 million). The recurring margins continued to grow, now representing over 60% of the total margin at £16.1 million (2023: £15 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 £4.6 million (2023: £4.4 million).

The Group generated strong cash flows during the period and finished the year with cash funds of £12m (2023: £9.3m) and no debt, despite some significant ad hoc payments.

Our headcount increased this year, partly due to business growth, reaching 241, compared to 226 last year.

As we end the year, we are thrilled 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 Group maintains a strategy of strong management, leadership and training. This strategy enables the Group 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.

Accordingly, the Group 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.

SECTION 172(1) STATEMENT
The Board has acted in a way that promotes the success of the Group for the benefit of its members as a whole, in accordance with the requirements of the Companies (Miscellaneous Reporting) Regulations 2018, whilst having regard to the following matters set out in s.172 (1) of the Act:

- the likely consequences of any decision in the long term;
- the interests of the Group's employees;
- the need to foster the Group's business relationships with suppliers, customers, and others;
- the impact of the Group's operations on the community and the environment;
- the desirability of the Group maintaining a reputation for high standards and business conduct; and
- the need to act fairly between the members of the Group.

The Group understands that it is important for the business at all levels, including the Board, to engage with its shareholders and wider stakeholder groups. By engaging with our stakeholders, we gain better understanding of what areas they are concerned about and also how our decisions have impacted them.

Healthy engagement with our stakeholders underpins our governance framework, which is embedded throughout our business and helps to ensure we maintain high standards of business conduct.


Datel Group plc (Registered number: 02444909)

Group Strategic Report
for the Year Ended 31 May 2024

STAKEHOLDER ENGAGEMENT
Stakeholder engagement plays an important part of our day-to-day operations. The Board is kept appraised of the feedback received and collectively or individually.
The Group is engaged with its stakeholders throughout the year as follows:

Shareholders
- Board meetings were held on a regular basis to ensure that all Directors are aware of, and have a clear
understanding of, the view of major shareholders.

Employees
- The Group is committed to employment policies which follow best practice and are based on equal opportunities
for all employees, irrespective of gender, religion or belief, age, racial or ethnic origin, sexual orientation or
disability.

Customers
- We place customers at the heart of everything we do and focus on delivering excellent project quality, robust
policies and resolving any customer problems quickly and efficiently.
- Our customer care team is available to answer queries throughout the customer journey.
- Customers are encouraged to give feedback to help us understand their customer experience.

Subcontractors and supply chain
- We work closely with our sub-contractors and supply chain to ensure their products meet both our needs and
standards.
- We engage with our sub-contractors and suppliers and notify them of any new working protocols that they would
need to comply with in order to safeguard themselves, our employees, customers and the general public.

GREENHOUSE GAS EMISSIONS, ENERGY CONSUMPTION AND ENERGY EFFICIENCY
Greenhouse gas emissions are reported in line with the UK Government's 'Environmental Reporting Guidelines:Including streamlined energy and carbon reporting guidance' (dated March).

In line with the revised Greenhouse Gas Reporting Protocol, the Group reports the sources of greenhouse gas emissions from its main activities, categorised as scope 1, 2 and 3 emissions. Scope 1 comprises direct emissions from sources controlled by the group such as red diesel and natural gas on construction sites and in our offices. Scope 2 comprises indirect emissions associated with the consumption of energy from purchased electricity. Scope 3 relates to other indirect emissions.

Scope Measure 2024 2023
Scope 1 tCO2e - -
Scope 2 tCO2e 66 84
Total Scope n 1 & Scope 2 tCO2e 66 84
Energy Consumption MWh 305 387
Carbon Intensity tCO2e - -
Scope 3 tCO2e - -
Total Scope 1,2 &3 tCO2e 66 84

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.
- We continue to grow the value of our own Fusion product range, developed in-house, currently generating
revenues of £1.7m (2023 £1.5m)Customer satisfaction measures for our support customers are still tracking at
over 98% (2023: 98%)
- We continue to invest in research and development, identifying technologies to enhance our future offerings.
The total expenditure on the R&D team for the year exceeded £0.8m.

Datel Advansys also uses a number of similar metrics to track performance.
- Recurring revenue from annuity contracts (primarily PaaS) is critical to be on track with revenue this year.
- Our customer satisfaction metrics continue to provide excellent results, currently tracking at 95% (2023 97%)

The continued move to a more flexible working environment for many of our customers has continued to highlight the benefit of our Platform as a Service offering, being located in remote data centres and accessible from any remote location.


Datel Group plc (Registered number: 02444909)

Group Strategic Report
for the Year Ended 31 May 2024

FUTURE DEVELOPMENTS
We continue to develop and invest in our Platform as a Service offering as we attract new customers and upgrade existing customers to later technologies. Therefore we envisage further growth in our core business areas in the coming year.

ON BEHALF OF THE BOARD:





Mr A K Simpson - Director


19 November 2024

Datel Group plc (Registered number: 02444909)

Report of the Directors
for the Year Ended 31 May 2024

The directors present their report with the financial statements of the company and the group 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. Total distribution of dividends for the year ended 31 May 2024 is £3,068,000.

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 A Pritchard - resigned 31 May 2024
Mr N Swarbrick - resigned 31 May 2024
Mrs V Worsley - 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 Group.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group'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 Group plc

Opinion
We have audited the financial statements of Datel Group plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 May 2024 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 Group plc


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 group's and the parent 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 group or the parent 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 Group 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 Group, 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 Group'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 Group plc


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 Group plc (Registered number: 02444909)

Consolidated Income Statement
for the Year Ended 31 May 2024

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

TURNOVER 4 37,753 34,239

Cost of sales 12,889 11,325
GROSS PROFIT 24,864 22,914

Distribution costs 13,904 12,037
Administrative expenses 6,622 6,511
20,526 18,548
OPERATING PROFIT 6 4,338 4,366

Interest receivable and similar income 237 66
4,575 4,432

Interest payable and similar expenses 7 (3 ) 1
PROFIT BEFORE TAXATION 4,578 4,431

Tax on profit 8 1,272 938
PROFIT FOR THE FINANCIAL YEAR 3,306 3,493
Profit attributable to:
Owners of the parent 3,306 3,493

Datel Group plc (Registered number: 02444909)

Consolidated Other Comprehensive Income
for the Year Ended 31 May 2024

2024 2023
Notes £'000 £'000

PROFIT FOR THE YEAR 3,306 3,493


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

3,306

3,493

Total comprehensive income attributable to:
Owners of the parent 3,306 3,493

Datel Group plc (Registered number: 02444909)

Consolidated Balance Sheet
31 May 2024

2024 2023
Notes £'000 £'000 £'000 £'000
FIXED ASSETS
Intangible assets 11 3,192 3,566
Tangible assets 12 988 1,176
Investments 13 - -
4,180 4,742

CURRENT ASSETS
Stocks 14 3 3
Debtors 15 11,157 8,889
Cash at bank and in hand 11,998 9,286
23,158 18,178
CREDITORS
Amounts falling due within one year 16 24,069 20,089
NET CURRENT LIABILITIES (911 ) (1,911 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,269

2,831

CREDITORS
Amounts falling due after more than one
year

17

200

-
NET ASSETS 3,069 2,831

CAPITAL AND RESERVES
Called up share capital 20 51 51
Capital redemption reserve 21 11 11
Retained earnings 21 3,007 2,769
SHAREHOLDERS' FUNDS 3,069 2,831

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 Group plc (Registered number: 02444909)

Company Balance Sheet
31 May 2024

2024 2023
Notes £'000 £'000 £'000 £'000
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 - -
Investments 13 5,235 5,235
5,235 5,235

CREDITORS
Amounts falling due within one year 16 4,662 4,662
NET CURRENT LIABILITIES (4,662 ) (4,662 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

573

573

CAPITAL AND RESERVES
Called up share capital 20 51 51
Capital redemption reserve 21 11 11
Retained earnings 21 511 511
SHAREHOLDERS' FUNDS 573 573

Company's profit for the financial year 3,068 3,050

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 Group plc (Registered number: 02444909)

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

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£'000 £'000 £'000 £'000
Balance at 1 June 2022 51 2,326 11 2,388

Changes in equity
Dividends - (3,050 ) - (3,050 )
Total comprehensive income - 3,493 - 3,493
Balance at 31 May 2023 51 2,769 11 2,831

Changes in equity
Dividends - (3,068 ) - (3,068 )
Total comprehensive income - 3,306 - 3,306
Balance at 31 May 2024 51 3,007 11 3,069

Datel Group plc (Registered number: 02444909)

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

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£'000 £'000 £'000 £'000
Balance at 1 June 2022 51 511 11 573

Changes in equity
Dividends - (3,050 ) - (3,050 )
Total comprehensive income - 3,050 - 3,050
Balance at 31 May 2023 51 511 11 573

Changes in equity
Dividends - (3,068 ) - (3,068 )
Total comprehensive income - 3,068 - 3,068
Balance at 31 May 2024 51 511 11 573

Datel Group plc (Registered number: 02444909)

Consolidated Cash Flow Statement
for the Year Ended 31 May 2024

2024 2023
Notes £'000 £'000
Cash flows from operating activities
Cash generated from operations 1 7,169 7,107
Interest paid 3 (1 )
Tax paid (1,190 ) (775 )
Net cash from operating activities 5,982 6,331

Cash flows from investing activities
Purchase of intangible fixed assets (250 ) (500 )
Purchase of tangible fixed assets (192 ) (503 )
Write off of tangible fixed assets 3 1
Interest received 237 66
Net cash from investing activities (202 ) (936 )

Cash flows from financing activities
Equity dividends paid (3,068 ) (3,050 )
Net cash from financing activities (3,068 ) (3,050 )

Increase in cash and cash equivalents 2,712 2,345
Cash and cash equivalents at beginning
of year

2

9,286

6,941

Cash and cash equivalents at end of year 2 11,998 9,286

Datel Group plc (Registered number: 02444909)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 May 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£'000 £'000
Profit before taxation 4,578 4,431
Depreciation charges 1,004 1,164
Profit on disposal of fixed assets (3 ) (1 )
Finance costs (3 ) 1
Finance income (237 ) (66 )
5,339 5,529
Increase in trade and other debtors (2,350 ) (1,200 )
Increase in trade and other creditors 4,180 2,778
Cash generated from operations 7,169 7,107

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2024
31.5.24 1.6.23
£'000 £'000
Cash and cash equivalents 11,998 9,286
Year ended 31 May 2023
31.5.23 1.6.22
£'000 £'000
Cash and cash equivalents 9,286 6,941


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.23 Cash flow At 31.5.24
£'000 £'000 £'000
Net cash
Cash at bank and in hand 9,286 2,712 11,998
9,286 2,712 11,998
Total 9,286 2,712 11,998

Datel Group plc (Registered number: 02444909)

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

1. STATUTORY INFORMATION

Datel Group plc is a private company , registered in England and Wales. The company's registered number and registered office address can be found on the General 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 £   .

Basis of consolidation
The consolidated financial statements incorporate the financial statements of the company and all group undertakings.

The acquisition method of accounting has been adopted. Under this method, the results of subsidiary undertakings acquired or disposed of in the year are included in the consolidated profit and loss account from the date on which control passed.

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken over reduced disclosure available and no cash flow statement has been presented for the company.

Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group 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 Group plc (Registered number: 02444909)

Notes to the Consolidated 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 and 20% 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.

Investments in subsidiaries
Investments in subsidiaries are recognised at cost. Dividends and other distributions received from the investment are recognised as income.

Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

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 Consolidated 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.


Datel Group plc (Registered number: 02444909)

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

2. ACCOUNTING POLICIES - continued
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.


Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group'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 group'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 £2.1m.

4. TURNOVER

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

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

2024 2023
£'000 £'000
Sale of goods 1,083 1,498
Rendering of services 36,670 32,741
37,753 34,239

5. EMPLOYEES AND DIRECTORS
2024 2023
£'000 £'000
Wages and salaries 15,034 13,362
Social security costs 1,461 1,302
Other pension costs 591 544
17,086 15,208

Datel Group plc (Registered number: 02444909)

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

5. EMPLOYEES AND DIRECTORS - continued

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

Sales, distribution and programming 213 191
Office and management 23 23
236 214

2024 2023
£    £   
Directors' remuneration 1,547,385 1,431,849
Directors' pension contributions to money purchase schemes 32,961 37,527

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

Money purchase schemes 4 4

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 379 342
Profit on disposal of fixed assets (3 ) (1 )
Goodwill amortisation 624 821
Auditors' remuneration 11 10
Auditors' remuneration for non audit work 24 18
Impairment of trade debtors 47 30
Operating leases 273 273
Research and development expenditure 138 192

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£'000 £'000
Other interest (3 ) 1

8. 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 1,190 1,039

Deferred tax 82 (101 )
Tax on profit 1,272 938

Datel Group plc (Registered number: 02444909)

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

8. TAXATION - continued

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 4,578 4,431
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2023 - 25 %)

1,144

1,108

Effects of:
Expenses not deductible for tax purposes 156 76
Income not taxable for tax purposes (10 ) -
Capital allowances in excess of depreciation (1 ) -
Depreciation in excess of capital allowances - 51
Adjustments to tax charge in respect of previous periods 17 -
R&D expenditure (34 ) (58 )
associate
Enhanced capital allowances - (239 )
Total tax charge 1,272 938

9. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


10. DIVIDENDS
2024 2023
£'000 £'000
A Ordinary shares of £0.0125 each
Interim 3,000 3,000
B Ordinary shares of £0.0125 each
Interim 68 50
3,068 3,050

11. INTANGIBLE FIXED ASSETS

Group
Goodwill
£'000
COST
At 1 June 2023 11,733
Additions 250
At 31 May 2024 11,983
AMORTISATION
At 1 June 2023 8,167
Amortisation for year 624
At 31 May 2024 8,791
NET BOOK VALUE
At 31 May 2024 3,192
At 31 May 2023 3,566

Datel Group plc (Registered number: 02444909)

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

12. TANGIBLE FIXED ASSETS

Group
Improvements Fixtures
to and Computer
property fittings equipment Totals
£'000 £'000 £'000 £'000
COST
At 1 June 2023 119 527 1,671 2,317
Additions - 28 163 191
Disposals - - (472 ) (472 )
At 31 May 2024 119 555 1,362 2,036
DEPRECIATION
At 1 June 2023 38 276 827 1,141
Charge for year 7 41 331 379
Eliminated on disposal - - (472 ) (472 )
At 31 May 2024 45 317 686 1,048
NET BOOK VALUE
At 31 May 2024 74 238 676 988
At 31 May 2023 81 251 844 1,176

13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£'000
COST
At 1 June 2023
and 31 May 2024 5,235
NET BOOK VALUE
At 31 May 2024 5,235
At 31 May 2023 5,235

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Datel Computing Limited
Registered office: Cinnamon Park, Warrington, WA2 0XP
Nature of business: Sale and implementation of software systems
%
Class of shares: holding
Ordinary 100.00

Datel Advansys Ltd
Registered office: Cinnamon Park, Fearnhead, Warrington, Cheshire, WA2 0XP
Nature of business: Specialist in IT infrastructure solutions
%
Class of shares: holding
Ordinary 100.00


Datel Group plc (Registered number: 02444909)

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

14. STOCKS

Group
2024 2023
£'000 £'000
Stocks 3 3

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2024 2023
£'000 £'000
Trade debtors 4,700 3,994
Other debtors 163 205
Deferred tax asset 193 275
Deferred contract costs 5,759 4,188
Prepayments 342 227
11,157 8,889

Deferred tax asset
Group
2024 2023
£'000 £'000
Accelerated capital allowances (205 ) (243 )
Other timing differences 398 518
193 275

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£'000 £'000 £'000 £'000
Trade creditors 3,325 2,581 - -
Amounts owed to group undertakings - 1 4,662 4,662
Corporation tax 484 483 - -
Social security and other taxes 817 697 - -
VAT 151 84 - -
Other creditors 12 7 - -
Deferred income 16,396 13,419 - -
Accrued expenses 2,884 2,817 - -
24,069 20,089 4,662 4,662

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2024 2023
£'000 £'000
Accruals and deferred income 200 -

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Datel Group plc (Registered number: 02444909)

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

Group
Non-cancellable operating leases
2024 2023
£'000 £'000
Within one year 273 273
Between one and five years 409 682
682 955

19. DEFERRED TAX

Group
£'000
Balance at 1 June 2023 (275 )
Accelerated capital allowances (39 )
Other timing differences 121
Balance at 31 May 2024 (193 )

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £'000 £'000
4,000,000 A Ordinary £0.0125 50 50
100,000 B Ordinary £0.0125 1 1
51 51

21. RESERVES

Group
Capital
Retained redemption
earnings reserve Totals
£'000 £'000 £'000

At 1 June 2023 2,769 11 2,780
Profit for the year 3,306 3,306
Dividends (3,068 ) (3,068 )
At 31 May 2024 3,007 11 3,018

Company
Capital
Retained redemption
earnings reserve Totals
£'000 £'000 £'000

At 1 June 2023 511 11 522
Profit for the year 3,068 3,068
Dividends (3,068 ) (3,068 )
At 31 May 2024 511 11 522


Datel Group plc (Registered number: 02444909)

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

22. RELATED PARTY DISCLOSURES

The group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Key management personnel
Key management are the directors, total remuneration paid is detailed in note 5.

23. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr A K Simpson.

24. EMPLOYEE BENEFITS

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £592,035 (2023: £543,747). The amount outstanding at the year end was £43,290 (2023: £40,524).