Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-312024-03-31true882023-04-01false<>93falsefalsefalse 03442937 2023-04-01 2024-03-31 03442937 2022-04-01 2023-03-31 03442937 2024-03-31 03442937 2023-03-31 03442937 2022-04-01 03442937 c:Director1 2023-04-01 2024-03-31 03442937 c:Director2 2023-04-01 2024-03-31 03442937 c:Director4 2023-04-01 2024-03-31 03442937 c:Director5 2023-04-01 2024-03-31 03442937 c:Director6 2023-04-01 2024-03-31 03442937 c:Director7 2023-04-01 2024-03-31 03442937 c:Director7 2024-03-31 03442937 c:Director8 2023-04-01 2024-03-31 03442937 c:Director8 2024-03-31 03442937 c:RegisteredOffice 2023-04-01 2024-03-31 03442937 c:Agent1 2023-04-01 2024-03-31 03442937 d:MotorVehicles 2023-04-01 2024-03-31 03442937 d:MotorVehicles 2024-03-31 03442937 d:MotorVehicles 2023-03-31 03442937 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 03442937 d:FurnitureFittings 2023-04-01 2024-03-31 03442937 d:FurnitureFittings 2024-03-31 03442937 d:FurnitureFittings 2023-03-31 03442937 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 03442937 d:ComputerEquipment 2023-04-01 2024-03-31 03442937 d:ComputerEquipment 2024-03-31 03442937 d:ComputerEquipment 2023-03-31 03442937 d:ComputerEquipment d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 03442937 d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 03442937 d:CurrentFinancialInstruments 2024-03-31 03442937 d:CurrentFinancialInstruments 2023-03-31 03442937 d:Non-currentFinancialInstruments 2024-03-31 03442937 d:Non-currentFinancialInstruments 2023-03-31 03442937 d:CurrentFinancialInstruments d:WithinOneYear 2024-03-31 03442937 d:CurrentFinancialInstruments d:WithinOneYear 2023-03-31 03442937 d:Non-currentFinancialInstruments d:AfterOneYear 2024-03-31 03442937 d:Non-currentFinancialInstruments d:AfterOneYear 2023-03-31 03442937 d:ShareCapital 2023-04-01 2024-03-31 03442937 d:ShareCapital 2024-03-31 03442937 d:ShareCapital 2022-04-01 2023-03-31 03442937 d:ShareCapital 2023-03-31 03442937 d:ShareCapital 2022-04-01 03442937 d:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 03442937 d:RetainedEarningsAccumulatedLosses 2024-03-31 03442937 d:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 03442937 d:RetainedEarningsAccumulatedLosses 2023-03-31 03442937 d:RetainedEarningsAccumulatedLosses 2022-04-01 03442937 c:OrdinaryShareClass1 2023-04-01 2024-03-31 03442937 c:OrdinaryShareClass1 2024-03-31 03442937 c:OrdinaryShareClass1 2023-03-31 03442937 c:FRS102 2023-04-01 2024-03-31 03442937 c:Audited 2023-04-01 2024-03-31 03442937 c:FullAccounts 2023-04-01 2024-03-31 03442937 c:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 03442937 d:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-04-01 2024-03-31 03442937 d:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2022-04-01 2023-03-31 03442937 d:Subsidiary1 2023-04-01 2024-03-31 03442937 d:Subsidiary1 1 2023-04-01 2024-03-31 03442937 d:WithinOneYear 2024-03-31 03442937 d:WithinOneYear 2023-03-31 03442937 d:BetweenOneFiveYears 2024-03-31 03442937 d:BetweenOneFiveYears 2023-03-31 03442937 d:HirePurchaseContracts d:WithinOneYear 2024-03-31 03442937 d:HirePurchaseContracts d:WithinOneYear 2023-03-31 03442937 d:HirePurchaseContracts d:BetweenOneFiveYears 2024-03-31 03442937 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-03-31 03442937 c:Consolidated 2024-03-31 03442937 c:ConsolidatedGroupCompanyAccounts 2023-04-01 2024-03-31 03442937 e:PoundSterling 2023-04-01 2024-03-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 03442937









DAEMON SOLUTIONS LIMITED









ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2024

 
DAEMON SOLUTIONS LIMITED
 

CONTENTS



Page
Company Information
1
Group Strategic Report
2 - 5
Directors' Report
6 - 7
Independent Auditor's Report
8 - 11
Consolidated Statement of Comprehensive Income
12
Consolidated Statement of Financial Position
13 - 14
Company Statement of Financial Position
15 - 16
Consolidated Statement of Changes in Equity
17
Company Statement of Changes in Equity
18
Consolidated Statement of Cash Flows
19
Consolidated Analysis of Net Debt
20
Notes to the Financial Statements
21 - 37


 
DAEMON SOLUTIONS LIMITED
 
 
COMPANY INFORMATION


Directors
S W Bennett 
C D Fitzgerald 
R P Newsome 
J M Batchelar 
J L Lockwood 
K Hauptfleisch (appointed 18 October 2023)
I J Bruce (appointed 1 April 2024)




Registered number
03442937



Registered office
Paddington Clubhouse Studio C
21 Conduit Place

Paddington

London

England

W2 1HS




Independent auditor
CLA Evelyn Partners Limited
Statutory Auditors & Chartered Accountants

45 Gresham Street

London

EC2V 7BG








Page 1

 
DAEMON SOLUTIONS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The directors present the Strategic Report of Daemon Solutions Limited (the “Group”) for the year ended 31 March 2024.

Business Review
 
The group provides people-first IT consultancy services to FTSE100, blue chip and startup/scaleup enterprises, underpinned by strong technical expertise from a workforce (our “Daemonites”) who are located across the United Kingdom and South Africa. Daemon is an agile, award winning consultancy that delivers for our clients and provides access to the best available technical consultants at competitive prices, wherever our clients are in the world.
We energise clients, colleagues and communities to work as one, and deliver technology that makes the world a better place. We solve business problems by turning teams into movements that transform tech. We find a single vision everyone can get behind to power organisations forward. 

The group’s performance and growth in the year ending 31 March 2024 were considered satisfactory given the continued topline growth and the return to profitability following the economic headwinds and investments that impacted performance in the prior year.

The group continues to invest in its “Daemonites” to ensure we have industry leading talent, capable of delivering market leading services thanks to our broad range of technical knowledge and consulting experience, using the best practices and most up-to-date solutions for our clients. 

Financial key performance indicators
 
Revenue increased from £18.9m to £20.4m, up 8% (2023 - 12%) driven by a combination of new clients and increasing the services offered to existing clients.  Gross Profit increased by 23%, from £6.9m to £8.4m, with Gross Profit Margin 41%, vs 36% the year before.
In Q1 the group continued to deal with the economic headwinds experienced at the end of the prior year. The Directors reviewed the structure of our business and implemented the steps necessary to establish the optimum shape for the team moving forward.
In line with our goal to be fully client centric, Q2 saw the business investing in its client service team, bringing in the leadership skills and capabilities needed to realise these ambitions.  
The changes made in Q1 combined with the investment in Q2 form the foundations for the future growth of the business but we have already seen some of the benefits this year. New client wins in the Retail and Financial Institutions sectors in Q3 saw the group return to profitability and go on to deliver results in Q4 that exceeded our expectations.
As a result profit before tax increased to £2.0m, compared to a loss of £0.3m last year. 

Page 2

 
DAEMON SOLUTIONS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Future developments
 
The group continues to expand its operations whilst maintaining cost controls.  We remain focused on the provision of a first-class people-first service, delivering tangible benefits to our clients.
 
Last year we introduced our “North Star Ambitions” to guide our strategy and decision making. The group believes it is important to have a balanced approach whilst setting ambitious targets that will see us continue to stand out from the competition. These North Stars are inline with our new branding and positioning in the market.

The five North Stars ambitions are:

To be the employer of choice
To be an amazing place to work
To be fully client centric
To have measurable societal impact
To sustainably grow our business

We have made pleasing progress in all five areas, in particular we are proud of:

the advances made towards being fully client centric, driven by key initiatives aimed at establishing delivery excellence at our core;
the ongoing recognition of our culture, placing in the top 25 best companies in the UK Tech Sector, the top 100 for mid-sized companies, and being chosen as one of the "Most Loved" Workplaces; and
our new client wins which are expanding our client portfolio, a key element of our ambitions around growing sustainably.

Looking further ahead, the group has developed multi-year plans and detailed annual goals for each ambition that are reviewed by the Board and regularly reported on internally.

Environmental, Social, and Governance
 
We consider ourselves to be good corporate citizens, and as such we are not just aware of the legal responsibilities we will have as we continue to grow, we want to be ahead of the curve, leading our industry and our clients in this space.
As an organisation the group has already committed to managing and cutting its carbon emissions in order to be Net Zero by 2050.  We are also working on establishing our Scope 1 and Scope 2 GHG emissions in order to report figures for the year ending 31 March 2025.  We know a number of our current clients and many prospective clients will need these figures in order to comply with their own Scope 3 reporting requirements and therefore as a responsible supplier, with a client centric approach across the organisation, we need to be ready to support our clients in this area.
We continue to support local charities in both the UK and SA with a wide range of activities and fundraising.  We also take our ethical responsibilities very seriously and continue to avoid any work that we feel could have a detrimental impact on society.

Page 3

 
DAEMON SOLUTIONS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Principal risks and uncertainties

There are a number of risks and uncertainties which could have an impact on the group's long-term performance. The group has identified a set of primary risks with the potential to impact on performance and delivery which are reviewed on a regular basis by the group and its Directors. The primary risks are set out below:
Sustaining existing clients - current clients face a number of challenges as they balance the broader economic environment with their need to invest in their IT.  The group has mitigated the risk by managing concentration, whilst working closely with clients to ensure that the services provided are to the highest of standards and represent real value.
Securing new clients - the ongoing demand for IT Consultancy services makes this a competitive marketplace to operate in. The group has a clear and strong brand position and a capable new client team that can source and develop long term partnerships.
Attracting and retaining Talent - across the IT sector there continues to be a shortage of skilled professionals.  The group has mitigated this risk by establishing an attractive people value proposition, as a truly “people first” organisation our focus on culture and creating a strong feeling of community help mitigate this particular risk.
Financial health - as a growing business, scaling our operations and winning new clients, the group acknowledges this can present a risk if not managed properly. Through proactive planning, prudent cash flow management, controls over operational activities and avoiding excessive concentrations of client revenue the business is mitigating this risk.
Change of Government and Impact on Economic Climate - following the result of the 4 July 2024 general election in the UK the change in government has introduced uncertainty in a number of areas which naturally leads businesses to be cautious. Whilst the group expects this to be short term, we will continue to monitor policy announcements and the Government’s plans to ensure we understand the longer term impacts on the group, our clients and our prospective clients.

Research and development activities

As a leader in technology the group undertakes a number of engagements that involve the development, testing and pricing of concepts, innovative use of technologies and creating solutions to complex technical challenges for its customers.
Working with our clients we continue to develop solutions and support the creation of new technology that is at the forefront of Data, MI and Generative Artificial Intelligence. We work with our clients to ensure that AI tools are integrated into their businesses in a meaningful way while ensuring that the impact is positive and deliberate.

Page 4

 
DAEMON SOLUTIONS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Financial risk management

Credit risk
The group’s credit risk is primarily attributable to its trade debtors.  Management considers this risk to be low due to the nature of our client base, however, we proactively monitor our trade debtors and have processes in place that ensure payments are received closely in line with our payment terms.  The carrying amount of financial assets represents the maximum credit exposure. 
Liquidity risk
The group actively monitors its levels of working capital to ensure it has sufficient available funds to support operations and planned expansions. The group monitors its levels of working capital to ensure that it can meet its lease and debt repayments as they fall due.
The group’s financial liabilities (none of which are derivative financial liabilities) comprise trade creditors and bank borrowings which are measured at amortised cost.
Interest rate risk
The group does not have interest bearing assets and the interest bearing liabilities are on a fixed basis.  The group has a policy of maintaining debt at fixed rates to ensure certainty of future interest cash flows.  The directors will revisit the appropriateness of this policy should the group’s operations change in size or nature. 
Foreign currency exchange rate risk
The group is exposed to foreign currency exchange rate risk as a result of trade creditors who settle in US dollars, Euros and Canadian dollars as well as in South African Rand.
The group monitors exchange rates and reviews its exchange exposure and opportunities on a regular basis. As such the directors are comfortable the group has no material exchange rate exposure on its financial assets and liabilities as at the year end and does not hedge any of its trading activities.


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



C D Fitzgerald
Director

Date: 15 November 2024

Page 5

 
DAEMON SOLUTIONS LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 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 for the Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £2,069,426 (2023 -loss £164,665).

Dividends of £468,000 (2023: £688,000) were paid during the year.

Directors

The directors who served during the year were:

S W Bennett 
C D Fitzgerald 
R P Newsome 
J M Batchelar 
J L Lockwood 
K Hauptfleisch (appointed 18 October 2023)

Page 6

 
DAEMON SOLUTIONS LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Future developments

The group's business activities, together with the factors likely to affect its future development, performance and position, are set out in this report. The financial position of the company and its liquidity position are set out in the attached accounts. In addition, the principal risks and uncertainties section above details the policies and processes in place to manage financial risk, and exposures to credit and liquidity risk. The group will continue to build on its presence in the transport and energy sectors through focusing on delivering value for money quality service. The directors are committed to the development and improvement of the services already on offer as well as a commitment to future company investment.

Disclosure of information to auditor

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

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

Post balance sheet events

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

Auditor

The auditor, CLA Evelyn Partners Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





C D Fitzgerald
Director

Date: 15 November 2024

Page 7

 
img515d.png 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DAEMON SOLUTIONS LIMITED
 

Opinion

We have audited the financial statements of Daemon Solutions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended  31 March 2024 which comprise the consolidated statement of comprehensive income, consolidated and company statement of financial position, consolidated and company statement of changes in equity, consolidated statement of cash flows, consolidated analysis of net debt and the notes to the financial statements, including significant accounting policies.  The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:
give a true and fair view of the state of the group's and of the parent company's affairs as at 31 March 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 Auditor’s responsibilities for the audit of the financial statements section of our report.  We are independent of the group and parent 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 group and 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.
Page 8

 
DAEMON SOLUTIONS LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DAEMON SOLUTIONS LIMITED

Other information

The other information comprises the information included in the Annual report, other than the financial statements and our auditor’s report thereon.  The directors are responsible for the other information contained within the Annual report.  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.  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. 


Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, 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 6, 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 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. 

Page 9

 
DAEMON SOLUTIONS LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DAEMON SOLUTIONS LIMITED

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations.  We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.  The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
We obtained a general understanding of the group’s legal and regulatory framework through enquiry of group management concerning their understanding of relevant laws and regulations, the entity’s policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the parent company’s industry and regulation.
We understand that the group complies with requirements of the framework through:
The appointment of a Health & Safety Manager to monitor compliance.
Making note of relevant updates and updating internal procedures and controls as necessary as legal and regulatory requirements change.
The Directors’ close involvement in the day-to-day running of the business, meaning that any litigation or claims would come to their attention directly and are considered at Board meetings.
 
In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the group’s ability to conduct its business, and/or where there is a risk that failure to comply could result in material penalties. We have identified the following laws and regulations as being of significance in the context of the group:
The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements.

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur. The key areas identified in this discussion were: 
Manipulation of the financial statements via manual journal entries.
Incorrect recognition of revenue, notably around the year end, and the resulting accrued and deferred income.

These areas were communicated to the other member of the engagement team not present at the discussion.
 
The procedures we carried out to gain evidence in the above areas included:
Testing a sample of revenue transactions to underlying documentation, ensuring cut-off has been appropriately treated.
Testing a sample of manual journal entries, selected through applying specific risk assessments based on the group’s processes and controls surrounding manual journal entries.
Testing a sample of accrued and deferred income balances to underlying documentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Page 10

 
DAEMON SOLUTIONS LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DAEMON SOLUTIONS LIMITED


Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor’s report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.



Timothy Adams (Senior Statutory Auditor)
  
for and on behalf of
CLA Evelyn Partners Limited
 
Statutory Auditor
Chartered Accountants
  
45 Gresham Street
London
EC2V 7BG

15 November 2024
Page 11

 
DAEMON SOLUTIONS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 3 
20,406,962
18,851,012

Cost of sales
  
(11,982,030)
(11,988,823)

Gross profit
  
8,424,932
6,862,189

Administrative expenses
  
(6,385,677)
(7,123,079)

Operating profit/(loss)
 4 
2,039,255
(260,890)

Interest payable and similar expenses
 8 
(6,874)
(4,696)

Profit/(loss) before taxation
  
2,032,381
(265,586)

Tax on profit/(loss)
 9 
37,045
100,921

Profit/(loss) for the financial year
  
2,069,426
(164,665)

Profit/(loss) for the year attributable to:
  

Owners of the parent Company
  
2,069,426
(164,665)

  
2,069,426
(164,665)

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 21 to 37 form part of these financial statements.

Page 12

 
DAEMON SOLUTIONS LIMITED
REGISTERED NUMBER:03442937

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
  
209,248
172,771

  
209,248
172,771

Current assets
  

Debtors: amounts falling due within one year
 13 
5,712,397
4,022,442

Cash at bank and in hand
 14 
752,873
379,651

  
6,465,270
4,402,093

Creditors: amounts falling due within one year
 15 
(3,599,240)
(3,111,224)

Net current assets
  
 
 
2,866,030
 
 
1,290,869

Total assets less current liabilities
  
3,075,278
1,463,640

Creditors: amounts falling due after more than one year
 16 
(31,454)
(66,671)

Provisions for liabilities
  

Deferred tax
  
2,937
48,366

  
 
 
2,937
 
 
48,366

Net assets
  
3,046,761
1,445,335


Capital and reserves
  

Called up share capital 
 19 
1,000
1,000

Profit and loss account
  
3,045,761
1,444,335

Equity attributable to owners of the parent Company
  
3,046,761
1,445,335


Page 13

 
DAEMON SOLUTIONS LIMITED
REGISTERED NUMBER:03442937
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2024

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



C D Fitzgerald
Director

Date: 15 November 2024

The notes on pages 21 to 37 form part of these financial statements.

Page 14

 
DAEMON SOLUTIONS LIMITED
REGISTERED NUMBER:03442937

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
164,793
134,950

Investments
 12 
5
5

  
164,798
134,955

Current assets
  

Debtors: amounts falling due within one year
 13 
5,660,921
4,007,861

Cash at bank and in hand
 14 
730,157
362,116

  
6,391,078
4,369,977

Creditors: amounts falling due within one year
 15 
(3,646,418)
(3,117,440)

Net current assets
  
 
 
2,744,660
 
 
1,252,537

Total assets less current liabilities
  
2,909,458
1,387,492

  

Creditors: amounts falling due after more than one year
 16 
(31,454)
(66,671)

Provisions for liabilities
  

Deferred tax
  
2,937
48,366

  
 
 
2,937
 
 
48,366

Net assets excluding pension asset
  
2,880,941
1,369,187

Net assets
  
2,880,941
1,369,187


Capital and reserves
  

Called up share capital 
 19 
1,000
1,000

Profit and loss account
  
2,879,941
1,368,187

  
2,880,941
1,369,187


Page 15

 
DAEMON SOLUTIONS LIMITED
REGISTERED NUMBER:03442937
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2024

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the Company for the year was £1,979,754 (2023 - loss of £237,553).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


C D Fitzgerald
Director

Date: 15 November 2024

The notes on pages 21 to 37 form part of these financial statements.

Page 16

 
DAEMON SOLUTIONS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
1,000
2,297,000
2,298,000


Comprehensive income for the year

Loss for the year
-
(164,665)
(164,665)
Total comprehensive income for the year
-
(164,665)
(164,665)


Contributions by and distributions to owners

Dividends: paid
-
(688,000)
(688,000)


Total transactions with owners
-
(688,000)
(688,000)



At 1 April 2023
1,000
1,444,335
1,445,335


Comprehensive income for the year

Profit for the year
-
2,069,426
2,069,426
Total comprehensive income for the year
-
2,069,426
2,069,426


Contributions by and distributions to owners

Dividends paid
-
(468,000)
(468,000)


Total transactions with owners
-
(468,000)
(468,000)


At 31 March 2024
1,000
3,045,761
3,046,761


The notes on pages 21 to 37 form part of these financial statements.

Page 17

 
DAEMON SOLUTIONS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
1,000
2,293,740
2,294,740


Comprehensive income for the year

Loss for the year
-
(237,553)
(237,553)


Contributions by and distributions to owners

Dividends paid
-
(688,000)
(688,000)


Total transactions with owners
-
(688,000)
(688,000)



At 1 April 2023
1,000
1,368,187
1,369,187


Comprehensive income for the year

Profit for the year
-
1,979,754
1,979,754


Contributions by and distributions to owners

Dividends paid
-
(468,000)
(468,000)


Total transactions with owners
-
(468,000)
(468,000)


At 31 March 2024
1,000
2,879,941
2,880,941


The notes on pages 21 to 37 form part of these financial statements.

Page 18

 
DAEMON SOLUTIONS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
2,069,426
(164,665)

Adjustments for:

Depreciation of tangible assets
51,805
81,971

Interest paid
6,874
4,696

Taxation charge
45,429
(100,921)

(Increase)/decrease in debtors
(1,814,314)
568,580

Increase/(decrease) in creditors
507,958
(153,336)

Corporation tax received
124,359
194,931

Profit on sale of fixed assets
2,595
-

Net cash generated from operating activities

994,132
431,256


Cash flows from investing activities

Purchase of tangible fixed assets
(91,452)
(144,756)

Sale of tangible fixed assets
575
15,604

Net cash from investing activities

(90,877)
(129,152)

Cash flows from financing activities

Repayment of loans
(9,948)
(9,646)

Repayment of finance leases
(45,211)
(34,533)

Dividends paid
(468,000)
(688,000)

Interest paid
(6,874)
(4,696)

Net cash used in financing activities
(530,033)
(736,875)

Net increase/(decrease) in cash and cash equivalents
373,222
(434,771)

Cash and cash equivalents at beginning of year
379,651
814,422

Cash and cash equivalents at the end of year
752,873
379,651


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
752,873
379,651

752,873
379,651


The notes on pages 21 to 37 form part of these financial statements.

Page 19

 
DAEMON SOLUTIONS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

379,651

373,222

752,873

Debt due after 1 year

(23,632)

10,426

(13,206)

Debt due within 1 year

(11,205)

(478)

(11,683)

Finance leases

(76,734)

45,211

(31,523)


268,080
428,381
696,461

The notes on pages 21 to 37 form part of these financial statements.

Page 20

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

The company is a private company limited by shares, registered in England & Wales. The address of the registered office is Paddington Clubhouse Studio C, 21 Conduit Place, Paddington, London, England, W2 1HS.  The principal activity of the company continued to be the provision of IT consultancy services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with 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 Group management to exercise judgement in applying the Group and company's accounting policies.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The company has taken advantage of the exemption from preparing a statement of cash flows, available under FRS 102.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity, made up to 31 March 2024. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

After reviewing the group's revenue forecasts and planned expenditure, as well as its cash flow projections and estimated balance sheet, the directors have considered a realistic scenario with their strategic plans in mind, and have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.

Page 21

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.4

Foreign currency translation

Functional and presentation currency
The company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Income and Retained Earnings within 'administrative expenses'. All other foreign exchange gains and losses are presented in profit or loss within 'administrative expenses'.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Revenue

Consultancy revenue 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. Consultancy revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Consultancy revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 22

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Finance costs

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

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

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

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

Page 23

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.10

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 reporting date in the countries where the Company and the Group operate and generate income.

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

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 24

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.


Motor vehicles
-
25%
Fixtures, fittings and equipment
-
25%
Computer equipment
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Debtors

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

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

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.

Page 25

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.16

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, or a public benefit entity concessionary loan.

 
2.17

Dividends

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

  
2.18

Employee share ownership plan

Where share options are awarded to employees, the fair value of the options at the date of grant
have not been charged to profit and loss over the vesting period as the company has taken the
available transition exemption under FRS 102 section 35.10.

Page 26

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Turnover

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


2024
2023
£
£

Consultancy revenue
20,406,962
18,851,012


Analysis of turnover by country of destination:


2024
2023
£
£



United Kingdom
19,841,176
17,887,127

Europe
390,894
503,291

Rest of the world
174,892
460,594

20,406,962
18,851,012


4.


Operating profit/(loss)

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

2024
2023
£
£

Exchange differences
83,567
157,569

Other operating lease rentals
85,680
78,419

Depreciation of tangible fixed assets
51,805
81,970


5.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor:


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements
39,797
39,797

Page 27

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

6.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
8,834,901
7,618,379
7,270,370
6,580,976

Social security costs
933,116
851,362
915,576
839,582

Cost of defined contribution scheme
528,854
498,905
528,854
498,905

10,296,871
8,968,646
8,714,800
7,919,463


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









112
109
88
93


7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
256,987
196,727

Directors' pension costs
15,025
9,231

272,012
205,958


During the year retirement benefits were accruing to 2 directors (2023 -1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £129,986 (2023 -£124,811).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £9,600 (2023 -£9,231).

During the year 1 director held share options under the long-term incentive scheme (2023 - 1).

Page 28

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
6,372
4,421

Other loan interest payable
502
275

6,874
4,696


9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
(82,474)
(34,575)


Total current tax
(82,474)
(34,575)

Deferred tax


Origination and reversal of timing differences
45,429
(66,346)

Total deferred tax
45,429
(66,346)


Tax on profit/(loss)
(37,045)
(100,921)
Page 29

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 -lower than) the standard rate of corporation tax in the UK of 25% (2023 -19%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
1,963,365
(338,480)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -19%)
496,004
(64,311)

Effects of:


Expenses not deductible for tax purposes
7,803
15,427

Fixed asset differences
-
(339)

Other permanent differences
-
1,561

Adjustments to tax charge in respect of prior periods
(87,637)
(34,575)

Remeasurement of deferred tax for changes in tax rates
(453,215)
(15,051)

Movement in deferred tax not recognised
-
(3,633)

Total tax charge for the year
(37,045)
(100,921)


10.


Dividends

2024
2023
£
£


Ordinary dividends
468,000
688,000

Page 30

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Tangible fixed assets

Group






Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 April 2023
220,860
4,662
269,335
494,857


Additions
-
-
91,452
91,452


Disposals
-
-
(6,735)
(6,735)



At 31 March 2024

220,860
4,662
354,052
579,574



Depreciation


At 1 April 2023
198,749
1,663
121,674
322,086


Charge for the year on owned assets
5,528
750
45,527
51,805


Disposals
-
-
(3,565)
(3,565)



At 31 March 2024

204,277
2,413
163,636
370,326



Net book value



At 31 March 2024
16,583
2,249
190,416
209,248



At 31 March 2023
22,111
2,999
147,661
172,771

Page 31

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

Company






Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£

Cost or valuation


At 1 April 2023
220,860
4,662
226,539
452,061


Additions
-
-
75,538
75,538


Disposals
-
-
(6,735)
(6,735)



At 31 March 2024

220,860
4,662
295,342
520,864



Depreciation


At 1 April 2023
198,749
1,663
116,699
317,111


Charge for the year on owned assets
5,528
750
36,247
42,525


Disposals
-
-
(3,565)
(3,565)



At 31 March 2024

204,277
2,413
149,381
356,071



Net book value



At 31 March 2024
16,583
2,249
145,961
164,793



At 31 March 2023
22,111
2,999
109,840
134,950






Page 32

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2023
5



At 31 March 2024
5





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Daemon South Africa PTY Limited
29 Hastings Street, Tamboerskloof, Cape Town, South Africa, 8005
Ordinary
  100%

On 23 February 2022, the company purchased all of the share capital of Daemon South Africa PTY Limited at par value and it is included within the consolidation. The principal activity of Daemon South Africa PTY Limited is that of computer consultancy and related services.

Page 33

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
3,489,001
2,415,968
3,489,001
2,415,968

Amounts owed by group undertakings
-
-
-
6,856

Other debtors
41,001
35,615
39,476
34,863

Prepayments and accrued income
2,051,303
1,315,408
2,051,304
1,315,408

Tax recoverable
131,092
255,451
81,140
234,766

5,712,397
4,022,442
5,660,921
4,007,861


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


14.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
752,873
379,651
730,157
362,116



15.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
11,683
11,205
11,683
11,205

Trade creditors
1,031,134
944,664
1,030,866
944,550

Amounts owed to group undertakings
-
-
66,387
-

Other taxation and social security
1,204,969
951,972
1,209,665
961,595

Obligations under finance lease and hire purchase contracts
13,275
33,695
13,275
33,695

Other creditors
117,069
55,257
117,069
55,257

Accruals and deferred income
1,221,110
1,114,431
1,197,473
1,111,138

3,599,240
3,111,224
3,646,418
3,117,440


Page 34

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
13,206
23,632
13,206
23,632

Net obligations under finance leases and hire purchase contracts
18,248
43,039
18,248
43,039

31,454
66,671
31,454
66,671


At the year end, the Company has one bank loan - a term loan of £50,000 with Metro Bank PLC taken out on 20 August 2020. The term of this loan is 6 years at an interest rate of 2.5% and it is unsecured.


17.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Within one year
13,275
70,205
13,275
70,205

Between 1-5 years
18,248
6,529
18,248
6,529

31,523
76,734
31,523
76,734

Page 35

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

18.

Deferred taxation

Group and Company

2024
2023
        £
        £
At beginning of year

48,366

(17,980)
 
Charged to profit or loss

(45,429)

66,346
 
At end of year

2,937

48,366
 

The deferred taxation balance is made up as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Timing differences
2,937
48,366
2,937
48,366

2,937
48,366
2,937
48,366


19.


Share capital

2024
2023
£
£
Authorised, allotted, called up and fully paid



1,000 (2023 -1,000) Ordinary shares of £1.00 each
1,000
1,000



20.


Reserves

Profit and loss account

This reserve includes all current retained profits and losses less amounts distributed to shareholders. 


21.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £528,854 (2023 - £498,905). Contributions totalling £67,716 (2023 - £38,539) were payable to the fund at the reporting date and are included in creditors.

Page 36

 
DAEMON SOLUTIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

22.


Employee share ownership plan shares

The Enterprise Management Incentive Share Option scheme (EMI) was introduced in the period to 31 March 2016. Under the EMI, the Board of Directors can grant options over the shares of the company to eligible employees, selected at the discretion of the Board. Options are exercisable at £0.13 per share and vest over a period of 10 years from the date of grant. 
The options may be exercised in the event of a change in control by issued share capital being acquired by a third party, the company being floated on a recognised stock exchange, or the liquidation of the company.
The number of options held by employees as at year end are 2,000 (2023 - 2,750). No share based payment charge has been recognised during the year (2023 - £Nil), as the Company has taken the available transition exemption under FRS 102 section 35.10.


23.


Commitments under operating leases

At 31 March 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
70,000
70,000
70,000
70,000

Later than 1 year and not later than 5 years
70,000
210,000
70,000
140,000

140,000
280,000
140,000
210,000


24.


Related party transactions

The group has taken advantage of the exemption available under section 33 of FRS 102 from disclosing transactions with wholly-owned group companies.

During the year the Company spent £24,000 (2023: £20,000) on consulting services provided by Food Matters Limited, a company where one of the Company’s directors is considered to be key management personnel. There was no balance outstanding at year end (2023: £Nil).

Dividends of £468,000 (2023 - £688,000) were declared and paid to 2 directors during the year (2023 - 2 directors).


25.


Controlling party

The ultimate controlling parties are the majority shareholders S W Bennett and C D Fitzgerald.

Page 37