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Registered number: 03531982










HIGHER CONCEPT SOFTWARE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023



 
HIGHER CONCEPT SOFTWARE LIMITED
 

COMPANY INFORMATION


Directors
M Goodrum 
T Harris 
W Harris 




Registered number
03531982



Registered office
The Imperium
2nd Floor

Imperial Way

Reading

Berkshire

RG2 0TD




Independent auditor
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS





 
HIGHER CONCEPT SOFTWARE LIMITED
 

CONTENTS



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditor's Report
4 - 7
Statement of Comprehensive Income
8
Balance Sheet
9 - 10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 23


 
HIGHER CONCEPT SOFTWARE LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present the annual report and financial statements for the year ended 31 December 2023. 
Principal activity 
Higher Concept Software Limited (the ‘Company’), is part of the Point-of-Rental Software group. 
The Company’s principal activity during the year was to provide hire and inventory management software solutions. 

Business review
 
The Company saw an increase in revenue from £4,281,667 to £5,672,908 due to a combination of new customers and well as the rental market upswing. Additionally, the Company released a version of the current software which included new features and functionalities which saw a wide uptake by the existing customer base. 
The Company has also continued and managed their costs over the last 12 months which has allowed the revenue growth to have a direct impact on the profit made in the year. The Company’s pre-tax profit was £967,533 (2022: £(143,078). 

Principal risks and uncertainties
 
The Directors believe the main risks and uncertainties for the Company is around competition, technology and the general economy. The Company continually looks to release new features/ functionality on current software products as well as looking for new products to release into the market.  With the current offerings as well as the new software released in 2023, the Directors believe they have market leading products in both inspection and rental management systems which minimises our competitor and technological risk.
Overall macroeconomic trends in the economy are the prevailing risk as recessionary pressures could weaken the construction and equipment markets, however the Directors have seen that rental is somewhat recession resistant as companies find that renting is preferable to ownership of assets when liquidity becomes more difficult.

Financial key performance indicators
 
The Directors consider that the Company’s key performance indicators for an understanding of the development and performance of business revenue, EBITDA and PBT. 


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




W Harris
Director
Date: 25 November 2024

Page 1

 
HIGHER CONCEPT SOFTWARE LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

M Goodrum 
T Harris 
W Harris 

Directors' responsibilities statement

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

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


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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Results and dividends

The profit for the year, after taxation, amounted to £742,085 (2022 - loss £95,231).

Future developments

The Directors will seek to grow the UK through the provision of a new solution software which they believe has a mass demand in the compliance heavy European market. The integration of this software into the UK/European market should be a major enhancement to the core products already being delivered. With new products being released into the market as well as improving current offerings, the Directors are hopeful that this will continue increase revenue generation. 

Page 2

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

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'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's auditor is aware of that information.

Post balance sheet events

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

Auditor

The auditor, James Cowper Kreston Auditwill 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.
 





W Harris
Director
Date: 25 November 2024

Page 3

 
HIGHER CONCEPT SOFTWARE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HIGHER CONCEPT SOFTWARE LIMITED
 

Opinion


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


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


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


We have nothing to report in this regard.


Page 4

 
HIGHER CONCEPT SOFTWARE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HIGHER CONCEPT SOFTWARE LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

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


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


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


Responsibilities of directors
 

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


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


Page 5

 
HIGHER CONCEPT SOFTWARE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HIGHER CONCEPT SOFTWARE LIMITED (CONTINUED)


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


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
· Enquiry of management and those charged with governance around actual and potential litigation and    claims;
· Enquiry of management and those charged with governance to identify any material instances of non-   compliance with laws and regulations;
· Reviewing financial statement disclosures and testing to supporting documentation to assess compliance   with applicable laws and regulations;
· Performing audit work to address the risk of irregularities due to management override of controls,    including testing of journal entries and other adjustments for appropriateness, evaluating the business    rationale of significant transactions outside the normal course of business and reviewing accounting    estimates for evidence of bias.
 
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 Auditor's Report.


Page 6

 
HIGHER CONCEPT SOFTWARE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HIGHER CONCEPT SOFTWARE LIMITED (CONTINUED)


Use of our report
 

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





Darren O'Connor BSc (Hons) FCCA ACA (Senior Statutory Auditor)
for and on behalf of
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS

2 December 2024
Page 7

 
HIGHER CONCEPT SOFTWARE LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
 £
£

  

Turnover
  
5,672,908
4,281,667

Cost of sales
  
(142,765)
(87,795)

Gross profit
  
5,530,143
4,193,872

Administrative expenses
  
(4,567,078)
(4,338,132)

Operating profit/(loss)
  
963,065
(144,260)

Interest receivable and similar income
  
4,468
1,182

Profit/(loss) before tax
  
967,533
(143,078)

Tax on profit/(loss)
 9 
(225,448)
47,847

Profit/(loss) for the financial year
  
742,085
(95,231)

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

The notes on pages 12 to 23 form part of these financial statements.

Page 8

 
HIGHER CONCEPT SOFTWARE LIMITED
REGISTERED NUMBER: 03531982

BALANCE SHEET
AS AT 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 10 
52,649
49,276

Tangible assets
 11 
372,450
455,274

  
425,099
504,550

Current assets
  

Debtors: amounts falling due within one year
 12 
5,344,573
5,147,392

Cash at bank and in hand
 13 
1,311,412
380,012

  
6,655,985
5,527,404

Current liabilities
  

Creditors: amounts falling due within one year
 14 
(4,748,322)
(4,503,166)

Net current assets
  
 
 
1,907,663
 
 
1,024,238

Total assets less current liabilities
  
2,332,762
1,528,788

Provisions for liabilities
  

Deferred tax
 15 
(61,889)
-

  
 
 
(61,889)
 
 
-

Net assets
  
2,270,873
1,528,788


Capital and reserves
  

Called up share capital 
 16 
100
100

Profit and loss account
  
2,270,773
1,528,688

  
2,270,873
1,528,788


Page 9

 
HIGHER CONCEPT SOFTWARE LIMITED
REGISTERED NUMBER: 03531982

BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

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




W Harris
Director
Date: 25 November 2024

The notes on pages 12 to 23 form part of these financial statements.

Page 10

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
100
1,528,688
1,528,788



Profit for the year
-
742,085
742,085


At 31 December 2023
100
2,270,773
2,270,873



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
100
1,623,919
1,624,019



Loss for the year
-
(95,231)
(95,231)


At 31 December 2022
100
1,528,688
1,528,788


The notes on pages 12 to 23 form part of these financial statements.

Page 11

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

1.


General information

Higher Concept Software Limited is a limited liability company incorporated in England and Wales. The address of its registered office is The Imperium, 2nd Floor, Imperial Way, Reading, Berkshire, RG2 0TD. 

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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

This information is included in the consolidated financial statements of Point-of-Rental, Inc as at 31 December 2023 and these financial statements may be obtained from theri registered office..

 
2.3

Revenue

Revenue is recognised over the period the contract relates to.

Page 12

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

2.Accounting policies (continued)

 
2.4

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.5

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.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
20%
Straight line
Motor vehicles
-
25%
Straight line
Fixtures and fittings
-
20%
Straight line
Office equipment
-
25%
Straight line

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.

 
2.6

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.

Page 13

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

2.Accounting policies (continued)

 
2.7

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.

 
2.8

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.

 
2.9

Financial instruments

The Company 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.

 
2.10

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 except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.11

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 14

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

2.Accounting policies (continued)

 
2.12

Pensions

Defined contribution pension plan

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

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

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 balance sheet date.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company’s accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 current and future periods. 
There are no critical accounting judgments or key resources of estimation uncertainty that would have a significant effect on the financial statements.

Page 15

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

4.


Turnover

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


2023
2022
£
£

Revenue
5,672,908
4,281,667

5,672,908
4,281,667


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
5,672,908
4,281,667

5,672,908
4,281,667



5.


Operating profit/(loss)

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

2023
2022
£
£

Amortisation of intangible fixed assets
22,583
17,391

Exchange differences
8,346
24,639

Other operating lease rentals
281,799
198,126

Depreciation of tangible fixed assets
107,054
45,818


6.


Auditor's remuneration

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


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
12,500
11,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 16

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

7.


Employees

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


2023
2022
£
£

Wages and salaries
3,259,447
3,087,328

Social security costs
376,004
354,311

Cost of defined contribution scheme
65,127
62,536

3,700,578
3,504,175


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


        2023
        2022
            No.
            No.







Employees
63
61


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
188,000
160,500

Company contributions to defined contribution pension schemes
1,321
1,321

189,321
161,821


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

Page 17

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
167,233
(7,408)

Adjustments in respect of previous periods
(6,098)
(36,501)


161,135
(43,909)


Total current tax
161,135
(43,909)

Deferred tax


Origination and reversal of timing differences
64,313
(3,938)

Total deferred tax
64,313
(3,938)


Tax on profit/(loss)
225,448
(47,847)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
967,533
(143,078)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
227,569
(27,185)

Effects of:


Fixed asset differences
-
(12,889)

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
172
387

Utilisation of tax losses
-
33,338

Adjustments to tax charge in respect of prior periods
(6,098)
(36,501)

Other differences leading to an increase (decrease) in the tax charge
3,805
(4,997)

Total tax charge for the year
225,448
(47,847)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 18

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

10.


Intangible assets




Intellectual property

£



Cost


At 1 January 2023
105,507


Additions
25,956



At 31 December 2023

131,463



Amortisation


At 1 January 2023
56,231


Charge for the year
22,583



At 31 December 2023

78,814



Net book value



At 31 December 2023
52,649



At 31 December 2022
49,276



Page 19

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

11.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
367,376
31,365
112,408
157,376
668,525


Additions
18,367
-
3,573
2,290
24,230



At 31 December 2023

385,743
31,365
115,981
159,666
692,755



Depreciation


At 1 January 2023
50,175
31,365
55,513
76,198
213,251


Charge for the year
69,533
-
13,602
23,919
107,054



At 31 December 2023

119,708
31,365
69,115
100,117
320,305



Net book value



At 31 December 2023
266,035
-
46,866
59,549
372,450



At 31 December 2022
317,201
-
56,895
81,178
455,274


12.


Debtors

As restated
2023
2022
£
£


Trade debtors
619,203
481,654

Amounts owed by group undertakings
4,476,616
4,420,531

Other debtors
176,461
201,512

Prepayments
72,293
41,271

Deferred taxation
-
2,424

5,344,573
5,147,392


Amounts owed by group undertakings are non-interest bearing and repayable on demand.

Page 20

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

13.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,311,412
380,012

1,311,412
380,012



14.


Creditors: Amounts falling due within one year

As restated
2023
2022
£
£

Trade creditors
19,860
75,748

Amounts owed to group undertakings
3,460,828
3,460,868

Corporation tax
133,940
-

Other taxation and social security
295,978
198,868

Other creditors
43,574
40,967

Accruals
212,878
100,887

Deferred income
581,264
625,828

4,748,322
4,503,166


Amounts owed to group undertakings are non-interest bearing and repayable on demand.


15.


Deferred taxation




2023


£






At beginning of year
2,424


Charged to profit or loss
(64,313)



At end of year
(61,889)

The deferred taxation balance is made up as follows:

2023
2022
£
£


Fixed asset timing differences
(66,749)
(85,978)

Short term timing differences
4,860
208

Losses and other deductions
-
88,194

(61,889)
2,424

Page 21

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

16.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100



17.


Reserves

Profit and loss account

The reserve account represents cumulative profits available for distribution to shareholders. 


18.


Prior year adjustment

A prior year adjustment has been made to gross up the intercompany debtor and creditor balances. The impact of the adjustment has no effect on profit. 


19.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost  represents contributions payable by the Company to the fund and amounted to £65,127 (2022: £62,536) contributions totalling £31,105 (2022: £2,221) were payable to the fund at the balance sheet date and are included in creditors.


20.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
82,501
82,501

Later than 1 year and not later than 5 years
282,104
488,131

364,605
570,632

Page 22

 
HIGHER CONCEPT SOFTWARE LIMITED
 

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

21.


Related party transactions

At the balance sheet date, the company was owed £90,687 (2022: £77,853) by Point-of-Rental Proprietary Limited, its sister company.
At the balance sheet date, the company was owed £121,122 (2022: £84,314) by Higher Concept Software SA, its sister company.
At the balance sheet date, the company owed £19,379 (2022: £19,379) to Higher Concept Software SA, its sister company.
At the balance sheet date, the company was owed £4,744 (2022: Nil) by Point-of-Rental, Inc, its ultimate parent company.
At the balance sheet date, the company owed £3,441,449 (2022: £3,441,489) to Point-of-Rental, Inc, its ultimate parent company.
At the balance sheet date, the company was owed £4,175,161 (2022: as restated £4,175,161) by Point-of-Rental Software Limited, its immediate parent company. Intercompany loans are non-interest bearing and repayable on demand.


22.


Controlling party

The company is controlled by Point-of-Rental, Inc, who hold the entire issued share capital of Point-of-Rental Software Limited, the immediate parent entity.
The parent of the smallest and largest group for which group accounts including Higher Concept Software Limited are drawn up is Point-of-Rental Inc. Copies of the financial statements can be obtained for their registered office.

Page 23