Company Registration No. 08112390 (England and Wales)
Lakeside Software EMEA Limited
Annual report and
group financial statements
for the year ended 31 December 2024
Lakeside Software EMEA Limited
Company information
Directors
Brian Benson
David Keil
Company number
08112390
Registered office
8 Devonshire Square
6th Floor, Suite 06-102
London
EC2M 4YJ
Independent auditor
Saffery LLP
St John's Court
Easton Street
High Wycombe
HP11 1JX
Lakeside Software EMEA Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Group statement of changes in equity
10
Group statement of cash flows
11
Notes to the group financial statements
12 - 27
Parent company statement of financial position
28
Parent company statement of changes in equity
29
Parent company statement of cash flows
30
Notes to the parent company financial statements
31 - 35
Lakeside Software EMEA Limited
Strategic report
For the year ended 31 December 2024
1
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
Lakeside Group Holdings LLC and Subsidiaries (the "Parent Group") publishes proactive IT software that gives everyone a better view of their IT environment. The Parent Group’s patented SysTrack Workspace Analytics software (SysTrack) empowers organizations with large, complex IT environments gain visibility across their entire digital estate and do more with less. The Group's customers use SysTrack's real-time data gathering, assessment tools, and complementary analytics to see the hidden issues across their IT estate, see the smartest fixes, and see the biggest savings.
Lakeside Software LLC (the “Parent”) is headquartered in Boston, MA and has sales offices around the world and an engineering facility in Ann Arbor, Michigan. Lakeside Software EMEA Ltd is the EMEA region headquarters in London.
Lakeside Software LLC provides cloud-based Software-As-A-Service (SAAS) to business customers. The Parent's engineering team designs and builds its SysTrack software in Michigan. Lakeside Software EMEA Limited (the “Company”) functions as a master distributor, providing local sales, sales engineering, and technical support for the product in Europe, the Middle East and Africa. The Company resells software licenses to customers, primarily through a network of distributors and resellers, and pays a transfer fee to the Parent for the licenses it distributes.
The Lakeside Software Germany and Indian subsidiaries of the Company (together, the "Group") provide local marketing and sales support services, and, in India, after sales support services.
The Group totals nearly 200 employees, and projects to remain largely unchanged in 2025. The Group continues to grow its ARR, by 6.6% in 2024 and 8.3% in 2023
The Parent Group’s shares are privately held, and majority owned by Insight Partners, and there has been no change in the year.
Principal risks and uncertainties
Lakeside Software EMEA’s key risks include:
Foreign exchange risk due to assets and liabilities being denominated in other currencies, mainly USD. Please see note 18 to the group financial statements for further details. The Company derives most of its revenue in USD and incurs significant overheads in GBP. It therefore has exposure to the USD/GBP exchange rate which it monitors closely.
Credit risk due to exposure to global customers. Please see note 12 and 15 to the group financial statements for further details.
The Company also maintains and monitors cash levels to ensure that it has sufficient funds for operations.
Lakeside Software EMEA Limited
Strategic report (continued)
For the year ended 31 December 2024
2
Development and performance
The financial position of the Company and its subsidiaries is set out in the financial statements and the notes that follow.
The Group’s business model is to provide cloud-based Software-As-A-Service (SAAS), and to improve the retention of current customers. This will generate increasing annuity revenue streams, which will provide a degree of insulation from turbulent market conditions that may be encountered from time to time, whilst enabling the focus to be on innovation and building the global customer base.
The Groups key objective for the financial year were:
Since the year end, the business outlook for the company group is to achieve double-digit topline growth, and the directors are confident that the ongoing outlook is on target to be achieved. Current investment in the region remains focused into our UK & German operations, and any increases in headcount will be centred around these markets.
Key performance indicators
These are measured through our key performance indicators which include
EMEA headcount is at 51 for 2024; 61 for 2023.
2024 2023
£ £
Revenues 12,630,180 11,462,522
Total expenses (inc. tax) 12,141,461 10,373,664
Brian Benson
Director
20 March 2025
Lakeside Software EMEA Limited
Directors' report
For the year ended 31 December 2024
3
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the group continued to be that of being the European, Middle Eastern, Indian and African arm of a software company that sells software enabling the analytics of end users computing.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Brian Benson
David Keil
Auditor
Saffery LLP have expressed their willingness to continue in office.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 group and parent company financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
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, International Accounting Standard 1 requires that directors:
properly select and apply accounting policies;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
make an assessment of the company's ability to continue as a going concern.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Matters covered in the Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of its performance throughout the year and position at the year end, as well as likely future developments and key risks.
Lakeside Software EMEA Limited
Directors' report (continued)
For the year ended 31 December 2024
4
Statement of disclosure to auditor
Each director in office at the date of approval of this annual report confirms that:
so far as the directors are aware, there is no relevant audit information of which the company's auditor is unaware, and
the directors have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
On behalf of the board
Brian Benson
Director
20 March 2025
Lakeside Software EMEA Limited
Independent auditor's report
To the members of Lakeside Software EMEA Limited
5
Opinion
We have audited the financial statements of Lakeside Software EMEA Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group and parent company statement of financial position, the group and parent company statement of changes in equity, the group and parent company statement of cash flows and the group and parent company notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.
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 December 2024 and of the group's profit for the year then ended;
the financial statements have been properly prepared in accordance with UK adopted international accounting standards; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
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's 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.
The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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.
Lakeside Software EMEA Limited
Independent auditor's report (continued)
To the members of Lakeside Software EMEA Limited
6
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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 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 parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the group and parent company 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities
We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operate.
Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006, and UK Tax legislation.
Lakeside Software EMEA Limited
Independent auditor's report (continued)
To the members of Lakeside Software EMEA Limited
7
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.
Luke Hanratty (Senior Statutory Auditor)
For and on behalf of Saffery LLP
21 March 2025
Statutory Auditor
St John's Court
Easton Street
High Wycombe
HP11 1JX
Lakeside Software EMEA Limited
Group statement of comprehensive income
For the year ended 31 December 2024
8
2024
2023
Notes
£
£
Revenue
4
12,630,180
11,462,522
Cost of sales
(4,348,518)
(2,251,406)
Gross profit
8,281,662
9,211,116
Administrative expenses
(7,990,106)
(8,111,713)
Operating profit
5
291,556
1,099,403
Investment revenues
534
337
Finance costs
8
(22,614)
(6,953)
Profit before taxation
269,476
1,092,787
Income tax (income)/expense
9
219,243
(3,929)
Profit for the year
24
488,719
1,088,858
Other comprehensive income:
Items that will not be reclassified to profit or loss
Currency translation differences
(2,537)
(15,376)
Total items that will not be reclassified to profit or loss
(2,537)
(15,376)
Total other comprehensive income for the year
(2,537)
(15,376)
Total comprehensive income for the year
486,182
1,073,482
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Lakeside Software EMEA Limited
Group statement of financial position
As at 31 December 2024
9
2024
2023
Notes
£
£
Non-current assets
Property, plant and equipment
11
208,125
309,876
Deferred tax asset
21
250,000
458,125
309,876
Current assets
Trade and other receivables
14
4,112,934
6,991,162
Current tax recoverable
2,386
3,032
Cash and cash equivalents
469,477
705,247
4,584,797
7,699,441
Current liabilities
Trade and other payables
19
21,794,403
25,147,799
Current tax liabilities
27,686
Lease liabilities
20
128,565
167,654
21,922,968
25,343,139
Net current liabilities
(17,338,171)
(17,643,698)
Non-current liabilities
Lease liabilities
20
39,586
71,992
Net liabilities
(16,919,632)
(17,405,814)
Equity
Called up share capital
23
10,000
10,000
Retained earnings
24
(16,929,632)
(17,415,814)
Total equity
(16,919,632)
(17,405,814)
The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
Brian Benson
Director
Company registration number 08112390 (England and Wales)
Lakeside Software EMEA Limited
Group statement of changes in equity
For the year ended 31 December 2024
10
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2023
10,000
(18,489,296)
(18,479,296)
Year ended 31 December 2023:
Profit
-
1,088,858
1,088,858
Other comprehensive income:
Currency translation differences
-
(15,376)
(15,376)
Total comprehensive income
-
1,073,482
1,073,482
Balance at 31 December 2023
10,000
(17,415,814)
(17,405,814)
Year ended 31 December 2024:
Profit
-
488,719
488,719
Other comprehensive income:
Currency translation differences
-
(2,537)
(2,537)
Total comprehensive income
-
486,182
486,182
Balance at 31 December 2024
10,000
(16,929,632)
(16,919,632)
Lakeside Software EMEA Limited
Group statement of cash flows
For the year ended 31 December 2024
11
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
7,388,222
4,434,287
Interest received
534
337
Interest paid
(22,614)
(6,953)
Income taxes paid
(60,334)
(16,759)
Net cash inflow from operating activities
7,305,808
4,410,912
Investing activities
Purchase of property, plant and equipment
(10,511)
(46,807)
Proceeds from disposal of property, plant and equipment
(1,026)
Net cash used in investing activities
(10,511)
(47,833)
Financing activities
Payment of lease liabilities
(170,071)
(94,538)
Movement in funding from parent entity
(7,360,996)
(7,091,371)
Net cash used in financing activities
(7,531,067)
(7,185,909)
Net decrease in cash and cash equivalents
(235,770)
(2,822,830)
Cash and cash equivalents at beginning of year
705,247
3,528,077
Cash and cash equivalents at end of year
469,477
705,247
Lakeside Software EMEA Limited
Notes to the group financial statements
For the year ended 31 December 2024
12
1
Accounting policies
Company information
Lakeside Software EMEA Limited is a private company limited by shares incorporated in England and Wales. The registered office is 8 Devonshire Square, 6th Floor, Suite 06-102, London, EC2M 4YJ. The company's principal activities and nature of its operations are disclosed in the directors' report.
The group consists of Lakeside Software EMEA Limited and all of its subsidiaries.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Lakeside Software EMEA Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.3
Going concern
The directors have considered forecasts and cash flow projections covering the next 12 months. trueLakeside Software LLC, the immediate parent Company, has confirmed it will provide financial support to the Group to enable it to meet its financial obligations as they fall due. The going concern basis of the Group is therefore considered appropriate by the directors.
1.4
Revenue
Revenue is recognised in accordance with the transfer of promised services to customers. Revenue is measured, using an output methodology, as the consideration that the Group is expected to be entitled to in exchange for those goods or services. Consideration is typically fixed on the agreement of a contract. Payment terms are agreed on a contract-by-contract basis. The Group recognises revenue when performance obligations have been satisfied and for the Group this is when the services have transferred to the customer and the customer has control of these. The transaction price is set out in contract documents, with allocation of the price agreed within a contract payment schedule.
The Group has taken advantage of the practical expedients under IFRS 15, both to not discount consideration where expected settlement is within one year and not to recognise the costs of obtaining a contract as an asset where the expected amortisation period is one year or less.
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
13
Performance obligations and timing of revenue recognition
Typically revenue is recognised at the point of transfer for software licences, and over the term of any assurance or support where contracted. For software as a service ("SaaS"), revenue is recognised in line with the provision of the service. Where contracts contain multiple performance obligations, standalone selling price is used to split the components for revenue recognition. Payment is typically received for these contracts and licences obtained from group entities up-front, and so significant contract assets and liabilities are recognised.
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Right of use asset
Over the life of the lease
Fixtures, fittings & equipment
Straight line over 4 years
Computer equipment
Straight line over 3 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
1.6
Financial assets
Financial assets are recognised in the Group's statement of financial position when the Group becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
The Group only holds financial assets not classified as fair value through profit and loss, they are initially measured at fair value plus transaction costs.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
14
1.7
Financial liabilities
The group recognises financial debt when the group becomes a party to the contractual provisions of the instruments. The Group only holds 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the group’s obligations are discharged, cancelled, or they expire.
1.8
Equity instruments
Equity instruments issued by the parent company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer payable at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
At inception, the group assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the group recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
15
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the group's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the group is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the group's estimate of the amount expected to be payable under a residual value guarantee; or the group's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of property or machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Subsidiary entities denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in other comprehensive income.
2
Adoption of new and revised standards and changes in accounting policies
There are no new standards impacting the company that have been adopted in the financial statements for the year ended 31 December 2024.
Standards which are in issue but not yet effective
The directors have not identified any relevant standards that were in issue, but not yet effective, and not applied in these financial statements, that would be expected to have a material impact on the company in the current or future reporting periods.
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
16
3
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Critical judgements
Deferred tax asset
Tax losses brought forward are reviewed to ensure that they are recoverable. As shown in note 21, the directors have deemed that a proportion of these tax losses brought forward should be recognised as a deferred tax asset. This has been recognised on the basis of taxable profits being forecast for the following 5 years, resulting in the tax losses brought forward being utilised.
4
Revenue
2024
2023
£
£
Revenue analysed by class of business
License and assurance revenue
3,643,147
3,124,250
SAAS revenue
8,838,628
7,874,136
Professional services
148,405
464,136
12,630,180
11,462,522
2024
2023
£
£
Revenue analysed by geographical market
UK and Ireland
8,819,709
7,543,550
Europe mainland
2,385,634
3,011,090
Middle East
678,533
154,562
Rest of the world
746,304
753,320
12,630,180
11,462,522
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
17
5
Operating (loss)/profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
256,298
(874,095)
Depreciation of property, plant and equipment
206,528
144,535
Loss on disposal of property, plant and equipment
4,310
4,205
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
63,000
36,559
7
Employees
The average monthly number of persons (including directors) employed by the group during the year was:
2024
2023
Number
Number
51
61
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,168,162
4,921,433
Social security costs
382,609
580,001
Pension costs
152,703
207,372
4,703,474
5,708,806
8
Finance costs
2024
2023
£
£
Interest on lease liabilities
7,257
6,953
Other interest payable
15,357
Total interest expense
22,614
6,953
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
18
9
Income tax expense
2024
2023
£
£
Current tax
Foreign taxes and reliefs
34,602
7,523
34,602
7,523
Deferred tax
Origination and reversal of temporary differences
(3,845)
(3,594)
Benefit arising from a previously unrecognised tax loss, tax credit or temporary difference
(250,000)
-
(253,845)
(3,594)
Total tax charge/(credit)
(219,243)
3,929
The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:
2024
2023
£
£
Profit before taxation
269,476
1,092,787
Expected tax charge based on a corporation tax rate of 25.00% (2023: 23.50%)
67,369
256,805
Effect of expenses not deductible in determining taxable profit
2,905
4,232
Utilisation of tax losses not previously recognised
(45,818)
(232,108)
Change in unrecognised deferred tax assets
(250,000)
-
Permanent capital allowances in excess of depreciation
6,749
(2,655)
Effect of overseas tax rates
(448)
(22,345)
Taxation (credit)/charge for the year
(219,243)
3,929
Upon a review of the trading performance of the company the directors have deemed that the company should recognise a deferred tax asset on a proportion of the tax losses carried forward due to the fact that they will be relieved against future taxable profits. The directors consider that the deferred tax asset should be recognised on the basis of tax losses carried forward being relieved against taxable profits for the 5 years, with the remaining tax losses carried forward not being recognised as a deferred tax asset. The remaining tax losses carried forward not recognised as a deferred tax asset amounts to £16,335,410 (2023 - £17,547,521). Included in unrecognised tax losses are hybrid and other mismatches of £10,721,964 (2023 - £11,934,075) that are only able to be offset against future dual inclusion income. All losses may be carried forward indefinitely.
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
19
10
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Principal activities
Class of
shares held
% Held
Direct
Lakeside Software GmbH
Frankfurt am Main,
Geschäftsanschrift: Prielmayerstraße 3, 80335 München, Germany
Software sales support
Ordinary shares
100.00
Lakeside Software India Private Limited
Level 4, Dynasty Business Park, A Wing Andheri-Kurla Road, Andheri East, Mumbai MH 400059, India
Software marketing, sales support, and after sales support
Ordinary shares
100.00
11
Property, plant and equipment
Right of use asset
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
1,005
212,214
213,219
Additions
334,184
46,807
380,991
Disposals
(69,164)
(69,164)
At 31 December 2023
334,184
1,005
189,857
525,046
Additions
98,576
10,511
109,087
Disposals
(1,005)
(52,851)
(53,856)
At 31 December 2024
432,760
147,517
580,277
Accumulated depreciation and impairment
At 1 January 2023
1,005
135,615
136,620
Charge for the year
97,470
47,065
144,535
Eliminated on disposal
(65,985)
(65,985)
At 31 December 2023
97,470
1,005
116,695
215,170
Charge for the year
163,459
43,069
206,528
Eliminated on disposal
(1,005)
(48,541)
(49,546)
At 31 December 2024
260,929
111,223
372,152
Carrying amount
At 31 December 2024
171,831
-
36,294
208,125
At 31 December 2023
236,714
-
73,162
309,876
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
20
12
Credit risk
Credit risk arises from cash and cash equivalents, and credit exposures to customers, including outstanding receivables.
The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the group's maximum exposure to credit risk.
The group does not hold any collateral or other credit enhancements to cover this credit risk.
(i) Risk management
Credit risk is managed centrally. Individual risk limits are set based on internal or external ratings in accordance with limits set centrally. There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors and region.
(ii) Security
The company does not obtain security in the form of guarantees, deeds of undertaking or letters of credit.
The company has two types of financial assets that are subject to the expected credit loss model:
(iv) Trade receivables and contract assets
The company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to incurred costs of sale and commissions deferred to recognise in line with revenue under IFRS15. The Company has therefore concluded that the expected loss rates for the contract assets is nil.
13
Contracts with customers
2024
2023
2022
£
£
£
Contracts in progress
Contract receivables included in trade and other receivables
2,405,021
4,117,895
3,028,028
Contract assets
1,485,864
3,266,477
7,234,503
Contract liabilities
(7,005,275)
(7,505,998)
(7,435,313)
Analysis of contract assets
2024
2023
£
£
Assets recognised from the costs to fulfil a contract with a customer
39,077
1,697,355
Assets recognised from the cost to obtain a contract with a customer
1,446,787
1,569,122
1,485,864
3,266,477
Revenue from contract liabilities is recognised over the remaining lifetime of the contracts; typically over 1-2 years. Costs included within contract assets typically realise over the same period, save that commissions payable consider the likely renewal period of a given contract.
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
13
Contracts with customers (continued)
21
Significant changes in the period
2024
2023
Contract assets
Contract liabilities
Contract assets
Contract liabilities
£
£
£
£
Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period
-
5,890,007
-
5,980,054
Amortisation recognised in the reporting period on contract assets
2,197,235
-
4,374,673
-
14
Trade and other receivables
2024
2023
£
£
Trade receivables
2,439,825
4,117,893
Provision for bad and doubtful debts
(34,803)
(698,596)
2,405,022
3,419,297
Contract assets (note 13)
1,485,864
3,266,477
Other receivables
84,672
66,709
Prepayments
137,376
238,679
4,112,934
6,991,162
15
Trade receivables - credit risk
Fair value of trade receivables
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
Movement in the allowances for doubtful debts
2024
2023
£
£
Balance at 1 January 2024
698,596
670,908
Allowance recognised/(reversed)
(25,993)
27,688
Amounts written off as uncollectable
(637,800)
-
Balance at 31 December 2024
34,803
698,596
At 31 December, the analysis of trade receivables that are past due but not impaired is as follows:
<30
31-60
60-90
90+
Total
£
£
£
£
£
2024
330,827
139,328
58,829
-
528,984
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
15
Trade receivables - credit risk (continued)
22
2023
204,817
71,671
-
3,159
279,647
Expected credit losses have been provided based on a historic loss rate of 0.25% of the underlying revenue, save where specific indication of risk has been identified.
16
Fair value of financial liabilities
The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.
17
Liquidity risk
The following table details the remaining contractual maturity for the group's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the group may be required to pay.
Less than 1 month
1 - 3 months
3 - 12 months
Total
£
£
£
£
At 31 December 2023
Trade payables
26,933
39,660
7,458
74,051
26,933
39,660
7,458
74,051
At 31 December 2024
Trade payables
26,897
-
-
26,897
Liquidity risk management
Prudent liquidity risk management implies maintaining sufficient cash to meet obligations when due. At the end of the reporting period the group held deposits at call of £469,477 (2023: £705,247). Management monitors rolling forecasts of the group’s cash and cash equivalents on the basis of expected cash flows.
Amounts owed to fellow group undertakings of £14,222,443 (2023: £16,492,042) are repayable on demand.
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
23
18
Market risk
Market risk management
Foreign exchange risk
The carrying amounts of the group's foreign currency denominated monetary assets and liabilities at the reporting date are as follows:
Assets
Liabilites
2024
2023
2024
2023
£
£
£
£
Trade receivable
2,347,531
3,415,750
-
-
Cash and cash equivalents
359,992
565,361
-
-
Amount owed by fellow group undertakings
-
-
14,222,443
16,492,042
Trade payables
-
-
10,401
63,395
2,707,523
3,981,111
14,232,844
16,555,437
Whilst the group takes steps to minimise its exposure to foreign exchange risk, changes in foreign exchange rates will have an impact on profit.
The group's foreign exchange risk is dependent on the movement in the US dollar to sterling exchange rate. The effect of a 10% strengthening in the dollar against sterling at the reporting date on the dollar denominated debt at the date end on the annualised interest on that amount would, all other variables being held constant, have resulted in a decrease in the post-tax profit for the year of £1,152,532 (2023: £1,257,433).
A 10% weakening in the exchange rate would, on the same basis, have increased post-tax profit by £1,047,756 (2023: £1,143,121).
19
Trade and other payables
2024
2023
£
£
Trade payables
26,897
74,053
Contract liabilities (note 13)
7,005,275
7,505,998
Amount owed to parent undertaking
14,001,830
16,492,042
Accruals
387,722
345,112
Social security and other taxation
328,188
676,818
Other payables
44,491
53,776
21,794,403
25,147,799
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
24
20
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
131,837
173,986
In two to five years
40,000
72,494
Total undiscounted liabilities
171,837
246,480
Future finance charges and other adjustments
(3,686)
(6,834)
Lease liabilities in the financial statements
168,151
239,646
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024
2023
£
£
Current liabilities
128,565
167,654
Non-current liabilities
39,586
71,992
168,151
239,646
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
7,257
6,953
The Group's leases relate to premises. The implicit rate for the year was 4.27% (2023: 4.33%). Interest rates are fixed at the contract date. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and movements thereon during the current and prior reporting period.
Tax losses
£
Deferred tax asset at 1 January 2023 and 1 January 2024
Deferred tax movements in current year
Charge/(credit) to profit or loss
(250,000)
Deferred tax asset at 31 December 2024
(250,000)
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
21
Deferred taxation (continued)
25
Upon a review of the trading performance of the company the directors have deemed that the company should recognise a deferred tax asset on a proportion of the tax losses carried forward, on the basis that is is considered probable that they will be relieved against future taxable profits in the foreseeable future.
The directors consider that the deferred tax asset should be recognised on the basis of tax losses carried forward being relieved against taxable profits for the next 5 years, with the remaining tax losses carried forward not recognised as a deferred tax asset. The remaining tax losses carried forward not recognised as a deferred tax asset amounts to £16,335,410 (2023 - £17,547,521). Included in unrecognised tax losses are hybrid and other mismatches of £10,721,964 (2023 - £11,934,075) that are only able to be offset against future dual inclusion income. All losses may be carried forward indefinitely.
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
152,703
207,372
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
The company has one class of ordinary shares which carry full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption.
24
Retained earnings
Included within retained earnings of the Group is a foreign currency translation deficit of £23,666 (2023 - £21,129).
The net currency exchange difference arising on retranslation in the year was a loss of £2,537 (2023 - £15,376). The foreign currency translation reserves contain accumulated foreign currency translation differences from the translation of the subsidiary accounts into the Group's presentational currency.
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
26
25
Other leasing information
Lessee
Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:
2024
2023
£
£
Expense relating to short-term leases
7,309
54,494
Information relating to lease liabilities is included in note 20.
26
Capital risk management
The group is not subject to any externally imposed capital requirements.
27
Related party transactions
During the year the group entered into the following transactions with related parties:
Recharged income
Purchases
2024
2023
2024
2023
£
£
£
£
Parent company
10,888
4,616,951
2,251,406
28
Controlling party
The immediate parent company of Lakeside Software EMEA Limited is Lakeside Software LLC, a company incorporated in the USA.
The ultimate parent company of Lakeside Software EMEA Limited is Lakeside Group Holdings LLC, a company incorporated in the USA. The directors are of the opinion that there is no ultimate controlling party.
Lakeside Software EMEA Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
27
29
Cash generated from operations
2024
2023
£
£
Profit for the year before income tax
269,476
1,092,787
Adjustments for:
Finance costs
22,614
6,953
Investment income
(534)
(337)
Movement in funding from parent entity
7,360,996
7,091,371
Loss on disposal of property, plant and equipment
4,310
4,205
Depreciation and impairment of property, plant and equipment
206,528
144,535
Movements in working capital:
Decrease in contract assets
1,780,613
3,968,026
Decrease/(increase) in trade and other receivables
1,097,615
(1,118,777)
(Decrease)/increase in contract liabilities
(500,723)
70,685
Decrease in trade and other payables
(2,852,673)
(6,825,161)
Cash generated from operations
7,388,222
4,434,287
Lakeside Software EMEA Limited
Company statement of financial position
As at 31 December 2024
31 December 2024
28
2024
2023
Notes
£
£
Non-current assets
Property, plant and equipment
32
202,622
294,500
Investments
33
27,629
27,629
Deferred tax asset
39
250,000
480,251
322,129
Current assets
Trade and other receivables
35
4,054,156
6,902,997
Cash and cash equivalents
348,804
632,745
4,402,960
7,535,742
Current liabilities
Trade and other payables
37
22,021,461
25,336,139
Lease liabilities
38
128,565
167,654
22,150,026
25,503,793
Net current liabilities
(17,747,066)
(17,968,051)
Non-current liabilities
Lease liabilities
38
39,586
71,992
Net liabilities
(17,306,401)
(17,717,914)
Equity
Called up share capital
40
10,000
10,000
Retained earnings
(17,316,401)
(17,727,914)
Total equity
(17,306,401)
(17,717,914)
As permitted by trues408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £411,514 (2023 - £980,889 profit).
The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
20 March 2025
Brian Benson
Director
Company registration number 08112390 (England and Wales)
Lakeside Software EMEA Limited
Company statement of changes in equity
For the year ended 31 December 2024
29
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2023
10,000
(18,708,803)
(18,698,803)
Year ended 31 December 2023:
Profit and total comprehensive income
-
980,889
980,889
Balance at 31 December 2023
10,000
(17,727,914)
(17,717,914)
Year ended 31 December 2024:
Profit and total comprehensive income
-
411,513
411,513
Balance at 31 December 2024
10,000
(17,316,401)
(17,306,401)
Lakeside Software EMEA Limited
Company statement of cash flows
For the year ended 31 December 2024
30
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
41
7,278,896
4,414,517
Interest paid
(22,567)
(6,953)
Net cash inflow from operating activities
7,256,329
4,407,564
Investing activities
Purchase of property, plant and equipment
(9,203)
(46,807)
Proceeds from disposal of property, plant and equipment
762
Net cash used in investing activities
(9,203)
(46,045)
Financing activities
Payment of lease liabilities
(170,071)
(94,538)
Movement in funding from parent entity
(7,360,996)
(7,091,371)
Net cash used in financing activities
(7,531,067)
(7,185,909)
Net decrease in cash and cash equivalents
(283,941)
(2,824,390)
Cash and cash equivalents at beginning of year
632,745
3,457,135
Cash and cash equivalents at end of year
348,804
632,745
Lakeside Software EMEA Limited
Notes to the company financial statements
For the year ended 31 December 2024
31
30
Accounting policies
Company information
The following notes refer to the separate financial statements of Lakeside Software EMEA Limited ("the company").
Lakeside Software EMEA Limited is a private company limited by shares incorporated in England and Wales. The registered office is 8 Devonshire Square, 6th Floor, Suite 06-102, London, EC2M 4YJ.
30.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The company applies accounting policies consistent with those applied by the group. To the extent that an accounting policy is relevant to both group and parent company financial statements, please refer to the group financial statements for disclosure of the relevant accounting policy.
30.2
Going concern
The directors have considered forecasts and cash flow projections covering the next 12 months. Lakeside Software LLC, the immediate parent company, has confirmed it will provide financial support to the company to enable it to meet its financial obligations as they fall due. The going concern basis of the company is therefore considered appropriate by the director.
31
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
27
35
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,113,871
4,056,884
Social security costs
352,884
568,448
Pension costs
124,668
174,312
3,591,423
4,799,644
Lakeside Software EMEA Limited
Notes to the company financial statements (continued)
For the year ended 31 December 2024
32
32
Property, plant and equipment
Land and buildings Freehold
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
1,005
152,648
153,653
Additions
334,184
46,807
380,991
Disposals
(60,111)
(60,111)
At 31 December 2023
334,184
1,005
139,344
474,533
Additions
98,576
9,203
107,779
Disposals
(1,005)
(52,851)
(53,856)
At 31 December 2024
432,760
95,696
528,456
Accumulated depreciation and impairment
At 1 January 2023
1,005
104,881
105,886
Charge for the year
97,470
32,012
129,482
Eliminated on disposal
(55,335)
(55,335)
At 31 December 2023
97,470
1,005
81,558
180,033
Charge for the year
163,459
31,888
195,347
Eliminated on disposal
(1,005)
(48,541)
(49,546)
At 31 December 2024
260,929
64,905
325,834
Carrying amount
At 31 December 2024
171,831
-
30,791
202,622
At 31 December 2023
236,714
-
57,786
294,500
At 31 December 2022
-
-
47,767
47,767
33
Investments
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Investments in subsidiaries
27,629
27,629
Investment in subsidiary undertakings
Details of the company's principal operating subsidiaries are included in note 11.
Lakeside Software EMEA Limited
Notes to the company financial statements (continued)
For the year ended 31 December 2024
33
34
Contracts with customers
2024
2023
2022
£
£
£
Contracts in progress
Contract receivables included in trade and other receivables
2,405,021
4,117,895
3,028,028
Contract assets
1,485,864
3,266,477
7,234,503
Contract liabilities
(7,005,275)
(7,505,998)
(7,435,313)
Analysis of contract assets
2024
2023
£
£
Assets recognised from the costs to fulfil a contract with a customer
39,077
1,697,355
Assets recognised from the cost to obtain a contract with a customer
1,446,787
1,569,122
1,485,864
3,266,477
Significant changes in the period
2024
2023
Contract assets
Contract liabilities
Contract assets
Contract liabilities
£
£
£
£
Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period
-
5,890,007
-
5,980,054
Amortisation recognised in the reporting period on contract assets
2,197,235
-
4,374,673
-
35
Trade and other receivables
2024
2023
£
£
Trade receivables
2,439,824
4,117,895
Provision for bad and doubtful debts
(34,803)
(698,596)
2,405,021
3,419,299
Contract assets (note 34)
1,485,864
3,266,477
Other receivables
66,636
46,531
Prepayments
96,635
170,690
4,054,156
6,902,997
36
Fair value of financial liabilities
The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.
Lakeside Software EMEA Limited
Notes to the company financial statements (continued)
For the year ended 31 December 2024
34
37
Trade and other payables
2024
2023
£
£
Trade payables
16,903
73,984
Contract liabilities (note 34)
7,005,275
7,505,998
Amount owed to parent undertaking
14,001,830
16,748,119
Amounts owed to subsidiary undertakings
391,886
21,699
Accruals
286,632
296,097
Social security and other taxation
298,914
657,440
Other payables
20,021
32,802
22,021,461
25,336,139
38
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
131,837
173,986
In two to five years
40,000
72,494
Total undiscounted liabilities
171,837
246,480
Future finance charges and other adjustments
(3,686)
(6,834)
Lease liabilities in the financial statements
168,151
239,646
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024
2023
£
£
Current liabilities
128,565
167,654
Non-current liabilities
39,586
71,992
168,151
239,646
The Company's leases relate to premises. The average effective borrowing rate for the year was 4.27% (2023: 4.33%). Interest rates are fixed at the contract date. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The fair value of the company's lease obligations is approximately equal to their carrying amount.
39
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Lakeside Software EMEA Limited
Notes to the company financial statements (continued)
For the year ended 31 December 2024
39
Deferred taxation (continued)
35
Tax losses
£
Asset at 1 January 2023 and 1 January 2024
-
Deferred tax movements in current year
Charge/(credit) to profit or loss
(250,000)
Asset at 31 December 2024
(250,000)
Upon a review of the trading performance of the company the directors have deemed that the company should recognise a deferred tax asset on a proportion of the tax losses carried forward, on the basis that is is considered probable that they will be relieved against future taxable profits in the foreseeable future.
The directors consider that the deferred tax asset should be recognised on the basis of tax losses carried forward being relieved against taxable profits for the next 5 years, with the remaining tax losses carried forward not recognised as a deferred tax asset. The remaining tax losses carried forward not recognised as a deferred tax asset amounts to £16,335,410 (2023 - £17,547,521). Included in unrecognised tax losses are hybrid and other mismatches of £10,721,964 (2023 - £11,934,075) that are only able to be offset against future dual inclusion income. All losses may be carried forward indefinitely.
40
Share capital
Refer to note 23 of the group financial statements.
41
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
161,513
980,889
Adjustments for:
Finance costs
22,567
6,953
Movement in funding from parent entity
7,360,996
7,091,371
Loss on disposal of property, plant and equipment
4,310
4,014
Depreciation and impairment of property, plant and equipment
195,347
129,482
Movements in working capital:
Decrease in contract assets
1,780,613
3,968,026
Decrease/(increase) in trade and other receivables
1,068,228
(1,086,790)
(Decrease)/increase in contract liabilities
(500,723)
70,685
Decrease in trade and other payables
(2,813,955)
(6,750,113)
Cash generated from operations
7,278,896
4,414,517
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