Company registration number 07297347 (England and Wales)
ATLAS CLOUD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
ATLAS CLOUD LIMITED
COMPANY INFORMATION
Directors
MP Conn
AJT Lovell
N Redwood
M Thompson
PT Watson
Company number
07297347
Registered office
3rd Floor
Maybrook House
27 Grainger Street
Newcastle Upon Tyne
NE1 5JE
Auditor
Azets Audit Services
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
ATLAS CLOUD LIMITED
CONTENTS
Page
Directors' report
1 - 2
Statement of financial position
3
Notes to the financial statements
4 - 10
ATLAS CLOUD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of the provision of hosted IT and cyber security services.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

MP Conn
AJT Lovell
N Redwood
M Thompson
PT Watson

Fair review of the business

The company continues to grow, driven by ongoing investment in cybersecurity and the modernisation of our hosting solutions. As the threat of cyber-attacks increases for users, the company remains committed to delivering world-class managed services with security at the forefront. Security consultancy and services now represent a larger share of the company’s revenue and sales than ever before. 

 

The company is now CREST accredited for penetration testing and is investing to expand capabilities in its cybersecurity offering, including a 24/7 SOC service. This highlights the strategic focus on developing innovative products and services which differentiate the company from competitors, particularly in the legal and recruitment sectors.

 

Going concern

The financial statements have been prepared on a going concern basis.

The company has recorded a loss before tax for the year of £456,950, in line with the business plan representing the elective investment in technical expertise and development of cutting edge solutions to accelerate revenue growth and has net liabilities of £521,567 at 30 June 2024 including cash of £103,817.  In addition to the cash balance, the company has an agreed working capital facility available to it of £425,000 of which none was drawn down at the year end.

 

The company meets its day to day working capital requirements through cash generated from operations, shareholders funds and the working capital facility, having also utilised the Government Bounce Back Loan scheme during a prior year in the amount of £50,000. Following significant investment in previous financial periods the business is operating at break even during H1 of FY25 and will be profitable from H2 FY25 onwards, based on the current business plan and forecasts.

 

The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence in that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of increases in payroll costs due to NI changes to be enacted during the next year.

 

In the directors assessment of possible changes they have taken a prudent approach and have considered a fall in demand and potential cost savings which are reflective of their business continuity plan.

 

Based on the factors set out above the directors believe that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ATLAS CLOUD LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Statement of disclosure to auditor

Each director has taken 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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
MP Conn
Director
20 December 2024
ATLAS CLOUD LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
30 June 2024
- 3 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
5
162,066
170,272
Tangible assets
6
22,775
36,917
184,841
207,189
Current assets
Debtors
7
316,499
356,298
Cash at bank and in hand
103,817
328,335
420,316
684,633
Creditors: amounts falling due within one year
8
(1,109,644)
(928,493)
Net current liabilities
(689,328)
(243,860)
Total assets less current liabilities
(504,487)
(36,671)
Creditors: amounts falling due after more than one year
9
(17,080)
(27,946)
Net liabilities
(521,567)
(64,617)
Capital and reserves
Called up share capital
10
33,171
33,171
Profit and loss reserves
(554,738)
(97,788)
Total equity
(521,567)
(64,617)

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 20 December 2024 and are signed on its behalf by:
MP Conn
Director
Company Registration No. 07297347
ATLAS CLOUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
1
Accounting policies
Company information

Atlas Cloud Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, Maybrook House, 27 Grainger Street, Newcastle Upon Tyne, NE1 5JE.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The financial statements have been prepared on a going concern basis.

The company has recorded a loss before tax for the year of £456,950, in line with the business plan representing the elective investment in technical expertise and development of cutting edge solutions to accelerate revenue growth and has net liabilities of £521,567 at 30 June 2024 including cash of £103,817.  In addition to the cash balance, the company has an agreed working capital facility available to it of £425,000 of which none was drawn down at the year end.

 

The company meets its day to day working capital requirements through cash generated from operations, shareholders funds and the working capital facility, having also utilised the Government Bounce Back Loan scheme during a prior year in the amount of £50,000. Following significant investment in previous financial periods the business is operating at break even during H1 of FY25 and will be profitable from H2 FY25 onwards, based on the current business plan and forecasts.

 

The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence in that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of increases in payroll costs due to NI changes to be enacted during the next year.

 

In the directors assessment of possible changes they have taken a prudent approach and have considered a fall in demand and potential cost savings which are reflective of their business continuity plan.

 

Based on the factors set out above the directors believe that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

ATLAS CLOUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 5 -

Income includes revenue derived from the provision of services for which charges are based on a fixed-fee and stepped according to the usage of the service in each accounting period. Income is recognised over the period of service once the obligations under the contracts have passed. Where amounts are billed and obligations not met, revenue is deferred.

1.4
Research and development expenditure

Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:

 

• It is technically feasible to complete the intangible asset so that it will be available for use or sale;

• There is the intention to complete the intangible asset and use or sell it;

• There is the ability to use or sell the intangible asset;

• The use or sale of the intangible asset will generate probable future economic benefits;

• There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and

• The expenditure attributable to the intangible asset during its development can be measured reliably.

 

Expenditure that does not meet the above criteria is expensed as incurred.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Expenditure incurred on development activities including the company's software development is capitalised only where the expenditure will lead to new or substantially improved products, the products are technically and commercially feasible and the company has sufficient resources to complete development.

 

Subsequent expenditure on capitalised intangible assets is capitalised only where it clearly increases the economic benefits to be derived from the asset to which it relates. All other expenditure, including that incurred in order to maintain an intangible asset's current level of performance, is expensed as incurred.

Amortisation 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:

Development costs
5 years straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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:

Fixtures, furniture and equipment
1-3 years straight line
1.7
Financial instruments
ATLAS CLOUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 6 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer 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 company’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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

ATLAS CLOUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 7 -
1.10
Retirement benefits

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

1.11
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,550
9,275
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
23
23
4
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
(298)
ATLAS CLOUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
5
Intangible fixed assets
Development costs
£
Cost
At 1 July 2023
297,225
Additions
57,464
At 30 June 2024
354,689
Amortisation and impairment
At 1 July 2023
126,953
Amortisation charged for the year
65,670
At 30 June 2024
192,623
Carrying amount
At 30 June 2024
162,066
At 30 June 2023
170,272
6
Tangible fixed assets
Fixtures, furniture and equipment
£
Cost
At 1 July 2023
658,209
Additions
22,096
Disposals
(22,136)
At 30 June 2024
658,169
Depreciation and impairment
At 1 July 2023
621,292
Depreciation charged in the year
36,238
Eliminated in respect of disposals
(22,136)
At 30 June 2024
635,394
Carrying amount
At 30 June 2024
22,775
At 30 June 2023
36,917
ATLAS CLOUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
112,654
118,556
Prepayments and accrued income
203,845
237,742
316,499
356,298
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
10,000
10,000
Other borrowings
95,722
-
0
Trade creditors
340,411
338,774
Taxation and social security
74,590
116,718
Deferred income
375,254
324,638
Other creditors
108,345
-
0
Accruals
105,322
138,363
1,109,644
928,493
9
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17,080
27,946
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary B shares of 0.1p each
3,582
3,582
3.58
3.58
Ordinary A1 shares of 0.1p each
18,997,816
18,997,816
18,997.82
18,997.82
Ordinary A2 shares of 0.1p each
2,110,870
2,110,870
2,110.87
2,110.87
Ordinary C shares of 0.1p each
11,511,300
11,511,300
11,511.30
11,511.30
Ordinary D shares of 0.1p each
547,690
547,690
547.69
547.69
33,171,258
33,171,258
33,171.26
33,171.26

All of the above classes of shares rank pari passu in respect of dividend and voting rights and on a return of capital. They have varying rights on the sale of shares.

ATLAS CLOUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Christopher Potter BA (Hons) ACA
Statutory Auditor:
Azets Audit Services
12
Capital commitments

The total amount of financial commitments not included in the statement of financial position is £54,200 (2023 - £28,540).

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