Company registration number 06607378 (England and Wales)
OLR (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
OLR (UK) LIMITED
COMPANY INFORMATION
Director
Mr J H F Spalding
Company number
06607378
Registered office
Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
Auditor
Bryden Johnson Limited
Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
Business address
20 St Thomas Street
London
SE1 9RS
OLR (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 4
Director's report
5 - 6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 26
OLR (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The director presents the strategic report for the year ended 30 June 2024.

Review of the business

OLR is a leading specialist end-to-end systems integrator providing clients with wide ranging improvements in corporate performance and customer relationship. As a leading Systems Integrator in the UK, OLR provides expertise in Oracle Retail implementations across EMEA and North America and are proud to have been an Oracle Retail partner for over 20 years. With a commitment to delivering innovative solutions and unparalleled service, we aim to capitalize on emerging opportunities while mitigating potential challenges. This strategic report outlines our principal risks and uncertainties, financial key performance indicators, financial risk and operational initiatives to maintain and strengthen our competitive edge.

Results:

Turnover in the year was £6,582,302 (2023: £8,643,590). Operating profit in the year was £443,460 (2023: 528,480.

 

Net assets have increased to £3,873,262 from £3,308,262 in 2023.

 

In 2023 turnover included amounts recharged to other group companies in respect of management fee income of £1,272,204. This presentation has changed in the year and these recharges are now included in other operating income (2024: £1,365,670). This change in presentation has a negative impact on gross margin in the current year however, ensures the accounts show a true and fair view.

OLR (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Principal risks and uncertainties

1. Cybersecurity Threats:

Risk: Increasingly sophisticated cyber threats pose a significant risk to our systems integration projects and the data of our clients.

Mitigation: Implementing robust cybersecurity measures including ISO27001 certifiction, regular security audits, and employee training programs to enhance awareness and readiness against cyber threats.

2. Market Competition:

Risk: Intense competition within the systems integration sector may lead to pricing pressures, loss of market share, or erosion of profit margins.

Mitigation: continued focus on delivering first class, value for money services, enhancing customer experience and building long-term relationships with clients.

3. Dependency on Suppliers and Partners:

Risk: Reliance on specific external suppliers and partners for services or specialized expertise may lead to supply chain disruptions.

Mitigation: Diversification of supplier base, establishing strong contractual agreements and maintaining close relationships with key partners to mitigate risks and ensure continuity of supply.

4. Project Delivery Risks:

Risk: Complex implementation projects may face challenges related to scope creep, budget overruns, or delays in delivery, impacting client satisfaction and financial performance.

Mitigation: Robust project management methodologies, risk assessment frameworks, and proactive communication with clients to manage expectations and address issues promptly.

5. Global Pandemics and Health Risks:

Risk: Outbreaks of global pandemics or health crises may disrupt operations, supply chains, and client engagements, leading to project cancellations or delays.

Mitigation: Developing robust contingency plans, facilitating remote working capabilities, and implementing health and safety protocols to protect employees and mitigate operational disruptions.

By proactively identifying and addressing these principal risks and uncertainties, OLR can enhance resilience, mitigate potential threats, and seize opportunities for sustainable growth and success in the ever-changing landscape of systems integration.

OLR (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Financial key performance indicators

1. Revenue Growth Rate:

Definition – percentage increase or decrease in revenue compared to previous period.

KPI -11%

2. Gross Profit Margin

Definition – percentage of revenue retained after deducting direct costs associated with services sold.

KPI 65%

3. Employee Billing Efficiency

Definition – percentage of employee's billable hours.

KPI - 57%

4. Customer Satisfaction Score

Definition – Measure of customer satisfaction based on surveys or feedback.

9 out of 10

Financial risk management

1. Revenue Volatility:

Risk: Fluctuations in project demand and client spending patterns can lead to revenue volatility, impacting cash flow and financial stability.

Mitigation: maintaining a robust sales pipeline to mitigate revenue concentration risks and where possible have a mix of long-term contracts and shorter-term projects.

2. Credit Risk:

Risk: Exposure to credit risk arises from clients' have an inability to fulfil payment obligations, leading to potential bad debts and liquidity challenges.

Mitigation: Implementing stringent credit assessment procedures, setting credit limits for clients based on their creditworthiness and establishing clear payment terms.

3. Cost Overruns:

Risk: Projects may incur unexpected costs due to scope changes, supply chain disruptions, or inefficiencies in project execution, impacting profitability and margins.

Mitigation: Rigorous project cost estimation and budgeting, implementing effective project management practices to monitor and control costs and maintaining contingency reserves to address unforeseen expenses can mitigate the risk of cost overruns.

By identifying, assessing, and mitigating these financial risks, OLR can enhance financial resilience and protect shareholder value.

OLR (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Operational Initiatives:

1. Talent Acquisition and Retention:

Difficulty in attracting and retaining skilled talent with Oracle specific expertise may impact project delivery and innovation capabilities. By investing in employee development programs, offering competitive compensation packages, fostering a positive work culture, and implementing succession planning strategies OLR continues to mitigate talent risks.

2. Operational Efficiency:

Streamlined internal processes, workflows and agile working methodologies leading to improved efficiency and reduced costs.

3. Customer Experience

Enhance customer support services to provide proactive assistance and prompt resolution of issues.

Solicit feedback from clients to identify areas for improvement and refine service offerings.

4. Innovation and R&D:

OLR strongly believes in investing for the future and continued investment in research and development opportunities and intellectual property will ensure the Company will not only stay ahead of its competitors but provide improved implementation and customers experience.

Conclusion

This strategic report serves as a roadmap for navigating opportunities and challenges, guiding our efforts to maintain our leadership position and exceed customer expectations in the years to come.

In conclusion, OLR is well-positioned to capitalize on the growing demand for integrated solutions. By leveraging our core competencies, embracing innovation, and fostering strategic partnerships, we are poised for sustainable growth and continued success in the dynamic retail landscape.

On behalf of the board

Mr J H F Spalding
Director
28 March 2025
OLR (UK) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

The director presents his 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 software consultancy, supply and product development.

Branches

OLR (UK) Limited has an overseas branch in Portugal.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Mr J H F Spalding
Auditor

In accordance with the company's articles, a resolution proposing that Bryden Johnson Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

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

OLR (UK) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
On behalf of the board
Mr J H F Spalding
Director
28 March 2025
OLR (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF OLR (UK) LIMITED
- 7 -
Opinion

We have audited the financial statements of OLR (UK) Limited (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

OLR (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF OLR (UK) LIMITED (CONTINUED)
- 8 -
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 director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK taxation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management override of controls. Audit procedures performed by the engagement team included:

 

- Reviewing minutes of meetings of those charged with governance;

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations, and

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and testing accounting estimates (because of the risk of management bias).

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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 misrepresentation, 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.

OLR (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF OLR (UK) LIMITED (CONTINUED)
- 9 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Jackie Wilding
Senior Statutory Auditor
For and on behalf of Bryden Johnson Limited
28 March 2025
Chartered Accountants
Statutory Auditor
Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
OLR (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
6,582,302
8,643,590
Cost of sales
(2,329,984)
(4,099,488)
Gross profit
4,252,318
4,544,102
Administrative expenses
(5,174,528)
(4,015,622)
Other operating income
1,365,670
-
0
Operating profit
4
443,460
528,480
Interest receivable and similar income
6
452
2,093
Profit before taxation
443,912
530,573
Tax on profit
7
121,343
79,110
Profit for the financial year
565,255
609,683

The profit and loss account has been prepared on the basis that all operations are continuing operations.

OLR (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
£
£
Profit for the year
565,255
609,683
Other comprehensive income
-
-
Total comprehensive income for the year
565,255
609,683
OLR (UK) LIMITED
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
8
997,291
221,176
Tangible assets
9
108,007
106,541
Investments
10
168,565
168,565
1,273,863
496,282
Current assets
Debtors
12
2,871,706
3,680,258
Cash at bank and in hand
488,286
90,239
3,359,992
3,770,497
Creditors: amounts falling due within one year
13
(733,336)
(932,441)
Net current assets
2,626,656
2,838,056
Total assets less current liabilities
3,900,519
3,334,338
Provisions for liabilities
Deferred tax liability
14
27,002
26,076
(27,002)
(26,076)
Net assets
3,873,517
3,308,262
Capital and reserves
Called up share capital
16
1
1
Profit and loss reserves
3,873,516
3,308,261
Total equity
3,873,517
3,308,262

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 28 March 2025
Mr J H F Spalding
Director
Company registration number 06607378 (England and Wales)
OLR (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2022
1
2,698,578
2,698,579
Year ended 30 June 2023:
Profit and total comprehensive income
-
609,683
609,683
Balance at 30 June 2023
1
3,308,261
3,308,262
Year ended 30 June 2024:
Profit and total comprehensive income
-
565,255
565,255
Balance at 30 June 2024
1
3,873,516
3,873,517
OLR (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
20
1,125,995
(1,069,653)
Corporation taxes refunded
122,588
1,268,506
Net cash inflow from operating activities
1,248,583
198,853
Investing activities
Purchase of intangible assets
(811,012)
(221,176)
Purchase of tangible fixed assets
(42,861)
(65,631)
Proceeds from disposal of tangible fixed assets
1,107
1,308
Interest received
452
2,093
Net cash used in investing activities
(852,314)
(283,406)
Net increase/(decrease) in cash and cash equivalents
396,269
(84,553)
Cash and cash equivalents at beginning of year
90,239
176,551
Effect of foreign exchange rates
1,778
(1,759)
Cash and cash equivalents at end of year
488,286
90,239
OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
1
Accounting policies
Company information

OLR (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kings Parade, Lower Coombe Street, Croydon, Surrey, CR0 1AA.

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.

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 director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

 

The following criteria must be met before revenue is recognised.

 

Rendering of services

 

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

 

 

 

 

OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Intangible fixed assets other than goodwill

Software development

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

 

Software development is being amortised evenly over its estimated useful life of 5 years.

 

Where factors, such as technological advancement or changes in market price, indicate that the residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances.

 

The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired.

 

Costs associated with maintaining computer software are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the company are recognised as intangible assets when the following criteria are met:

 

- it is technically feasible to complete the software so that it will be available for use;

- management intends to complete the software and use or sell it;

- there is an ability to use or sell the software;

- it can be demonstrated how the software will generate probable future economic benefits;

- adequate technical, financial and other resources to complete the development and to use or sell the software are available;

- the expenditure attributable to the software during its development can be reliably measured.

 

Other development expenditures that do not meet these criteria are recognised as an expense 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:

Software development
5 years
1.5
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 and fittings
10% per annum on cost
Computers
25% per annum on cost

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.

 

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 credited or charged to profit or loss.

OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.6
Fixed asset investments

Investments in subsidiaries are initially measured at cost less accumulated impairment.

 

Investment in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.8
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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.

 

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

1.10
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 profit and loss account 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.

OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
2,783,836
3,886,754
Europe
2,511,439
2,591,809
Rest of the world
1,287,027
2,165,027
6,582,302
8,643,590
OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Other revenue
Interest income
452
2,093
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
44,851
(56,140)
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
12,600
Depreciation of owned tangible fixed assets
37,436
29,067
Loss on disposal of tangible fixed assets
1,074
1,844
Amortisation of intangible assets
34,897
-
Operating lease charges
180,383
123,646
5
Employees

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

2024
2023
Number
Number
Management and administration
30
20
IT services
61
66
Total
91
86

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,627,247
4,147,079
Social security costs
733,127
745,744
Pension costs
41,229
48,931
4,401,603
4,941,754

 

OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
452
2,093
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
120,125
70,937
Adjustments in respect of prior periods
(242,393)
(162,563)
Total current tax
(122,268)
(91,626)
Deferred tax
Origination and reversal of timing differences
925
12,516
Total tax credit
(121,343)
(79,110)

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
443,912
530,573
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
110,978
108,767
Tax effect of expenses that are not deductible in determining taxable profit
-
0
33,477
Amortisation on assets not qualifying for tax allowances
8,724
-
0
Research and development tax credit
(242,393)
(256,613)
Deferred tax adjustments in respect of prior years
561
-
0
Foreign exchange differences
(444)
-
0
Tax losses utilised
(209,875)
(48,153)
Management expenses carried forward
90,981
22,371
Foreign tax paid
120,125
70,937
Capital allowance enhanced deduction
-
0
(9,896)
Taxation credit for the year
(121,343)
(79,110)
OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
8
Intangible fixed assets
Software development
£
Cost
At 1 July 2023
221,176
Additions
811,012
At 30 June 2024
1,032,188
Amortisation and impairment
At 1 July 2023
-
0
Amortisation charged for the year
34,897
At 30 June 2024
34,897
Carrying amount
At 30 June 2024
997,291
At 30 June 2023
221,176
9
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 July 2023
35,617
124,981
160,598
Additions
-
0
42,861
42,861
Disposals
-
0
(6,468)
(6,468)
Exchange adjustments
(877)
(2,318)
(3,195)
At 30 June 2024
34,740
159,056
193,796
Depreciation and impairment
At 1 July 2023
11,096
42,961
54,057
Depreciation charged in the year
4,076
33,360
37,436
Eliminated in respect of disposals
-
0
(4,287)
(4,287)
Exchange adjustments
(322)
(1,095)
(1,417)
At 30 June 2024
14,850
70,939
85,789
Carrying amount
At 30 June 2024
19,890
88,117
108,007
At 30 June 2023
24,521
82,020
106,541
OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
10
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
11
168,565
168,565

The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.

11
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
OLR India Consulting Private Ltd
India
Consultancy
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
OLR India Consulting Private Ltd
938,335
100,880
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
462,762
1,971,301
Corporation tax recoverable
12,644
12,963
Amounts owed by group undertakings
1,732,624
1,140,690
Other debtors
230,734
178,215
Prepayments and accrued income
432,942
377,089
2,871,706
3,680,258

 

OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
104,289
269,335
Amounts owed to group undertakings
101,999
33,022
Taxation and social security
163,962
203,981
Other creditors
26,239
70,149
Accruals and deferred income
336,847
355,954
733,336
932,441
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
27,002
26,076
2024
Movements in the year:
£
Liability at 1 July 2023
26,076
Charge to profit or loss
926
Liability at 30 June 2024
27,002

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
41,229
48,931

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
17
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
113,031
93,000
Between two and five years
362,842
372,001
In over five years
5,378
105,247
481,251
570,248
18
Related party transactions
Transactions with related parties

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

 

At the end of the year, the following related party balances existed:

 

Included in other debtors is an amount of £108 (2023: £57,892 - other creditors) due from E2X Limited, a company in which J Spalding is a director and controlling shareholder.

 

Included in other debtors is an amount of £3,107 (2023: £1,316) due from Test Evolve Limited, a company in which the director J. Spalding has an interest.

 

Included in other debtors is an amount of £2,804 (2023: £2,135) due from Orchestrating Identity Limited, a company in which the director J. Spalding has an interest.

 

Included in other creditors is an amount of £15,238 (2023: £22,724) due to ABI2X Pte Limited, a company in which J Spalding has an interest.

19
Ultimate controling party

The immediate parent company is OLR Intergrated Limited, a company registered in England and Wales.

 

The ultimate parent company is OLR Group Limited, a company registered in England and Wales.

 

The ultimate controlling party is Mr J H F Spalding, by virtue of his holding in OLR Group Limited.

 

OLR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
20
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
565,255
609,683
Adjustments for:
Taxation credited
(121,343)
(79,110)
Investment income
(452)
(2,093)
Loss on disposal of tangible fixed assets
1,074
1,844
Amortisation and impairment of intangible assets
34,897
-
0
Depreciation and impairment of tangible fixed assets
37,436
29,067
Movements in working capital:
Decrease in debtors
808,233
1,326,388
Decrease in creditors
(199,105)
(2,955,432)
Cash generated from/(absorbed by) operations
1,125,995
(1,069,653)
21
Analysis of changes in net funds
1 July 2023
Cash flows
Exchange rate movements
30 June 2024
£
£
£
£
Cash at bank and in hand
90,239
396,269
1,778
488,286
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