Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 June 2024 |
for |
Spectra Logic Europe Limited |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 June 2024 |
for |
Spectra Logic Europe Limited |
Spectra Logic Europe Limited (Registered number: 04133679) |
Contents of the Financial Statements |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 7 |
Balance Sheet | 8 |
Statement of Changes in Equity | 9 |
Cash Flow Statement | 10 |
Notes to the Cash Flow Statement | 11 |
Notes to the Financial Statements | 12 |
Spectra Logic Europe Limited |
Company Information |
for the Year Ended 30 June 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
8-10 South Street |
Epsom |
Surrey |
KT18 7PF |
Spectra Logic Europe Limited (Registered number: 04133679) |
Strategic Report |
for the Year Ended 30 June 2024 |
The directors present their strategic report for the year ended 30 June 2024. |
OVERVIEW |
The company operates within the technology sector, selling data storage and data management solutions with professional services and support maintenance. |
REVIEW OF THE BUSINESS |
During the year the company continued to supply tape and disk tiered storage solutions along with storage lifecycle management software. |
Furthermore, the company also provided service contracts to support the above hardware and software. |
KEY PERFORMANCE INDICATORS |
2024 2023 |
Gross Profit Margin 18.6% 18.0% |
Net Return on Net Assets 1.0% 1.0% |
The gross profit value has increased in the year due to an increase in sales with the net return on net assets decreasing too. |
The balance sheet value has increased in the year, supported by a profitable year and profit not being drawn by owners via dividends. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors assess that the main risk to the business is changing trends in the data storage industry, including threats from cloud and solid state drive companies in addition to continued competition from tape and disk market participants. |
The company is actively guarding against these threats with new software and hardware technologies as well as vertical specific product introduction marketing plans. |
FUTURE DEVELOPMENTS |
In the forthcoming year the directors expect the general level activity to increase with large computing sites and government funded entities having their tape libraries replaced. Product margins on this delivery is likely to be lower due to competition being high in the market, with the forecast gross profit margin reflecting this. |
ON BEHALF OF THE BOARD: |
Spectra Logic Europe Limited (Registered number: 04133679) |
Report of the Directors |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
The financial statements have been prepared in US Dollars for the year ended 30th June 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL RISK MANAGEMENT |
The directors' financial risk management objective is to maximise financial assets and minimise financial liabilities whilst not engaging in speculation. |
GOING CONCERN |
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements. |
Further details regarding the adoption of the going concern basis can be found in the Statement of accounting policies in the financial statements. |
DISCLOSURE IN THE STRATEGIC REPORT |
Please note that a review of the business, principal risks and uncertainties, and future developments has been given in the strategic report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Spectra Logic Europe Limited (Registered number: 04133679) |
Report of the Directors |
for the Year Ended 30 June 2024 |
AUDITORS |
The auditors, Williams & Co Epsom LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Spectra Logic Europe Limited |
Opinion |
We have audited the financial statements of Spectra Logic Europe Limited (the 'company') for the year ended 30 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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. |
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Spectra Logic Europe Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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: |
Our assessment of the financial statements susceptibility to material misstatement, including how fraud may occur, included a review of the sales process and ensuring timing of income was in accordance with accounting standards.In addition the company has significant bank balances. |
Our tests were designed to ensure income was correctly reported in the correct accounting period and at the right level with significant testing of deferred income. In addition we sought third party verification of bank balances and carried out testing of these balances against pre and post balance sheet entries. |
We have tested controls over payment authorisations and sample payments from the bank to ensure all major items are properly accounted for. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
8-10 South Street |
Epsom |
Surrey |
KT18 7PF |
Spectra Logic Europe Limited (Registered number: 04133679) |
Statement of Comprehensive |
Income |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | $ | $ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 4 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Spectra Logic Europe Limited (Registered number: 04133679) |
Balance Sheet |
30 June 2024 |
2024 | 2023 |
Notes | $ | $ | $ | $ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Other reserves | 14 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Spectra Logic Europe Limited (Registered number: 04133679) |
Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
$ | $ | $ | $ |
Balance at 1 July 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2024 |
Spectra Logic Europe Limited (Registered number: 04133679) |
Cash Flow Statement |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | $ | $ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
7,912,546 |
Cash and cash equivalents at end of year | 2 | 21,737,581 | 12,795,543 |
Spectra Logic Europe Limited (Registered number: 04133679) |
Notes to the Cash Flow Statement |
for the Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
$ | $ |
Profit before taxation |
Depreciation charges |
Finance costs | 10,985 | 1,799 |
541,205 | 375,931 |
Decrease in stocks |
Decrease in trade and other debtors |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
$ | $ |
Cash and cash equivalents | 21,737,581 | 12,795,543 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
$ | $ |
Cash and cash equivalents | 12,795,543 | 7,912,546 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
Other |
non-cash |
At 1.7.23 | Cash flow | changes | At 30.6.24 |
$ | $ | $ | $ |
Net cash |
Cash at bank | 12,795,543 | 8,942,038 | 21,737,581 |
12,795,543 | 21,737,581 |
Debt |
Finance leases | (102,643 | ) | 31,210 | - | (71,433 | ) |
(102,643 | ) | 31,210 | - | (71,433 | ) |
Total | 12,692,900 | 8,973,248 | - | 21,666,148 |
Spectra Logic Europe Limited (Registered number: 04133679) |
Notes to the Financial Statements |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Spectra Logic Europe Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents net invoiced sales of computer hardware and maintenance contracts excluding value added tax. Turnover for computer hardware is recognised at the time of shipment when title passes to the customer. Turnover for maintenance contracts is recognised when the company obtains the right to consideration and is spread over the term of the contract. |
All turnover is derived from the EMEA market, comprising Europe, Middle East and Africa. |
Tangible fixed assets |
Improvements to property | - |
Fixtures and fittings | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into US Dollars at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into US Dollars at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Spectra Logic Europe Limited (Registered number: 04133679) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report. |
The directors have prepared detailed cash flow forecasts which they believe are based upon reasonable assumptions. These forecasts show that the Company can meet its obligations as they fall due and thus the directors consider it appropriate to prepare the financial statements on the going concern basis. |
Investments |
Investments are initially recognised at cost. |
Investments which are publicly traded and whose fair value can be reliably estimated shall be remeasured at fair value at the balance sheet date with the gain or loss recognised through the profit and loss. |
Investments in equity instruments that are not publicly traded and whose fair value may not be reliably estimated shall be measured at cost less impairment. |
If disposed, the investment is impaired to market value at the redemption date, and a gain or loss is shown within profit and loss. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
$ | $ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Sales and marketing | 10 | 11 |
Service and support | 10 | 10 |
2024 | 2023 |
$ | $ |
Directors' remuneration |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
$ | $ |
Depreciation - owned assets |
Auditors' remuneration - current year |
Auditors' remuneration - non audit services |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
$ | $ |
Bank interest |
Other interest payable |
Spectra Logic Europe Limited (Registered number: 04133679) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
$ | $ |
Current tax: |
UK corporation tax |
Tax on profit |
UK corporation tax was charged at 19%) in 2023. |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
$ | $ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
exchange |
Other foreign tax suffered | 21,913 | 26,100 |
Change in tax rates during the period | - | 5,487 |
Total tax charge | 153,141 | 97,041 |
7. | TANGIBLE FIXED ASSETS |
ROUA | Improvements | Fixtures |
Short | to | and | Computer |
leasehold | property | fittings | equipment | Totals |
$ | $ | $ | $ | $ |
COST |
At 1 July 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Spectra Logic Europe Limited (Registered number: 04133679) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
8. | STOCKS |
2024 | 2023 |
$ | $ |
Stocks |
9. | DEBTORS |
2024 | 2023 |
$ | $ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings | 14,532,376 | 22,497,412 |
Tax |
Prepayments |
Amounts falling due after more than one year: |
Prepayments designated more than one year |
Aggregate amounts |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
$ | $ |
Finance leases (see note 12) |
Trade creditors |
VAT | 341,933 | 185,159 |
Other creditors |
Deferred revenue | 7,209,537 | 6,700,063 |
Accrued expenses |
Deferred revenue represents maintenance service contracts charged in advance. |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
$ | $ |
Finance leases (see note 12) |
Deferred revenue |
12. | LEASING AGREEMENTS |
Minimum lease payments under finance leases fall due as follows: |
Finance leases |
2024 | 2023 |
$ | $ |
Net obligations repayable: |
Within one year |
Between one and five years |
Spectra Logic Europe Limited are committed to pay annual net rent of £59,445 (equivalent to $72,202 at the balance sheet date) until 23 April 2025. |
Spectra Logic Europe Limited (Registered number: 04133679) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | $ | $ |
Ordinary shares | £1 | 902,000 | 902,000 |
The share capital is held at cost and shown at the exchange rate at the date of creation. |
14. | RESERVES |
Retained | Other |
earnings | reserves | Totals |
$ | $ | $ |
At 1 July 2023 | 28,412,703 |
Profit for the year |
At 30 June 2024 | 28,711,799 |
Other reserves represent a cumulative translation adjustment which resulted from a change in the company's presentation currency in a prior year. |
15. | ULTIMATE PARENT COMPANY |
The director considers that the ultimate holding company is Spectra Logic Corporation Inc, a company registered in the United States of America. |
16. | RELATED PARTY DISCLOSURES |
In the year Spectra Logic Europe Limited purchased $10,105,146 (2023: $10,477,417) of computer hardware from their parent company, Spectra Logic Corporation Inc. Spectra Logic Corporation Inc is the parent company of Spectra Logic Europe Limited, owning 100% of the shares. |
At the balance sheet date, Spectra Logic Corporation Inc owed Spectra Logic Europe Limited $14,684,313 (2023: $22,497,412). |
17. | ULTIMATE CONTROLLING PARTY |
Mr N C Thompson is the ultimate controlling party. |