REGISTERED NUMBER: SC274480 (Scotland)

NOVOTEK UK & IRELAND LIMITED

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

6

DIRECTORS:

Mr G M Walker

Mr A T Antius

REGISTERED OFFICE:

Stanley House

69/71 Hamilton Road

Motherwell

ML1 3DG

BUSINESS ADDRESS:

Cartelli House

3 Hawthorn Park

LEEDS

LS14 1PQ

REGISTERED NUMBER:

SC274480 (Scotland)

AUDITOR:

Ellacotts Audit Services Limited

Countrywide House

23 West Bar Street

Banbury

OX16 9SA

FIXED ASSETS

Tangible assets

4

5,998

28,761

Investments

5

8,063,031

8,063,031

8,069,029

8,091,792

CURRENT ASSETS

Stocks

74,264

27,289

Debtors

6

5,884,082

3,019,791

Cash at bank

457,741

753,091

6,416,087

3,800,171

CREDITORS

Amounts falling due within one year

7

12,162,611

9,818,308

NET CURRENT LIABILITIES

(5,746,524

)

(6,018,137

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,322,505

2,073,655

PROVISIONS FOR LIABILITIES

1,500

3,346

NET ASSETS

2,321,005

2,070,309

CAPITAL AND RESERVES

Called up share capital

10,000

10,000

Retained earnings

2,311,005

2,060,309

2,321,005

2,070,309

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 12 March 2025 and were signed on its behalf by:

Mr G M Walker - Director

1.	STATUTORY INFORMATION

Novotek UK & Ireland Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Novotek UK & Ireland Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Novotek AB, Hojdrodergatan 18, 212 39 Malmo, Sweden.

Turnover

Turnover represents net invoiced sales of services, excluding value added tax.

As from 1st January 2024, Novotek Solutions UK & Ireland Limited adopted the same revenue recognition policy as other group members.

The company has four principal revenue streams:

Products - sale is recognised on delivery.

Support and upgrade agreements - income is recognised over the period of the agreement.

Subscription/Term Licences SAAS - income is recognised over the period of the agreement.

Subscription/Term Licences On Prem - 50% of the revenue, that being the licence part, is recognised on delivery. The other 50% is recognised over the period of the agreement.

Corresponding costs from suppliers are recognised on the same basis as the revenue.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

20% on cost

Computer equipment

-

20% on cost

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leasing commitments

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight line basis.

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.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Cash & cash equivalents

Cash is represented by cash in hand and deposits with financial institutions.

Creditors

Short term creditors are measured at transaction price.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2023 - 14 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 January 2024

and 31 December 2024

80,101

32,468

112,569

DEPRECIATION

At 1 January 2024

62,689

21,119

83,808

Charge for year

17,412

5,351

22,763

At 31 December 2024

80,101

26,470

106,571

NET BOOK VALUE

At 31 December 2024

-

5,998

5,998

At 31 December 2023

17,412

11,349

28,761

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2024

and 31 December 2024

8,063,031

NET BOOK VALUE

At 31 December 2024

8,063,031

At 31 December 2023

8,063,031

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

as restated

£

£

Trade debtors

1,776,688

929,573

Amounts owed by group undertakings

119,549

154,443

Corporation tax

11,974

-

Prepayments and accrued income

3,975,871

1,935,775

5,884,082

3,019,791

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

as restated

£

£

Trade creditors

1,070,878

619,787

Amounts owed to group undertakings

6,816,715

6,981,103

Corporation tax

-

71,070

Social security and other taxes

21,401

19,017

VAT

74,030

28,371

Other creditors

6,454

24,975

Accruals and deferred income

4,173,133

2,073,985

12,162,611

9,818,308

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2024

2023

as restated

£

£

Within one year

30,917

18,000

Between one and five years

51,528

-

82,445

18,000

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditor was unqualified.

David Stevens FCA (Senior Statutory Auditor)

for and on behalf of Ellacotts Audit Services Limited

10.	RELATED PARTY DISCLOSURES

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.

Novotek UK & Ireland Limited is a wholly owned subsidiary of Novotek Holdings Limited, who in turn are a wholly owned subsidiary of Novotek A.B.

The consolidated financial statements of Novotek AB are available from its head office at Hojdrodergatan 18, 212 39 Malmo, Sweden.

11.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Swedish company, Novotek AB, by virtue of its holding in Novotek Holdings Limited, which holds the entire share capital of Novotek UK & Ireland Limited.