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Registered number: 04332565









DATAART TECHNOLOGIES UK LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
DATAART TECHNOLOGIES UK LTD
 
 
COMPANY INFORMATION


Directors
Dmitry Bagrov 
Roman Chernyshev 




Company secretary
Tatiana Andrianova



Registered number
04332565



Registered office
55 King William Street

London

EC4R 9AD




Independent auditors
Wisteria Audit Ltd
Chartered Accountants & Statutory Auditors

Pikes End

Pinner

Middlesex

HA5 2EX





 
DATAART TECHNOLOGIES UK LTD
 

CONTENTS



Page
Strategic Report
1 - 7
Directors' Report
8 - 9
Independent Auditors' Report
10 - 13
Profit and Loss Account
14
Balance Sheet
15
Statement of Changes in Equity
16
Statement of Cash Flows
17
Analysis of Net Debt
18
Notes to the Financial Statements
19 - 38


 
DATAART TECHNOLOGIES UK LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
DataArt Technologies UK Ltd is part of the DataArt Group, which is a global technology consultancy that designs, develops and supports unique software solutions, helping clients take their businesses forward, recognised for their deep domain expertise and superior technical talent. DataArt teams create new products and modernise complex legacy systems that affect technology transformation in select industries.  
DataArt group brings together the expertise of over 5,500 professionals in 25+ locations in the US, Europe, UAE, India and Latin America. DataArt Technologies UK Ltd provides sales and project management for clients. For the DataArt Group, the company provides billing and accounting, staffing and HR Management. 

Business review

The DataArt Mission is to help its clients achieve the following business outcomes:  
Build new software products and services;
Re-architect and enhance enterprise systems, software products, and solutions;
Introduce new ways of working at process and tool levels;
Provide expert inputs and resources on a just-in-time basis;  
Help to control the cost and effort of managing existing IT systems. 

Beyond software development, testing and deployment, DataArt provides the following key services: 
 
SOLUTION DESIGN, including: 
Product Design. Creating new products that not only work as designed but succeed in their objectives; 
Digital Transformation. Helping clients re-imagine how they service their customers via digital tools; 
System Modernisation. Transforming legacy technology to support business agility so our clients can quickly adapt to market changes and emerging opportunities. 

ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING SERVICES  
Through seamless integration of computer vision services, we enable precise identification and categorization of places, people, and objects, unlocking valuable information and analytics
Helping our clients’ to assess the true impact of Generative AI and identify pragmatic opportunities to differentiate their brands to stay competitive;
Enabling clients to create smart workflows; 
Significantly increasing their productivity and lightening their cost structure; 
Intelligent Document Processing Services 
 
CYBERSECURITY ASSURANCE 
Helping clients to get rid of any uncertainties concerning security and ensuring they follow best practices in designing and implementing a secure solution.

LEGACY SYSTEMS MODERNISATION 
Helping to define and execute a systems modernisation agenda through active business stakeholder involvement, and business/IT collaboration;
Helping clients to future-proof critical business functions; 
Unlock data and analytics opportunities.

EDUCATIONAL TECHNOLOGY 
Providing clients with custom software solutions that enable convenient and effective e-teaching and e-learning;
Helping to upgrade and scale digital educational platforms by equipping them with modern features and functionalities, such as secure payments, data management and analytics, AI/ML, and blockchain. 

Page 1

 
DATAART TECHNOLOGIES UK LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Industry Expertise
 
As a global technology consultancy, we pride ourselves on our industry expertise across various sectors. We work across all areas of financial services and capital markets, offering engineering services with deep domain knowledge, backed by CFA certification. Our clients include banks, exchanges, hedge funds, market data providers, rating agencies, market utilities, insurance companies, fintech firms, and inter-dealer brokers.
Our team has also played a significant role in the healthcare industry, delivering robust digital solutions that enable healthcare and life sciences organizations to foster innovation, enhance patient outcomes, and solve complex business challenges.
Beyond these industries, we have a strong presence in media, travel & hospitality, and retail, developing custom software applications to meet the unique needs of each sector. Our expertise in retail spans digital transformation, omnichannel commerce, and intelligent automation, enabling our clients to stay competitive in an evolving market.
Moreover, we see increasing demand in data management and AI across industries, where our deep expertise makes us a formidable contender. As organisations seek to harness the power of AI-driven insights, predictive analytics, and data engineering, our strong pedigree in these areas positions us as a trusted partner in helping businesses unlock new efficiencies and competitive advantages.
We believe that our industry expertise, combined with our technical excellence, is key to delivering high-quality software solutions that drive meaningful innovation for our clients. As technology continues to evolve, we remain committed to helping businesses navigate digital transformation, optimise operations, and capitalise on emerging opportunities.

Financial key performance indicators
 
We are proud to report that DataArt Technologies UK Ltd has continued to grow financially due to our consistent efforts and commitment towards our business objectives. Some of the key financial highlights are: 
Revenue grew 4% (2023: 9%) 
Gross profit margin increased by 10% (2023: increased 29%)
Operating profit margin increased by 184% (2023: decreased 49%)
Staff numbers at the end of the year were 101 (2023: 97) 

Overview of 2024

In 2024, DataArt continued to evolve, strengthening its position in a dynamic and competitive market. While global uncertainties persist, they no longer define our trajectory. Instead, we remain focused on sustainable growth, strategic expansion, and deepening our relationships with clients and partners worldwide.
This year, we maintained a steady growth rate of 4-5%, in line with industry trends. Despite the challenges faced by the broader technology sector, our resilience, adaptability, and strong client relationships have allowed us to continue delivering value at scale. Our client portfolio has expanded with new logos, while existing partnerships have deepened, demonstrating trust in our expertise and delivery capabilities.
Geographical expansion remains a key priority. We have further strengthened our presence in Latin America, enhancing our existing locations and exploring opportunities in new countries. This strategic move aligns with our commitment to tapping into diverse talent pools and providing high-quality services across regions.

Page 2

 
DATAART TECHNOLOGIES UK LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Additionally, our investments in strategic partnerships have continued to pay off. Our relationships with Google Cloud Platform (GCP), Amazon Web Services (AWS), and Microsoft Azure have grown, enabling us to leverage cutting-edge cloud technologies to drive innovation for our clients. Beyond cloud, we have also expanded collaborations with key industry players, including SalesForce, Stripe, BigCommerce, Adyen, Monday.com and others, providing consulting services in product implementation, integration, optimisation, and ongoing support. These partnerships reinforce our position as a trusted technology advisor, allowing us to provide comprehensive and future-ready solutions.
At the same time, we remain committed to staying at the forefront of technological innovation, particularly in AI. With the rapid evolution of artificial intelligence transforming industries, we are actively investing in AI-driven solutions, research, and expertise to help our clients harness the power of automation, machine learning, and intelligent decision-making. Our teams are continuously exploring new ways to integrate AI into business processes, ensuring that our clients remain competitive in an increasingly digital world.
As we move forward, DataArt remains committed to its core values - flexibility, expertise, and trust. Our global team continues to demonstrate dedication and excellence, ensuring that we not only adapt to market changes but actively shape the future of technology consulting. With a strong foundation in place, we are well-positioned to seize new opportunities, innovate alongside our partners, and deliver outstanding results for our clients.

Support Ukraine Program
 
At the end of 2022 we started a Support Ukraine Program to join the effort and organise and drive the process. In 2024, we have completed over 370 fundraising campaigns. 
We have helped thousands of people with transportation, temporary shelter, food and medical supplies. DataArt doesn’t purchase and distribute equipment or supplies but supports initiatives from our colleagues and charity funds with money. 
Alongside that, DataArt cooperates with humanitarian organisations in Europe: we help to work on logistics and cover transportation expenses to deliver the aid they collect to Ukraine. In 2024, the company made significant donations for medical needs—working together with charitable organizations to equip stabilization points and ambulances.
Overall, in 2024 DataArt spent around 3,7M USD on various Support Ukraine initiatives.

Sustainability, Compliance, International Standards

In accordance with DataArt Compliance Policy, DataArt is committed to compliance with legislation in all locations where we operate. We also accept the following groups of standards as guidance for sustainability management at DataArt:

Science-based target initiative (SBTi)
IFC Performance Standards on Environmental and Social Sustainability   
The Sustainable Development Goals (SDGs) of the 2030 Agenda
UN Conventions on environment and labour
International Labor Organization (ILO) documents.

The Environmental and Social Performance Program underlines DataArt's commitment to the United Nations Sustainable Development Goals (SDGs) and indicates the following SDGs which correspond the most to DataArt's core values.

In 2023 Eugene Goland, the CEO of DataArt Group, made a written commitment to set near-term and net-zero targets, including a long-term science-based target and submit them for validation within the next two years

Page 3

 
DATAART TECHNOLOGIES UK LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

DataArt People

DataArt continued its evolution as a dynamic entity deeply intertwined with its employees and focused on sustainable development supported by strong partnership principles. Despite the challenges posed by the market, the company displayed resilience and adaptability in its operations.
 
In 2024, the DataArt groups headcount saw a modest 4% decline, reflecting market challenges.

Employee attrition remained below the industry average at 13.4%, compared to 15.8% for similar companies, according to data from vendors like Mercer.
DataArt prioritized talent mobility, successfully relocating 304 employees, with a significant number transitioning from Ukraine to various European locations.

Retaining employees was a core focus, resulting in a 88% retention rate with an average tenure of 4.9 years for DataArt employees.

Society and communities

DataArt actively cultivated relationships with internal and external communities, enhancing its capacities and pioneering new opportunities. Educational initiatives and measures aimed at improving the health and well-being of communities were successfully developed and implemented by the company.
In 2024, Company’s Professional Communities demonstrated the power of collaboration, growth, and innovation. With over 3,000 colleagues engaged, 250 professional meetings held, and 33 learning materials created, our communities have become a driving force in professional development and cross-functional teamwork.
Key achievements this year include tailored learning paths for QA engineers and .NET developers, updated qualification matrices for key technologies, and enhanced mentorship and learning programs such as PM School. These initiatives have empowered colleagues, refined skill sets, and strengthened our organizational expertise.
Beyond structured learning, our communities hosted over 3,000 attendees at events that fostered discussions on emerging technologies, shared project successes, and encouraged innovative thinking. Looking ahead to 2025, we aim to expand participation globally, launch new cross-community projects, and reinforce a culture of continuous learning and collaboration.
We held 12 webinars on topics related to mental health with more than 2000 attendees, we also launched a psychological support group for PMs, HRs and People Partners. 
Our corporate Mental Health Support Service “Helpline” received more than 250 requests and there were more than 3600 hours of Helpline talks in 2024. Our volunteers speak English, Spanish, German, Ukrainian, Polish and Russian, so everyone who needs psychological help can receive it in their native language. 
As part of our commitment to gender diversity, DataArt actively collaborates with initiatives that support women in technology, including Women TechMakers, the Python Community for Women, Toastmasters International, and Geek Girls Carrots. To further our impact, we have introduced several internal and external programs designed to support and advance women in IT. 
Internally, the "She for Her" mentoring program provides a supportive space for women at DataArt to grow and develop their careers, we have done already 2 iterations with more than 60 participants. Externally, we offer “DA Calling: She for Her”, DataArt’s Calling is an online service of free one-on-one consultations with experts in different areas of Software Engineering, Management in IT, Recruitment, and Human Resources Management with female IT Specialists on the main challenges women encounter in the IT industry 11 specialists participated in 90+ consultations. 

Page 4

 
DATAART TECHNOLOGIES UK LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Environment

As free and responsible individuals, we see that human activity is changing the world. DataArt knows that man-made climate change is real and poses a significant threat to the planet and its inhabitants. DataArt takes responsibility for climate, waste, energy, water, and other natural resources. We implement technically and financially feasible and cost-effective measures to improve the efficiency of our consumption of energy, water, as well as other natural resources.   
 
The total Scope 2 market-based emissions from electricity and heat consumption in 2024 decreased by 22% down to 1,145 m tonnes of CO2e due to shift to renewable energy in UK and Poland.
Actual GHG emissions from business air travel (Scope 3) increased by 22% up to 570 m tonnes of CO2e but were offset by 250 m tonnes of carbon credits through GreenPerk program.
Scope 3 emissions from IT hardware purchases were down by 12% to 329 m tonnes of CO2e.

In 2024, DataArt colleagues across Ukraine, Poland, Cyprus and Armenia actively participated in tree-planting initiatives, significantly contributing to environmental sustainability. In spring 2024, DataArt collaborated in planting approximately 11,000 trees across nearly 2,500 hectares in the Shatsky National Natural Park, Ukraine. 

Our Customer Privacy

Customers of DataArt deal with the personal data of their staff and clients. These databases are of different sizes and sensitivity: some may contain names of few natural persons, and some – financial details of hundreds and thousands of users.
   
As a software service provider, DataArt may get access to customers’ databases within the course of service provision. We treat data privacy as one of our core tasks so that customers can rely on us.  
DataArt has established a Personal Data Protection Policy – the latest version of 25/07/2024 –approved by DataArt CCO. The Policy encloses the main principles of personal data management, such as lawfulness, fairness, transparency, purpose limitation, data minimisation, accuracy, storage limitation, accountability, integrity, and confidentiality. 
DataArt ensures compliance with both local and international laws and regulations. The Policy is reinforced by mandatory annual awareness training for all employees and contractors.
DataArt ensures that all relationships involving personal data processing are subject to a documented contract that includes the specific information and terms required by the applicable regulations. At DataArt, appropriate personal data processing responsibilities are distributed between respective groups (such as Delivery Teams, Compliance Department, Information Security Department, etc.).  
Grievance mechanisms for reporting and managing privacy incidents are integral to the contracts and internal procedures. For the covered period, there were no personal data breaches reported.  

Page 5

 
DATAART TECHNOLOGIES UK LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties

The risks identified at a DataArt Group level are detailed below. These may not specifically affect the UK company on a standalone basis, but the ability to deliver services to DataArt Technologies UK Ltd customers utilising the development centre resources would be significantly impacted should the following risk factors arise. 
Our ability to achieve anticipated growth may be impacted, which could result in a significant strain on our management, systems, resources, and overall operations. Additionally, the high pace of our growth increases the demand for specialised skills, making our already significant challenge of high turnover rates an even greater concern. Despite these challenges, we remain committed to finding innovative solutions to ensure the long-term success of our business. 
Infectious disease outbreaks, such as COVID-19 and seasonal influenza, can have a significant impact on our business operations. In addition to the potential direct health risks to our employees, these outbreaks may also lead to government-imposed restrictions on travel and gatherings, which could cause a reduction in business activities. While we take these risks seriously and have implemented measures to protect our employees, we remain optimistic and proactive in our approach to navigating these challenges. 
Our profitability and growth plans may suffer significant adverse impacts if we are unable to efficiently integrate or manage acquired companies, or if acquisitions fail to meet our performance expectations.
Our staff work in a challenging environment where armed conflicts and natural disasters, i.e., earthquakes, are present. We take extra precautions to ensure the safety and security of our team members by closely monitoring potential risks and taking measures to prevent any harm. Our top priority is to keep our staff safe and secure, and we are committed to doing everything possible to minimize any risk of injury or harm caused by military force or natural disasters. 
To maintain profitability, it is essential that we effectively recruit, hire, train, and retain skilled personnel to manage our clients' projects and ensure their satisfaction. Additionally, it is crucial that we make optimal use of our workforce.
The markets where we conduct business, our clientele, and our ability to provide services may all be impacted by acts of violence, such as war, terrorism, or natural and man-made disasters. 
Gender inequality risks are monitored in DataArt in order to prevent the following practices: unequal pay, limited opportunities for advancement, hostile work environment, and lack of representation. 
With the introduction of the UK's net zero target, it's important for DataArt to consider climate-related actions to avoid potential risks for businesses. These could include challenges like managing reputational concerns, navigating regulatory changes, addressing supply chain vulnerabilities, responding to investor expectations, and staying competitive in the evolving landscape.

Future developments

In 2024, DataArt continued to grow steadily, expanding its presence across key markets and strengthening partnerships with clients and technology providers worldwide. As we look ahead to 2025, our focus remains on strategic expansion, deepening industry expertise, and fostering innovation in an ever-evolving technological landscape.
We are committed to broadening our global footprint, with particular emphasis on Latin America and India, where we see strong potential for talent and market growth. Our subsidiary in Bangalore, DataArt Technologies India, will continue to play a vital role in our expansion, allowing us to enhance delivery capabilities and serve clients in new and dynamic ways.
Additionally, we are strengthening our capabilities in AI, data management, and cloud technologies, ensuring that we remain at the forefront of digital transformation for our clients. Our experience has also reinforced that design and user experience is an integral part of technology solutions, and as a result, we are actively working on enhancing this expertise internally to provide even more comprehensive and seamless digital experiences.

Page 6

 
DATAART TECHNOLOGIES UK LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

At the heart of our growth strategy is our commitment to our people and partners. We believe that our global team - its expertise, creativity, and dedication - is what sets us apart. As we expand, we will continue to invest in talent, professional development, and a strong company culture that fosters innovation and collaboration.
 
While we remain agile in responding to market shifts, there are no plans for substantial changes to our business model or day-to-day operations. Instead, we will refine and enhance our capabilities to ensure that DataArt remains a trusted technology partner, helping businesses navigate digital transformation and unlock new opportunities.

Section 172(1) Statement

The Company directors understand and are aware of their duty under section 172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, to have regards (amongst other matters) to: 
 
a)  The likely consequences of any decision in the long term 
b)  The interests of the Company's employees 
c) The need to foster the Company's business relationships with suppliers, customers and others 
d) The impact of the Company's operations on the community and the environment 
e) The desirability of the Company to maintain a reputation for high standards of business conduct and 
f) The need to act fairly as between members of the Company.




This report was approved by the board on 4 April 2025 and signed on its behalf.



Roman Chernyshev
Director

Page 7

 
DATAART TECHNOLOGIES UK LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Principal activity

The principal activity is information technology service activities.

Directors

The directors who served during the year were:

Dmitry Bagrov 
Roman Chernyshev 

Results and dividends

The profit for the year, after taxation, amounted to £6,883,901 (2023 - £5,560,282).

Dividend paid in the year amounted to £nil (2023: £nil). 

Future developments

The company will continue to develop and explore new business markets within the UK and the rest of the world.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 8

 
DATAART TECHNOLOGIES UK LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

It is the Director’s intention to dissolve and have two of their subsidiaries, Lola Tech Holdings Ltd and Lola Tech Limited, struck off from the Companies House Register before the Statutory Financial Statement filing deadline of 30 September 2025. An application to strike-off the companies from the Companies House Register was filed on 14 February 2025 for Lola Tech Holdings Ltd and on 18 February 2025 for Lola Tech Limited. On 25 February 2025, the First Gazette Notice was filed at Companies House in respect of both companies. The Company has impaired the carrying value of the investments in Lola Tech Holdings Ltd and Lola Tech Limited to £Nil in these financial statements. Further details can be found in note 14.

Going concern

The directors have prepared the financial statements on the going concern basis. Please refer note 2.3 to the financial statements for further details.

Auditors

The auditorsWisteria Audit Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 4 April 2025 and signed on its behalf.
 





Roman Chernyshev
Director

Page 9

 
DATAART TECHNOLOGIES UK LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATAART TECHNOLOGIES UK LTD
 

Opinion


We have audited the financial statements of DataArt Technologies UK Ltd (the 'Company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 31 December 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 United Kingdom, including the Financial Reporting Council'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


We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor's opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a 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.
Our evaluation of the directors’ assessment of the entity’s ability to continue to adopt the going concern basis of accounting included obtaining management going concern forecasts for the period covering 12 months from the expected date of signing and gained an understanding of the key assumptions and scenarios.


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 entity'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.


Page 10

 
DATAART TECHNOLOGIES UK LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATAART TECHNOLOGIES UK LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, 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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 8, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 11

 
DATAART TECHNOLOGIES UK LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATAART TECHNOLOGIES UK LTD (CONTINUED)


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 an Auditors' 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:

We obtained an understanding of the legal and regulatory frameworks applicable to the Company, and sector in which they operate.  In addition, we concluded that there are certain significant laws and regulations that may have an effect on the determination of the amounts and disclosures in the financial statements such as: Financial Reporting Standard 102 application in the UK and Republic of Ireland ('United Kingdom Generally Accepted Accounting Practice), Companies Act 2006 and taxations laws.
 
We understood how the Company are complying with those legal and regulatory frameworks through discussions with management and those charged with governance.
 
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur.  Audit procedures performed by the engagement team included:

o identifying and assessing the design effectiveness of controls management has in place to prevent    and detect fraud;
 o understanding how those charged with governance considered and addressed the potential for     override of controls or other inappropriate influence over the financial reporting process;
 o challenging assumptions and judgements made by management in its significant accounting     estimates;
 o identifying and testing journal entries, in particular any journal entries posted with unusual account    combinations; and
 o assessing the extent of compliance with the relevant laws and regulations as part of our procedures   on the related financial statement item.
 
In addition, we completed audit procedures to conclude on the compliance of disclosures in the annual report and accounts with applicable financial reporting requirements.

These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.  The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transaction reflected in the financial statements, the less likely we would become aware of is;

All team members are qualified accountants or working towards that qualification and are considered to have sufficient knowledge and experience of companies of a similar size and complexity, and appropriate to their role within the team.  The engagement team are required to complete mandatory training on an annual basis, thus ensuring the have sufficient knowledge.  
 


Page 12

 
DATAART TECHNOLOGIES UK LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATAART TECHNOLOGIES UK LTD (CONTINUED)


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 Auditors' Report.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Barry Au FCA (Senior Statutory Auditor)
for and on behalf of
Wisteria Audit Ltd
Chartered Accountants & Statutory Auditors
Pikes End
Pinner
Middlesex
HA5 2EX
 

4 April 2025
Page 13

 
DATAART TECHNOLOGIES UK LTD
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
107,680,740
103,635,767

Cost of sales
  
(75,017,281)
(73,838,402)

Gross profit
  
32,663,459
29,797,365

Administrative expenses
  
(18,564,008)
(25,025,614)

Operating profit
 5 
14,099,451
4,771,751

Income from fixed asset investments
 9 
515,619
-

Amounts written off investments
 14 
(6,275,425)
-

Interest receivable and similar income
 10 
758,368
87,815

Profit before tax
  
9,098,013
4,859,566

Tax on profit
 11 
(2,214,112)
700,716

Profit for the financial year
  
6,883,901
5,560,282

The notes on pages 19 to 38 form part of these financial statements.

Page 14

 
DATAART TECHNOLOGIES UK LTD
REGISTERED NUMBER: 04332565

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
6,757
2,374

Tangible assets
 13 
85,675
102,912

Investments
 14 
883
6,224,898

  
93,315
6,330,184

Current assets
  

Debtors: amounts falling due within one year
 15 
24,986,903
31,775,655

Cash at bank and in hand
 16 
29,263,893
7,619,925

  
54,250,796
39,395,580

Creditors: amounts falling due within one year
 17 
(14,446,248)
(12,966,732)

Net current assets
  
 
 
39,804,548
 
 
26,428,848

Total assets less current liabilities
  
39,897,863
32,759,032

  

Net assets
  
39,897,863
32,759,032


Capital and reserves
  

Called up share capital 
 20 
60,100
60,100

Share based payments
 21 
13,231,092
12,976,162

Profit and loss account
 21 
26,606,671
19,722,770

  
39,897,863
32,759,032


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 April 2025.




Roman Chernyshev
Director

The notes on pages 19 to 38 form part of these financial statements.

Page 15

 
DATAART TECHNOLOGIES UK LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Share based payments
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
60,100
5,511,344
14,162,488
19,733,932


Comprehensive income for the year

Profit for the year
-
-
5,560,282
5,560,282

Share based payments
-
7,464,818
-
7,464,818



At 1 January 2024
60,100
12,976,162
19,722,770
32,759,032


Comprehensive income for the year

Profit for the year
-
-
6,883,901
6,883,901

Share based payments
-
254,930
-
254,930


At 31 December 2024
60,100
13,231,092
26,606,671
39,897,863


The notes on pages 19 to 38 form part of these financial statements.

Page 16

 
DATAART TECHNOLOGIES UK LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
6,883,901
5,560,282

Adjustments for:

Amortisation of intangible assets
428
188

Depreciation of tangible assets
53,821
53,649

Dividend received
(229,257)
-

Share based payments
254,930
7,464,818

Interest received
(758,368)
(87,815)

Taxation charge
2,214,112
(700,716)

Decrease/(increase) in debtors
9,772,332
(7,862,501)

Decrease/(increase) in amounts owed by groups
235,641
(226,671)

(Decrease) in creditors
(1,946,024)
(1,733,233)

Increase in amounts owed to groups
698,508
831,424

Increase/(decrease) in provisions
520,983
(990,888)

Corporation tax paid
(2,336,657)
(1,652,126)

Impairment losses
6,224,015
-

Net cash generated from operating activities

21,588,365
656,411


Cash flows from investing activities

Purchase of intangible fixed assets
(7,537)
-

Purchase of tangible fixed assets
(22,836)
(40,535)

Associates loans repaid
(110,000)
(100,000)

Purchase of investments
(791,650)
50,669

Interest received
758,368
87,815

Dividends received
229,257
-

Net cash from investing activities

55,602
(2,051)


Net increase in cash and cash equivalents
21,643,967
654,360

Cash and cash equivalents at beginning of year
7,619,925
6,965,565

Cash and cash equivalents at the end of year
29,263,892
7,619,925


Cash at bank and in hand
29,263,892
7,619,925


The notes on pages 19 to 38 form part of these financial statements.

Page 17

 
DATAART TECHNOLOGIES UK LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

7,619,925

21,643,968

29,263,893


7,619,925
21,643,968
29,263,893

The notes on pages 19 to 38 form part of these financial statements.

Page 18

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

DataArt Technologies UK Limited is a private company limited by share capital, incorporated in England and Wales, registration number 04332565. The address of the registered office is 55 King William Street, London, EC4R 9AD.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Exemption from preparing consolidated financial statements

The Company is a subsidiary company included in the consolidated financial statements of its immediate parent undertaking under Company law and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006. The parent company consolidating is DataArt Enterprises Inc. of 475, Park Avenue, South 9th Floor, New York, 10016.

 
2.3

Going concern

The directors have prepared the financial statements on the going concern basis having projected cashflow and operating forecasts for the business for a period of at least 12 months from the date of signing these financial statements. These support the expected growth of the business and the assumption that it will continue to be cashflow positive in the foreseeable future. The directors reasonably expect there to continue to be sufficient cash resources to be able to pay liabilities as they fall due for at least 12 months from the date of approval of these financial statements.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 19

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.5

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover 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:
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 20

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.9

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 21

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
5 years
Fixtures and fittings
-
3-7 years
Office equipment
-
3 years
Computer equipment
-
3 years

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.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.13

Investments

Investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 22

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
 

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
 

  
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
 

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Page 23

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.





 
Page 24

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 25

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements are in conformity with Generally Accepted Accounting Practice (GAAP) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and their reported amounts of revenues and expenses during the period.
Critical judgments 
 
Share Based Payments

There were critical judgments relating to share-based payment plans in the period. The Company has applied the standard set out by Chapter 23 FRS 102. Shared-based payments are measured at their fair value at the date of grant. 
The fair value of share stock options are measured using the Black-Scholes formula. No services or non-market performance conditions are attached to the grants. Shares granted to employees and contractors are recognised at full price, determined by a third party valuation on the day of the grant. Restricted stock units with non-vesting conditions are measured 50% discount of the fair value at the date of the grant.

Deferred Tax Assets

There were critical judgments related to the recogonition of deferred tax assets in the period. The company has recognised a deferred tax asset on carried forward tax losses to the extent there are sufficient estimated future taxable profits and/or taxable temporary differences against which the tax losses can be utilised.  

Impairment of Investments

Investments are held at cost less impairment and a review of impairment indicators is carried out annually. If any indicators of impairment are identified, a third-party valuation is obtained. Management have not identified any indicators of impairment which would have an impact on the carrying value of the investments at the year end. Therefore, management have judged that it was not necessary to obtain a third-party valuation. Further details can be found in note 14.

Critical estimates
There were no estimates required to be made in preparing the accounts which had, or could have had a
material impact on the accounts.

Page 26

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Software development
107,680,740
103,635,767

107,680,740
103,635,767


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
83,036,346
81,217,703

Rest of Europe
12,633,152
12,762,833

Rest of the world
12,011,242
9,655,231

107,680,740
103,635,767



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Share based payment charge
340,106
8,094,285

Exchange differences
204,533
545,610

Other operating lease rentals
211,283
237,622

Depreciation
53,821
50,220

Amortisation
428
188


6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
24,760
29,420

Fees payable to the Company's auditors and their associates in respect of:

All other services
5,620
6,495

Page 27

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
14,540,215
16,935,081

Social security costs
1,126,502
1,997,437

Cost of defined contribution scheme
309,151
260,706

15,975,868
19,193,224


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
2
2



Administration and support
99
88

101
90


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
1,145,023
1,507,088

1,145,023
1,507,088


The highest paid director received remuneration of £601,926 (2023 - £804,746).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £17,514 (2023 - £12,503).


9.


Income from fixed asset investments

2024
2023
£
£



Dividends received
515,619
-

515,619
-




Page 28

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Interest receivable

2024
2023
£
£


Interest receivable from group companies
-
1,642

Other interest receivable
758,368
86,173

758,368
87,815


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
3,637,233
1,490,725

Adjustments in respect of previous periods with respect to R&D claim
(1,355,368)
-

Foreign tax


Foreign tax on income for the year
-
5,445

Total current tax
2,281,865
1,496,170

Deferred tax


Origination and reversal of timing differences
(67,753)
(2,196,886)

Total deferred tax
(67,753)
(2,196,886)


Taxation on profit/(loss) on ordinary activities
2,214,112
(700,716)
Page 29

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
9,098,013
4,859,566


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
2,274,503
1,214,892

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,564,048
-

Other timing differences leading to an increase (decrease) in taxation
(76,899)
(549,222)

Other differences leading to an increase (decrease) in the tax charge
(184,134)
(650,543)

Group relief
(8,038)
(715,843)

Adjustment in research and development tax credit leading to a decrease in the tax charge
(1,355,368)
-

Total tax charge for the year
2,214,112
(700,716)

Page 30

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Intangible assets




Trademarks

£



Cost


At 1 January 2024
2,700


Additions
6,185


Disposals
(1,700)



At 31 December 2024

7,185



Amortisation


At 1 January 2024
326


Charge for the year on owned assets
428


On disposals
(326)



At 31 December 2024

428



Net book value



At 31 December 2024
6,757



At 31 December 2023
2,374



Page 31

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Tangible fixed assets





Fixtures and fittings
Office equipment
Computer equipment
Leasehold Improvements
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
162,696
10,231
113,033
17,243
303,203


Additions
-
-
37,382
-
37,382


Disposals
-
-
(14,546)
-
(14,546)



At 31 December 2024

162,696
10,231
135,869
17,243
326,039



Depreciation


At 1 January 2024
117,951
9,377
58,881
14,082
200,291


Charge for the year
17,967
854
31,839
3,161
53,821


Disposals
-
-
(13,748)
-
(13,748)



At 31 December 2024

135,918
10,231
76,972
17,243
240,364



Net book value



At 31 December 2024
26,778
-
58,897
-
85,675



At 31 December 2023
44,745
854
54,152
3,161
102,912

Page 32

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2024
6,224,898



At 31 December 2024

6,224,898



Impairment


Charge for the period
6,224,015



At 31 December 2024

6,224,015



Net book value



At 31 December 2024
883



At 31 December 2023
6,224,898


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Lola Tech Holdings Limited
55 King William Street, 3rd Floor, London, England, EC4R 9AD
Ordinary
100%
Lola Tech Limited
55 King William Street, 3rd Floor, London, England, EC4R 9AD
Ordinary
100%
DataArt Tech Romania SRL
1 Doctor Victor Deleu street, Domus Business, Center Building, 2nd & 3rd floor, Cluj Napoca Cluj, Romania.
Ordinary
100%

Page 33

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Lola Tech Holdings Limited
101
(1,460,226)

Lola Tech Limited
101
2,073,801

DataArt Tech Romania SRL (formerly Lola Tech Romania SRL)
406,482
406,316

Lola Tech Holdings Limited and Lola Tech Limited have been dissolved post year end.


15.


Debtors

2024
2023
£
£


Trade debtors
8,650,201
11,642,884

Amounts owed by group undertakings
274,483
532,442

Other debtors
4,664,077
9,873,798

Prepayments and accrued income
8,097,807
6,493,949

Deferred taxation (note 19)
3,300,335
3,232,582

24,986,903
31,775,655


Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
The deferred tax includes a deferred tax asset of £3,311,794 (2023: £3,244,041), which relates to the Restricted Stock Units (RSU's) granted to UK employees in the prior year and a deferred tax liability of £11,459 (2023: £11,459).


16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
29,263,893
7,619,925

29,263,893
7,619,925


Page 34

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
1,067,601
2,650,491

Amounts owed to group undertakings
3,553,934
2,565,215

Corporation tax
3,849,183
953,461

Other taxation and social security
3,011,058
2,960,672

Other creditors
563,394
1,668,629

Accruals and deferred income
2,401,078
2,168,264

14,446,248
12,966,732


Amounts owed to group undertakings are unsecured, interest free and repayable on demand.


18.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at amortised cost
29,263,893
7,619,925

Financial assets that are debt instruments measured at amortised cost
8,740,872
11,984,110

38,004,765
19,604,035


Financial liabilities


Financial liabilities measured at amortised cost
4,621,535
5,211,078


Financial assets measured at amortised cost comprise cash and cash equivalents.


Financial assets that are debt instruments measured at amortised cost comprise trade debtors and amounts owed by group undertakings.


Financial liabilities measured at amortised cost comprise trade creditors and amounts owed to group undertakings.

Page 35

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Deferred taxation




2024


£






At beginning of year
3,232,582


Charged to profit or loss
67,753



At end of year
3,300,335

The deferred tax asset is made up as follows:

2024
2023
£
£


Restricted Stock Units granted
3,300,335
3,232,582

3,300,335
3,232,582


20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023 - 1) Ordinary share of £60,100
60,100
60,100



21.


Reserves

Share based payments

This reserve recognises equity settled in the Restricted Stock Unit (RSU) option incentive scheme.

Profit and loss account

All current and prior period retained earnings.

Page 36

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

22.


Share based payments

The company operates an equity settled Performance Share Plan for employees.  In accordance with the scheme rules, options are excerisable at a nominal valuet to all vesting conditions being met. The vesting conditions are continued employment and the ultimate parent company acheiving a succesful Initial Public Offering. The options expire twelve years after the grant date. There were no changes to the terms of the plan during the year.
The share based payment charge has been disclosed in note 5.
The number and weighted average exercise prices of share optons are as follows:

Weighted average exercise price (pence)
2024
Number
2024
Weighted average exercise price
(pence)
2023
Number
2023

Outstanding at the beginning of the year

100

140,856

100
 
97,177
 
Granted during the year

100

9,095

100
 
43,679
 
Outstanding at the end of the year
100

149,951

100
 
140,856
 




23.


Pension commitments

The entity contributes into a defined contribution personal pension plan. The pension cost charge represents contributions payable by the entity to the fund and amounted to £183,736 (2023: £143,573). There were no contributions outstanding at the end of year or prior year.


24.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
259,480
237,524

Later than 1 year and not later than 5 years
956,671
-

1,216,151
237,524

Page 37

 
DATAART TECHNOLOGIES UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

25.


Post balance sheet events

It is the Director’s intention to dissolve and have two of their subsidiaries, Lola Tech Holdings Ltd and Lola Tech Limited, struck off from the Companies House Register before the Statutory Financial Statement filing deadline of 30 September 2025. An application to strike-off the companies from the Companies House Register was filed on 14 February 2025 for Lola Tech Holdings Ltd and on 18 February 2025 for Lola Tech Limited. On 25 February 2025, the First Gazette Notice was filed at Companies House in respect of both companies. The Company has impaired the carrying value of the investments in Lola Tech Holdings Ltd and Lola Tech Limited to £Nil in these financial statements. Further details can be found in note 14.


26.


Controlling party

The company's immediate parent company is DataArt London Ltd a company incorporated in England & Wales. The company's ultimate controlling party is DataArt Enterprises, Inc, a company incorporated in the USA.

Page 38