Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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DATAART TECHNOLOGIES UK LTD
COMPANY INFORMATION
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DATAART TECHNOLOGIES UK LTD
CONTENTS
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DATAART TECHNOLOGIES UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
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.
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DATAART TECHNOLOGIES UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
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)
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.
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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.
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.
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
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DATAART TECHNOLOGIES UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
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.
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DATAART TECHNOLOGIES UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
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.
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DATAART TECHNOLOGIES UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
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.
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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.
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.
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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.
The directors who served during the year were:
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).
The company will continue to develop and explore new business markets within the UK and the rest of the world.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 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.
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DATAART TECHNOLOGIES UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
The directors have prepared the financial statements on the going concern basis. Please refer note 2.3 to the financial statements for further details.
The auditors, Wisteria Audit Ltd, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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DATAART TECHNOLOGIES UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATAART TECHNOLOGIES UK LTD
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 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).
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.
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.
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DATAART TECHNOLOGIES UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATAART TECHNOLOGIES UK LTD (CONTINUED)
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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.
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.
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DATAART TECHNOLOGIES UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATAART TECHNOLOGIES UK LTD (CONTINUED)
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.
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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.
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 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
Pikes End
Middlesex
HA5 2EX
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DATAART TECHNOLOGIES UK LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
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DATAART TECHNOLOGIES UK LTD
REGISTERED NUMBER: 04332565
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 19 to 38 form part of these financial statements.
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DATAART TECHNOLOGIES UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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DATAART TECHNOLOGIES UK LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DATAART TECHNOLOGIES UK LTD
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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
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:
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.
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.
Functional and presentation currency
Transactions and balances
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
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:
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.
Investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
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.
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.
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (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.
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (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.
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Critical judgments 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. 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. Critical estimates There were no estimates required to be made in preparing the accounts which had, or could have had a
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Analysis of turnover by country of destination:
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Subsidiary undertakings (continued)
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Share based payments
Profit and loss account
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
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DATAART TECHNOLOGIES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
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