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4C Europe UK Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2024

 

4C Europe UK Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Statement of Income and Retained Earnings

11

Statement of Financial Position

12

Notes to the Financial Statements

13 to 22

 

4C Europe UK Limited

Company Information

Directors

J Jonsson

A Nordgren

P Steel

Registered office

Nova North
11 Bressenden Place
London
SW1E 5BY

Independent
Auditor

Shaw Gibbs (Audit) Limited
Statutory Auditor
Salatin House
19 Cedar Road
Sutton
Surrey
SM2 5DA

 

4C Europe UK Limited

Strategic Report for the Year Ended 31 December 2024

The directors present their strategic report on the affairs of 4C Europe UK Limited for the year ended 31 December 2024.

Principal activity
The principal activity of the company is the sales and delivery of training readiness and organisational resilience solutions in the UK and Ireland. The company provides customers with software developed by its parent company, 4C Group AB, complemented by locally delivered expert services. Through the innovative Exonaut® platform and associated consultancy offerings, the company supports capability development, risk management, crisis management, and business continuity for public sector, private sector, and defence clients.

Fair review of the business

During the year the revenue increased by 3% to £12,263,978 with a decrease in gross profit by 4% to
£7,524,195. Profit after tax has increased in the year to £110,694 (2023: £69,543) 4C Europe UK Ltd continued to strengthen its position during 2024, with growing demand for both defence and resilience solutions. The UK Ministry of Defence remains an important customer, and during the year an important contract was not only renewed but also expanded in scope. In addition, key agreements with NATO were extended and new opportunities were secured across both public and private sector clients. This development has contributed to a stable foundation for future growth.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£000

12,263

11,851

Gross profit

£000

7,524

7,798

Gross profit margin

%

61

66

Profit after tax

£000

110

69

Principal risks and uncertainties

The company's principal risks are linked to macroeconomic and geopolitical developments, which can impact customer decision-making and procurement cycles, particularly within the defence sector. A significant share of revenue is derived from government and defence clients, meaning changes in public sector budgets or defence spending could affect future revenues. The company is also exposed to risks related to currency fluctuations, cybersecurity, and the ability to keep pace with technological developments. Management continuously monitors these risks and adjusts the company’s operations and offerings accordingly.

Future developments
The company's products and services are more relevant than ever, driven by an increased focus on training readiness, resilience, and defence capabilities across both the public and private sectors. We expect this to continue supporting growth in the UK market as well as in other markets addressed through 4C Europe UK Ltd. The ongoing investment in innovation, particularly within AI-enabled solutions and the Exonaut® platform, further strengthens the company's ability to meet evolving customer needs. Management remains confident that these trends, combined with a strong customer base and strategic partnerships, provide a solid foundation for future growth.

 

4C Europe UK Limited

Strategic Report for the Year Ended 31 December 2024 (continued)

Approved and authorised by the Board on 29 April 2025 and signed on its behalf by:
 

.........................................
J Jonsson
Director

 

4C Europe UK Limited

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.

Strategic Report
The directors have included the following disclosure required by s414C(11) in the Strategic Report: Future developments. It forms part of this report by cross reference.

Directors of the company

The directors who held office during the year and up to the date of approval of this report were as follows:

S M Bergqvist (resigned 1 June 2024)

H A Hedskog (resigned 1 June 2024)

J Jonsson

A Nordgren (appointed 1 June 2024)

P Steel (appointed 1 June 2024)


Financial risk management
 

Credit risk
The company is exposed to credit risk, which is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Exposure to credit risk arises from trade and other receivables and cash and cash equivalents. The company has developed procedures to ensure that the sale of goods are made only to customers with an appropriate credit history. Customers who do not meet the company's credit requirements may only conduct transactions with the company on a prepayment basis.The risk to cash and cash equivalents is managed by dealing only with major banks and financial institutions with appropriate credit ratings.

Liquidity risk
Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities. The company finances its operations through a mixture of retained profits and borrowings from its parent entity. The company therefore has limited liquidity risk exposure and given the size and nature of the company, liquidity risks are managed by the Group finance department.

 

4C Europe UK Limited

Directors' Report for the Year Ended 31 December 2024 (continued)

Going concern

The directors have considered the company’s financial position, liquidity and future performance together with financial projections for the company and over the foreseeable future and have also reviewed the ongoing committed financial support from the company's parent undertaking and are confident that this will be available for the foreseeable future. After making enquiries, the directors are satisfied that the company has sufficient resources to continue in operation for the foreseeable future, being at least 12 months from the date of signing the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the company’s financial statements.

4C Europe UK Limited is reliant on the support of 4C Group AB as the parent company which is committed to the UK market and has demonstrated its support through a letter of support.

Events after the financial period

There have been no significant events between the year end and the date of approval of these financial statements which would require a change to, or disclosure in, the financial statements.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information (as defined by section 418 of the Companies Act 2006) and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Shaw Gibbs (Audit) Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 29 April 2025 and signed on its behalf by:
 

.........................................
J Jonsson
Director

 

4C Europe UK Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law),including FRS 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 and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

4C Europe UK Limited

Independent Auditor's Report to the Member of
4C Europe UK Limited

Opinion

We have audited the financial statements of 4C Europe UK Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

4C Europe UK Limited

Independent Auditor's Report to the Member of
4C Europe UK Limited (continued)

We have nothing to report in this regard.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

 

4C Europe UK Limited

Independent Auditor's Report to the Member of
4C Europe UK Limited (continued)

The extent to which the audit was considered capable of detecting irregularities including fraud

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements;

we obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the laws and regulations applicable to the company through discussions with directors and other management, and from our cumulative audit and commercial knowledge and experience of the company.

we focused on specific laws and regulations which we considered may have a direct material effect on the determination of material amounts and disclosures the financial statements or the operations of the company, including the Companies Act 2006, The Equality Act 2010, General Data Protection Rules (GDPR), taxation legislation, anti-bribery, employment law and health and safety legislation. We also considered and identified laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty, including the Bribery Act and the Data Protection Act 2018;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal and regulatory correspondence;

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

 

We are also required to perform specific procedures to respond to the risk of management bias and override of controls. To address this, we performed analytical procedures to identify any unusual or unexpected relationships and tested journal entries to identify unusual transactions.

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statements to disclosures underlying supporting documentation;

enquiring of management as to actual and potential litigation and claims; and

reviewing correspondence with HMRC, analysing legal costs to ascertain if there have been instances of non-compliance with laws and regulations.

 

4C Europe UK Limited

Independent Auditor's Report to the Member of
4C Europe UK Limited (continued)

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s member, 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 member those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s member as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Ransford Agyei-Boamah (Senior Statutory Auditor)
For and on behalf of Shaw Gibbs (Audit) Limited, Statutory Auditor

Salatin House
19 Cedar Road
Sutton
Surrey
SM2 5DA

29 April 2025

 

4C Europe UK Limited

Statement of Income and Retained Earnings
for the Year Ended 31 December 2024

Note

2024
£

2023
£

Revenue

3

12,263,978

11,851,843

Cost of sales

 

(4,739,783)

(4,053,511)

Gross profit

 

7,524,195

7,798,332

Selling and marketing costs

 

(5,843,955)

(5,220,640)

Administrative expenses

 

(1,519,412)

(2,478,821)

Operating profit

4

160,828

98,871

Other interest receivable and similar income

5

108

1,854

Profit before tax

 

160,936

100,725

Taxation

9

(43,976)

(31,182)

Profit for the financial year

 

116,960

69,543

Retained earnings brought forward

 

1,187,638

1,118,095

Retained earnings carried forward

 

1,304,598

1,187,638

 

4C Europe UK Limited

(Registration number: 07450958)
Statement of Financial Position as at 31 December 2024

Note

2024
£

2023
£

Non current assets

 

Property, plant and equipment

10

27,247

29,492

Receivables

11

4,126,257

-

 

4,153,504

29,492

Current assets

 

Receivables

11

4,052,952

7,840,534

Cash at bank and in hand

12

578,375

1,588,012

 

4,631,327

9,428,546

Payables: Amounts falling due within one year

13

(7,480,232)

(8,270,399)

Net current (liabilities)/assets

 

(2,848,905)

1,158,147

Net assets

 

1,304,599

1,187,639

Equity

 

Called up share capital

15

1

1

Retained earnings

15

1,304,598

1,187,638

Shareholders' funds

 

1,304,599

1,187,639

The financial statements of 4C Europe UK Limited were approved and authorised for issue by the Board on 29 April 2025 and signed on its behalf by:
 

.........................................

J Jonsson
Director

 

4C Europe UK Limited

Notes to the Financial Statements
for the Year Ended 31 December 2024

1

General information

4C Europe UK Limited (the 'company') is a private company limited by share capital, registered in England and Wales under the Companies Act. The address of the registered office is given on page 1. The nature of the company’s operations and its principal activities are set out in the directors' report on page 2.

2

Accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

The directors have considered the company’s financial position, liquidity and future performance together with financial projections for the company and over the foreseeable future and have also reviewed the ongoing committed financial support from the company's parent undertaking and are confident that this will be available for the foreseeable future. After making enquiries, the directors are satisfied that the company has sufficient resources to continue in operation for the foreseeable future, being at least 12 months from the date of signing the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the company’s financial statements.

4C Europe UK Limited is reliant on the support of 4C Group AB as the parent company which is committed to the UK market and has demonstrated its support through a letter of support.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and in accordance with the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The functional currency of the company is considered to be pounds sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pounds sterling (£).

Summary of disclosure exemptions

The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. The company is consolidated in the financial statements of its parent, 4C Group AB, which may be obtained from Vattugatan17, Box 7637,103 94, Stockholm, Sweden. Exemptions have been taken in these separate company financial statements in relation to financial instruments, presentation of a cash flow statement, transactions with group entities and remuneration of key management personnel.

 

4C Europe UK Limited

Notes to the Financial Statements
for the Year Ended 31 December 2024 (continued)

2

Accounting policies (continued)

Critical judgements and key sources of estimation uncertainties

The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are discussed below.

Accrued income
The company establishes a receivable for revenue earned from the provision of services but not yet invoiced by the year end based on underlying contractual agreements in place; this receivable is computed by estimating the extent of completion or performance of the related work and when the amount is earned. Accrued revenue at 31 December 2024 was £3,026,075 (2023 - £4,097,902).

Revenue recognition

The company performs an individual assessment for each customer contract in order to allocate the purchase price to the various performance obligations.

Revenue represents the value of services provided during the year, net of value added tax. Turnover
is recognised as follows:
(i) Licence fees - recognised on the date the license key is transferred to the customer at the contractually agreed fixed price.
(ii) Sale of service and support agreements - recognised using an input method based on time spent and/or cost as well as upgrades. Input is verified through individual assessments for the majority of support agreements. Specified upgrades normally take place at contract renewal and are deemed to be distinct. The allocated revenue is recognised when the upgrade is carried out. Where the company’s commitments consist of an indefinite number of activities over the contract period, revenue is recognised on a straight-line basis over the duration of the contract.
(iii) Sale of software as a service - recognised over time as the service is performed (time input method) at the agreed prices.
(iv) Development and management services - these services are provided on a recurring basis or as fixed price contract and revenue is recognised over time as the service is performed (time input method) at the agreed prices.

Tax

The tax expense for the period comprises current tax. Tax is recognised in the statement of income and retained earnings, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

 

4C Europe UK Limited

Notes to the Financial Statements
for the Year Ended 31 December 2024 (continued)

2

Accounting policies (continued)

Property, plant and equipment

Property, plant and equipment are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Computer equipment

3 years straight line basis

Fixtures and fittings

4 years straight line basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and at bank and are subject to an insignificant risk of change in value.

Receivables

Trade and other receivables that are receivable within one year and do not constitute a financing
transaction are recorded at the undiscounted amount expected to be received, net of impairment.
Those that are receivable after more than one year or that constitute a financing transaction are
recorded initially at fair value less transaction costs and subsequently at amortised cost, net of
impairment.

Payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade and other payables are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade and other payables that are payable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be paid. Those that are payable after more than one year or that constitute a financing transaction are recorded initially at transaction price and subsequently at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the statement of income and retained earnings on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

4C Europe UK Limited

Notes to the Financial Statements
for the Year Ended 31 December 2024 (continued)

2

Accounting policies (continued)

Defined contribution pension obligation

The company operates a defined contribution pension scheme. The assets of the schemes are held separately from those of the company. Contributions are recognised in the income statement in the period in which they become payable.

Share based payments

The company's parent undertaking, 4C Group AB, operates an option rights plan for its key employees which entitles these employees (including the company's employees) to acquire shares in the parent. The required disclosures and related costs are therefore included in 4C Group AB's consolidated financial statements. No associated costs were recharged by the group in the current or preceding year.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

2024
£

2023
£

Sale of licences

4,637,779

3,825,331

Rendering of services

4,731,083

5,798,945

Other revenue

2,895,116

2,227,567

12,263,978

11,851,843

4

Operating profit

Arrived at after charging

2024
£

2023
£

Depreciation expense

14,333

19,066

Operating lease expense - property

411,461

378,715

5

Interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

-

1,854

Other interest receivable

108

-

108

1,854

 

4C Europe UK Limited

Notes to the Financial Statements
for the Year Ended 31 December 2024 (continued)

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

4,064,880

3,482,512

Social security costs

499,268

420,060

Pension costs, defined contribution scheme

194,646

142,072

4,758,794

4,044,644

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

7

6

Sales, marketing and distribution

45

45

52

51

7

Key management compensation

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

487,668

239,086

Contributions paid to money purchase schemes

36,991

8,875

524,659

247,961

In respect of the highest paid director:

2024
£

2023
£

Remuneration

379,522

239,086

 

4C Europe UK Limited

Notes to the Financial Statements
for the Year Ended 31 December 2024 (continued)

8

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

6,000

5,500

Other fees to auditors

All other non-audit services

3,000

2,735

9

Taxation

Tax charged/(credited) in the income statement

2024
£

2023
£

Current taxation

UK corporation tax - current year

43,976

31,182

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

160,936

100,725

Corporation tax at standard rate

40,234

25,181

Decrease from effect of different UK tax rates on some earnings

-

(1,954)

Effect of expense not deductible in determining taxable profit (tax loss)

2,117

3,098

Tax increase from effect of capital allowances and depreciation

339

4,335

Tax increase from other short-term timing differences

1,286

522

Total tax charge

43,976

31,182

 

4C Europe UK Limited

Notes to the Financial Statements
for the Year Ended 31 December 2024 (continued)

10

Property, plant and equipment

Fixtures and fittings
 £

Computer equipment
£

Total
£

Cost

At 1 January 2024

61,879

70,844

132,723

Additions

-

12,088

12,088

At 31 December 2024

61,879

82,932

144,811

Depreciation

At 1 January 2024

38,233

64,998

103,231

Charge for the year

9,861

4,472

14,333

At 31 December 2024

48,094

69,470

117,564

Carrying amount

At 31 December 2024

13,785

13,462

27,247

At 31 December 2023

23,646

5,846

29,492


 

11

Receivables

Non-current

2024
£

2023
£

Accrued income

4,126,257

-

 

4,126,257

-

Current

2024
£

2023
£

Trade receivables

114,743

1,211,954

Amounts owed by group undertakings

631,226

2,328,483

Other receivables

103,825

86,052

Corporation tax

-

22,548

Prepayments

177,083

93,595

Accrued income

3,026,075

4,097,902

 

4,052,952

7,840,534

 

4C Europe UK Limited

Notes to the Financial Statements
for the Year Ended 31 December 2024 (continued)

11

Receivables (continued)

The amount owed by group undertaking disclosed as falling within one year are unsecured, payable on demand and is non-interest bearing.

12

Cash and cash equivalents

2024
£

2023
£

Cash at bank

578,375

1,588,012

13

Payables

2024
£

2023
£

Due within one year

Trade payables

147,746

39,778

Amounts due to group undertakings

4,898,929

5,664,506

Social security and other taxes

595,184

725,873

Corporation tax

21,430

-

Outstanding defined contribution pension costs

55,018

21,105

Other payables

12,215

36,880

Accruals and deferred income

1,749,710

1,782,257

7,480,232

8,270,399

The amounts owed to group undertakings disclosed as falling within one year are unsecured, payable on demand and are non-interest bearing.

14

Pension schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £194,646 (2023 - £142,072).

Contributions totalling £55,018 (2023 - £21,105) were payable to the scheme at the end of the year and are included in payables.

 

4C Europe UK Limited

Notes to the Financial Statements
for the Year Ended 31 December 2024 (continued)

15

Share capital and reserves

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary share of £1

1

1

1

1

         

Reserves

The retained earnings reserve represents cumulative profit or losses net of dividends paid and other adjustments.

16

Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

403,944

412,634

Later than one year and not later than five years

292,284

725,669

696,228

1,138,303

The amount of non-cancellable operating lease payments recognised as an expense during the year was £411,461 (2023 - £378,715).

17

Share-based payments

Scheme details and movements
The company's parent undertaking, 4C Group AB, operates an option rights plan for its key employees which entitles these employees (including the company's employees) to acquire shares in the parent undertaking.

The entity is part of a group share-based payment scheme and it recognises and measures its share-based payment expense on the basis of a reasonable allocation of the expense recognised for the group. The company has taken taken advantage of the disclosure exemptions provided by FRS 102 as required disclosures are included in 4C Group AB's consolidated financial statements. The company measures its share-based payment expense as a proportion of the expense recognised for the entire share-based payment scheme based on the entitlements of its employees participating in the scheme. No associated costs were recharged by the group in the current or preceding year.

 

4C Europe UK Limited

Notes to the Financial Statements
for the Year Ended 31 December 2024 (continued)

18

Parent and ultimate parent undertaking

The company's parent is 4C Group AB, incorporated in Sweden.

 The most senior parent entity producing publicly available financial statements is 4C Group AB. These financial statements are available upon request from Vattugatan 17, Box 7637, 103 94, Stockholm, Sweden.

 The ultimate controlling party is 4C Group AB.

19

Related party transactions

The company is a wholly owned subsidiary member of its group and has therefore taken advantage of the provisions of Section 33. 1A of FRS 102 the "The Financial Reporting Standard applicable in the UK and Republic of Ireland" not to disclose transactions with entities that are wholly owned members
of the group.

There were no other related party transactions to disclose.

 

20

Events after the financial period

There have been no significant events between the year end and the date of approval of these financial statements which would require a change to, or disclosure in, the financial statements.