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d:PriorPeriodErrorIncreaseDecrease 2023-01-01 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 06907257










CLOUD 21 LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
CLOUD 21 LIMITED
 

COMPANY INFORMATION


Directors
B Aichinger (resigned 1 October 2024)
B D Cahill 
T P Corkett (resigned 11 November 2024)
R A Wixson 
K J Dean (appointed 11 November 2024)
N Gasco (appointed 11 November 2024)




Registered number
06907257



Registered office
Suite 1
40 Churchill Square

Kings Hill

West Malling

Kent

ME19 4YU




Independent auditors
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS





 
CLOUD 21 LIMITED
 

CONTENTS



Page
Group strategic report
1 - 3
Directors' report
4 - 5
Independent auditors' report
6 - 9
Consolidated statement of comprehensive income
10
Consolidated balance sheet
11
Company balance sheet
12
Consolidated statement of changes in equity
13
Company statement of changes in equity
14
Consolidated statement of cash flows
15
Consolidated analysis of net debt
16
Notes to the financial statements
17 - 38


 
CLOUD 21 LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The Directors present their strategic report and financial statements for the year ending 31 December 2024.
Principal activities and business review
Cloud21 Limited (‘the Company’) is a company incorporated and domiciled in the UK. The Company’s registered office is Suite 01, 40 Churchill Square, Kings Hill, West Malling ME19 4YU.
The principal activities of the Company are to provide dedicated IT professional services and support to a growing client base predominantly in UK healthcare. The company is committed to delivering professional and managed services, consulting, software, and complex technology solutions.
The Company has developed an extensive portfolio of services and solutions in response to the needs of our clients across health and social care.
The company is owned by Tegria, USA.

Business review
 
These results are for January 2024 to December 2024. These are set out in the Statement of Comprehensive Income on page 10. Turnover for the year was £33m (2023: £29m). The Group reported a profit for the year ending December 2024 of £1.1m  (2023: £1m).
Principal risks and uncertainties
The Company maintains a risk register as part of its risk management strategy processes. These are discussed at quarterly risk workshops and through the business performance management process.  The strategic risks are reported and discussed at the Company Board.
The growth in sales has resulted in the business moving from a SME category to a medium sized business and as such the Company’s ability to mature its culture, systems and processes remains a key risk. There is planned investment in business application systems to support the maturity development of the business processes. In addition, there is an Executive Leadership led cultural change programme to support and mitigate. This includes maturing the cost consciousness of the business to balance the need to invest in the company and deliver the requisite profit targets.
There has been management and investment made to increase the strength and depth of the senior leadership which has led to the forming of a new Executive Leadership Team. To support the development of a highly functioning strategic leadership team investment has been made in leadership development. In addition, there is further work to on organisational design and talent spotting to ensure the business continues to have highly skilled and respected leaders.
The Company recognises the importance of the health, safety, and welfare of its staff. Investment has been made in the people team to ensure that people management best practice is embedded and there is a focus on staff wellbeing. There is now an ELT led Company’s Reward Strategy Group to ensure that the Company is attractive to recruit and retain high quality staff in a tight labour market.
Most of the Company’s income is from a steady repeated customer base, there remains a potential risk in the lack of diversifying this customer base. This is being mitigated by investment on the Commercial Team and reviewing the Company’s ‘go to market’ strategy that meets the NHS requirements and funding streams to deliver it digital maturity strategy.

Page 1

 
CLOUD 21 LIMITED
 

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

 
Financial Risk
The key financial risk facing a growing company is cashflow. To manage this risk the Company monitors its debtors and sets annual budgets and forecasts, which are reviewed monthly and updated on a half yearly basis.
 
Pension Liabilities
Details of the pension liabilities and administration of the pension scheme are shown in the note 24 of the financial statements. 
Employees
Employees are encouraged to maximise their contribution to the Company and the wider NHS. The company has achieved the Investors in People standard. There is an internal communication plan that has been revamped to address the needs of a growing business to ensure there are robust communication channels for policies, business performance and other matters of concern to them. The views of employees are considered when making decisions that might affect their interests. All employees are eligible to participate in a defined contribution pension scheme.
Equality and Diversity
The Company continues to review its Talent acquisition policy such that the Company employs the best candidate in every position, regardless of gender, ethnic group, or background. This includes recruitment and on-going promotion with the Company.
Political and Charitable contributions
During the year ending December 2024 the company made charitable contributions amounting to £0. No political contributions were made.
Streamlined Energy and Carbon Reporting (SECR)
The company now has a Corporate Social Responsibility (CSR) strategy and plan this includes its Environmental Management system and carbon reduction plan.
Future developments
The Company is actively looking at increasing its scope of services for the broader healthcare market. The Company continues to successfully expand the portfolio of services on offer. The Company is aiming to acquire new customers for its services in the UK and internationally. 

Page 2

 
CLOUD 21 LIMITED
 

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

 
Directors’ statement of compliance with duty to promote the success of the Company
The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they, consider in good faith, would be most likely to promote the success of the Company for the benefit of its members. In doing so, the Directors consider a range of matters when making decisions for the long term. Key decisions and matters that are of strategic importance to the Company are appropriately informed by s172 factors.
The Board and senior leadership team make decisions with a long-term view. There is an open dialogue with shareholders through group meetings, one to one meetings and quarterly Board meetings, covering a wide range of subject matter. The shareholder views and feedback are considered in decision making.
We have built a strong service-oriented relationships with our customers, with the focus around their requirements and customer satisfaction. There is emphasis on continually improving our service offer to our customers and adding value. To achieve this the senior leadership team are taking the time to understand the real and perceive need of our primary customer, the NHS. The NHS is focussing on increasing the digital maturity of organisations, this is demonstrated by the investment in electronic patient record systems and initiatives such as front-line digital which the Company are involved.


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



................................................
K J Dean
Director

Date: 6 May 2025

Page 3

 
CLOUD 21 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,077,063 (2023 - £1,004,427).

Directors

The directors who served during the year were:

B Aichinger (resigned 1 October 2024)
B D Cahill 
T P Corkett (resigned 11 November 2024)
R A Wixson 
K J Dean (appointed 11 November 2024)
N Gasco (appointed 11 November 2024)

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 and the Group'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 and the Group's auditors are aware of that information.

Auditors

The auditorsJames Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 4

 
CLOUD 21 LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

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





................................................
K J Dean
Director

Date: 6 May 2025

Page 5

 
CLOUD 21 LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLOUD 21 LIMITED
 

Opinion


We have audited the financial statements of Cloud 21 Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company 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 Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's 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 Group 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


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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Other information


The 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.


Page 6

 
CLOUD 21 LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLOUD 21 LIMITED (CONTINUED)


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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 4, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
CLOUD 21 LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLOUD 21 LIMITED (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 Group financial statements.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
 
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.


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.


Page 8

 
CLOUD 21 LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLOUD 21 LIMITED (CONTINUED)


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.





Darren O'Connor BSc(Hons) FCCA ACA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS

9 May 2025
Page 9

 
CLOUD 21 LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
33,045,988
28,508,962

Cost of sales
  
(21,597,028)
(20,334,365)

Gross profit
  
11,448,960
8,174,597

Administrative expenses
  
(9,830,820)
(6,831,615)

Operating profit
 5 
1,618,140
1,342,982

Interest receivable and similar income
  
22,960
45,458

Interest payable and similar expenses
  
(27,346)
(14,694)

Profit before tax
  
1,613,754
1,373,746

Tax on profit
 9 
(536,691)
(369,319)

Profit for the financial year
  
1,077,063
1,004,427

Profit for the year attributable to:
  

Owners of the parent company
  
1,077,063
1,004,427

  
1,077,063
1,004,427

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 17 to 38 form part of these financial statements.

Page 10

 
CLOUD 21 LIMITED
REGISTERED NUMBER: 06907257

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
3,645,306
1,938,191

Tangible assets
 12 
166,683
141,308

  
3,811,989
2,079,499

Current assets
  

Debtors: amounts falling due within one year
 14 
4,800,467
8,168,014

Cash at bank and in hand
 15 
5,192,110
3,250,340

  
9,992,577
11,418,354

Creditors: amounts falling due within one year
 16 
(9,269,518)
(10,447,235)

Net current assets
  
 
 
723,059
 
 
971,119

Total assets less current liabilities
  
4,535,048
3,050,618

Creditors: amounts falling due after more than one year
 17 
(500,000)
(71,029)

Provisions for liabilities
  

Deferred taxation
 20 
-
(21,604)

  
 
 
-
 
 
(21,604)

Net assets
  
4,035,048
2,957,985


Capital and reserves
  

Called up share capital 
 21 
350,950
350,950

Capital redemption reserve
 22 
(12,500)
(12,500)

Profit and loss account
 22 
3,696,598
2,619,535

  
4,035,048
2,957,985


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
K J Dean
Director

Date: 6 May 2025

The notes on pages 17 to 38 form part of these financial statements.

Page 11

 
CLOUD 21 LIMITED
REGISTERED NUMBER: 06907257

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
5,279,568
3,066,969

Tangible assets
 12 
161,036
133,845

Investments
 13 
275
100

  
5,440,879
3,200,914

Current assets
  

Debtors: amounts falling due within one year
 14 
4,797,962
6,801,773

Cash at bank and in hand
 15 
5,178,197
3,042,833

  
9,976,159
9,844,606

Creditors: amounts falling due within one year
 16 
(9,172,596)
(10,388,891)

Net current assets/(liabilities)
  
 
 
803,563
 
 
(544,285)

Total assets less current liabilities
  
6,244,442
2,656,629

  

Creditors: amounts falling due after more than one year
 17 
(500,000)
(71,029)

Provisions for liabilities
  

Deferred taxation
 20 
-
(20,212)

  
 
 
-
 
 
(20,212)

Net assets
  
5,744,442
2,565,388


Capital and reserves
  

Called up share capital 
 21 
350,950
350,950

Capital redemption reserve
 22 
(12,500)
(12,500)

Profit and loss account
 22 
5,405,992
2,226,938

  
5,744,442
2,565,388


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
K J Dean
Director

Date: 6 May 2025

The notes on pages 17 to 38 form part of these financial statements.

Page 12

 
CLOUD 21 LIMITED
 

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


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2024
350,950
(12,500)
2,619,535
2,957,985


Comprehensive income for the year

Profit for the year
-
-
1,077,063
1,077,063


At 31 December 2024
350,950
(12,500)
3,696,598
4,035,048


The notes on pages 17 to 38 form part of these financial statements.


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023 (as previously stated)
350,950
(12,500)
1,650,727
1,989,177

Prior year adjustment
-
-
(35,619)
(35,619)

At 1 January 2023 (as restated)
350,950
(12,500)
1,615,108
1,953,558


Comprehensive income for the year

Profit for the year
-
-
1,004,427
1,004,427


At 31 December 2023
350,950
(12,500)
2,619,535
2,957,985


The notes on pages 17 to 38 form part of these financial statements.

Page 13

 
CLOUD 21 LIMITED
 

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


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2024
350,950
(12,500)
2,226,938
2,565,388


Comprehensive income for the year

Profit for the year
-
-
3,179,054
3,179,054


At 31 December 2024
350,950
(12,500)
5,405,992
5,744,442


The notes on pages 17 to 38 form part of these financial statements.


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023 (as previously stated)
350,950
(12,500)
1,067,200
1,405,650

Prior year adjustment
-
-
(35,619)
(35,619)

At 1 January 2023 (as restated)
350,950
(12,500)
1,031,581
1,370,031


Comprehensive income for the year

Profit for the year
-
-
1,195,357
1,195,357


At 31 December 2023
350,950
(12,500)
2,226,938
2,565,388


The notes on pages 17 to 38 form part of these financial statements.

Page 14

 
CLOUD 21 LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,077,063
1,004,427

Adjustments for:

Amortisation of intangible assets
457,365
305,750

Depreciation of tangible assets
52,196
36,930

Loss on disposal of tangible assets
36,073
-

Interest paid
27,346
14,694

Interest received
(22,960)
(45,458)

Taxation charge
536,691
369,319

Decrease/(increase) in debtors
3,841,610
(1,856,206)

(Decrease)/increase in creditors
(3,237,645)
2,393,472

Corporation tax (paid)
(746,424)
(758,150)

Net cash generated from operating activities

2,021,315
1,464,778


Cash flows from investing activities

Purchase of intangible fixed assets
(8,799)
-

Purchase of tangible fixed assets
(73,733)
(84,977)

Sale of tangible fixed assets
21,793
457

Acquisition of subsidiary
112,840
-

Interest received
22,960
45,458

Net cash from investing activities

75,061
(39,062)

Cash flows from financing activities

Repayment of loans
-
(1,161,347)

Repayment of other loans
(127,260)
-

Interest paid
(27,346)
(14,694)

Net cash used in financing activities
(154,606)
(1,176,041)

Net increase in cash and cash equivalents
1,941,770
249,675

Cash and cash equivalents at beginning of year
3,250,340
3,000,665

Cash and cash equivalents at the end of year
5,192,110
3,250,340


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,192,110
3,250,340

5,192,110
3,250,340


The notes on pages 17 to 38 form part of these financial statements.

Page 15

 
CLOUD 21 LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024





At 1 January 2024
Cash flows
Acquisition and disposal of subsidiaries
At 31 December 2024
£

£

£

£

Cash at bank and in hand

3,250,340

147,963

1,793,807

5,192,110

Debt due after 1 year

(71,029)

71,029

-

-

Debt due within 1 year

(56,231)

56,231

-

-


3,123,080
275,223
1,793,807
5,192,110

The notes on pages 17 to 38 form part of these financial statements.

Page 16

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Cloud 21 Limited is a private company, limited by shares, registered in England and Wales. The company’s registered number and registered office address is Suite 1 40 Churchill Square, Kings Hill, West Malling, Kent, ME19 4YU.

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 Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 17

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Rendering of services

Revenue 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 revenue can be measured reliably;
it is probable that the Group 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.

Page 18

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.5

Operating leases: the Group 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.

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Interest income

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

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

Page 19

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.


 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other 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.

Page 20

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%
reducing balance
Office equipment
-
25%
reducing balance
Computer equipment
-
25%
reducing balance

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

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
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.

 
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 Consolidated 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 Group'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 Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS
Page 21

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) 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 Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments 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 creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors 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 22

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historic experience and other factors that are considered to be applicable. Due to the inherent subjectivity in making such judgements, estimates and assumptions, the actual results and outcomes may differ. The estimates and underlying assumptions are reviewed on an ongoing basis.
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Determining residual values and useful economic lives of tangible fixed assets 
The company depreciates tangible fixed assets over their useful economic lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of the assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management determining the residual values for property, plant and equipment. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already in the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.
Determining residual values and useful economic lives of intangible fixed assets 
The goodwill capitalised as an intangible asset where it is determined by management’s judgement that the ability to develop the asset is technically feasible, will be completed, and that the asset will generate economic benefit that outweighs is cost.
 

Page 23

 
CLOUD 21 LIMITED
 

 
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
£
£

Consulting
22,788,326
22,141,804

Data services
5,854,922
2,517,142

Technology
4,402,740
3,850,016

33,045,988
28,508,962


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
26,253,579
24,745,559

Rest of Europe
6,792,409
3,763,403

33,045,988
28,508,962



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Research & development charged as an expense
-
4,506

Depreciation of tangible fixed assets
52,196
36,930

Amortisation of intangible fixed assets
457,365
305,750

Exchange differences
249,232
(18,153)

Other operating lease rentals
75,288
46,723


6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
23,100
21,600

Fees payable to the Company's auditors for non-audit services
8,700
8,100

Page 24

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Employees

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


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
6,475,105
4,389,185
6,079,798
3,590,925

Social security costs
816,159
571,932
766,534
469,960

Cost of defined contribution scheme
298,615
173,033
279,715
144,756

7,589,879
5,134,150
7,126,047
4,205,641


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Employees
174
117
174
117


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
172,878
325,282

Company contributions to defined contribution pension schemes
7,469
11,184

180,347
336,466


During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £81,853 (2023 - £132,283).

The value of the Group's contributions paid to a defined benefit pension scheme in respect of the highest paid director amounted to £3,408 (2023 - £7,895).

Key management personnel are those persons having authority and responsibility for planning, directing, and controling the activities of the group. The total amount of employee benefits received by key management personnel were £1,658,446 (2023: £1,444,895).  

Page 25

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
563,110
322,718

Adjustments in respect of previous periods
2,680
46,313


565,790
369,031


Total current tax
565,790
369,031

Deferred tax


Origination and reversal of timing differences
(29,099)
288

Total deferred tax
(29,099)
288


Tax on profit
536,691
369,319

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 19% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,613,754
1,373,746


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2023 - 19%)
374,385
261,012

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
6,680
214,398

Capital allowances for year in excess of depreciation
151,556
25,446

Other timing differences leading to an increase (decrease) in taxation
4,070
(131,537)

Total tax charge for the year
536,691
369,319


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 26

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £3,179,054 (2023 - £1,195,357).


11.


Intangible assets

Group





Development expenditure
Computer software
Goodwill
Total

£
£
£
£



Cost


At 1 January 2024
803,173
16,100
2,205,821
3,025,094


Additions
-
8,799
2,074,903
2,083,702


On acquisition of subsidiaries
-
80,778
-
80,778



At 31 December 2024

803,173
105,677
4,280,724
5,189,574



Amortisation


At 1 January 2024
757,617
8,866
320,420
1,086,903


Charge for the year
45,556
23,193
388,616
457,365



At 31 December 2024

803,173
32,059
709,036
1,544,268



Net book value



At 31 December 2024
-
73,618
3,571,688
3,645,306



At 31 December 2023
45,556
7,234
1,885,401
1,938,191



Page 27

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
           11.Intangible assets (continued)

Company




Development expenditure
Computer software
Goodwill
Total

£
£
£
£



Cost


At 1 January 2024
803,173
16,100
3,732,831
4,552,104


Additions
-
8,799
2,798,242
2,807,041


Intra-group transfers
-
80,778
-
80,778



At 31 December 2024

803,173
105,677
6,531,073
7,439,923



Amortisation


At 1 January 2024
757,617
8,866
718,652
1,485,135


Charge for the year
45,556
23,193
606,471
675,220



At 31 December 2024

803,173
32,059
1,325,123
2,160,355



Net book value



At 31 December 2024
-
73,618
5,205,950
5,279,568



At 31 December 2023
45,556
7,234
3,014,179
3,066,969

Page 28

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Tangible fixed assets

Group






Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2024
6,464
206,153
36,966
249,583


Additions
-
73,733
-
73,733


Acquisition of subsidiary
3,034
-
22,597
25,631


Disposals
(3,034)
-
(19,110)
(22,144)



At 31 December 2024

6,464
279,886
40,453
326,803



Depreciation


At 1 January 2024
2,958
75,591
29,726
108,275


Charge for the year 
962
49,554
1,680
52,196


Disposals
-
-
(351)
(351)



At 31 December 2024

3,920
125,145
31,055
160,120



Net book value



At 31 December 2024
2,544
154,741
9,398
166,683



At 31 December 2023
3,506
130,562
7,240
141,308

Page 29

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

           12.Tangible fixed assets (continued)


Company






Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£

Cost or valuation


At 1 January 2024
6,464
205,317
-
211,781


Additions
-
73,733
-
73,733


Transfers intra group
3,034
-
23,013
26,047


Disposals
(3,034)
-
(19,110)
(22,144)



At 31 December 2024

6,464
279,050
3,903
289,417



Depreciation


At 1 January 2024
2,958
74,978
-
77,936


Charge for the year
962
49,397
437
50,796


Disposals
-
-
(351)
(351)



At 31 December 2024

3,920
124,375
86
128,381



Net book value



At 31 December 2024
2,544
154,675
3,817
161,036



At 31 December 2023
3,506
130,339
-
133,845






Page 30

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2024
100


Additions
175



At 31 December 2024
275






Net book value



At 31 December 2024
275



At 31 December 2023
100

 

Page 31

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Integris Solutions Ltd
Ordinary
100%
BDS Solutions Limited
Ordinary
100%
Bowley Data Systems Limited
Ordinary
100%









14.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
1,391,924
4,513,541
1,391,924
3,413,656

Other debtors
13,141
8,963
10,636
8,962

Prepayments and accrued income
3,375,781
3,645,510
3,375,781
3,379,155

Deferred taxation
19,621
-
19,621
-

4,800,467
8,168,014
4,797,962
6,801,773



15.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
5,192,110
3,250,340
5,178,197
3,042,833


Page 32

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Other loans
-
56,231
-
56,231

Trade creditors
374,427
411,876
374,427
411,876

Amounts owed to group undertakings
-
-
-
256,388

Corporation tax
128,062
160,218
31,140
160,218

Other taxation and social security
488,636
661,287
488,636
542,281

Deferred consideration
500,000
-
500,000
-

Other creditors
109,638
75,847
109,638
70,086

Accruals and deferred income
7,668,755
9,081,776
7,668,755
8,891,811

9,269,518
10,447,235
9,172,596
10,388,891


See note 18 for details on the bank and other loans.


17.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Other loans
-
71,029
-
71,029

Deferred consideration
500,000
-
500,000
-

500,000
71,029
500,000
71,029


See note 18 for details on the bank and other loans.



Page 33

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

18.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Amounts falling due within one year

Other loans
-
56,231
-
56,231


-
56,231
-
56,231

Amounts falling due 1-2 years

Other loans
-
56,231
-
56,231


-
56,231
-
56,231

Amounts falling due 2-5 years

Other loans
-
14,798
-
14,798


-
14,798
-
14,798


-
127,260
-
127,260


The other loan are unsecured and bears interest of 2%. 
The loan was repaid during the year.


19.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets that are debt instruments
measured at amortised cost
6,597,175
7,772,844
6,580,757
6,465,452


Financial liabilities

Financial liabilities measured at amortised cost
484,065
614,983
484,065
865,610


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts
owed by group undertakings, other debtors, cash at bank and in hand.
Financial liabilities measured at amortised cost comprise trade creditors, bank loans, other loans,
amounts owed to group undertakings and other creditors.

Page 34

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Deferred taxation


Group



2024


£






At beginning of year
(21,604)


Charged to profit or loss
16,900


Arising on business combinations
24,325



At end of year
19,621

Company


2024


£






At beginning of year
(20,212)


Charged to profit or loss
39,833



At end of year
19,621

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
19,621
(21,604)
19,621
(20,212)

19,621
(21,604)
19,621
(20,212)

Page 35

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



178,985 (2023 - 178,985) Ordinary A shares of £1.00 each
178,985
178,985
171,965 (2023 - 171,965) Ordinary B shares of £1.00 each
171,965
171,965

350,950

350,950



22.


Reserves

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the Company.

Profit and loss account

The profit and loss account represents the cumulative profit available for distribution to shareholders.

Page 36

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

23.
 

Business combinations

On 29 February 2024, Cloud 21 Limited acquired 100% of the allocated share capital of Bowley Data Systems Limited.

Acquisition of Bowley Data Systems Limited

Recognised amounts of identifiable assets acquired and liabilities assumed

Book value
Fair value adjustments
Fair value
£
£
£

Fixed Assets

Tangible
26,624
-
26,624

Intangible
80,778
-
80,778

107,402
-
107,402

Current Assets

Debtors
454,442
-
454,442

Cash at bank and in hand
1,793,807
-
1,793,807

Total Assets
2,355,651
-
2,355,651

Creditors

Due within one year
(1,607,812)
-
(1,607,812)

Deferred taxation
(24,325)
-
(24,325)

Total Identifiable net assets
723,514
-
723,514


Goodwill
2,074,903

Total purchase consideration
2,798,417

Consideration

£


Cash
1,550,000

Deferred consideration
1,000,000

Directly attributable costs
248,417

Total purchase consideration
2,798,417

Page 37

 
CLOUD 21 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

23.Business combinations (continued)

Cash outflow on acquisition

£


Purchase consideration settled in cash, as above
1,550,000

Directly attributable costs
130,967

1,680,967

Less: Cash and cash equivalents acquired
(1,793,807)

Net cash outflow on acquisition
(112,840)

The goodwill arising on acquisition is attributable to the cash paid over and above the fair value of the net assets acquired.

The results of Bowley Data Systems Limited since acquisition are as follows:

Current period since acquisition
£

Turnover
570,121

(Loss) for the period since acquisition
(698,983)


24.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £298,615 (2023: £173,033).  Contributions totalling £93,855 (2023: £58,756) were payable to the fund at the balance sheet date and are included in creditors.


25.


Related party transactions

The company is exempt under section 33.1A of FRS 102 from disclosing related party transactions with entities that are part of the group headed by Cloud 21 Limited.


26.


Controlling party

The ultimate beneficial owner of Cloud 21 Limited is Tegria Services Group Inc, by virtue of their majority shareholding.

Page 38