Company registration number 04127933 (England and Wales)
SMART ANALYTICS LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SMART ANALYTICS LIMITED
COMPANY INFORMATION
Directors
M Chamberlain
A Harris
Company number
04127933
Registered office
Glasshouse Alderley Park
Congleton Road
Macclesfield
SK10 4ZE
Accountants
Alexander & Co LLP
Centurion House
129 Deansgate
Manchester
M3 3WR
SMART ANALYTICS LIMITED
CONTENTS
Page
Directors' report
1
Statement of financial position
2 - 3
Statement of changes in equity
4
Notes to the financial statements
6 - 21
SMART ANALYTICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of computer software services.
Results and dividends
The results for the year are set out on .
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M Chamberlain
A Harris
On behalf of the board
A Harris
Director
6 June 2025
SMART ANALYTICS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 2 -
2024
2023
Notes
£
£
Non-current assets
Property, plant and equipment
7
1,113,767
1,325,572
Other receivables
8
23,937
1,113,767
1,349,509
Current assets
Trade and other receivables
8
709,567
924,190
Current tax recoverable
681,835
1,100,139
Cash and cash equivalents
580,041
452,308
1,971,443
2,476,637
Current liabilities
Trade and other payables
11
1,652,807
1,845,211
Borrowings
12
500,000
3,069,684
Lease liabilities
14
196,507
187,376
2,349,314
5,102,271
Net current liabilities
(377,871)
(2,625,634)
Non-current liabilities
Borrowings
12
1,000,000
Lease liabilities
14
864,882
1,043,077
Long term provisions
15
58,500
58,500
1,923,382
1,101,577
Net liabilities
(1,187,486)
(2,377,702)
Equity
Called up share capital
17
200
200
Retained earnings
(1,187,686)
(2,377,902)
Total equity
(1,187,486)
(2,377,702)
SMART ANALYTICS LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 3 -
For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the income statement within the financial statements.
The financial statements were approved by the board of directors and authorised for issue on 6 June 2025 and are signed on its behalf by:
A Harris
Director
Company registration number 04127933 (England and Wales)
SMART ANALYTICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2023
200
(1,194,090)
(1,193,890)
Year ended 31 December 2023:
Loss and total comprehensive income
-
(1,183,812)
(1,183,812)
Balance at 31 December 2023
200
(2,377,902)
(2,377,702)
Year ended 31 December 2024:
Profit and total comprehensive income
-
1,190,216
1,190,216
Balance at 31 December 2024
200
(1,187,686)
(1,187,486)
SMART ANALYTICS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
313,960
(111,029)
Net cash inflow/(outflow) from operating activities
313,960
(111,029)
Investing activities
Purchase of property, plant and equipment
(1,517)
(12,432)
Interest received
3,637
78,008
Net cash generated from investing activities
2,120
65,576
Financing activities
Payment of lease liabilities
(188,347)
(189,278)
Net cash used in financing activities
(188,347)
(189,278)
Net increase/(decrease) in cash and cash equivalents
127,733
(234,731)
Cash and cash equivalents at beginning of year
452,308
687,039
Cash and cash equivalents at end of year
580,041
452,308
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
1
Accounting policies
Company information
Smart Analytics Limited is a private company limited by shares incorporated and domiciled in England and Wales. The registered office is Glasshouse Alderley Park, Congleton Road, Macclesfield, SK10 4ZE.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis. At 31 December 2024, the company's total liabilities exceeded its total assets by £1,187,486 (net trueliabilities 2023 - £2,377,702). The Directors are confident that the company's current and expected level of sales activity will be sufficient to adequately apply the going concern basis. On this basis, it is their opinion that the continued application of going concern to the preparation of these financial statements is appropriate.
1.3
Revenue
Software licence contracts typically comprises upfront development and configuration services, rental or perpetual licence fee and support & maintenance. The company offers both hosted solutions, where customers access software which is maintained on the company's IT infrastructure, and on premise solutions, where the software is installed on customer's IT systems.
Under IFRS 15, the configuration work is considered distinct, and revenue relating to this is recognised over the time taken to perform the work based on time spent completing the work. The recognition of the licence is dependent on determination of whether the customer has control of the software, with licence revenue being recognised either upfront where the customer has control, or recognised over the period of the licence on a straight line basis where the company retains control. Support and maintenance is recognised on a time basis over the period of the licence.
All revenue reported in the income statement arises from contracts with customers. Revenue is recognised exclusive of VAT.
The company operates a policy of standard payment terms of 30 days from the date of invoicing, which is applied in the majority of customer contracts. Customer contracts do not contain any significant financing components, nor do they contain any significant obligations for returns, refunds or warranties.
In obtaining these contracts, the company incurs a number of incremental costs, such as commissions paid to sales staff. As the amortisation period of these costs, if capitalised, would be less than one year, the company makes use of the practical expedient in IFRS 15.94 and expenses them as they incur.
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 7 -
1.4
Intangible assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Right of use: Property
over the lease term
Leasehold improvements
10 years straight line
Fixtures, fittings & equipment
5 years straight line
Computer equipment
3 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
1.6
Impairment of tangible and intangible assets
At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 8 -
1.7
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
The company applies the IFRS 9 simplified approach to measuring expected credit losses (ECL) which uses a lifetime expected loss allowance for all trade receivables and contract assets, and recognises a loss allowance based on the lifetime ECL’s at the end of each reporting period. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The company has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets. ECL’s are determined using a provision matrix that is based on historical credit loss experience and adjusted for forward-looking factors specific to the debtors and prevailing economic environment.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.9
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 9 -
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 10 -
1.12
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 11 -
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Adoption of new and revised standards and changes in accounting policies
Certain new accounting standards and interpretations have been published and applied for the first time in 31 December 2024 reporting periods. These standards have not been disclosed as they do not have a material impact on the company's financial statements.
Standards which are in issue but not yet effective
Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the company. These standards have not been disclosed as they are not expected to have a material impact on the company's financial statements.
3
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Management does not deem there to be any significant judgements or estimates requiring disclosure.
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
4
Financial risk management
Credit risk
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is exposed to credit risk from financial assets including cash and cash equivalents held at banks, trade and other receivables.
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount. At the reporting date the directors believe that there were no significant concentrations of credit risk based on the size, age and nature of trade receivable balances as well as the historical recovery rates with these companies.
It is mitigated by rigorous credit control, including the regular review of credit limits utilising data from credit agencies and the company's own financial and marketing intelligence.
The company is therefore confident that those debts (both not yet due and past due) and contract assets for which there is no provision, will be recovered in the forthcoming year.
An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on average days past due for all customers. The calculation reflects the probability and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Generally, trade receivables are written-off where indicators convey that there is no reasonable expectation of recovery.
Liquidity risk
Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due.
The company finances its operations through a mixture of cash from retained profits and borrowings. The company ensures that there are sufficient funds to meet the expected funding requirements of the company's operations and investment opportunities, through financial planning and budgetary procedures and ongoing monitoring and management of its liquidity position.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the company's income or the value of its holdings of financial instruments.
Interest expense reflects the cost of the company's borrowings. Interest income arises from investment of cash and short-term deposits held by the company. Interest rate risk is managed by monitoring market rates to ensure that optimal returns are achieved.
The company predominately operates within the UK and therefore the risks to movement in foreign exchange rates are not significant.
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales and operations
30
37
Administration
4
4
Total
34
41
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
6
Intangible assets
Software
£
Cost
At 1 January 2023
1,896
At 31 December 2023
1,896
At 31 December 2024
1,896
Amortisation and impairment
At 1 January 2023
1,896
At 31 December 2023
1,896
At 31 December 2024
1,896
Carrying amount
At 31 December 2024
-
At 31 December 2023
-
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
7
Property, plant and equipment
Right of use: Property
Leasehold improvements
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
1,683,651
423,523
114,348
321,606
2,543,128
Additions
4,423
8,009
12,432
At 31 December 2023
1,683,651
427,946
114,348
329,615
2,555,560
Additions
1,517
1,517
Adjustment
19,283
19,283
At 31 December 2024
1,702,934
427,946
114,348
331,132
2,576,360
Accumulated depreciation and impairment
At 1 January 2023
477,034
123,584
91,096
309,845
1,001,559
Charge for the year
168,365
42,537
7,305
10,222
228,429
At 31 December 2023
645,399
166,121
98,401
320,067
1,229,988
Charge for the year
177,685
42,794
6,207
5,919
232,605
At 31 December 2024
823,084
208,915
104,608
325,986
1,462,593
Carrying amount
At 31 December 2024
879,850
219,031
9,740
5,146
1,113,767
At 31 December 2023
1,038,252
261,825
15,947
9,548
1,325,572
At 31 December 2022
1,206,617
299,939
23,252
11,761
1,541,569
8
Trade and other receivables
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Trade receivables
405,241
729,261
-
-
Other receivables
-
23,937
Prepayments and accrued income
304,326
194,929
-
-
709,567
924,190
-
23,937
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
9
Trade receivables - credit risk
Fair value of trade receivables
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
Ageing of past due but not impaired receivables
2024
2023
£
£
Not past due
170,979
28,812
Past due 0-30 days
167,124
653,134
Past due 31-60 days
568
38,766
More than 60 days
66,568
8,549
405,239
729,261
10
Contracts with customers
2024
2023
2022
£
£
£
Contracts in progress at the reporting end date
Contract assets included in trade and other receivables
182,055
89,153
191,075
Contract liabilities included in trade and other payables
656,178
1,074,907
798,753
Significant changes in the period
2024
2023
Contract assets
Contract liabilities
Contract assets
Contract liabilities
£
£
£
£
Revenue recognised in the reporting period that was included in the contract asset/liability balance at the beginning of the period
65,216
1,074,907
191,075
798,753
The contract assets relate to the company's rights to consideration for work completed but not billed at the reporting period end date. The contract assets are transferred to receivables when the rights become unconditional, which usually occurs when the company issues an invoice to the customer. No impairment losses were recognised on any contract assets in the reporting period.
The contract liabilities relate to the advanced consideration received from customers. The amount recognised as a contract liability will generally be utilised within the next reporting period.
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
11
Trade and other payables
2024
2023
£
£
Trade payables
387,086
244,595
Amounts owed to fellow group undertakings
45,057
66,821
Accruals and deferred income
853,671
1,136,751
Social security and other taxation
308,697
344,165
Other payables
58,296
52,879
1,652,807
1,845,211
The directors consider the carrying amount of trade and other payables is approximately equal to their fair value.
12
Borrowings
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Borrowings held at amortised cost:
Bank loans
-
-
1,000,000
-
Other loans
500,000
3,069,684
-
-
During the year, the company renegotiated terms in respect of the loan owed. An agreement was signed in December 2024 extending the term by three years with an immediate write down to £1,500,000. Yearly payments of £500,000 due will be netted off by invoices for services rendered to the lender and interest charges at 3% plus SONIA rolled up to the end of the term. The reduced loan is secured by a debenture over all of the assets of the company.
13
Fair value of financial liabilities
The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.
14
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
196,507
187,376
In two to five years
846,774
807,432
In over five years
18,108
235,645
Total liabilities
1,061,389
1,230,453
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Lease liabilities
(Continued)
- 18 -
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024
2023
£
£
Current liabilities
196,507
187,376
Non-current liabilities
864,882
1,043,077
1,061,389
1,230,453
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
33,832
36,308
Other leasing information is included in note 25.
15
Provisions for liabilities
2024
2023
£
£
58,500
58,500
Analysis of provisions
Provisions of £58,500 relate to dilapidation requirements included as a condition of the office lease agreement. The dilapidation expenses are expected to occur at the end of the lease term of 10 years.
Provisions are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
Non-current liabilities
58,500
58,500
58,500
58,500
Movements on provisions:
£
At 1 January 2024 and 31 December 2024
58,500
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
16
Retirement benefit schemes
Defined contribution schemes
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The total costs charged to income in respect of defined contribution plans is £342,511 (2023 - £365,939).
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
20,000
20,000
200
200
There is a single class of ordinary shares. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
18
Leases
Lease agreements where the company is lessee
During the year to December 2020, the company entered into a commercial lease on office property with a lease term of 10 years. The company elected for the non-separation practical expedient and therefore, the lease liability is inclusive of service charges. Lease payments are discounted using the incremental rate of borrowing of 3%.
Amounts recognised in the statement of financial position
2024
2023
£
£
Right-of-use assets
Property
879,850
1,038,252
879,850
1,038,252
Lease Liabilities
Current
196,507
187,376
Non-current
864,881
1,043,077
1,061,388
1,230,453
All amounts included in the right-of-use figure above are new additions during the year.
Amounts recognised in the income statement
2024
2023
£
£
Depreciation of right-of-use asset
177,686
168,365
Interest expense included in finance cost (note 9)
33,832
36,308
19
Related party transactions
Remuneration of key management personnel
The directors of the company, who are key management personnel, are remunerated through the ultimate parent company.
SMART ANALYTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Related party transactions
(Continued)
- 21 -
Other transactions with related parties
As at 31 December 2024 £584 (2023: £584) was owed to Smart Analytics Holdings Limited. This loan is interest free and repayable on demand.
Monthly management charges totalling £276,000 (2023: £397,000) have been raised from the ultimate parent company, Software Acquisitions Limited to the company. Amounts of £297,764 have been repaid in the year. As at 31 December 2024, £44,473 (2023: £66,237) was owed to Software Acquisitions Limited.
20
Controlling party
The company's immediate parent undertaking is Smart Analytics Holdings Limited, a company registered in England and Wales.
The company's ultimate parent undertaking is Software Acquisitions Limited, a company also registered in England and Wales.
The registered office of Smart Analytics Holdings Limited and Software Acquisitions Limited is Glasshouse Alderley Park, Congleton Road, Macclesfield, Cheshire, England, SK10 4ZE.
In the opinion of the directors, there is no overall controlling party of the company.
21
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit/(loss) for the year after tax
1,190,216
(1,183,812)
Adjustments for:
Taxation credited
(111,452)
(137,416)
Interest on lease liabilities
33,832
36,308
Other interest payable
260,300
236,000
Investment income
(3,637)
(78,008)
Depreciation and impairment of property, plant and equipment
54,920
60,064
Depreciation on right of use asset
177,686
168,365
Other gains and losses
(1,826,002)
-
Movements in working capital:
Decrease in trade and other receivables
768,318
450,912
(Decrease)/increase in trade and other payables
(230,221)
336,558
Cash generated from/(absorbed by) operations
313,960
(111,029)
2024-12-312024-01-01falsefalseCCH SoftwareCCH Accounts Production 2025.100041279332024-01-012024-12-3104127933bus:Director12024-01-012024-12-3104127933bus:Director22024-01-012024-12-3104127933bus:RegisteredOffice2024-01-012024-12-31041279332024-12-31041279332023-12-3104127933core:CurrentFinancialInstruments2024-12-3104127933core:CurrentFinancialInstruments2023-12-31041279332023-12-31041279332022-12-3104127933core:Non-currentFinancialInstruments2024-12-3104127933core:Non-currentFinancialInstruments2023-12-3104127933core:ShareCapital2024-12-3104127933core:ShareCapital2023-12-3104127933core:RetainedEarningsAccumulatedLosses2024-12-3104127933core:RetainedEarningsAccumulatedLosses2023-12-3104127933core:OtherMiscellaneousReserve2022-12-3104127933core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3104127933core:RetainedEarningsAccumulatedLosses2024-01-012024-12-31041279332023-01-012023-12-3104127933core:IntangibleAssetsOtherThanGoodwill2024-01-012024-12-3104127933core:Held-to-maturityFinancialAssets2024-01-012024-12-3104127933core:ComputerSoftware2022-12-3104127933core:ComputerSoftware2023-12-3104127933core:ComputerSoftware2024-12-3104127933core:ComputerSoftware2023-12-3104127933core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3104127933core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2022-12-3104127933core:FurnitureFittings2022-12-3104127933core:ComputerEquipment2022-12-3104127933core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3104127933core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2023-12-3104127933core:FurnitureFittings2023-12-3104127933core:ComputerEquipment2023-12-3104127933core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-12-3104127933core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2024-12-3104127933core:FurnitureFittings2024-12-3104127933core:ComputerEquipment2024-12-3104127933core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3104127933core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3104127933core:FurnitureFittings2023-01-012023-12-3104127933core:ComputerEquipment2023-01-012023-12-3104127933core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-01-012024-12-3104127933core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2024-01-012024-12-3104127933core:FurnitureFittings2024-01-012024-12-3104127933core:ComputerEquipment2024-01-012024-12-3104127933core:CurrentFinancialInstrumentscore:ValueBeforeAllowanceForImpairmentLoss2024-12-3104127933core:CurrentFinancialInstrumentscore:ValueBeforeAllowanceForImpairmentLoss2023-12-3104127933core:ContinuingOperations2024-12-3104127933core:ContinuingOperations2023-12-3104127933bus:PrivateLimitedCompanyLtd2024-01-012024-12-3104127933bus:FullIFRS2024-01-012024-12-3104127933bus:AuditExempt-NoAccountantsReport2024-01-012024-12-3104127933bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP