Kurtosys Systems Limited
Financial Statements
For the year ended 31 December 2024
Pages for Filing with Registrar
Company Registration No. 04395076 (England and Wales)
Kurtosys Systems Limited
Company Information
Directors
H Thompson
L Godfrey
J Larsen
(Appointed 9 July 2024)
Secretary
H Thompson
Company number
04395076
Registered office
86-90 Paul Street
3rd Floor
London
EC2A 4NE
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Kurtosys Systems Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
3 - 10
Kurtosys Systems Limited
Balance Sheet
As at 31 December 2024
Page 1
2024
2023
Notes
£
£
Fixed assets
Tangible assets
5
14,327
12,397
Current assets
Debtors falling due within one year
7
1,523,448
2,773,458
Cash at bank and in hand
1,819,883
2,351,726
3,343,331
5,125,184
Creditors: amounts falling due within one year
8
(12,518,628)
(14,446,634)
Net current liabilities
(9,175,297)
(9,321,450)
Total assets less current liabilities
(9,160,970)
(9,309,053)
Creditors: amounts falling due after more than one year
9
(2,313,564)
(2,239,748)
Net liabilities
(11,474,534)
(11,548,801)
Capital and reserves
Called up share capital
10
117,388
117,388
Other reserves
11
6,871,035
6,833,335
Profit and loss reserves
(18,462,957)
(18,499,524)
Total equity
(11,474,534)
(11,548,801)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 13 June 2025 and are signed on its behalf by:
J  Larsen
Director
Company Registration No. 04395076
Kurtosys Systems Limited
Statement of Changes in Equity
For the year ended 31 December 2024
Page 2
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2023
117,388
6,797,043
(19,302,991)
(12,388,560)
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
803,467
803,467
Share based payment charge
-
36,292
-
36,292
Balance at 31 December 2023
117,388
6,833,335
(18,499,524)
(11,548,801)
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
36,567
36,567
Share based payment charge
-
37,700
-
37,700
Balance at 31 December 2024
117,388
6,871,035
(18,462,957)
(11,474,534)
Kurtosys Systems Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 3
1
Accounting policies
Company information

Kurtosys Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is 86-90 Paul Street, 3rd Floor, London, EC2A 4NE.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

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
Exemptions for qualifying entities under FRS 102

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Kurtosys Systems Inc.. These consolidated financial statements are available from its registered office, 5540 Centerview Dr, Suite 204, PMB 45610, Raleigh, NC 27606-8012, United States of America.

The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Kurtosys Systems Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 4
1.3
Going concern

The Company made a profit for the year of £36,567 (2023 profit: £803,467) and had net liabilities at the reporting date of £11,474,534 (2023: £11,548,801). Included within current liabilities is an intercompany loan of £8,173,053 (2023: £9,863,439) due to group companies and deferred revenue of true£3,518,868 (2023: £3,657,561).

 

The Company's parent company, Kurtosys Systems Inc., have provided written assurances that they will not seek repayment of the amount owed to them and to companies under their control of £8,173,053, and will continue to provide financial support to Kurtosys Systems Limited, for a period of at least 12 months from the date of approval of the financial statements. Kurtosys Systems Inc. and Kurtosys Systems Limited as joint borrowers and guarantors, successfully obtained $3,000,000 of financing during the prior year having settled previous outstanding loans. For these reasons the directors have prepared the financial statements on a going concern basis.

1.4
Turnover
Turnover represents net invoice sales of services, excluding value added tax except in respect of service contracts where turnover is recognised when the company obtains the right to consideration.

The company provides multiple service statements. Implementation income is not recognised until the implementation phase of the contract is concluded. Managed service revenues are recognised in the period in which they arise.
1.5
Other operating income

Other operating income represents amounts received / receivable from the recharge of employee costs to group related entities.

1.6
Tangible fixed assets

Tangible fixed assets 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:

Computer equipment
33% 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 credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Kurtosys Systems Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 5

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset 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 prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and 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.

1.9
Financial instruments

The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic financial instruments at fair value.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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 profit and loss account 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.

Kurtosys Systems Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 6
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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 profit and loss account, 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.

1.12
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 stock or fixed 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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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.

Kurtosys Systems Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 7
1.17

Research and development

Research expenditure is expensed to the profit and loss account in the year in which it is incurred. Development expenditure is expensed in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

2
Turnover analysed by geographical market

In the year to 31 December 2024, 32% (2023: 22%) of the company's turnover was to markets outside the United Kingdom.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
18
15
4
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
167,664
134,259

As Directors' remuneration in the current and prior year is less than £200,000, no further disclosure is required.

Kurtosys Systems Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 8
5
Tangible fixed assets
Plant and machinery
£
Cost
At 1 January 2024
19,072
Additions
9,785
At 31 December 2024
28,857
Depreciation and impairment
At 1 January 2024
6,675
Depreciation charged in the year
7,855
At 31 December 2024
14,530
Carrying amount
At 31 December 2024
14,327
At 31 December 2023
12,397
6
Subsidiaries

These financial statements are separate company financial statements for Kurtosys Systems Limited.

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Kurtosys Systems India Private Limited
India
Ordinary
100
Kurtosys Systems SA (Pty) Ltd
South Africa
Ordinary
100

For the year ended 31 December 2024, Kurtosys Systems India Private Limited made a loss of Rs 733,381 (2023: Rs 1,935,551 profit) and had net assets of Rs 9,259,551 (2023: Rs 9,992,932).

 

For the year ended 31 December 2024, Kurtosys Systems SA (Pty) Ltd made a loss of R3,316,587 (2023: R1,645,211 profit) and had net assets of R1,610 (2023: R1,297,211).

Kurtosys Systems Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 9
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
718,269
1,461,650
Corporation tax recoverable
239,539
-
0
Amounts owed by group undertakings
288,376
844,737
Other debtors
277,264
467,071
1,523,448
2,773,458
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
143,328
254,644
Amounts owed to group undertakings
8,173,053
9,863,439
Taxation and social security
296,990
430,950
Other creditors
27,200
10,909
Accruals and deferred income
3,878,057
3,886,692
12,518,628
14,446,634
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
2,313,564
2,239,748

A loan facility was obtained during the prior year, of which $3,000,000 is outstanding at the year end. The company is also acting as a joint guarantor, which includes a charge over the company's assets in respect of the full loan. The repayment term is 20 December 2026. The company is responsible for all interest obligations in respect of the loan. Interest is charged at a rate of 3.75%.

10
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
117,388 Ordinary shares of £1 each
117,388
117,388
117,388
117,388
Kurtosys Systems Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 10
11
Other reserves
Share based payment reserve
Capital contribution reserve
Total
£
£
£
At 1 January 2023
1,070,666
5,726,377
6,797,043
Share based payments charge
36,292
-
36,292
At 31 December 2023
1,106,958
5,726,377
6,833,335
Share based payments charge
37,700
-
37,700
At 31 December 2024
1,144,658
5,726,377
6,871,035
12
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The auditor was Moore Kingston Smith LLP.
13
Related party transactions

In accordance with FRS 102 section 33 paragraph 33.1A, the company has not disclosed transactions with wholly owned subsidiaries or the parent company within the same group.

14
Parent company

The company's immediate and ultimate parent undertaking is Kurtosys Systems Inc, a company registered in the United States of America.

 

There is no ultimate controlling party.

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