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Registered number: 07932357
EXUS SOFTWARE LTD
AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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EXUS SOFTWARE LTD
COMPANY INFORMATION
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Mr G Konstantinidis (resigned 31 March 2025)
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Mr C Maranis (appointed 10 January 2023, resigned 9 October 2024)
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Mr H Vaughan (appointed 9 October 2024)
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Ms Z Christogerou (appointed 31 March 2025)
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Armstrong Watson Audit Limited
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Chartered Accountants & Statutory Auditors
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Rosehill Industrial Estate
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Rosehill Industrial Estate
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EXUS SOFTWARE LTD
CONTENTS
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Independent Auditor's Report
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Statement of Profit or Loss
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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Detailed Profit and Loss Account and Summaries
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EXUS SOFTWARE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their Strategic Report on EXUS Software Ltd for the year ended 31 December 2024.
The company's principal product is the EXUS Financial Suite ("EFS") offering debt collection and recovery software that manages credit risk along the whole life cycle of accounts, from the moment of disbursement to eventual collection, write-off or debt sale with fast and easy integration introducing simplicity and intelligence to our customer’s business processes through state-of-the-art technology.
The company made a pre-tax profit of €3,247,844 in 2024 (2023 - €77,208 (Loss)). At 31 December 2024 the company had a net asset position of €3,274,504 (2023 - €1,208,911).
In 2024, the company continued to increase operations in Europe, South East Asia, the Middle East and Africa with a presence in 42 separate countries supporting clients in the financial services and utility business sectors.
In December 2024, the Company’s wholly owned subsidiary, Exus Software MEPE, was transferred to the Company’s holding company, EXUS Holdings Ltd (formerly Paveway Enterprises Ltd).
Financial key performance indicator
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The Key Performance Indicators (KPIs) are as follows:
31.12.2024 31.12.2023
Sales growth (Turnover) 45.9% 2.9%
Profit/(loss) before tax €3,247,844 (€77,208)
Capital reserves €3,318,913 €1,208,911
Principal risks and uncertainties
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The company's operations expose it to a variety of financial risks, principally credit risk and liquidity risk. The financial risks are monitored regularly by the finance department and at meetings of the Board.
The company's financial instruments mainly comprise cash, trade receivables, trade payables, bank loans and lease liabilities.
Credit risk
Credit risk arises from cash and cash equivalents, and deposits with banks and financial institutions, as well as credit exposure to customers. Risk control assesses the credit quality of the customer receivables by taking into account their financial positions, past experience and other factors. The Company uses credit risk insurance as a further mitigation tool.
Liquidity risk
The company monitors cash flow against budgets and flexed forecasts that are designed to ensure it has sufficient available funds for operations and planned expansions.
Page 1
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EXUS SOFTWARE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Other key performance indicators
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The number of employees at company level is an important KPI that the board systematically monitors.
31.12.2024 31.12.2023
Total average number of employees 8 6
This report was approved by the board and signed on its behalf.
Page 2
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EXUS SOFTWARE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements, in accordance with applicable law.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;
∙assess the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements to be free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
The principal activity of the company throughout the current and previous year was the research and development of enterprise software products primarily selling to customers in the UK, Europe, Middle East, South East Asia and Africa, together with the provision of corresponding project delivery and customer support services as well as grant funded innovation research activities.
The company operates in the UK.
The profit for the year, after taxation, amounted to €3,213,001 (2023 - €141,726).
During the year dividends of €1,103,000 (2023 - €97,000) were declared.
The directors who served from 1 January 2024 to the date of signing the accounts were:
Mr G Konstantinidis (resigned 31 March 2025)
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Mr C Maranis (appointed 10 January 2023, resigned 9 October 2024)
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Mr H Vaughan (appointed 9 October 2024)
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Ms Z Christogerou (appointed 31 March 2025)
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EXUS SOFTWARE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is committed to the continuous research and development of its product, EXUS Financial Suite (EFS), to maintain its position as the best-in-class debt collection and recovery software with the aim of becoming a global leader in improving debt collection results for our customers, through technology.
The company does not envisage any major changes to its operations or organisation in the near future and it will continue in its efforts to expand its footprint in the geographical areas where it already has a successful presence.
Matters covered by the Strategic Report
The Strategic Report contains information required to be contained in the Directors' Report in respect of financial instruments.
Disclosure of information to auditor
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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's auditor is 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's auditor is aware of that information.
The auditor, Armstrong Watson Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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EXUS SOFTWARE LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EXUS SOFTWARE LTD
We have audited the financial statements of EXUS Software Ltd for the year ended 31 December 2024 which comprise the Statement of Profit or Loss, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies set out on pages 16 - 25. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
In our opinion the financial statements:
∙give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
∙have been properly prepared in accordance with IFRSs as adopted by the United Kingdom; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included:
- discussions with management on their assessment on why they deem the going concern basis of preparation appropriate.
- a review of budget forecasts covering the period of assessment and beyond to assess continued profitability
- a review of the cash position together with the company's ability to settle liabilities as they fall due
- a review of the financial, operational and compliance factors that may impact on the entities ability to trade as a going concern.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the 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.
Page 5
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EXUS SOFTWARE LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EXUS SOFTWARE LTD (CONTINUED)
The other information comprises the information included in the Annual Report, other than the financial statements and our auditor's 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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise
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EXUS SOFTWARE LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EXUS SOFTWARE LTD (CONTINUED)
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and other management;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships; and
• tested journal entries to identify unusual transactions; and
• tested the operating effectiveness of key controls over purchase cycles on a sample basis; and
• reviewed the application of accounting policies including the application of capitalisation of intangible assets.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation; and
• enquiring of management as to actual and potential litigation and claims.
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.
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 auditor's report.
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EXUS SOFTWARE LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EXUS SOFTWARE LTD (CONTINUED)
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Lauren Graham (Senior Statutory Auditor)
for and on behalf of
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditors
9 June 2025
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EXUS SOFTWARE LTD
STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Profit/(loss) from operations
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Profit/loss on disposal of fixed asset investment
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The notes on pages 15 to 46 form part of these financial statements.
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Page 9
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EXUS SOFTWARE LTD
REGISTERED NUMBER: 07932357
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Property, plant and equipment
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Other non-current investments
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Trade and other receivables
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Cash and cash equivalents
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Page 10
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EXUS SOFTWARE LTD
REGISTERED NUMBER: 07932357
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
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Trade and other liabilities
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Issued capital and reserves
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Capital redemption reserve
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The financial statements on pages 9 to 46 were approved and authorised for issue by the board of directors and were signed on its behalf by:
The notes on pages 15 to 46 form part of these financial statements.
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Page 11
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EXUS SOFTWARE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Capital redemption reserve
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Total comprehensive income for the year
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Total contributions by and distributions to owners
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Total comprehensive income for the year
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Total contributions by and distributions to owners
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The notes on pages 15 to 46 form part of these financial statements.
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Page 12
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EXUS SOFTWARE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from operating activities
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Depreciation of property, plant and equipment
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Amortisation of intangible fixed assets
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Profit on disposal of subsidiaries
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Movements in working capital:
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Decrease/(increase) in trade and other receivables
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(Decrease)/increase in trade and other payables
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Cash generated from operations
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Income taxes (paid)/received
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Net cash from operating activities
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Cash flows from investing activities
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Acquisition of subsidiary, net of cash acquired
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Purchases of property, plant and equipment
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Net cash used in investing activities
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Cash flows from financing activities
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Repayment of bank borrowings
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Interest paid on bank borrowing
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Interest paid on lease liabilities
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Dividends paid to the holders of the parent
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Repayment of lease liabilities
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Net cash used in financing activities
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Page 13
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EXUS SOFTWARE LTD
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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Net increase in cash and cash equivalents
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Cash and cash equivalents at the beginning of year
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Cash and cash equivalents at the end of the year
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The notes on pages 15 to 46 form part of these financial statements.
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Page 14
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
EXUS Software Ltd (the 'company') is a limited company incorporated in England and Wales. The company's registered office is at 4 Felstead Gardens, Cubitt Town, London, E14 3BS. The company's principal activity is research and development of enterprise software products, together with the provision of corresponding project delivery and customer support services, as well as grant funded innovation research activities.
The company's individual financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs).
Details of the company's accounting policies, including changes during the year, are included in note 4.
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
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 are not expected to have a material impact on the entity in the current or future periods or on foreseeable future transactions.
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Functional and presentation currency
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These financial statements are presented in Euro, which is the company's functional currency. All amounts have been rounded to the nearest Euro, unless otherwise indicated.
Page 15
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies
Revenue is recognised when the company transfers control of a product or service to a customer. 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:
Software products and implementation services
The company offers to its customers the products and services through the following models/contracts:
a. Subscription model: This involves (i) the annual/quarterly/monthly subscription fee for the license to use the software and the support and maintenance services and (ii) the fees for the project
implementation services.
b. Perpetual license model: This involves (i) the license fee to use the software, (ii) the fees for the project implementation services, and (iii) the annual fees for support and maintenance.
Beyond the above models, customers may order ad-hoc services that may include training, consulting, implementation of change requests etc.
Subscription fees are recognised on a pro-rata basis.
Perpetual licence fees are recognised as revenue upon product shipment, provided a signed agreement is in place, fees are fixed or determinable, no significant vendor obligations remain and collection of the resulting debt is deemed probable. Fees from licences sold together with consulting services are generally recognised upon shipment provided that the above criteria have been met and payment of the licence fees are not dependent on the performance of the consulting services. In instances where a significant vendor obligation exists, revenue recognition is delayed until the obligation has been satisfied. No revenue is recognised for multiple deliveries or multiple element products if an element of the contract remains undelivered and is essential to the functionality of the elements already delivered.
Where these criteria are not met, both the licence and consulting fees are recognised under the percentage completion method of accounting.
Implementation and customisation fees are recognised as revenue on a percentage of completion basis over the period from delivery of the product to customer acceptance. The degree of completion of a contract is measured using the costs incurred to date or milestones reached, depending upon the nature of the individual contract and the most appropriate measure of the percentage of completion. Losses on contracts are recognised as soon as a loss is foreseen by reference to the estimated costs of completion.
Maintenance fees generally call for the company to provide technical support to customers. Revenue on technical support is recognised on a pro-rata basis over the contract period. Payments for maintenance fees are generally made in advance and are non-refundable.
Revenue from other services that may be ordered by a customer, eg: training, change requests, consulting, etc is recognised as the services are performed.
Revenue also includes, where applicable, the expenses and disbursements recoverable from customers.
Grant-funded development income
Grant-funded development income is accounted for under the accrual model. Revenue is recognised when the grant has been earned, it can be matched with corresponding development expenditure, which is recognised as an expense when incurred and there is no likelihood that the income will be refundable at any time. Income received not meeting these criteria is included in current and non current liabilities.
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies (continued)
Sale of rights
The company owns and develops intellectual property and revenue from the sale of intellectual property is recognised upon electronic delivery to the customer, provided a signed agreement is in place.
Market research
The company conducts market research for its own use and for sale. Revenue from these sales is recognised when the research has been concluded.
In preparing the financial statements, transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for:
∙exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;
∙exchange differences on transactions entered into in order to hedge certain foreign currency risks; and
∙exchange differences on monetary items receivable from or payable to foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items.
For the purposes of presenting these financial statements, the assets and liabilities of the company's foreign operations are translated into EUR using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity (and attributed to non-controlling interests as appropriate).
On the disposal of a foreign operation (i.e. a disposal of the company's entire interest in a foreign operation, a disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the company are reclassified to profit or loss.
In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognised in profit or loss. For all other partial disposals (i.e. partial disposals of associates or joint arrangements that do not result in the Company losing significant influence or joint control), the proportionate share of the accumulated exchange differences is reclassified to profit or loss.
Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and
Page 17
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies (continued)
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Foreign currency (continued)
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translated at the rate of exchange prevailing at the end of each reporting period. Exchange differences arising are recognised in other comprehensive income.
The company assesses whether a contract is or contains a lease, at inception of a contract. The company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low-value assets. For these leases, the company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the company uses its incremental borrowing rate. The incremental borrowing rate is determined by the directors by initially averaging the EU marginal lending rate for the reporting period, then including a prudent estimate of interest specific for leases. This is then compared to the current EU lending rates for bank loans to confirm the rate calculated is deemed reasonable.
Lease payments included in the measurement of the lease liability comprise:
• fixed lease payments (including in-substance fixed payments), less any lease incentives;
The lease liability is included in the 'Loans and borrowings' line in the Statement of Financial Position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
The right-of-use assets are included in the 'Property, Plant and Equipment' and 'Investment Property' lines, as applicable, in the Statement of Financial Position.
The company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 4.8.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The company has used this practical expedient.
Page 18
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies (continued)
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Government grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the company recognises as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the company should purchase, construct or otherwise acquire non-current assets are recognised as deferred revenue in the statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company with no future related costs are recognised in profit or loss in the period in which they become receivable.
The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates.
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(i) Employee leave entitlements
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Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the date of the reporting period.
Employee entitlements to sick leave, maternity or other non-accumulating compensated absences are not recognised until the time of leave.
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(ii) Pension obligations - Defined Contribution Plans
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Defined Contribution Plans are post-employment benefit plans under which the company pays fixed contributions into separate entities on a mandatory, contractual or voluntary basis.
The company has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expenses when they are due.
Page 19
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies (continued)
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the Profit and Loss Account because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on temporary 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. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
For the purposes of measuring deferred tax liabilities and deferred tax assets for investment properties that are measured using the fair value model, the carrying amounts of such properties are presumed to be recovered entirely through sale, unless the presumption is rebutted. The presumption is rebutted when the investment property is depreciable and is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale. The directors of the company reviewed the company's investment property portfolios and concluded that none of the company's investment properties are held under a business model whose objective is to consume substantially all of the economic benefits embodied in the investment properties over time, rather than through sale. Therefore, the directors have determined that the ‘sale’ presumption set out in the amendments to IAS 12 is not rebutted. As a result, the company has not recognised any deferred taxes on changes in fair value of the investment properties as the company is not subject to any income taxes on the fair value changes of the investment properties on disposal.
Page 20
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies (continued)
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(ii) Deferred tax (continued)
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International tax reform - Pillar Two model rules
The company has applied the mandatory exception to the recognition and disclosure of information about deferred tax assets and liabilities related to Pillar Two income taxes (i.e. income taxes arising from the jurisdictional implementation of OECD’s Pillar Two Model Rules).
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Property, plant and equipment
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Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the company.
Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
Page 21
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies (continued)
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Intangible assets acquired separately
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Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.
The intangible assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An intangible asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
Where directors cannot reasonably determine between research and development costs, amounts are expensed in the income statement. Where development costs can be determined, these amounts are capitalised in line with IFRS requirements.
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Impairment of non-financial assets (excluding inventories, investment properties and deferred tax assets)
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Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial year end. Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to sell), the asset is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units ('CGUs'). Goodwill is allocated on initial recognition to each of the Company's CGUs that are expected to benefit from a business combination that gives rise to the goodwill.
Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognised in other comprehensive income. An impairment loss recognised for goodwill is not reversed.
Page 22
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies (continued)
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Impairment of tangible and intangible assets other than goodwill
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At the end of each reporting period, 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). When 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. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs of disposal 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 (see note 4.8).
When an impairment loss subsequently reverses, the carrying amount of the asset (or a 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 (see note 4.8).
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Cash and cash equivalents
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Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments maturing within 90 days from the date of acquisition that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
Page 23
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies (continued)
Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
(i) Classification of financial assets
The company classifies its financial assets into one of three categories: those to be measured at amortised cost, fair value through profit or loss, and fair value through other comprehensive income. The classification depends on the entity's business model for managing the financial assets and the contractual terms of the cash flows. Financial assets of the company include trade receivables, other receivables and cash and cash equivalents. All of the company's financial assets are currently classified
as measured at amortised cost.
(ii) Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the company commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.
(iii) Measurement
At initial recognition, the company measures a financial asset at its fair value plus, in the case of a financial asset not subsequently measured at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial assets.
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in comprehensive income and presented in other gains/(losses). Impairment losses are presented as separate line item in the statement of comprehensive income.
(iv) Impairment
The company assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost.
For trade receivables, the company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
Page 24
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
4.Accounting policies (continued)
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Financial assets (continued)
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Impairment of other financial assets at amortised cost are measured as either 12-month expected or lifetime credit loss, depending on whether there has been a significant increase in credit risk since initial recognition.
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Financial liabilities and equity instruments
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Financial liabilities
Financial liabilities are initially recognised at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method.
The company's leases, trade and most other payables fall into this category of financial instruments. The company derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.
Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when declared by the directors. In the case of final dividends, this is when approved by the shareholders at the AGM.
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Accounting estimates and judgements
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5.1 Judgement
The company makes judgements in applying accounting policies in the following areas:
Capitalisation of development costs - where permissible, internal costs incurred in developing the EFS software package are capitalised. Management apply judgement in determining the point at which the relevant recognition criteria are met.
5.2 Estimates and assumptions
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are:
Impairment of debtors - the company makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Implementation and customisation fees - these are recognised as revenue on a percentage of completion basis over the period from delivery of the product to customer acceptance. The degree of completion of a contract is measured using the costs incurred to date or milestones reached, depending upon the nature of the individual contract and the most appropriate measure of the percentage of completion. Losses on contracts are recognised as soon as a loss is foreseen by reference to the estimated costs of completion.
Page 25
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The following is an analysis of the company's revenue for the year from continuing operations:
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Support, maintenance, licence and implementation fees
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Research and development income
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Analysis of revenue by country of destination:
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Contract liabilities
Contract liabilities comprise cash received from customers in advance of the company satisfying its performance obligation to provide the services to the customers. Revenue will be recognised when the control of the services is transferred to the customer.
Deferred income brought forward and released in the year amounted to €4,232,965. Income deferred and included in current liabilities at the reporting date amounted to €4,798,538.
Contract assets
Contract assets arise whereby services have been supplied to customers in advance of the company satisfying its performance obligation to provide the services to the customers. Revenue will be recognised when the control of the services are transferred to the customer.
Accrued income brought forward and released in the year amounted to €105,610. Income accrued and included in current assets at the reporting date amounted to €133,040.
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Page 26
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Depreciation of plant and equipment (note 13)
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Amortisation of intangible assets (note 14)
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Employee benefit expenses
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Foreign exchange (profits)/ losses
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Travel and subsistence expenses
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During the year, the company obtained the following services from the company's auditor:
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Fees payable to the company's auditor for the audit of the company's financial statements
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Page 27
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Employee benefit expenses
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Employee benefit expenses (including directors) comprise:
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Included in wages and salaries is €3,745,053 (2023 - €2,950,206) in respect of subcontracted staff.
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Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the company, including the directors of the company listed on page 3.
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The monthly average number of persons, including the directors, employed by the company during the year was as follows:
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Page 28
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Amounts paid to third parties in respect of directors' services
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Defined contribution schemes
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Finance income and expense
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Recognised in profit or loss
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Finance leases (interest portion)
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Net finance income recognised in profit or loss
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Page 29
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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12.1 Income tax recognised in profit or loss
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Adjustments in respect of prior years
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Origination and reversal of timing differences
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Tax expense excluding tax on sale of discontinued operation and share of tax of equity accounted associates and joint ventures
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The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to profits for the year are as follows:
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Income tax credit/expense (including income tax on associate, joint venture and discontinued operations)
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Profit/(loss) before income taxes
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Tax using the company's domestic tax rate of 25% (2023:23.52%)
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Expenses not deductible for tax purposes, other than goodwill, amortisation and impairment
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Foreign tax credits not used
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Movement in deferred tax not recognised
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Under provision of deferred taxes
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Other timing differences leading to an increase/(decrease) in taxation
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Adjustment in research and development tax credit leading to an increase/(decrease) in the tax charge
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Other tax charge/(relief) on exceptional items
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Other differences leading to an increase/(decrease) in the tax charge
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Page 30
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Tax expense (continued)
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12.1 Income tax recognised in profit or loss (continued)
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12.2 Current tax assets and liabilities
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Corporation tax repayable
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Page 31
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Tax expense (continued)
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12.3 Deferred tax balances
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The following is the analysis of deferred tax assets/(liabilities) presented in the statement of financial position:
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Recognised in profit or loss
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Property, plant and equipment
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Tax losses carried forward
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Property, plant and equipment
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Page 32
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Property, plant and equipment
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Accumulated depreciation and impairment
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Charge owned for the year
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Charge owned for the year
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Page 33
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
13.Property, plant and equipment (continued)
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13.1. Assets held under leases
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The net book value of owned and leased assets included as "Property, plant and equipment" in the Statement of Financial Position is as follows:
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Property, plant and equipment owned
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Right-of-use assets, excluding investment property
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Information about right-of-use assets is summarised below:
Net book value
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The carrying amount of the company's lease liabilities approximates the fair value. Depreciation charge on right-of-use assets and charged to operating expenses is €24,662 (2023 - €36,993).
The company leased a property located in London, which was on a 2 year fixed term and has now been terminated. Lease terms are negotiated on an individual basis and contain a range of different terms and conditions. The lease agreements do not impose covenants, but lease assets may not be used as security for any borrowing purposes. Details of the maturity analysis of lease liabilities and total cash outflow for leases in the current period are set out in note 21 to these accounts.
The interest rate implicit in the lease is 5%, based upon the bank rate on inception of the lease.
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Page 34
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Accumulated amortisation and impairment
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Charge for the year - owned
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Page 35
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Other non-current investments
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Investments in subsidiary companies
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During the year a subsidiary company, EXUS Software MEPE, was disposed of.
The company holds 100% shareholding in EXUS Limited, a dormant company incorporated in England and Wales.
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Trade and other receivables
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Prepayments and accrued income
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Total trade and other receivables
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Page 36
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
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Other payables - tax and social security payments
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Total trade and other payables
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Less: current portion - trade payables
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Less: current portion - other payables
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Less: current portion - accruals
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Total non-current position
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Total loans and borrowings
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Company bank loans are secured by way of a fixed and floating charge over the assets of the company.
Company bank loans include a loan drawn down in 2020 of €1,661,846. Capital repayments commenced November 2021. The loan bears interest at 2.76% and is repayable over 6 years. The loan is denominated in GBP. During the year the company repaid £300,000 (2023: £300,000) and interest totalling £16,889 (2023: £23,759) was charged. Interest payable is charged straight to the NatWest GBP current account.
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Page 37
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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B shares of €1.20294 each
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B shares of €1.20294 each
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At 1 January and 31 December
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Page 38
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Capital redemption reserve
This reserve comprises shares redeemed by the company.
Retained earnings
This reserve comprises accumulated distributable profits and losses.
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The nature of the company's leasing activities by type of right-of-use assets recognised on the Statement of Financial Position is detailed on note 13.
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Lease liabilities are due as follows:
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Contractual undiscounted cash flows due
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Lease liabilities included in the Statement of Financial Position
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The following amounts in respect of leases have been recognised in profit or loss:
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Interest expense on lease liabilities
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Page 39
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Financial instruments - fair values and risk management
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22.1 Accounting classifications and fair values
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The following table shows the carrying amounts and fair values of financial assets and financial liabilities. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
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Other financial liabilities
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Financial assets not measured at fair value
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Trade and other receivables
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Cash and cash equivalents
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Trade and other receivables
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Financial liabilities not measured at fair value
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Page 40
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
22.Financial instruments - fair values and risk management (continued)
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22.1 Accounting classifications and fair values (continued)
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Other financial liabilities
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Financial assets not measured at fair value
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Trade and other receivables
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Cash and cash equivalents
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Financial liabilities not measured at fair value
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Page 41
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
22.Financial instruments - fair values and risk management (continued)
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22.2 Financial risk management objectives
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The company's activities expose it to a variety of financial risks, including foreign exchange risk, credit risk, liquidity risk and interest rate risk. The company's overall risk management procedures focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the company's financial performance.
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22.3 Foreign currency risk management
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The company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.
The carrying amounts of the company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
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United States Dollar "USD"
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Foreign currency sensitivity analysis
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In the opinion of the directors, United States dollars, New Zealand dollars, Thai Baht and Pound Sterling are reasonably stable with the Euro under the Linked Exchange Rate System, and accordingly, the company considers the foreign exchange risk is low. Given the low risk, the company does not hedge against movements in exchange rates but does take exchange rate movements into account for cash flow forecasting. Management continually monitor for current or potential changes that might necessitate a change in risk management strategy.
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The following table details the company's sensitivity to a 2% increase and decrease in the Euro against the relevant foreign currencies. 2% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 2% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the company where the denomination of the loan is in a currency other than the functional currency of the lender or the borrower. A positive number below indicates an increase in profit or equity where the Euro strengthens 2% against the relevant currency. For a 2% weakening of the Euro against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.
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Page 42
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
22.Financial instruments - fair values and risk management (continued)
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22.4 Credit risk management
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Credit risk includes risks resulting from risks of concentration and counterparty default. It mainly arises from deposits with banks, contractual cash flows of debt instruments carried at amortised cost, as well as credit exposures to customers and related companies, including loans and outstanding receivables.
The company has a large number of customers but does have a small number of significant individual customers which make up a sizeable portion of the company's revenue. These customers are large, reputable retailers which are considered to present a very low risk of default. The company has policies in place to ensure that sales of goods and provision of services are made to customers with an appropriate credit history and to limit the amount of credit exposure to customers to minimise credit risk resulting from counterparty default. These evaluations focus on the customer's past history of making payments when due and current ability to pay, and take into account information specific to the customer as well as pertaining to the economic environment in which the customer operates. Furthermore, the company reviews the recoverable amount of each individual customer at the end of each reporting period to ensure that adequate impairment losses are made for irrecoverable amounts. Write offs are made on a case by case basis, subject to board approval. In this regard, the directors are of the opinion that the relevant credit risk is significantly reduced.
The company's financial assets are subject to the expected credit loss model. While cash at banks are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial as they are mainly deposited in reputable and creditworthy banks.
The credit risk on rental and utility deposits and other receivables are considered to be low by the directors given their nature.
The company applies IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables.
To measure the expected credit losses, trade receivables have been grouped based on shared credit risk
characteristics and the days past due. The expected loss rates are based on the payment profiles of
sales and the corresponding historical credit losses experiences. The historical loss rates are adjusted to
reflect current and forward-looking information on macroeconomic factors affecting the ability of the
customers to settle the receivables.
Page 43
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
22.Financial instruments - fair values and risk management (continued)
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22.5 Liquidity risk management
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Liquidity and interest risk tables
The following tables detail the company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the company may be required to pay.
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The following table details the company's expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the company's liquidity risk management as the liquidity is managed on a net asset and liability basis.
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Page 44
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EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
22.Financial instruments - fair values and risk management (continued)
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22.5 Liquidity risk management (continued)
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Related party transactions
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Balances and transactions between the company and its subsidiaries, which were related parties of the company, are not disclosed due to being at arm's length.
Exus Holdings Ltd, a special purpose entity incorporated in Cyprus, owns 100% of the parent company's issued share capital. There is no controlling shareholding in Exus Holdings Ltd, whose registered office address is Akadimias, 21, Kema Building, Floor 9, Aglantzia, 2107, Lefkosia, Cyprus.
The directors consider Exus Holdings Ltd to be the ultimate parent undertaking and the ultimate controlling party on the basis of control.
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Notes supporting statement of cash flows
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Cash at bank available on demand
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Cash and cash equivalents in the statement of financial position
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Cash and cash equivalents in the statement of cash flows
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Page 45
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|
EXUS SOFTWARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The company seeks to maintain a strong capital base to maintain customer and creditor confidence and to continue to develop and grow the business. The directors monitor the company's returns on capital and dividends issued to the company's shareholders. The company monitors capital using the net debt to total equity ratio, as calculated below:
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Cash and cash equivalents
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Net debt to total equity ratio
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Page 46
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