Registration number:
Sword IT Solutions Limited
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Brebners
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Sword IT Solutions Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Statement of Income and Retained Earnings |
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Statement of Financial Position |
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Notes to the Financial Statements |
Sword IT Solutions Limited
Company Information
Directors |
J F Mottard G Anderson K Moreton O Slamenkaite |
Registered office |
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Auditor |
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Sword IT Solutions Limited
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the company is the provision of IT business solutions and services.
Fair review of the business
The directors are satisfied that the performance of the company for the year ended 31 December 2024 is in line with management's expectations. Despite geopolitical events that affected global economy, the stability of the oil price in FY2024, diversification and management of risks has had a positive impact on company results which has resulted in improved profitability, cash generation and a strong balance sheet position.
The company seeks to ensure that responsible business practices are fully integrated into the management of all of its operations and into the culture of all parts of its business. It believes that the consistent adoption of responsible business practice is essential for operational excellence, which in turn, ensures the delivery of its core objectives of sustained real growth in revenue and strong profitability.
The company's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Turnover |
£ |
50,006,885 |
50,113,508 |
Gross margin |
% |
83 |
81 |
Profit before tax |
£ |
6,333,154 |
4,740,166 |
Net assets |
£ |
16,772,546 |
12,027,074 |
In 2024, the company experienced a slight decline in turnover compared to previous year. This reduction was primarily attributed to the natural pace of organic growth. The company continues to invest in developing new business opportunities and explore potential acquisition targets that would support current business offerings with expectations for turnover to increase in 2025.
The company maintained a strong net asset position throughout the year as a result of its strong results for the year and strong cash position. This is reflected within increased amounts recoverable within debtors. With these significant financial resources, the directors believe that the company remains well placed to exploit future opportunities as and when they arise.
The company is investing in new technologies and AI to provide a better service to its existing customers and this investment has been capitalised in fixed assets.
Non-Financial Key performance indicators
The company seeks to ensure that responsible business practice is fully integrated into the management of all its operations and into the culture of all parts of its business. It believes that the consistent adoption of responsible business practise is essential for operational excellence, which in turn, ensures the delivery of its core objectives of sustained real growth in turnover and profitability.
Given the company’s size and diversity, the directors consider there are collectively numerous non-financial performance indicators but no individual indicator is more important than any other and take a wide range of non-financial performance indicators into account.
Sword IT Solutions Limited
Strategic Report for the Year Ended 31 December 2024
Principal risks and uncertainties
Principal risks and uncertainties
The company trades within the IT sector, specialising in the provision of IT Business Solutions and services. The company faces the business risks of the individual industries within which our clients operate and to specific business risks around the IT industry, such as technological changes. Management monitor these risks to ensure continuity of trade and to assist our clients to succeed within their own industry sectors. The company's results and strengthening statement of financial position from the retention of profits provide a good base to react to any risks that the company faces.
The company has generated strong profits and cashflow which means it is in a strong position to continue its growth journey.
Our strategy of ensuring a strong element of annuity based recurring revenue has ensured that the underlying business has remained stable and our risk relating to projects being deferred during times of uncertainty has been minimized.
The company operates in competitive markets and has a number of key competitors. The company manages this risk by providing high quality IT solutions to its clients that meets their initial and future requirements.
Financial instruments
Objectives and policies
The company uses basic financial instruments, other than derivatives, comprising bank balances, and various other items such as trade debtors and trade creditors. The main purpose of these instruments is to raise funds for and finance the company's operations.
It is and has been throughout the year under review, the company’s policy that no trade in non-basic financial instruments shall be undertaken.
The company does not enter into any formal hedging arrangements.
Price risk, credit risk, liquidity risk and cash flow risk
Liquidity, credit, price and cash flow risks are managed by the directors on a constant basis to ensure the company maintains adequate cash flows to serve its working capital requirements.
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling.
Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses by authorisation of credit terms to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations and ensuring regular monitoring of amounts outstanding for both time and credit limits in trade debtors.
Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on a variable rate debt. The company manages this risk, where significant, and does not maintain any derivatives or complex financial instruments as explained above.
Sword IT Solutions Limited
Strategic Report for the Year Ended 31 December 2024
Section 172(1) statement
The Companies (Miscellaneous Reporting) Regulations 2018 require the directors to explain how they considered the interest of key stakeholders as set out in sections 172(1) (A) to (F) of the Companies Act 2006 when performing their duty to promote the success of the company. The following paragraphs summarise how the directors fulfil their duties.
Long term decision making
In light of the kind of activities undertaken by the company and the type of contracts it implements, the company has been structurally adapted to streamline its operational management.
• Organised into profit centres: the company has been structured as specialized, autonomous business units, each with its own management. Each specialized business unit is a profit centre and is responsible for its own operational management and financial performance.
• Project knowledge and expertise: managers in charge of specialized business units have technical training in computer sciences and all have extensive experience in IT project management. Most of them are experts in their own field of competence.
• Technical management: each business unit relies on its own internal technical competencies as well as being able to call upon specialist technical competencies elsewhere in the group if necessary.
• A specialist commercial approach: the sales force tend to have a strong technical background and are specialists in the field in which the Business Unit operates. This allows them to propose sound technical solutions which address our clients real business problems.
Looking after people and the company's employees
Most of the company’s employees and sub-contractors have strong professional qualifications. The company provides its staff members with a wide range of tools and training to facilitate the continued development of the staff.
The company has many centralised knowledge sharing repositories that allow teams from across the organisation to independently access relevant information and the right specialists where appropriate.
Facilities available across the group:
• Laptops for mobile workers, with external access to the Sword information system; all staff members have one or two additional monitors for their laptops to ensure greater comfort when working,
• State-of-the-art collaborative tools (e-mail messaging, instant messaging, collaborative spaces, standardized document reference systems, professional HR tools, customer relationship management tools, each Group site is equipped with video conference rooms), and
• Quality work environment: Offices are organized into small project teams. Access to management is also ensured by the geographic proximity of offices.
The company operates a very flat hierarchy ensuring all employees are involved in the day to day activities of the business as well as its future strategy. Monthly meetings are held at the Business Unit level in order to discuss and share:
• Results and outlook for the individual Business Unit and the entire Group along with its strategical direction,
• Current and future sales opportunities and forward looking strategy, and
• A comprehensive review of current projects, difficulties encountered and successes.
The company is a specialised IT Services and Software company.
The companies most valuable asset is its people, their expertise, training and knowledge.
Sword IT Solutions Limited
Strategic Report for the Year Ended 31 December 2024
The company has people at the centre of its culture and ethos and pays special attention to fostering an environment in which the employees feel valued and motivated to further their own personal and professional development. Internal strategies have been put in place to ensure the company can:
• Maintain skills and pool knowledge through the implementation of training and knowledge capitalisation and sharing processes. These processes are consistent with the specific features of each of our business units and make it possible to ‘grow’ our staff members to become specialists in their field. To do this, the various educational means provided by the company include:
- Specialized and general documentary assets,
- Tutorial references for each speciality,
- Support for new staff members in the form of mentoring and sponsorship, and
- Implementation of on-line or external training, implementation of certification programs.
• Maintaining team motivation throughout the term of a contract based primarily on an organization in small-size business units, strong involvement by management in the business unit, internal mobility and personalized training plans,
• Change management: induction and departure of a new staff member in a team taking account of the project’s constraints and objectives.
As such, the company is constantly investing in training with a large proportion of its employees having undergone internal or external training.
The company offers a number of facilities to enable staff members to develop a better balance between work, family commitments and leisure time.
• The possibility for staff members to access sports facilities,
• Flexible working practices,
• Geographic mobility and opportunities to travel if desired, and
• Sword's international presence also allows staff members to be offered international opportunities.
Sword IT Solutions Limited
Strategic Report for the Year Ended 31 December 2024
Fostering relationships with suppliers, customers and others
To meet the strategic challenges of its clients, the requirements of adapting their technological environments and the needs of evolving business processes, the company is structured into specialised Business Units.
The company provides its customers with proximity, high added-value specialist know-how and an optimised economic approach.
This is a company with strong, sustainable and profitable growth, which is pursuing an expansion approach based on specialization, proximity and the quality of its expertise and services.
In working with carefully selected organisations, the company continues to deliver innovative ideas to its customers while maintaining its business knowledge, technical expertise and ability to innovate.
The company requires all of its stakeholders and partners to comply strictly with the laws and regulations in force in the countries in which they operate, as well as a commitment to collaborate with the Group in implementing compliance with the principles set out in the Group’s Ethics Charter, and if necessary, to take any appropriate corrective measures as part of a continuous improvement process. The company expects its stakeholders and partners to take all reasonable steps to ensure that its own suppliers and subcontractors comply with the terms of this Charter. Sword Group undertakes to comply with this responsible purchasing charter for suppliers, subcontractors and independent contractors and to promote transparency and dialogue with its partners.
The on-going pursuit of excellence and leadership by Sword is developed in line with the company and group’s founding values: respect, rigour and involvement.
Impact on the community and the environment
Sword Group's Social Responsibility is to consider the company not only as a place of production and a profit centre, but also as having a responsibility for the community and the environment.
The company is committed to:
• Applying the precautionary approach to environmental problems,
• Undertaking initiatives to promote greater environmental responsibility, and
• Promoting the development and dissemination of environmentally friendly technologies.
This general framework is applied through various actions adapted to the specificities of the Sword Group, its businesses, its employees and its subsidiaries.
The group’s investment is not restricted to staff training; it also takes the form of outreach to universities and engineering schools throughout the world and especially presentations and partnerships in the United Kingdom with the University of Aberdeen, the Robert Gordon University, the University of Strathclyde.
Sword IT Solutions Limited
Strategic Report for the Year Ended 31 December 2024
Maintaining reputation for high standards of business conduct
In 2011, the Sword Group joined the United Nations Global Compact, committing to 10 principles related to human and labour rights, the environment and corruption.
Through this membership, the company wishes to show that it is a good corporate citizen in the global economy. The choice of the Global Compact was made because it guarantees a globally recognised framework and sustainability. Sword Group ensures that the 10 principles of the United Nations Global Compact are respected:
Universal Declaration of Human Rights:
• Businesses should support and respect the protection of international human rights law within their sphere of influence, and
• make sure that their own companies are not complicit in human rights abuses.
International Labour Organisation Declaration on Fundamental Principles and Rights at Work:
• Companies should respect the freedom of association and recognise the right to collective bargaining,
• The elimination of all forms of forced or compulsory labour,
• The effective abolition of child labour, and
• The elimination of discrimination in employment and occupation.
Rio Declaration on Environment and Development:
• Apply the precautionary approach to environmental problems,
• Undertake initiatives to promote greater environmental responsibility, and
• Promote the development and dissemination of environmentally friendly technologies.
United Nations Convention against Corruption:
• Companies are urged to take action against corruption in all its forms, including extortion and bribery.
The company is committed to transforming its organisation to improve its environmental policy, its social and societal commitments, and the protection and security of its data (RGPD, BCR, BCP).
The Board of Directors at ultimate parent level was strengthened and will continue to evolve to move towards greater parity and to increase the proportion of independent members.
The company has a policy on Sustainable Development and Corporate Responsibility which is consistent with the Sword Group's commitments to human rights, international labour standards, the environment and the fight against corruption.
Sword IT Solutions Limited
Strategic Report for the Year Ended 31 December 2024
The need to act fairly as between members of the company
The company has taken steps to empower managers and business unit directors across the company by giving them accountability and control over their respective areas and to ensure that they are rewarded for their achievements.
Future developments
The company continues to be well positioned in its market place and offers tailored solutions to its customers. The directors do not anticipate any changes in the company’s principal activities and trading performance which is expected to remain consistent for the foreseeable future. The company will continue to work within the Sword world-wide group to ensure that the group operates with good synergies that enable improved service offerings to customers.
Approved by the
.........................................
Director
Sword IT Solutions Limited
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors of the company
The directors who held office during the year were as follows:
Employee involvement
The company's policy is to consult and discuss with employees, through meetings, on matters likely to affect employees' interests, or matters of concern to them.
Information on matters of concern to employees is communicated internally to achieve a common awareness of the financial and economic factors affecting the performance of the company.
Employment of disabled persons
The company's policy is to offer equal opportunities to all persons, including disabled persons, applying for vacancies having regard to their aptitudes and abilities in relation to the jobs for which they apply. The opportunity also exists for continuing employment and appropriate training for such employees including those who become disabled during their employment with the company.
Directors' liabilities
As permitted by Article of Association, the directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force.
Disclosure of information in the Strategic Report
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors' Report. It has done so in respect of future developments and financial instruments.
Sword IT Solutions Limited
Directors' Report for the Year Ended 31 December 2024
Dividends
During the year interim dividends amounting to £nil (2023: £4,696,685) were declared and paid. No final dividend is proposed.
Streamlined energy and carbon reporting
The UK Government’s Streamlined Energy and Carbon Reporting (SECR) regulations were implemented on 1 April 2019, and the Company continues to adapt and publish disclosures on energy and carbon. The table below represents Sword IT Solutions Limited energy use and associated greenhouse gas (GHG) emissions from electricity and fuel in the UK for the year ended 31 December 2024. The data covers all five of our sites across the United Kingdom.
Greenhouse Gas (GHG) Emissions
In line with the Greenhouse Gas Protocol (GHG) Corporate Accounting and Reporting Standard, Sword IT Solutions Limited is engaged in identifying our GHG sources and boundaries and are aimed at reducing our energy and greenhouse gas emissions.
Sword IT Solutions Limited maintains both scopes one (1) & two (2) emissions, which are generated from our processes, offices, and premises, respectively.
As a signatory to the United Nations Global Compact since 2011, Sword Group is committed to upholding the 10 principles relating to human rights and labour, the environment and corruption. Accordingly, as part of Sword Group, we use the Sustainable Development Goals to guide our CSR strategy in order to better respond to the challenges of today's world.
Sword IT Solutions Limited have devised a strategy to reduce our carbon footprint significantly including:
- Support a precautionary approach to environmental challenges;
- Undertake initiatives to promote greater environmental responsibility; and
- Encourage the development and diffusion of environmentally friendly technologies.
- Encourage employees to purchase renewable technology cars i.e., hybrid vehicles,
- Purchase energy efficient equipment where appropriate in our offices,
- Replace heating, ventilation and air conditioning systems with energy-efficient equipment where possible,
- Adopt behavioural change measures where possible.
Sword IT Solutions Limited have a longstanding commitment to tackling climate change by setting future targets to reduce our carbon footprint year on year. Our calculated energy usage (oil and gas) for our current financial year is 160,541 kWh vs 74,638 kWh in 2023, whilst energy consumption was 283,539 kWh vs 212,255 kWh in 2023.
Methodology
Sword IT Solutions Limited have reported all of our emission sources under the Companies Act 2006 (Strategic Report and Director’s Reports) Regulations 2013 as required. The relevant calculations have been taken from utility bills sourced directly from our suppliers. We have calculated and reported our Scope 1 and Scope 2 emissions in line with the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and emission factors from the UK Government's GHG Conversion Factors for Company Reporting 2020. This conversion factor was utilised in order to align with Sword Group reporting.
The reporting period is the fiscal year 2024, the same as that covered by the Annual Report and Financial Statements. The boundaries are defined using the operational control approach. In general, the emissions reported are the same as those which would be reported based on a financial control boundary.
Sword IT Solutions Limited
Directors' Report for the Year Ended 31 December 2024
2024 Emissions |
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Tonnes CO2 equivalent (tCO2e) |
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Scope 1 (oil and diesel) |
29.52 |
Scope 2 (electricity) |
66.10 |
Total |
95.62 |
2023 Emissions |
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Tonnes CO2 equivalent (tCO2e) |
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Scope 1 (oil and diesel) |
13.72 |
Scope 2 (electricity) |
49.49 |
Total |
63.21 |
Comparison with prior year figures
The UK Government’s SECR regulations requires Sword IT Solutions Limited to disclose the energy use and resultant GHG emissions for the current financial year as well as the prior year. The figures representing Sword IT Solutions energy use and associated emissions for the year ending 31 December 2024 have been presented above, along with comparative figures from 2023.
Sword IT Solutions have commenced an ESG program in 2023. The program was kicked off with an ESG gap analysis and identification of key actions required to reach net zero ambitions. It has been determined that Sword IT Solutions will undertake a baselining exercise of data capture and recording in both 2023 and 2024 to provide an accurate platform for realistic reduction plans. We work with the wider Sword Group ESG steering group to ensure we collectively meet our obligations to achieving Net Zero by 2050.
Intensity Metric
Scope one (1) and two (2), carbon intensity: 1.912199 tCO2e/M in 2024 (2023: 1.261311 tCO2e/M). This raise is primarily due to:
• Slightly lower revenue performance in the current year, which has impacted the denominator of the intensity calculation.
• Encouraging staff to return to office-based working following extended periods of remote work during and after Covid-19 pandemic. As occupancy levels increased, so did energy usage for heating, cooling, lighting, and IT infrastructure across our office portfolio.
• Building factor of main building in Aberdeen (Johnstone House) omitted a material amount of charges from 2023 and caught up with the charges in 2024. Notes to that effect were published in our financial statements.
Despite the increase in emissions intensity, we remain committed to our ESG goals. We are focusing on energy reduction initiatives, including the review of existing office space to better align energy use with occupancy across all five sites in the UK.
The intensity metric is based on Tonnes of CO2e per total £M sales revenue of £50,006,885 (2023: £50,113,508). This metric is a common business metric for our industry sector.
Sword IT Solutions Limited
Directors' Report for the Year Ended 31 December 2024
Efficiency Measures Taken (2024)
1) E-Waste Management: Donated laptops and phones in good condition to charity when no longer required for business use, giving devices a second life.
2) Digital Transformation: Increased use of digital tools-particularly for communication-to reduce paper consumption and improve operational efficiency.
3) Energy Procurement: Reviewed and transitioned energy contracts to renewable energy suppliers.
4) Energy-Efficient Equipment: Ongoing replacement of aging office equipment with energy-efficient alternatives.
5) Lighting Upgrades: Replaced inefficient lighting with low-energy LED solutions across office spaces.
6) Remote Collaboration: Expanded use of video conferencing, home-working, and virtual meetings to reduce travel-related emissions.
7) EV Infrastructure: Proposed additional installations of electric vehicle charging points at various premises where feasible.
8) Employee Engagement: Conducted a staff survey to better understand and promote low-carbon commuting options.
9) Awareness & Training: Delivered internal communications to raise awareness of carbon reduction goals and progress.
10) Governance & Reporting: Regularly reviewed and enhanced internal processes, with GHG assessment results communicated at Board level.
11) Sustainable Finance: Monitored workplace pension provider to ensure alignment with ESG principles, targeting over 65% exposure to sustainable investments.
Sword IT Solutions Limited
Directors' Report for the Year Ended 31 December 2024
Objectives for 2025
1) Leadership & Governance: Appointed a Chief Sustainability Officer to define and lead our sustainability vision, set GHG emission reduction targets, and implement action plans across the Group.
2) Office Consolidation:
a) Streamlined office footprint by consolidating three sites into one energy-efficient location, featuring electric vehicle charging stations.
b) Explore the closure of under utilised office in one of our key locations
3) Energy Management: Committed to reducing baseline electricity consumption, with 2026 targets to be set following a comprehensive two-year energy usage analysis (2023-2024).
4) Strategic Alignment: Embed sustainability as a core strategic principle-not only to meet regulatory requirements but to create tangible value for our services and customers, with a strong focus on achieving Net Zero.
5) Supplier Engagement & Procurement:
a) Integrated eco-criteria into procurement policies to promote sustainable purchasing.
b) Initiated reviews of supplier contracts to assess the feasibility of transitioning to renewable energy sources.
c) Engaged landlords of serviced offices to advocate for renewable energy adoption.
6) Stakeholder Communication: Actively communicate our carbon footprint, reduction targets, and action plans to key stakeholders to foster transparency and accountability.
7) Science-Based Targets: Committed to aligning with the Science Based Targets initiative (SBTi) to ensure our goals are measurable and science-aligned.
8) Ecosystem Collaboration: Engaging suppliers and customers to understand their emission reduction strategies and prioritize partnerships with sustainability-minded organizations.
9) Awareness & Training: Rolled out climate change awareness training across the business and are reviewing internal policies to identify further opportunities for emissions reduction.
10) Business Travel: Launch Employee EV Scheme & Issue updated guidelines for use of business travel portal to select the most cardon efficient methods wherever possible.
Sword IT Solutions Limited will report on progress within our next set of financial accounts.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the director on
.........................................
O Slamenkaite
Director
Sword IT Solutions Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Sword IT Solutions Limited
Independent Auditor's Report to the Members of Sword IT Solutions Limited
for the Year Ended 31 December 2024
Opinion
We have audited the financial statements of Sword IT Solutions Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Sword IT Solutions Limited
Independent Auditor's Report to the Members of Sword IT Solutions Limited
for the Year Ended 31 December 2024
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities (set out on page 14), 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 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.
Sword IT Solutions Limited
Independent Auditor's Report to the Members of Sword IT Solutions Limited
for the Year Ended 31 December 2024
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:
Based on our understanding of the company and the industry in which it operates, we determined that the principle risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006), UK corporate taxation laws, health and safety legislation and data protection legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.
We understood how the company is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company's financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management's incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission, misrepresentation or forgery.
Sword IT Solutions Limited
Independent Auditor's Report to the Members of Sword IT Solutions Limited
for the Year Ended 31 December 2024
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.
......................................
For and on behalf of
130 Shaftesbury Avenue
London
W1D 5AR
Sword IT Solutions Limited
Statement of Income and Retained Earnings for the Year Ended 31 December 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
128,813 |
(44,426) |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Retained earnings brought forward |
8,768,479 |
9,840,289 |
|
Dividends paid |
- |
( |
|
Retained earnings carried forward |
13,513,952 |
8,768,479 |
Sword IT Solutions Limited
Statement of Financial Position as at 31 December 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
- |
|
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
515,645 |
515,645 |
|
Share premium reserve |
2,742,950 |
2,742,950 |
|
Profit and loss account |
13,513,952 |
8,768,479 |
|
Shareholders' funds |
16,772,547 |
12,027,074 |
Approved and authorised by the
......................................................................
O Slamenkaite
Director
Company registration number: 03165591
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
The principal activity of the company is the provision of consultancy services which help clients to improve business performance and create new business opportunities through the effective application of information technology.
Accounting policies |
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Summary of disclosure exemptions
The entity satisfies the criteria of being a qualified entity as defined in FRS 102. Its financial statements are consolidated into the financial statement of Sword Group SE, which can be obtained from sword-group.com/en/investors. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) No cash flow statement has been presented for the company.
(b) Disclosures in respect of financial instruments have not been presented.
(c) No disclosure has been given for the aggregate remuneration of key management personnel.
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Going concern
The company made a profit after tax for the year ended 31 December 2024 and had net assets of £16,772,546 at that date.
During the year our business has proven extremely robust and has performed well during this period, our cashflow has remained strong, our pipeline of opportunities has also remained robust and our profitability has actually increased during this period.
Our underlying strategy of ensuring a strong element of annuity based recurring revenue has ensured that the underlying business has remained stable and our risk relating to projects being deferred during these uncertain times has therefore been minimized.
As such, having made enquiries, the directors have a reasonable expectation that the company has adequate resources to continue operating for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
Consolidation
The entity has taken advantage of the exemption from preparing consolidated financial statements contained in Section 401 of the Companies Act 2006 and its financial statements are consolidated into the financial statements of Sword Group SE, which can be obtained from sword-group.com/en/investors.
Judgements and key sources of estimation uncertainties
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. Key assumptions and other estimation uncertainty may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
Judgements and estimates that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
Onerous lease and dilapidation provisions
The onerous lease provision is calculated based on management's estimates of lease payments, business rates, occupancy, subject to future events and are reviewed annually.
The dilapidations provision is calculated based on management's estimate of decorating and other dilapidation costs that may become payable at the end of the lease, taking into consideration the current state of the premises and expected costs to make good.
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Revenue recognition
Turnover represents the fair value of consideration received in respect of sales of software, professional services and support services to external customers, net of Value Added Tax.
The company generates revenues from sales of its own software products directly to end users, sales of consultancy services, and customer support services.
Revenues from the sale of the company's own perpetual software licences are recognised where there is persuasive evidence of an agreement with a customer, delivery of the software has taken place, revenue collection is probable, the fee is fixed and determinable and all contingencies relating to the sale have been resolved. Periodic software licences are recognised over the period to which they relate.
Revenues from consultancy services are normally recognised as services are performed, on a time and materials basis. Occasionally consultancy projects are sold on a fixed price basis. In these cases, the profitability of the project is measured on a monthly basis and any loss is recognised immediately in the profit and loss account. If the project to date is profitable then revenue is recognised on a percentage completion basis of consultant hours worked against total estimated hours to complete the fixed price contract.
Revenues from support contracts are recognised rateably over the term of the contract. Revenues from hosting activities are recognised over the period of usage.
Revenues from multi component contracts are broken down based upon the contractual terms and rates set out in the contracts, derived from the standalone sales prices published in the company price list. Revenues from each component is then recognised based upon the accounting policies stated above.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
15% straight line |
Computer equipment |
3 years straight line |
Intangible assets
Intangible assets are initially recorded at cost. Intangible assets are amortised over their estimated useful economic lives once developed and capable of producing future economic benefit.
Research and development
Research expenditure is written off in the period in which it is incurred.
Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:
• It is technically feasible to complete the intangible asset so that it will be available for use or sale;
• There is the intention to complete the intangible asset and use or sell it;
• There is the ability to use or sell the intangible asset;
• The use or sale of the intangible asset will generate probable future economic benefits;
• There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and
• The expenditure attributable to the intangible asset during its development can be measured reliably.
Expenditure that does not meet the above criteria is expensed as incurred.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Software development |
4 years straight line |
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Operating leases are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term on a straight-line basis.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due.
Financial instruments
Objectives and policies
The company's principal financial instruments comprise bank balances, bank overdrafts, trade and other creditors, trade debtors, loan and hire purchase agreements. The main purpose of these instruments is to raise funds for and finance the company's operations.
Price risk, credit risk, liquidity risk and cash flow risk
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The group's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of the bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. The company has loan facilities which are continually monitored, with the compliance with all relevant covenants prioritised.
In respect of other loans these are from financial institutions. The interest rates are tied to LIBOR and the group manages the liquidity risk by ensuring there are sufficient funds to meet the payments.
The group has entered into a significant number of hire purchase agreements. This liquidity risk in respect of these is managed in the same way as loans.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts falling due.
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Rendering of services |
|
|
The analysis of the company's turnover for the year by market is as follows:
2024 |
2023 |
|
United Kingdom |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Foreign exchange losses |
|
|
Loss on disposal of property, plant and equipment |
|
- |
Loss on disposal of investments |
- |
1,000 |
Other interest receivable and similar income |
2024 |
2023 |
|
Other interest receivable |
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on obligations under finance leases and hire purchase contracts |
- |
|
Interest expense on other finance liabilities |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Redundancy costs |
- |
|
Other employee expense |
|
|
|
|
The average number of persons employed by the company during the year, analysed by category was as follows:
2024 |
2023 |
|
Administration and support |
|
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
395,099 |
274,642 |
During the year the number of directors who were receiving benefits was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
103,862 |
117,233 |
Auditors' remuneration |
2024 |
2023 |
|
Audit of the financial statements |
|
|
Non-audit fees |
||
Half year review engagement services |
|
|
Taxation compliance services |
|
|
|
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Taxation |
Tax charged/(credited) in the income statement
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
|
( |
1,489,505 |
1,091,887 |
|
Foreign tax |
|
- |
Total current income tax |
|
|
Deferred taxation |
||
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
- |
23,403 |
Tax expense in the income statement |
|
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the hybrid rate of corporation tax in the UK) of
The standard rate of UK corporation tax is 25% from 1 April 2023. The hybrid corporation tax for prior financial year 2023 is 23.5%.
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate (2023: hybrid rate) |
|
|
Tax increase from effect of capital allowances and depreciation |
- |
|
(Over)/under provision of corporation tax in prior period |
|
( |
Other tax effects for reconciliation between accounting profit and tax expense |
- |
( |
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
2024 |
Asset |
Accelerated depreciation over capital allowances |
|
Pension accrual |
|
|
2023 |
Asset |
Accelerated depreciation over capital allowances |
|
Pension accrual |
|
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Intangible assets |
Software Development |
|
Cost or valuation |
|
At 1 January 2024 |
|
Additions |
|
At 31 December 2024 |
|
Amortisation |
|
At 1 January 2024 |
|
At 31 December 2024 |
|
Carrying amount |
|
At 31 December 2024 |
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
|||
At 1 January 2024 |
|
|
|
Additions |
- |
|
|
Disposals |
- |
( |
( |
At 31 December 2024 |
|
|
|
Depreciation |
|||
At 1 January 2024 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
- |
( |
( |
At 31 December 2024 |
|
|
|
Carrying amount |
|||
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
|
Included within the net book value of land and buildings above is £678,458 (2023 - £693,651) in respect of freehold land and buildings. This land and buildings had an original historic cost of £1,119,785 when it was originally acquired by an entity that has since had it's trade and assets hived across into Sword IT Solutions Limited.
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Investments |
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 January 2024 |
|
Additions |
|
At 31 December 2024 |
|
Provision |
|
At 1 January 2024 and 31 December 2024 |
|
Carrying amount |
|
At 31 December 2024 |
|
At 31 December 2023 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
Monfor Offices, Sir Winston Churchillaan 299a, 2288, DEC RIJSWIJK Netherlands |
|
100% |
|
|
2925 Richmond Avenue, 14th Floor, Houston, TX 77098 USA |
|
100% |
|
|
Level 18, 197 St Georges Terrace, Perth WA 6000 Australia |
|
100% |
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
Olaya Street, Al Nemer Center, 2nd Floor, Office 212 Riyadh, 11372 Saudi Arabia |
|
100% |
|
The principal activity of all subsidiaries is data processing, hosting and related activities.
The company is not required to disclose the aggregate capital and reserves, and the profit and loss account under the Companies Act 2006 for the principal subsidiary undertakings as it is exempt by virtue of Section 401 of the Companies Act 2006 from preparing group accounts as it is part of a larger group preparing consolidated accounts. The information in the financial statements is for the company only.
Debtors |
2024 |
2023 |
|
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments and accrued income |
|
|
Deferred tax assets |
|
|
Corporation tax asset |
|
|
Total current trade and other debtors |
|
|
Cash and cash equivalents |
2024 |
2023 |
|
Cash at bank and on hand |
|
|
Creditors |
2024 |
2023 |
|
Due within one year |
||
Trade creditors |
|
|
Amounts due to group undertakings |
|
|
Social security and other taxes |
|
|
Other payables |
|
|
Accruals and deferred income |
|
|
|
|
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Provisions |
Onerous contracts |
Dilapidation provision |
Total |
|
At 1 January 2024 |
|
|
|
Additional provisions |
- |
|
|
Released in the year |
( |
- |
( |
At 31 December 2024 |
- |
|
|
|
Several premises operating leases include contractual obligations to decorate and make good any dilapidations. Therefore the company has estimated the cost of these dilapidation provisions in the operating leases and provided for this future contractual obligation. These estimates are based upon managements best estimate of the future cost of such dilapidations using recent expected future costs.
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Pension commitments |
Included within the balance sheet are pension commitments amounting to £207,374 (2023 - £189,883).
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
515,644 |
|
515,644 |
Reserves |
The share premium account contains the premium arising on the issue of equity shares, net of issue expenses.
The profit and loss account includes all current and prior retained earnings and accumulated losses.
Sword IT Solutions Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dividends |
2024 |
2023 |
|||
£ |
£ |
|||
Interim dividend of £Nil (2023 - £ |
- |
4,696,685 |
||
Related party transactions |
Amounts due to and from group undertakings at 31 December 2024 are aggregated as permitted by FRS 102 and shown separately in debtors and creditors.
In accordance with FRS 102 paragraph 33.1A, exemption is taken not to disclose transactions in the year between wholly owned group undertakings.
Parent and ultimate parent undertaking |
The company's immediate parent is
Ultimate control vests with
Sword Group SE, whose registered office is situated at Route d'Arlon 2-4, L-8399 Windhof, Luxembourg, is the parent of the largest and smallest group preparing consolidated financial statements incorporating the results of the company.