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Company registration number: 08164913







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024


CLEARWATER ANALYTICS LIMITED






































img550e.png                        

 


CLEARWATER ANALYTICS LIMITED
 


 
COMPANY INFORMATION


Directors
J Cox 
S Sahai 
S Erickson 
A Valbrune  
K Viverito 
C Blendu 
S Sethi 




Company secretary
A Valbrune



Registered number
08164913



Registered office
Magna House
18-32 London Road

Staines-Upon-Thames

Surrey

TW18 4BP




Independent auditor
Menzies LLP
Chartered Accountants & Statutory Auditor

Magna House

18-32 London Road

Staines-Upon-Thames

TW18 4BP





 


CLEARWATER ANALYTICS LIMITED
 



CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditor's Report
5 - 8
Statement of Comprehensive Income
9
Statement of Financial Position
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 23


 


CLEARWATER ANALYTICS LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
Clearwater Analytics Limited is a private company, limited by shares, incorporated in England and Wales.  It is a wholly owned subsidiary of Clearwater Analytics LLC (a US based limited Liability Company).  Clearwater Analytics LLC is a subsidiary of Clearwater Analytics Holdings, Inc. (a company publicly listed on the New York Stock Exchange – Ticker NYSE:CWAN).  For full information regarding the publicly listed company, please see www.sec.gov.

Business review
 
Clearwater Analytics Limited sole business purpose is to provide services to Clearwater Analytics LLC.  The services include providing support to Clearwater Analytics LLC customers including reconciliation, data services, account servicing and management. Additionally, Clearwater Analytics provides services prospecting for new customers and marketing Clearwater Analytics LLC solutions to prospective and existing customers.
Clearwater Analytics Limited’s only customer is Clearwater Analytics LLC and its costs are recharged at cost plus an arm's length adjustment of 10%, this is reflected in Turnover.
For the year ended December 31, 2024, turnover was £30.5 million, an increase of £6.1 million or 25.1% when compared to turnover for the year ended December 31, 2023 of £24.4 million. As the company’s turnover is based on the costs incurred, the overall increase in turnover for the year ended December 31, 2024 is primarily attributed to an overall increase in  expenses.
Average monthly employees for the year ended December 31, 2024 was 226 compared to 214 for the year ended December 31, 2023.  The increased headcount within 2024 is in support of the additional customers signed by Clearwater Analytics LLC during the years. Staff costs employees for the year ended December 31, 2024 was £19.5 million compared to £15.7 million for the year ended December 31, 2023.
Net assets have increased from £10,447,787 as at 31 December 2023 to £13,014,128 as at 31 December 2024 as a result of the positive return in the year. 

Principal risks and uncertainties
 
As a service provider to its parent company, the Company’s principal risk is that the parent company loses its customers or does not grow its customers within the region.  In turn, the demand for the Company’s services will decrease.
Significant risks identified by the parent company include the following:

We operate in a highly competitive industry, with many companies competing for business from insurance companies, asset managers, corporations and government entities on the basis of a number of factors, including the quality and breadth of solutions and services provided, ability to innovate, reputation and the prices of services, and this competition could hurt our financial performance;

A complete list of the risks identified at the parent company level, can be found in the 10-K filing at www.sec.gov.

Financial key performance indicators
 
Key financial performance metrics include turnover and profit before taxes. As a wholly owned subsidiary whose costs are recharged to the parent, the key performance indicators which drive revenue and profits are the number of employees and the remuneration of such employees.
The increase in employees and remuneration is driven by the underlying demand from the parent company’s customers. 

Page 1

 


CLEARWATER ANALYTICS LIMITED
 



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


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




................................................
J Cox
Director

Date: 21 July 2025

Page 2

 


CLEARWATER ANALYTICS 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' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

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


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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company is the provision of sales and marketing services in relation to the software-as-a-service solution to its parent company.

Results and dividends

The profit for the year, after taxation, amounted to £2,566,341 (2023 - £1,896,285).

No dividend has been recommended to be paid.

Directors

The directors who served during the year were:

J Cox 
S Sahai 
S Erickson 
A Valbrune 
K Viverito (appointed 18 March 2024)
C Blendu 
S Sethi 

Future developments

The Company’s expectation for 2025 is to continue to grow revenue, maintaining profitability and invest  in its resources to keep its competitive product advantage.

Page 3

 


CLEARWATER ANALYTICS LIMITED
 


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

Matters covered in the Strategic Report

The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the company's Strategic Report the Company's Strategic Report Information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.

Disclosure of information to auditor

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.

Auditor

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





................................................
J Cox
Director

Date: 21 July 2025

Page 4

 


CLEARWATER ANALYTICS LIMITED
 

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CLEARWATER ANALYTICS LIMITED

Opinion


We have audited the financial statements of Clearwater Analytics Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 


CLEARWATER ANALYTICS LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CLEARWATER ANALYTICS LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the 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 set out 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.


Page 6

 


CLEARWATER ANALYTICS LIMITED


img23f3.png
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CLEARWATER ANALYTICS LIMITED (CONTINUED)

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.


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 Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, Employment law and Tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Companys financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and

°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

°Posting of unusual journals and complex transactions; and

°Risk of fictitious employees.


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.


Page 7

 


CLEARWATER ANALYTICS LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CLEARWATER ANALYTICS LIMITED (CONTINUED)

Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.





Sophie Said FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Magna House
18-32 London Road
Staines-Upon-Thames
TW18 4BP

Date: 21 July 2025
Page 8

 


CLEARWATER ANALYTICS LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
30,488,858
24,365,899

Cost of sales
  
(18,753,844)
(14,220,889)

Gross profit
  
11,735,014
10,145,010

Administrative expenses
  
(9,289,477)
(8,013,621)

Other operating income
 5 
214,882
23,345

Operating profit
 6 
2,660,419
2,154,734

Interest receivable and similar income
 10 
111,293
60,349

Profit before tax
  
2,771,712
2,215,083

Tax on profit
 11 
(205,371)
(318,798)

Profit for the financial year
  
2,566,341
1,896,285

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

The notes on pages 12 to 23 form part of these financial statements.

Page 9

 


CLEARWATER ANALYTICS LIMITED
REGISTERED NUMBER:08164913



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
574,375
590,006

  
574,375
590,006

Current assets
  

Debtors: amounts falling due within one year
 13 
7,172,063
6,760,907

Cash at bank and in hand
  
9,533,861
5,794,237

  
16,705,924
12,555,144

Creditors: amounts falling due within one year
 14 
(3,988,289)
(2,446,593)

Net current assets
  
 
 
12,717,635
 
 
10,108,551

Total assets less current liabilities
  
13,292,010
10,698,557

Creditors: amounts falling due after more than one year
 15 
(80,515)
(123,160)

Provisions for liabilities
  

Other provisions
 17 
(197,367)
(127,610)

  
 
 
(197,367)
 
 
(127,610)

Net assets
  
13,014,128
10,447,787


Capital and reserves
  

Called up share capital 
 18 
1
1

Capital contribution reserve
 19 
1,776,800
1,776,800

Profit and loss account
 19 
11,237,327
8,670,986

  
13,014,128
10,447,787


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



................................................
J Cox
Director
Date:21 July 2025

The notes on pages 12 to 23 form part of these financial statements.

Page 10

 


CLEARWATER ANALYTICS LIMITED
 



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


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

£
£
£
£


At 1 January 2023
1
1,776,800
6,774,701
8,551,502



Profit for the year
-
-
1,896,285
1,896,285



At 1 January 2024
1
1,776,800
8,670,986
10,447,787



Profit for the year
-
-
2,566,341
2,566,341


At 31 December 2024
1
1,776,800
11,237,327
13,014,128


The notes on pages 12 to 23 form part of these financial statements.

Page 11

 


CLEARWATER ANALYTICS LIMITED
 


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

1.


General information

Clearwater Analytics Limited is a private company, limited by shares, incorporated in England and Wales. The address of its registered office is disclosed on the company information page. The principal place of business is 40 Torphichen Street, Edinburgh, EH3 8JB.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Clearwater Analytics Holdings Inc as at 31 December 2024 and these financial statements may be obtained from www.sec.gov.

 
2.3

Turnover

An intercompany services agreement was entered into 1 August 2012 between the parent company Clearwater Analytics LLC (the customer) and Clearwater Analytics Limited (the supplier). This agreement sets out the terms of the provision of the 'services' by the supplier to the customer with effect from the start date. The principal 'services' provided are to manage relationships on behalf of the customer and costs will be recharged at cost plus an arm's length adjustment of 10%, this is reflected in Turnover. Third party costs specifically incurred on behalf of the customer will be recharged at cost.

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 12

 


CLEARWATER ANALYTICS LIMITED
 


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

2.Accounting policies (continued)


2.4
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Buildings
-
10% straight line
Furniture & Fixtures
-
10% & 20% straight line
Computer equipment
-
20% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.


 
2.5

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.6

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 13

 


CLEARWATER ANALYTICS LIMITED
 


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

2.Accounting policies (continued)

 
2.7

Share-based payments

Employees of the Company participates in the ultimate holding company’s 2021 Omnibus Incentive Plan (the “Plan”). The Plan permits the grant of stock to eligible employees and non-employees that allow the grant recipients to purchase shares of the ultimate holding company’s common stock at a price not less than the fair market value of common stock on the date of grant. In general, options which vest over a 5-year period are subject to time-based vesting conditions based on continuous employment over the 5-year period. Stock options generally vest in substantially equal annual installments at the start of the calendar year or on each anniversary from the grant date over a 5-year period. 
The fair value of each stock option grant was estimated on the date of grant using the Black- Scholes option pricing model. 
In addition to stock options, the Plan also provides for the grant of restricted stock units. The restricted stock units are either subject to time-based vesting conditions, or both time-based vesting conditions and performance-based vesting. 
Time-based vesting – units awarded are eligible to vest in substantially equal annual instalments on each anniversary from the grant date over a 4-year period. 
Performance-based vesting – units awarded are eligible to vest in equal annual instalments upon achievement of annual targets tied to annual revenue growth over a 3-year period. All terms of performance conditions are established on grant date. 
The fair value of the restricted stocks is the market value of the ultimate holding company’s common stock on the date of grant.
In addition to stock options and restricted stock units, employees of the Company may elect to participate in the ultimate holding company’s 2021 Employee Stock Purchase Plan (“ESPP”). Eligible employees may purchase the ultimate holding company’s stock through payroll deductions at a price equal to 85% of the lower of fair market values of the stocks as of the beginning or the end of six-month offering periods. An employee’s payroll deductions under the ESPP are limited to 10% of the employee’s compensation. The ultimate holding company issues shares on 31 May and 30 November of a given year. 
The fair value of the purchase right for ESPP is estimated on the date of grant using the Black-Scholes pricing model.

 
2.8

Operating lease agreements

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

  
2.9

Pensions

Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Income Statement when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 


CLEARWATER ANALYTICS LIMITED
 


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

2.Accounting policies (continued)

 
2.10

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


Page 15

 


CLEARWATER ANALYTICS LIMITED
 


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

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

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.
The judgements (apart from those involving estimations) 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:
Share options valuation: The fair value of each option is estimated on the grant date using the Black-Scholes option pricing model. Determining the appropriate fair value model and calculating the fair value of stock options requires the use of highly subjective assumptions, including the price and volatility of the underlying shares.
The assumptions used in calculating the fair value of stock options represent management's best estimates at the time of the grant, but the estimates involve inherent uncertainties and the application of management's judgement. As a result, if factors change and different assumptions are used, stock-based compensation expense could be different in the future.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Intercompany sales
30,488,858
24,365,899

30,488,858
24,365,899


All turnover arose within the United States of America.


5.


Other operating income

2024
2023
£
£

Research & Development expenditure credit
214,882
23,345

214,882
23,345



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
32
(90,722)

Other operating lease rentals
797,997
672,675

Depreciation of tangible fixed assets
163,888
108,139

Page 16

 


CLEARWATER ANALYTICS LIMITED
 


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

7.


Auditor's remuneration

During the year, the company obtained the following services from the company's auditor:


2024
2023
£
£

Fees payable to the company's auditor for the audit of the company's financial statements
33,000
31,500

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.


8.


Employees

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


2024
2023
£
£

Wages and salaries
16,333,396
13,215,830

Social security costs
2,311,569
1,737,490

Cost of defined contribution scheme
880,131
771,177

19,525,096
15,724,497


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


        2024
        2023
            No.
            No.







Staff
226
214

Page 17

 


CLEARWATER ANALYTICS LIMITED
 


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

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
680,326
1,010,400

680,326
1,010,400


The highest paid director received remuneration of £680,326 (2023 - £1,010,400).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).

During the year 1 director received shares under the long-term incentive schemes (2023 -1)

The total accrued pension provision of the highest paid director at 31 December 2024 amounted to £NIL (2023 - £NIL).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
111,293
60,349

111,293
60,349

Page 18

 


CLEARWATER ANALYTICS LIMITED
 


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

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
459,256
156,809

Adjustments in respect of previous periods
41,456
(51,164)


500,712
105,645


Total current tax
500,712
105,645

Deferred tax


Origination and reversal of timing differences
(17,684)
5,371

Provisions tax adjustment
(7,479)
(17,928)

Share based compensation
(273,542)
225,710

Adjustments in respect of previous periods
3,364
-

Total deferred tax
(295,341)
213,153


205,371
318,798

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,771,712
2,215,083


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
692,929
520,544

Effects of:


Expenses not deductible for tax purposes
10,020
2,560

Adjustments to tax charge in respect of prior periods
44,820
(60,690)

Adjustments in respect of changes in tax rates
-
(24,992)

Adjustments in respect of share based payments
(488,677)
(118,624)

Non-taxable income
(53,721)
-

Total tax charge for the year
205,371
318,798

Page 19

 


CLEARWATER ANALYTICS LIMITED
 


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

12.


Tangible fixed assets





Buildings
Furniture & Fixtures
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2024
807,532
49,964
173,662
1,031,158


Additions
59,559
14,840
73,858
148,257


Transfers between classes
(5,623)
45,556
(39,933)
-



At 31 December 2024

861,468
110,360
207,587
1,179,415



Depreciation


At 1 January 2024
342,567
34,758
63,827
441,152


Charge for the year on owned assets
120,606
38,890
4,392
163,888


Transfers between classes
-
(11,058)
11,058
-



At 31 December 2024

463,173
62,590
79,277
605,040



Net book value



At 31 December 2024
398,295
47,770
128,310
574,375



At 31 December 2023
464,965
15,206
109,835
590,006

Page 20

 


CLEARWATER ANALYTICS LIMITED
 


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

13.


Debtors

2024
2023
£
£


Amounts owed by group undertakings
5,034,548
5,310,530

Other debtors
235,674
226,163

Prepayments and accrued income
341,827
157,321

Tax recoverable
197,780
-

Deferred taxation
1,362,234
1,066,893

7,172,063
6,760,907



14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
223,327
275,511

Corporation tax
-
56,144

Other taxation and social security
1,212,935
588,000

Accruals and deferred income
2,552,027
1,526,938

3,988,289
2,446,593



15.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Accruals and deferred income
80,515
123,160

80,515
123,160



16.


Deferred taxation




2024


£






At beginning of year
1,066,893


Charged to the profit or loss
295,341



At end of year
1,362,234

Page 21

 


CLEARWATER ANALYTICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
16.Deferred taxation (continued)

The deferred tax asset is made up as follows:

2024
2023
£
£


Accelerated capital allowances
15,852
1,532

Pension provision
39,108
31,629

Share based payments
1,307,274
1,033,732

1,362,234
1,066,893


17.


Provisions




Dilapidation Provision

£





At 1 January 2024
127,610


Charged to profit or loss
69,757



At 31 December 2024
197,367


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £0.01 each
1
1



19.


Reserves

Capital contribution reserve

The capital contribution reserve represents amounts arising on the issue of group share options to UK employees.

Profit and loss account

The profit and loss account represents accumulated comprehensive income for the year and prior periods less any
dividends paid.

Page 22

 


CLEARWATER ANALYTICS LIMITED
 


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

20.


Pension commitments

The amount recognised in profit and loss as an expense in relation to defined contribution plans was £924,974 (2023: £771,177). Contributions totalling £156,433 (2023: £126,516) were payable to the fund at 31 December 2024 and are included in creditors.


21.


Commitments under operating leases

At 31 December 2024 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
1,010,178
802,875

Later than 1 year and not later than 5 years
2,329,096
2,212,000

3,339,274
3,014,875

Prior to the year end, the Company had committed to exercising a break clause in one of its office lease agreements, effective from 28 February 2025. Accordingly, the financial statements have been adjusted to reflect the revised lease term, with future lease commitments disclosed only up to the break date.
Post year end, the Company entered into two new office lease commitments commencing 1 April 2025 and ending on 31 October 2029 with a 1 November 2027 break clause. The total commitment for these leases to 1 November 2027 is £1,467,045. 


22.


Related party transactions

In accordance with section 33.1A of FRS102, the Company has not disclosed any related party transactions between the Company, its parent undertaking and fellow subsidiaries.


23.


Parent Company

Clearwater Analytics Holdings Inc, a company incorporated in the United Stated of America, is the parent company of the smallest group for which consolidated financial statements are drawn up of which the company is a member. The ultimate parent company's registered office is 777 W. Main Street, Suite 900, Boise, ID 83702.

 
Page 23