Ab Initio Software Limited
Annual Report and Financial Statements
For the year ended 31 December 2024
Company Registration No. 03895729 (England and Wales)
Ab Initio Software Limited
Company Information
Directors
C Lasser
A Parker
W Bennett
Company number
03895729
Registered office
3 The Heights
Brooklands
Weybridge
KT13 0NY
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Ab Initio Software Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 6
Independent auditor's report
7 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 29
Ab Initio Software Limited
Strategic Report
For the year ended 31 December 2024
Page 1

The directors present the strategic report and financial statements for the year ended 31 December 2024.

 

The strategic report provides a review of the business for the financial year and describes how to manage risks.

 

The report outlines the developments and performance of the group during the financial year, the position at the end of the year and discusses the main trends and factors that could affect the future.

 

Key performance indicators are published to show the performance and position of the group.

Review of the business

The group’s principal activity continues to be the provision of training to third parties and consultancy services to both third parties and the parent company. Overall, the directors are satisfied with the position for the FY2024. The group and company continue to maintain a healthy balance sheet with a strong net asset position. The directors continue to focus on providing a quality service to its clients and are therefore confident that the group will sustain its growth and that profitability will continue for the foreseeable future.

Risks and uncertainties

There are a number of risks and uncertainties which could impact the performance of the company and group. The group operates a risk management process which identifies, evaluates and prioritises risks and uncertainties and reviews mitigation activity.

 

As a provider of services, the group is dependent on its human resources. By concentrating time and financial resources on recruitment, training and development programs, the directors hope to minimize the risk of excessive staff movements and loss of key personnel.

 

The group relies heavily on the supply of software from its US parent company and any delays or interruptions in software development could unfavourably affect the performance of the UK group. However, the group has a sophisticated infrastructure in place to reduce the likelihood of projects being deferred.

 

The group's principal foreign currency exposures arise from trading with overseas companies. The group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.

 

As with all industry sectors, general economic conditions, customer preference and competitor activity may have an adverse effect on the group's results. However, the mix and diversity of the parent company and group clients should mitigate significant volatility.

Key performance indicators

 

2024

2023

2022

2021

2020

2019

 

£m

£m

£m

£m

£m

£m

Turnover

46.2

42.7

50.1

38.3

40.5

39.7

Net profit

4.7

4.1

6.3

3.7

4.2

4.1

Net assets

52.3

47.6

43.5

37.1

33.5

29.3

Cash

44.2

40.5

3.0

2.8

2.0

1.5

Headcount

163

156

157

165

157

138

 

The turnover has increased from £39.7m in 2019 to £46.2m in 2024 which is a 16% growth across 6 years. This is due to an increase in the demand to provide services to group entities as well as increased consulting work for third parties. This is driven by a rise in headcount from 138 to 163.

Ab Initio Software Limited
Strategic Report (Continued)
For the year ended 31 December 2024
Page 2
Section 172 Statement

The Directors are aware of their statutory duty to promote the success of the Company, as set out in Section 172 of the Companies Act 2006. This duty underpins the Board’s decision-making processes and the Group’s strategic direction, with due consideration given to the long-term impact of its decisions upon shareholders, employees, customers and wider stakeholders.

 

The directors decision making process considers both risk and reward in pursuit of delivering long term value for all our stakeholders and protecting their interests. Awareness and understanding of the current and potential risks to the business, including both financial and non-financial risks, are fundamental to how we manage the business. Further information on risks is provided above.

 

The directors are committed to acting fairly and operating to high standards of business conduct both a company and also in the wider context of all of its stakeholders.

On behalf of the board

A Parker
Director
21 August 2025
Ab Initio Software Limited
Directors' Report
For the year ended 31 December 2024
Page 3

The directors present their annual report and financial statements for the year ended 31 December 2024.

 

See the strategic report for details of future developments and risk management.

Branches

The company has branches in Australia and Indonesia.

Results and dividends

The results for the year are set out on page 11.

The directors do not recommend payment of an ordinary dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

C Lasser
A Parker
W Bennett
Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Ab Initio Software Limited
Directors' Report (Continued)
For the year ended 31 December 2024
Page 4
Energy and carbon report

The Companies (Directors' report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 ('the 2018 regulations') came into force on 1 April 2019 and the year ended is 31 December 2024 is the fifth year of application for Ab Initio Software Limited. The company has taken steps to better understand the environmental impacts of its operations and has measured the companies carbon footprint.

 

Emissions Sources

Emissions are grouped according to the GHG Protocol Corporate Standard.

 

Scope 1 emissions are direct emissions associated with fuel use, process, or fugitive emissions. Ab Initio does not own any company vehicles and its not directly responsible for gas-fired boilers or process emissions. The office has an on site generator; however it did not operate in the reporting year or the preceding year. There are also air-conditioning units serving the office space, maintenance records show no top ups of refrigerant in the reporting year or preceding year.

 

Scope 2 emissions are indirect emissions resulting of purchased electricity. The UK Ab Initio office electricity usage was 144.1MWh for the reporting year (167.4MWh for proceeding year).

 

Scope 3 emissions are indirect emissions resulting from other business operations. In this year's report, the reported scope 3 emissions include air travel, vehicle mileage, and the transmission and distribution emissions associated with purchases electricity.

 

Totals

The total consumption (MWH)2 figures for energy supplies reportable by the company are as follows:

 

 

 

 

 

 

 

2024

2023

Electricity purchased and consumed

 

144.1

167.4

Transport-related energy

 

 

122.2

98.3

 

 

 

 

 

 

 

 

The total emission (tCO2e) figures for energy supplies reportable by the company are as follows:

 

 

 

 

 

 

 

 

Scope 1

 

 

 

 

2024

2023

Emissions from the operation of facilities (refrigerant gas)

0

0

Emissions from on-site generator

 

0

0

 

 

 

 

 

 

 

 

Scope 2

 

 

 

 

2024

2023

Emissions from UK purchased electricity (location-based)

29.8

34.7

 

 

 

 

 

 

 

 

Scope 3

 

 

 

 

2024

2023

Emissions from business travel

 

503.8

405.7

Emissions from transmission & distribution of purchased electricity

2.6

3.0

 

 

Ab Initio Software Limited
Directors' Report (Continued)
For the year ended 31 December 2024
Page 5

Intensity Metric

Intensity metrics are calculated using total revenue (per £m) and the number of Full-Time Equivalent (FTE) employees at the end of the reporting period.

 

The energy consumption intensity metrics for the company are as follows:

 

 

 

 

 

 

 

 

2024

2023

Energy use per £m of revenue (MWh/£m)

 

 

 

5.8

6.1

Energy use per full-time equivalent employees (MWh/number of FTE employees)

1.8

1.7

 

The greenhouse gas intensity metrics for the company are as follows:

 

 

 

 

 

 

 

 

2024

2023

Emissions use per £m of revenue (tCO2e/£m)

 

 

11.6

10.3

Emissions per full-time equivalent employees (tCO2e/number of FTE employees)

3.6

2.9

 

Methodology

We have followed the 2019 UK Government Environmental Reporting Guidelines, the GHG protocol Value Chain (Scope 3) Standard and applied the UK Government Conversion Factors for greenhouse gas emission reporting. We have used the operational control approach. Intensity metrics are calculated using total revenue (per £m) and the number of Full-time Equivalent (FTE) employees at the end of the reporting period.

Measures taken to improve energy efficiency

As business activity continues to grow in 2024, overall carbon emissions have increased compared to the previous year. While emissions from operating facilities have decreased due to strengthened energy efficiency initiatives, emissions from business travel have risen as employees attend more in-person events and client meetings.

 

To minimise the environmental impact of office operations, the company has implemented stricter energy-saving measures. These include automated shutdown of lighting and HVAC (Heating, Ventilation, and Air Conditioning) systems outside office hours, along with the full implementation of energy-efficient lighting throughout the premises.

 

Despite the increase in business travel, the company remains committed to reducing its carbon footprint. Employees are encouraged to prioritize virtual meetings where possible to limit unnecessary travel. Additionally, electric vehicle charging points have been installed at the office to support employees who choose more sustainable commuting options.

Ab Initio Software Limited
Directors' Report (Continued)
For the year ended 31 December 2024
Page 6
Statement of directors' responsibilities

The directors are responsible 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
A Parker
Director
21 August 2025
Ab Initio Software Limited
Independent Auditor's Report
To the Members of Ab Initio Software Limited
Page 7
Opinion

We have audited the financial statements of Ab Initio Software Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including 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:

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 group and parent 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 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 group's and parent 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 report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Ab Initio Software Limited
Independent Auditor's Report (Continued)
To the Members of Ab Initio Software Limited
Page 8

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, 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 group's and parent 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 group or parent company or to cease operations, or have no realistic alternative but to do so.

Ab Initio Software Limited
Independent Auditor's Report (Continued)
To the Members of Ab Initio Software Limited
Page 9
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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

Ab Initio Software Limited
Independent Auditor's Report (Continued)
To the Members of Ab Initio Software Limited
Page 10

Explanation as to what extent the audit was considered capable of detecting irregularities, including

fraud

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 objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

Ÿ

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 by, for example, forgery or intentional misrepresentations, or through collusion.

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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.

Andrew Grieve (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
22 August 2025
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
Ab Initio Software Limited
Group Statement of Comprehensive Income
For the year ended 31 December 2024
Page 11
2024
2023
Notes
£
£
Turnover
3
46,209,100
42,732,104
Cost of sales
(4,867,296)
(4,940,172)
Gross profit
41,341,804
37,791,932
Administrative expenses
(35,870,813)
(33,023,583)
Operating profit
4
5,470,991
4,768,349
Interest receivable and similar income
8
1,816,300
1,198,053
Profit before taxation
7,287,291
5,966,402
Tax on profit
9
(2,076,710)
(1,664,741)
Profit for the financial year
5,210,581
4,301,661
Other comprehensive income
Currency translation differences
(495,081)
(165,895)
Total comprehensive income for the year
4,715,500
4,135,766
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Ab Initio Software Limited
Group Balance Sheet
As at 31 December 2024
Page 12
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
917,680
944,351
Current assets
Debtors
13
19,419,734
19,935,308
Cash at bank and in hand
44,216,715
40,524,730
63,636,449
60,460,038
Creditors: amounts falling due within one year
14
(11,875,225)
(13,200,985)
Net current assets
51,761,224
47,259,053
Total assets less current liabilities
52,678,904
48,203,404
Creditors: amounts falling due after more than one year
15
(360,000)
(600,000)
Net assets
52,318,904
47,603,404
Capital and reserves
Called up share capital
18
1
1
Profit and loss reserves
52,318,903
47,603,403
Total equity
52,318,904
47,603,404
The financial statements were approved by the board of directors and authorised for issue on 21 August 2025 and are signed on its behalf by:
21 August 2025
A Parker
Director
Ab Initio Software Limited
Company Balance Sheet
As at 31 December 2024
31 December 2024
Page 13
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
649,181
538,724
Investments
11
5,055
5,055
654,236
543,779
Current assets
Debtors
13
19,049,842
19,510,623
Cash at bank and in hand
43,344,696
39,697,642
62,394,538
59,208,265
Creditors: amounts falling due within one year
14
(17,534,300)
(18,247,883)
Net current assets
44,860,238
40,960,382
Total assets less current liabilities
45,514,474
41,504,161
Creditors: amounts falling due after more than one year
15
(360,000)
(600,000)
Net assets
45,154,474
40,904,161
Capital and reserves
Called up share capital
18
1
1
Profit and loss reserves
45,154,473
40,904,160
Total equity
45,154,474
40,904,161

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £4,433,306 (2023 - £3,660,010 profit).

The financial statements were approved by the board of directors and authorised for issue on 21 August 2025 and are signed on its behalf by:
21 August 2025
A Parker
Director
Company Registration No. 03895729 (England and Wales)
Ab Initio Software Limited
Group Statement of Changes in Equity
For the year ended 31 December 2024
Page 14
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
1
43,467,637
43,467,638
Year ended 31 December 2023:
Profit for the year
-
4,301,661
4,301,661
Other comprehensive income:
Currency translation differences
-
(165,895)
(165,895)
Total comprehensive income for the year
-
4,135,766
4,135,766
Balance at 31 December 2023
1
47,603,403
47,603,404
Year ended 31 December 2024:
Profit for the year
-
5,210,581
5,210,581
Other comprehensive income:
Currency translation differences
-
(495,081)
(495,081)
Total comprehensive income for the year
-
4,715,500
4,715,500
Balance at 31 December 2024
1
52,318,903
52,318,904
Ab Initio Software Limited
Company Statement of Changes in Equity
For the year ended 31 December 2024
Page 15
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
1
37,358,550
37,358,551
Year ended 31 December 2023:
Profit for the year
-
3,660,010
3,660,010
Other comprehensive income:
Currency translation differences
-
(114,400)
(114,400)
Total comprehensive income for the year
-
3,545,610
3,545,610
Balance at 31 December 2023
1
40,904,160
40,904,161
Year ended 31 December 2024:
Profit for the year
-
4,433,306
4,433,306
Other comprehensive income:
Currency translation differences
-
(182,993)
(182,993)
Total comprehensive income for the year
-
4,250,313
4,250,313
Balance at 31 December 2024
1
45,154,473
45,154,474
Ab Initio Software Limited
Group Statement of Cash Flows
For the year ended 31 December 2024
Page 16
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
5,573,569
38,750,682
Income taxes paid
(2,933,268)
(1,780,124)
Net cash inflow from operating activities
2,640,301
36,970,558
Investing activities
Purchase of tangible fixed assets
(325,410)
(518,685)
Proceeds from disposal of tangible fixed assets
55,875
31,466
Interest received
1,816,300
1,198,053
Net cash generated from investing activities
1,546,765
710,834
Net increase in cash and cash equivalents
4,187,066
37,681,392
Cash and cash equivalents at beginning of year
40,524,730
3,009,235
Effect of foreign exchange rates
(495,081)
(165,897)
Cash and cash equivalents at end of year
44,216,715
40,524,730
Ab Initio Software Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 17
1
Accounting policies
Company information

Ab Initio Software Limited (“the Company”) is a limited company domiciled and incorporated in England and Wales. The registered office is 3 The Heights, Brooklands, Weybridge, Surrey, KT13 ONY. The business address is 3 The Heights, Brooklands, Weybridge, Surrey, KT13 ONY.

 

The Group consists of Ab Initio Software Limited and its wholly owned subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Ab Initio Software Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions and balances between group companies are eliminated on consolidation.

 

Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 18
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The group’s ongoing principal activity continues to be the provision of training services to third parties and consultancy services to its parent entity, Ab Initio Software LLC. The group’s principal risks are therefore closely linked to those of the parent entity and it is consequently exposed to the parent entity’s willingness and capacity to provide financial support. Ab Initio Software LLC has operated successfully for many years and has demonstrated its commitment to the long-term success of the group and view it as a critical component of its overall business strategy. The Directors have reviewed the financial standing of the parent entity and are confident it is able to continue supporting the business. The parent entity has confirmed it will continue to support the company for at least 12 months from the date of approval of the audit report on the financial statements.

1.4
Turnover

Turnover represents the fair value of consultancy and training services provided during the period to clients. Turnover is recognised as contract activity progresses and the right to consideration is earned. Fair value reflects the amount expected to be recoverable from clients and is based on services provided and expenses incurred, but excludes VAT.

 

Turnover from the sale of services is recognised when the significant risks and rewards have passed on to the buyer (usually when the buyer has received the service), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Short leasehold land and buildings
Over the period of the lease
Fixtures, fittings and equipment
Over 7, 5, 4 or 3 years at 14.3%, 20%, 25% or 33.3% per annum respectively on a straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 19
1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.8
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.9
Debtors and creditors

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans and other debtors receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors and other current creditors payable on demand are measured at the

transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

Bonuses arise during the course of the year based on entitlement criteria. The cost is recognised once criteria are met and an obligation exists.

Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 20
1.12
Retirement benefits

The group contributes to a group pension scheme and government schemes for certain employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.13
Leases

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

1.14
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All of these differences are taken to the profit and loss account. The profit and loss accounts of overseas operations are translated into sterling at average rates. The balance sheets of overseas operations are translated into sterling at the closing rates. Material exchange differences arising from translation of the results of overseas operations are recorded as movements on reserves.
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Bonus Accrual

Accruals are recognised as a liability at the point at which an economic outflow arising from past events is probable and can be measured reliably. In the case of bonuses payable to staff this can be a known legal obligation, the probable interpretation of local law or a constructive obligation arising from historic patterns of payment giving rise over the passage of time to an expectation.

Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 21
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Rendering of services
44,193,817
41,414,417
Consulting income
2,015,283
1,317,687
46,209,100
42,732,104
2024
2023
£
£
Turnover analysed by geographical market
North America
44,501,014
41,863,166
UK
724,050
212,926
Rest of Europe
583,948
325,413
Rest of the world
400,088
330,599
46,209,100
42,732,104
2024
2023
£
£
Other revenue
Interest income
1,816,300
1,198,053
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(350,834)
(277,626)
Depreciation of owned tangible fixed assets
294,342
453,480
Loss on disposal of tangible fixed assets
1,864
11,685
Operating lease charges
2,065,618
1,720,920
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
52,500
45,000
Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 22
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
22
22
20
20
Sales/consultants
141
134
118
112
Total
163
156
138
132

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
26,021,161
23,169,066
22,292,509
20,099,747
Social security costs
3,650,568
3,201,230
2,311,205
2,152,579
Pension costs
959,797
894,043
579,092
521,861
30,631,526
27,264,339
25,182,806
22,774,187
7
Directors' remuneration
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
220,042
221,231
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,808,568
1,181,072
Interest receivable from group companies
7,732
16,981
Total income
1,816,300
1,198,053
Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 23
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,658,556
1,404,503
Adjustments in respect of prior periods
(79,925)
106,074
Total UK current tax
1,578,631
1,510,577
Foreign current tax on profits for the current period
541,873
411,323
Adjustments in foreign tax in respect of prior periods
(20,302)
(11,668)
Total current tax
2,100,202
1,910,232
Deferred tax
Origination and reversal of timing differences
(23,492)
(245,491)
Total tax charge
2,076,710
1,664,741

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
7,287,291
5,966,402
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
1,821,823
1,402,104
Tax effect of expenses that are not deductible in determining taxable profit
343,185
111,495
Adjustments in respect of prior years
(103,826)
94,406
Depreciation on assets not qualifying for tax allowances
9,493
36,072
Effect of overseas tax rates
6,177
(20,167)
Deferred tax adjustments in respect of prior years
(23,492)
1,785
Other foreign taxes
50,233
6,227
Other adjustments
(26,883)
(20,509)
Remeasurement of deferred tax for changes in tax rates
-
53,328
Taxation charge
2,076,710
1,664,741
Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 24
10
Tangible fixed assets
Group
Short leasehold land and buildings
Assets under construction
Fixtures, fittings and equipment
Total
£
£
£
£
Cost
At 1 January 2024
2,985,867
-
0
1,516,321
4,502,188
Additions
682
176,108
148,620
325,410
Disposals
-
0
-
0
(80,837)
(80,837)
Transfers
(46,603)
46,603
-
0
-
0
At 31 December 2024
2,939,946
222,711
1,584,104
4,746,761
Depreciation and impairment
At 1 January 2024
2,499,648
-
0
1,058,189
3,557,837
Depreciation charged in the year
143,282
-
0
151,060
294,342
Eliminated in respect of disposals
-
0
-
0
(23,098)
(23,098)
At 31 December 2024
2,642,930
-
0
1,186,151
3,829,081
Carrying amount
At 31 December 2024
297,016
222,711
397,953
917,680
At 31 December 2023
486,219
-
0
458,132
944,351
Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
10
Tangible fixed assets
(Continued)
Page 25
Company
Short leasehold land and buildings
Assets under construction
Fixtures, fittings and equipment
Total
£
£
£
£
Cost
At 1 January 2024
2,019,709
-
0
1,061,720
3,081,429
Additions
682
176,108
135,718
312,508
Disposals
-
0
-
0
(77,057)
(77,057)
Transfers
(46,603)
46,603
-
0
-
0
At 31 December 2024
1,973,788
222,711
1,120,381
3,316,880
Depreciation and impairment
At 1 January 2024
1,797,025
-
0
745,680
2,542,705
Depreciation charged in the year
39,665
-
0
105,345
145,010
Eliminated in respect of disposals
-
0
-
0
(20,016)
(20,016)
At 31 December 2024
1,836,690
-
0
831,009
2,667,699
Carrying amount
At 31 December 2024
137,098
222,711
289,372
649,181
At 31 December 2023
222,684
-
0
316,040
538,724
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
5,055
5,055
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
5,055
Carrying amount
At 31 December 2024
5,055
At 31 December 2023
5,055
Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 26
12
Subsidiaries

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

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Ab Initio Software S.A.R.L
1 rue Danton,     75 006 Paris,
France
Software Consultancy
Ordinary
100
0

The results and balances of the wholly owned subsidiary has been included in the financial statements.

13
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
732,491
1,059,521
707,016
1,044,527
Amounts owed by group undertakings
15,536,165
15,703,639
15,583,353
15,630,434
Other debtors
1,579,735
2,102,693
1,371,648
1,904,658
Prepayments and accrued income
1,256,326
777,930
1,072,808
639,479
19,104,717
19,643,783
18,734,825
19,219,098
Amounts falling due after more than one year:
Deferred tax asset (note 16)
315,017
291,525
315,017
291,525
Total debtors
19,419,734
19,935,308
19,049,842
19,510,623
14
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
612,534
721,592
409,088
685,533
Amounts owed to group undertakings
-
0
-
0
8,572,167
7,469,996
Corporation tax payable
392,877
1,225,943
391,829
1,233,835
Other taxation and social security
1,509,705
1,355,955
605,002
579,601
Other creditors
506
5,014
-
0
4,508
Accruals and deferred income
9,359,603
9,892,481
7,556,214
8,274,410
11,875,225
13,200,985
17,534,300
18,247,883
Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 27
15
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Deferred income
360,000
600,000
360,000
600,000
16
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2024
2023
Group and company
£
£
Accelerated capital allowances
23,492
(44,754)
Short term timing differences
291,525
336,279
315,017
291,525
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
959,797
894,043

The company contributes to a defined contribution retirement benefit scheme for all qualifying employees. The assets of the scheme are held separately from those of the company. The company contributes a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the company with respect to the scheme is to make the specified contributions.

 

Government schemes

 

The group contributes to government schemes for certain employees. The assets of the schemes are held separately from those of the group in government administered funds.

 

For the company the pension cost charge represents contributions payable by the company to a scheme on behalf of Australian and UK employees of £579,092 (2023: £521,861).

 

For the group the pension cost charge includes contributions payable by the group to government schemes of £959,797 (2023: £894,043). Contributions totalling £110,873 (2023: £91,127) were payable to the schemes at the year end and are included in creditors.

Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 28
18
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
19
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for certain of its properties.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,622,257
1,575,428
1,237,324
1,189,874
Between two and five years
3,331,053
4,537,414
2,035,039
3,039,912
In over five years
-
184,662
-
-
4,953,310
6,297,504
3,272,363
4,229,786
20
Related party transactions
Transactions with related parties

Under FRS102 - Related party disclosures, the company has taken advantage of the exemption for transactions and balances which are fully eliminated within the consolidated accounts. Accordingly, the transactions between subsidiary undertakings are not disclosed separately.

The company has taken advantage of the exemption from disclosing transactions with members within a wholly owned group.

21
Controlling party

The parent company is Ab Initio Software LLC (2023: Ab Initio Software LLC), a company registered in the United States of America. The ultimate controlling party is S Handler (2023: S Handler) by virtue of their control of Ab Initio Software LLC.

Ab Initio Software Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 29
22
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
5,210,581
4,301,661
Adjustments for:
Taxation charged
2,076,710
1,664,741
Investment income
(1,816,300)
(1,198,053)
Loss on disposal of tangible fixed assets
1,864
11,685
Depreciation and impairment of tangible fixed assets
294,342
453,482
Movements in working capital:
Decrease in debtors
539,066
32,620,495
Increase in creditors
75,367
568,610
(Decrease)/increase in deferred income
(808,061)
328,061
Cash generated from operations
5,573,569
38,750,682
23
Analysis of changes in net funds - group
1 January 2024
Cash flows
Exchange rate movements
31 December 2024
£
£
£
£
Cash at bank and in hand
40,524,730
4,187,066
(495,081)
44,216,715
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