REGISTERED NUMBER: 11151277 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

SPROUT SOCIAL UK LTD

Page

Company information

1

Balance sheet

2

Notes to the financial statements

3

Directors:

J M Del Preto

H N Jonas

Registered office:

Suite 2 First Floor

10 Temple Back

Bristol

United Kingdom

BS1 6FL

Registered number:

11151277 (England and Wales)

Senior statutory auditor:

David Wright BSc FCA

Auditors:

Corrigan Accountants Limited

First Floor

25 King Street

Bristol

BS1 4PB

FIXED ASSETS

Tangible assets

4

85,194

-

CURRENT ASSETS

Debtors

5

950,330

1,188,659

Cash at bank

212,456

152,089

1,162,786

1,340,748

CREDITORS

Amounts falling due within one year

6

(324,300

)

(704,144

)

NET CURRENT ASSETS

838,486

636,604

TOTAL ASSETS LESS CURRENT LIABILITIES

923,680

636,604

PROVISIONS FOR LIABILITIES

7

(18,875

)

-

NET ASSETS

904,805

636,604

CAPITAL AND RESERVES

Called up share capital

100

100

Other reserves

311,042

163,191

Retained earnings

593,663

473,313

SHAREHOLDERS' FUNDS

904,805

636,604

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

In accordance with Section 444 of the Companies Act 2006, the Income statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2025 and were signed on its behalf by:

J M Del Preto - Director

1.	STATUTORY INFORMATION

Sprout Social UK Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The company’s functional and presentational currency is pounds sterling (GBP) and the financial statements have been rounded to the nearest pound (£).

2.	ACCOUNTING POLICIES

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparing the financial statements and statement of compliance

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. For the year under review, management believes there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

The company is controlled by its ultimate parent, Sprout Social, Inc. to provide services within specific contracted regions. The company is remunerated by its parent for these services on a cost-plus basis. The total turnover of the company for the year has been derived from its principal activity undertaken in the UK.

Turnover is accrued at the cost plus profit rate as relevant expenses are recognised. Expenses are recognised as services are received.

Tangible fixed assets

Assets being recorded at historical cost and depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Computer Equipment - 3 years, straight line basis.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred corporation tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Employee benefits

The costs of short-term employee benefits, including the cost of any unused holiday entitlement, are recognised as a liability and an expense in the period in which the employees' services are received.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits.

Short-term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in administrative expenses.

Share based payments

Some employees are eligible to participate in the group's Stock Plan, under which participants receive compensation in the form of restricted stock units. The cost of equity-settled transactions with employees is measured by reference to the fair value of the equity instruments granted on the date on which they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined using an appropriate pricing model.

At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management's best estimate of the achievement or other conditions and of the number of equity instruments that will ultimately vest. The movement in cumulative expense since the previous balance sheet date is recognised in the statement of profit and loss, with a corresponding entry in equity.

Going concern

All the company's sales are to the parent company, Sprout Social, Inc. and therefore the company is reliant on the ongoing support of the parent company to be able to meet liabilities as they fall due.

The directors have received confirmation from Sprout Social, Inc. that the parent will continue its support for a period no shorter than twelve months from the date of approval of these financial statements. Accordingly, and following the directors' enquiries of the parent company and their consideration of the above matters and the estimated impact of the economic climate, these financial statements have been prepared on the going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2023 - 10 ) .

4.	TANGIBLE FIXED ASSETS

Computer

equipment

£

Cost

Additions

124,197

Disposals

(1,279

)

At 31 December 2024

122,918

Depreciation

Charge for year

37,831

Eliminated on disposal

(107

)

At 31 December 2024

37,724

Net book value

At 31 December 2024

85,194

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/24

31/12/23

£

£

Amounts owed by group undertakings

948,914

1,185,981

Other debtors

1,416

-

Deferred tax asset

-

2,678

950,330

1,188,659

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/24

31/12/23

£

£

Trade creditors

1,595

15,294

Tax

45,532

71,732

Social security and other taxes

78,682

138,833

Accrued expenses

198,491

478,285

324,300

704,144

7.	PROVISIONS FOR LIABILITIES

31/12/24

£

Deferred tax

18,875

Deferred tax

£

Balance at 1 January 2024

(2,678

)

Utilised during year

21,553

Balance at 31 December 2024

18,875

8.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

AUDIT REPORT

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

- The audit report was unqualified.

- The senior statutory auditor was David Wright BSc FCA

- The auditor was Corrigan Accountants Limited.

9.	SHARE-BASED PAYMENTS

The company has applied the exemption provided in FRS 102 Section 1.12D not to disclose details of share-based payment arrangements concerning equity instruments of another group entity.

10.	ULTIMATE CONTROLLING PARTY

Spout Social, Inc. incorporated in the United States of America is the company's ultimate parent company.

The largest and smallest group in which the results of the company are consolidated is that headed by Sprout Social, Inc. a public company incorporated in the United States of America with its principal place of business at 131 S. Dearborn Street, Suite 700, Chicago, IL 60603, U.S.A.