REGISTERED NUMBER: 06517178 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

ConnectWise Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

Miss M Raleigh

J Bergeron

SECRETARY:

J Poe

REGISTERED OFFICE:

8/9 Earls Way

Halesowen

West Midlands

B63 3HR

BUSINESS ADDRESS:

5th Floor

15 Appold Street

London

EC2A 2DL

REGISTERED NUMBER:

06517178 (England and Wales)

AUDITORS:

Michael Dufty Partnership Ltd

Statutory Auditors

The Counting House

59-61 Charlotte Street

St Paul's Square

Birmingham

West Midlands

B3 1PX

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

The director considers that the company has performed well considering the level of uncertainty in the wider economic environment caused by inflationary pressures.

Turnover for the year has increased from £30,379,358, last year to £41,908,311 current year which represents an increase of 38%. The company continues to have a strong customer base.

Gross profit has increased from £14,018,549 last year to £15,278,606 current year. The gross margin has decreased from 46.1% to 36.5%. The company continues to generate significant gross and net profits.

The profit before tax and dividends has increased from £759,484 to £1,046,699. Costs have been well controlled throughout the period by the company.

This has resulted in the net assets of the company increasing from £3,288,189 to £4,134,300 as the company continues to build strength and liquidity.

PRINCIPAL RISKS AND UNCERTAINTIES

The key risks and uncertainties faced by the company include cost fluctuations, financial risk, liquidity risk and trade debtor risk.

Cost Fluctuations -

This risk has become more prevalent with increases in inflation being felt across the supply chain. The company has established strong relationships with its key supplier base and developed this during the pandemic to support future sales growth and maintain high levels of customer service.

Trade debtor risk -

Trade Debtor risk is managed and controlled through a disciplined approach to credit management and the extensive screening of all new business prospects. Existing customers are also periodically screened through a recognised credit risk management product provider.

Financial risk -

The company is exposed to variety of financial risks and undertakes regular reviews to identify such risks and wherever possible put processes in place to mitigate such risks. The company monitors changes in interest rates to ensure that costs are controlled well.

Liquidity risk -

Liquidity risk arises from the company's management of working capital. It is the risk the company will encounter difficulty in meeting its financial obligations as they fall due. The company monitors its performance against budgets and reviews the rolling cashflow position on a regular basis. Debtor and creditor positions are reviewed as are bank account balances. The financial statements are prepared on a going concern basis as it is expected that the company can meet obligations as they fall due.

Whilst uncertainty still remains, the company remains positive in relation to its strong order book and the strong relationship it has built with its customers and suppliers. Due to the strength of the company and it's diverse customer base, the directors consider that there are no material risks in the coming year.

ON BEHALF OF THE BOARD:

J Bergeron - Director

29 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The Company is a developer and provider of a comprehensive set of cloud and on-premises business software solutions designed for technology and managed service providers.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTOR

Miss M Raleigh held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

J Bergeron was appointed as a director after 31 December 2024 but prior to the date of this report.

FUTURE DEVELOPMENTS

The director is pleased with the continued profitability of the company and anticipates continued success in the future.

GOING CONCERN

The Director has prepared the financial statements on a going concern basis. Given the company's profitability, it has been able to further strengthen its position in the market place. The outlook for the company is strong with management remaining positive on the current profitability of the company post year end.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Michael Dufty Partnership Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J Bergeron - Director

29 September 2025

Qualified Opinion

We have audited the financial statements of ConnectWise Ltd (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects of the matters described in the basis for qualified opinion section of our report, the financial statements:

- give a true and fair view of the state of the company's affairs 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 qualified opinion

We have been unable to satisfy ourselves that the sales figure of £41,908,311 recorded in the accounts is complete and free from material error.

ConnectWise Ltd is a UK subsidiary of an American parent company. The books and records for the group which includes ConnectWise Ltd are held and maintained in the US.

Included within the accounts are material debtor and creditor provisions for unbilled and deferred income. The accrued income amount being a debtor of £3,709,502 (2023 - £79,110) and the deferred income amount a creditor of £2,488,977 (2023 -£941,578). We haven't received sufficient information to determine whether these provisions are complete or free from material misstatement.

Consequently, we have not been able to determine whether any adjustments to sales are necessary nor are we able to satisfy ourselves that the sales figure is free from material error.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified 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 director is responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors

thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the amount of accrued income of £3,709,502 (2023 - £79,110) and the deferred income of £2,488,977 (2023 - £941,578) at 31 December 2024 and hence the amount of turnover of £41,908,311 for the year ended 31 December 2024. We have concluded that where the other information refers to the turnover, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

- the information given in the Strategic Report and the Report of the Director for the financial year for which the

financial statements are prepared is consistent with the financial statements; and

- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal

requirements.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in 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 Report of the Director.

Arising solely from the limitation in scope of our work relating to unbilled and deferred income, referred to above;

- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

- we were unable to determine whether adequate accounting records have been kept.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if in our opinion:

- 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 director's remuneration specified by law are not made; or

- the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Director.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which they operate;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation; and

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and considering available audit information.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions; and

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Report of the Auditors.

Use of our report

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

Robert MacLaren (Senior Statutory Auditor)

for and on behalf of Michael Dufty Partnership Ltd

Statutory Auditors

The Counting House

59-61 Charlotte Street

St Paul's Square

Birmingham

West Midlands

B3 1PX

29 September 2025

TURNOVER

4

41,908,311

30,379,358

Cost of sales

26,629,705

16,360,809

GROSS PROFIT

15,278,606

14,018,549

Administrative expenses

14,584,996

13,646,243

OPERATING PROFIT

6

693,610

372,306

Interest receivable and similar income

353,089

439,468

1,046,699

811,774

Interest payable and similar expenses

7

-

52,290

PROFIT BEFORE TAXATION

1,046,699

759,484

Tax on profit

8

200,588

195,017

PROFIT FOR THE FINANCIAL YEAR

846,111

564,467

PROFIT FOR THE YEAR

846,111

564,467

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

846,111

564,467

FIXED ASSETS

Intangible assets

9

37,348

-

Tangible assets

10

287,654

79,843

325,002

79,843

CURRENT ASSETS

Debtors

11

15,811,431

13,631,043

Cash at bank

18,205,825

7,637,185

34,017,256

21,268,228

CREDITORS

Amounts falling due within one year

12

29,984,445

17,859,970

NET CURRENT ASSETS

4,032,811

3,408,258

TOTAL ASSETS LESS CURRENT LIABILITIES

4,357,813

3,488,101

CREDITORS

Amounts falling due after more than one year

13

(144,838

)

(183,462

)

PROVISIONS FOR LIABILITIES

16

(78,675

)

(16,450

)

NET ASSETS

4,134,300

3,288,189

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

4,134,200

3,288,089

SHAREHOLDERS' FUNDS

4,134,300

3,288,189

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

J Bergeron - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

2,723,622

2,723,722

Changes in equity

Total comprehensive income

-

564,467

564,467

Balance at 31 December 2023

100

3,288,089

3,288,189

Changes in equity

Total comprehensive income

-

846,111

846,111

Balance at 31 December 2024

100

4,134,200

4,134,300

1.	STATUTORY INFORMATION

ConnectWise 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 presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

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.

Turnover

The Company derives its revenues from five primary sources: (1) term-based and perpetual software licenses; (2) cloud-based subscriptions; (3) third-party software (4) professional services; and (5) post contractual services (“PCS”). Revenue is recognized when a contract exists between the Company and a customer and upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company has entered into contracts that can include various combinations of subscription and professional services, which may be capable of being distinct and accounted for as separate performance obligations, or in the case of offerings such as subscriptions sold as a service (“SaaS”), which includes support, accounted for as a single performance obligation. Revenue is recognized net of credit allowances and any taxes collected from customers, which are subsequently remitted to governmental authorities.

The Company determines revenue recognition through the following steps:

• Identification of the contract, or contracts, with a customer

• Identification of the performance obligations in the contract

• Determination of the transaction price

• Allocation of the transaction price to the performance obligations in the contract

• Recognition of revenue when, or as, the Company satisfies a performance obligation.

Term-based and Perpetual Software License Revenue

Software licenses, both term-based and perpetual, are generally sold with consulting services and PCS. Term-based software licenses are generally sold with mandatory PCS but the software and the support are not dependent on each other to provide complete functionality. The Company has established stand-alone selling prices (“SSP”) for its software licenses, consulting and PCS. The Company recognizes revenue from the sale of its software licenses upon the transfer of the software to its customer at the beginning of the license term. Revenue for PCS is recognized ratably over the contract term as its customers consume the benefit of these support services.

Cloud-based Subscription Revenue

Subscription revenues primarily consist of fees that provide customers access to the Company’s cloud applications, with routine customer support and maintenance related to email and phone support, bug fixes, and unspecified software updates and upgrades released when and if available during the maintenance term. Revenue is recognized on a ratable basis over the contract term beginning on the date that service is made available to the customer, which the Company believes best reflects the manner in which its customers utilize its subscription offerings. Arrangements with the Company’s customers do not provide the customer with the right to take possession of the software supporting the cloud-based application service at any time and, as a result, are accounted for as a service contract. Generally, the Company’s subscription contracts are one to three years in length, billed monthly in advance or in arrears, quarterly or annually in advance, and are non-cancellable and do not contain refund-type provisions. Any subscription service arrangements that are cancellable generally have penalty clauses.

Third-party Software Revenue

The Company offers many third-party software products that can provide value to its customers in collaboration with the Company’s existing software platforms. All arrangements are either term-based licenses or SaaS and provide for monthly or, in some instances, annual payment terms. Revenues from the sale of third-party software licenses are generally recognized upon the electronic delivery of the software licenses. Generally, the Company acts as a principal, rather than an agent, in the transaction because the Company is the legal price setter and controls the supply. Therefore, for most of its contracts, third-party software license revenue is recognized on a gross basis with the selling price to the customer recorded as revenue and the acquisition cost of the product recorded within cost of revenue in the Consolidated Statements of Comprehensive Income.

Professional Services Revenue

Professional Services revenue is typically generated by providing customers with assistance in the installation, optimization and integration of the Company’s software into their respective computing environments, training, project management and consulting services. Non-consulting professional services are generally billed monthly over an estimated delivery period while revenue related to professional services is generally recognized over the average delivery period as value is transferred to the customer. Consulting professional services may be purchased either as a monthly billing associated with an allotted number of consulting hours each month or as a bulk number of hours required to be used within twelve months of purchase. For contracts that provide for a monthly allotment of hours, the Company recognizes revenue as billed each month. Revenue from bulk purchases of consulting hours is recognized over the estimated delivery period based on a proportional performance methodology which utilizes input methods. A portion of the Company’s consulting contracts are billed on a time and materials basis and revenue is recognized over time as the services are performed.

Post Contractual Service Revenue

Revenues from the sale of PCS agreements are generally deferred and recognized on a straight-line basis over the life of the PCS agreement. PCS provides unspecified upgrades or enhancements to the software products on a when and if available basis and customer service support. The selling price for consulting and PCS is established when the services are sold on a stand-alone basis and the pricing falls within a reasonably narrow range.

Contracts with Multiple Performance Obligations

Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative SSP basis. The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, its go-to-market strategy, historical sales and contract prices. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP.

Given the variability of pricing, the Company uses a range of amounts to estimate SSP for items that are not sold separately. The Company determines the SSP range using information that may include observable market indications or other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer purchasing volume.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold

-

10% on cost

Computer equipment

-

33% on cost, 20% on cost and at varying rates on cost

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 or deferred taxation assets and liabilities are not discounted.

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 tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other 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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Costs capitalised to obtain revenue contracts

The company capitalises incremental costs of obtaining a non-cancellable subscription and support revenue contracts.The company recognises an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The company has determined that certain sales incentive programs meet the requirements to be capitalised. The capitalised amounts consist primarily of sales commissions paid to the company's direct sales force. Capitalised amounts also include (1) amounts paid to employees other than direct sales force who earn incentive pay-outs under annual compensation plans that are tied to the value of contracts acquired, (2) commissions paid to employees upon renewals of subscription and support contracts, and (3) the associated payroll taxes and fringe benefit costs associated with the payments to the company's employees. Capitalised costs to obtain a contract are amortised on a straight-line basis over the expected period of benefit, which the company has estimated, based on historical experience and other analysis, to be three years.

In arriving at this average period of benefit, the Company evaluated both qualitative and quantitative factors which included the estimated life cycles of its offerings and its customer attrition. The capitalized amounts are recoverable through future revenue streams under all non-cancelable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment

Going Concern

The Director has prepared the financial statements on a going concern basis. Given the company's profitability, it has been able to further strengthen its position in the market place. The outlook for the company is strong with management remaining positive on the current profitability of the company post year end.

Debtors and creditors receivable/payable

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 profit and loss account.

Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Accounts receivable

A receivable is recorded when an unconditional right to invoice and receive payment exists, such that only the passage of time is required before payment of consideration is due. Timing of revenue recognition may differ from the timing of invoicing to customers. The company's standard billing terms are monthly in advance or in arrears or quarterly or annually in advance depending on the product.

The company reviews outstanding receivable balances on a regular basis to assess their collectability and maintains an allowance for doubtful accounts which reflects its best estimate of potentially uncollectable accounts receivable.

Unbilled accounts receivable

Unbilled accounts receivable is a contract asset related to the delivery of the company's subscription services and professional services for which the related billings will occur in a future period. Unbilled accounts receivable consists of revenue recognised for services performed but not yet billed and is included in accounts receivable, net in the balance sheet.

Deferred revenue

Deferred revenue primarily consists of billings in advance of revenue recognition from subscription services, including non-cancellable and non- refundable committed funds and deposits. Deferred revenue is recognised as revenue recognition criteria is met. Customers are typically invoiced for these agreements in regular monthly or annual instalments and revenue is recognised rateably over the contractual subscription period. The deferred revenue balance is influenced by several factors, including contract duration, the compounding effects of renewals, invoice timing, size and pricing terms. Deferred revenue that will be recognised during the succeeding twelve month period are recorded as deferred revenue, amounts falling due within one year, and the remaining portion is recorded as deferred revenue, amounts falling due after more than one year.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.12.24

31.12.23

£

£

United Kingdom

41,715,479

30,105,871

Europe

175,559

262,793

Middle East

17,273

10,694

41,908,311

30,379,358

5.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

8,852,927

8,112,459

Social security costs

1,022,882

1,014,672

Other pension costs

705,999

665,315

10,581,808

9,792,446

The average number of employees during the year was as follows:

31.12.24

31.12.23

Sales, Support and Administration

107

106

31.12.24

31.12.23

£

£

Directors' remuneration

-

-

6.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.24

31.12.23

£

£

Depreciation - owned assets

40,069

32,209

Computer software amortisation

4,967

-

Foreign exchange differences

154,098

223,444

Auditors remuneration

11,000

15,000

Operating leases - land & buildings

561,802

556,781

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Fines & interest

-

52,290

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

138,363

193,936

Deferred tax

62,225

1,081

Tax on profit

200,588

195,017

UK corporation tax has been charged at 25% (2023 - 23.65%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.24

31.12.23

£

£

Profit before tax

1,046,699

759,484

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.651%)

261,675

179,626

Effects of:

Expenses not deductible for tax purposes

8,809

12,696

Income not taxable for tax purposes

(68,954

)

-

Capital allowances in excess of depreciation

(942

)

-

Depreciation in excess of capital allowances

-

2,695

Total tax charge

200,588

195,017

9.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

Additions

42,315

At 31 December 2024

42,315

AMORTISATION

Amortisation for year

4,967

At 31 December 2024

4,967

NET BOOK VALUE

At 31 December 2024

37,348

10.	TANGIBLE FIXED ASSETS

Short

Plant and

Computer

leasehold

machinery

equipment

Totals

£

£

£

£

COST

At 1 January 2024

74,891

123,888

147,706

346,485

Additions

-

-

247,880

247,880

At 31 December 2024

74,891

123,888

395,586

594,365

DEPRECIATION

At 1 January 2024

31,829

121,028

113,785

266,642

Charge for year

7,489

1,267

31,313

40,069

At 31 December 2024

39,318

122,295

145,098

306,711

NET BOOK VALUE

At 31 December 2024

35,573

1,593

250,488

287,654

At 31 December 2023

43,062

2,860

33,921

79,843

11.

DEBTORS

31.12.24

31.12.23

£

£

Amounts falling due within one year:

Trade debtors

8,688,012

9,651,410

Amounts recoverable on contracts

3,709,503

79,110

Other debtors

1,732,552

1,776,007

Prepayments

412,793

376,114

14,542,860

11,882,641

Amounts falling due after more than one year:

Other debtors

1,268,571

1,748,402

Aggregate amounts

15,811,431

13,631,043

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade creditors

894,941

625,839

Tax

138,363

193,936

Social security and other taxes

302,469

-

VAT

809,711

621,546

Amounts due to group

undertakings

24,439,187

14,226,829

Accruals and deferred income

2,624,707

941,578

Accrued expenses

775,067

1,250,242

29,984,445

17,859,970

The amount payable to group undertakings is due to the parent company - ConnectWise Inc. It is repayable on demand and is not subject to an interest charge.

13.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.24

31.12.23

£

£

Accruals and deferred income

144,838

183,462

14.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.12.24

31.12.23

£

£

Within one year

579,352

434,514

Between one and five years

434,514

-

1,013,866

434,514

15.	FINANCIAL INSTRUMENTS

The carrying amount of financial assets (debt instruments) at amortised cost £34,068,444 (2023 £20,892,113)

The carrying amount of financial liabilities measured at transaction price £28,733,902 (2023 £16,618,559)

Financial assets measured at amortised cost comprise cash, trade debtors and other debtors.

Financial liabilities measured at amortised cost comprise of trade creditors,accruals, deferred income other creditors and group balances.

16.	PROVISIONS FOR LIABILITIES

31.12.24

31.12.23

£

£

Deferred tax

78,675

16,450

Deferred

tax

£

Balance at 1 January 2024

16,450

Provided during year

62,225

Balance at 31 December 2024

78,675