Caseware UK (AP4) 2024.0.164 2024.0.164 2024-12-312024-12-31false782024-01-01falseThe principal activity of the company is that of translation and interpretation activities.170falsefalse 13013347 2024-01-01 2024-12-31 13013347 2023-01-01 2023-12-31 13013347 2024-12-31 13013347 2023-12-31 13013347 2023-01-01 13013347 c:PriorPeriodIncreaseDecrease 2023-01-01 2023-12-31 13013347 1 2024-01-01 2024-12-31 13013347 1 2023-01-01 2023-12-31 13013347 2 2024-01-01 2024-12-31 13013347 2 2023-01-01 2023-12-31 13013347 5 2024-01-01 2024-12-31 13013347 5 2023-01-01 2023-12-31 13013347 c:Exceptional 2024-01-01 2024-12-31 13013347 c:Exceptional 2023-01-01 2023-12-31 13013347 e:Director1 2024-01-01 2024-12-31 13013347 e:Director1 2024-12-31 13013347 e:Director2 2024-01-01 2024-12-31 13013347 e:Director2 2024-12-31 13013347 e:Director3 2024-01-01 2024-12-31 13013347 e:Director3 2024-12-31 13013347 e:RegisteredOffice 2024-01-01 2024-12-31 13013347 c:FurnitureFittings 2024-01-01 2024-12-31 13013347 c:FurnitureFittings 2024-12-31 13013347 c:FurnitureFittings 2023-12-31 13013347 c:FurnitureFittings c:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 13013347 c:ComputerEquipment 2024-01-01 2024-12-31 13013347 c:ComputerEquipment 2024-12-31 13013347 c:ComputerEquipment 2023-12-31 13013347 c:ComputerEquipment c:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 13013347 c:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 13013347 c:CurrentFinancialInstruments 2024-12-31 13013347 c:CurrentFinancialInstruments 2023-12-31 13013347 c:Non-currentFinancialInstruments 2024-12-31 13013347 c:Non-currentFinancialInstruments 2023-12-31 13013347 c:CurrentFinancialInstruments c:WithinOneYear 2024-12-31 13013347 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 13013347 c:Non-currentFinancialInstruments c:AfterOneYear 2024-12-31 13013347 c:Non-currentFinancialInstruments c:AfterOneYear 2023-12-31 13013347 c:UKTax 2024-01-01 2024-12-31 13013347 c:UKTax 2023-01-01 2023-12-31 13013347 c:ShareCapital 2024-01-01 2024-12-31 13013347 c:ShareCapital 2024-12-31 13013347 c:ShareCapital 2023-01-01 2023-12-31 13013347 c:ShareCapital 2023-12-31 13013347 c:ShareCapital 2023-01-01 13013347 c:OtherMiscellaneousReserve 2024-01-01 2024-12-31 13013347 c:OtherMiscellaneousReserve 2024-12-31 13013347 c:OtherMiscellaneousReserve 2 2024-01-01 2024-12-31 13013347 c:OtherMiscellaneousReserve 2023-01-01 2023-12-31 13013347 c:OtherMiscellaneousReserve 2023-12-31 13013347 c:OtherMiscellaneousReserve c:PriorPeriodIncreaseDecrease 2023-01-01 2023-12-31 13013347 c:OtherMiscellaneousReserve 2023-01-01 13013347 c:OtherMiscellaneousReserve 2 2023-01-01 2023-12-31 13013347 c:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 13013347 c:RetainedEarningsAccumulatedLosses 2024-12-31 13013347 c:RetainedEarningsAccumulatedLosses 2 2024-01-01 2024-12-31 13013347 c:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 13013347 c:RetainedEarningsAccumulatedLosses 2023-12-31 13013347 c:RetainedEarningsAccumulatedLosses c:PriorPeriodIncreaseDecrease 2023-01-01 2023-12-31 13013347 c:RetainedEarningsAccumulatedLosses 2023-01-01 13013347 c:RetainedEarningsAccumulatedLosses 2 2023-01-01 2023-12-31 13013347 c:AcceleratedTaxDepreciationDeferredTax 2024-12-31 13013347 c:AcceleratedTaxDepreciationDeferredTax 2023-12-31 13013347 c:TaxLossesCarry-forwardsDeferredTax 2024-12-31 13013347 c:TaxLossesCarry-forwardsDeferredTax 2023-12-31 13013347 c:RetirementBenefitObligationsDeferredTax 2024-12-31 13013347 c:RetirementBenefitObligationsDeferredTax 2023-12-31 13013347 e:OrdinaryShareClass1 2024-01-01 2024-12-31 13013347 e:OrdinaryShareClass1 2024-12-31 13013347 e:OrdinaryShareClass1 2023-12-31 13013347 e:FRS102 2024-01-01 2024-12-31 13013347 e:Audited 2024-01-01 2024-12-31 13013347 e:FullAccounts 2024-01-01 2024-12-31 13013347 e:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 13013347 c:WithinOneYear 2024-12-31 13013347 c:WithinOneYear 2023-12-31 13013347 2 2024-01-01 2024-12-31 13013347 4 2024-01-01 2024-12-31 13013347 c:ShareCapital 2 2024-01-01 2024-12-31 13013347 c:ShareCapital 2 2023-01-01 2023-12-31 13013347 f:PoundSterling 2024-01-01 2024-12-31 13013347 c:ShareCapital c:PriorPeriodErrorIncreaseDecrease 2023-01-01 2023-12-31 13013347 c:OtherMiscellaneousReserve c:PreviouslyStatedAmount 2023-01-01 13013347 c:RetainedEarningsAccumulatedLosses c:PreviouslyStatedAmount 2023-01-01 13013347 c:PreviouslyStatedAmount 2023-01-01 iso4217:GBP xbrli:shares xbrli:pure
Registered Number:13013347













DEEPL UK LTD





ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024











 
DEEPL UK LTD
 

 
COMPANY INFORMATION


Directors
P D McDougall (appointed 12 March 2025)
F E S Williams (appointed 12 March 2025)




Registered number
13013347



Registered office
6th Floor
One London Wall

London

EC2Y 5EB




Independent auditor
Sumer Auditco Limited
Statutory Auditor

Fitzroy House

Crown Street

Ipswich

Suffolk

IP1 3LG






 
DEEPL UK LTD
 


CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 29



 
DEEPL UK LTD
 

 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Principal activities
 
The principal activity of the Company during the year was the provision of administrative and support services to its parent company. The Company operates solely within the United Kingdom.

Business review
 
Business model
The Company’s cost base is predominantly made up of personnel and office-related expenses. These costs are recharged to the parent company on a cost-plus basis, with a 7% mark-up applied. In addition, the parent company levies a management charge for the provision of senior management oversight and strategic direction.

Performance 
During the year, the Company continued to provide administrative and support services to its parent company in line with its operating model. Revenue for the year was £43,890,127 (2023: £15,910,899), reflecting the recharges of operating costs plus margin. Personnel costs represented the largest expense, accounting for approximately 85% of total operating costs.
The directors consider that the Company performed satisfactorily during the year, maintaining its role as a cost centre providing support services to the wider group.

Position at year end
At the end of the financial year, the Company’s financial position remained stable. Net assets stood at £15,847,465 (2023: £3,874,556), supported by continued backing from the parent company. Cash flow remained positive due to the recharge structure.

Principal risks and uncertainties
 
Operational dependency 
The Company’s activities are entirely dependent on the parent company. A reduction in demand for support services could impact revenue.

Cost management
Personnel and office costs form the bulk of expenditure. Effective cost control is therefore essential.

Management charges
The parent company levies a management charge, which reduces the Company’s profitability.

Financial risks
The Company has limited exposure to credit risk, liquidity risk, or market risk, as revenues are recovered directly from the parent company and funding is supported by the group.


- 1 -



 
DEEPL UK LTD
 


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

Financial key performance indicators
 
Revenue growth – Reflecting recharges to the parent company.
Operating margin – The fixed 7% mark-up.
Staff costs as a percentage of total expenditure – Reflecting cost management efficiency.
Headcount levels – To ensure sufficient resources are in place to deliver services.


This report was approved by the board on 30 September 2025 and signed on its behalf.



P D McDougall
Director


- 2 -



 
DEEPL UK LTD
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors' responsibilities statement

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

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


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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £1,140,697 (2023 - profit £26,338).

Director

The director who served during the year was:

M Harder (resigned 12 March 2025)

Matters covered in the Strategic Report

The financial risk management objectives and policies of the Company, including exposure to financial risks are set out in the Company Strategic Report.


- 3 -



 
DEEPL UK LTD
 

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

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, Sumer Auditco Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 30 September 2025 and signed on its behalf.
 





P D McDougall
Director


- 4 -



 
DEEPL UK LTD
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEEPL UK LTD

Opinion


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


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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



- 5 -



 
DEEPL UK LTD
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEEPL UK LTD (CONTINUED)

Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.



- 6 -



 
DEEPL UK LTD
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEEPL UK LTD (CONTINUED)

Auditor's responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience and through discussions and enquiries of the Director and management. During the engagement team briefing, the outcomes of these discussions were shared with the team, as well as consideration as to where and how fraud may occur in the company.
The following laws and regulations were identified as being of significance to the company:
• Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards and UK Company Law.
• Those laws and regulations considered to have an indirect effect on the financial statements. These include ensuring that all employees and self-employed contractors working with vulnerable persons have enhanced Disclosure and Barring Service certificates, compliance with IR35 anti-tax avoidance legislation, and compliance with the agency workers regulations.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the Company complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.



- 7 -



 
DEEPL UK LTD
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEEPL UK LTD (CONTINUED)

Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Steven Burgess (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Statutory Auditor
  
Fitzroy House
Crown Street
Ipswich
Suffolk
IP1 3LG

30 September 2025

- 8 -



 
DEEPL UK LTD
 

 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

As restated
2024
2023
£
£

  

Turnover
 4 
43,890,127
15,910,899

Cost of sales
  
(2,787,305)
(1,299,601)

Gross profit
  
41,102,822
14,611,298

Administrative expenses
  
(37,999,289)
(13,549,138)

Exceptional item
 8 
(232,671)
-

Operating profit
 5 
2,870,862
1,062,160

Interest receivable and similar income
 9 
20
10

Interest payable and similar expenses
 10 
(20,609)
(21,048)

Profit before tax
  
2,850,273
1,041,122

Tax on profit
 11 
(3,990,970)
(1,014,784)

(Loss)/profit for the financial year
  
(1,140,697)
26,338

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

The notes on pages 14 to 29 form part of these financial statements.


- 9 -



 
DEEPL UK LTD
REGISTERED NUMBER:13013347


BALANCE SHEET
AS AT 31 DECEMBER 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
259,249
250,679

  
259,249
250,679

Current assets
  

Debtors: amounts falling due within one year
 13 
23,910,308
7,239,000

Cash at bank and in hand
 14 
1,041,447
298,612

  
24,951,755
7,537,612

Creditors: amounts falling due within one year
 15 
(8,865,839)
(3,391,375)

Net current assets
  
 
 
16,085,916
 
 
4,146,237

Total assets less current liabilities
  
16,345,165
4,396,916

Creditors: amounts falling due after more than one year
 16 
(497,700)
(522,360)

  

Net assets
  
15,847,465
3,874,556


Capital and reserves
  

Called up share capital 
 18 
22,000
22,000

Share-based payment reserve
 19 
16,719,140
3,605,534

Profit and loss account
 19 
(893,675)
247,022

  
15,847,465
3,874,556


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 September 2025.




P D McDougall
Director

The notes on pages 14 to 29 form part of these financial statements.


- 10 -



 
DEEPL UK LTD
 


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


Called up share capital
Share-based payment reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023 (as previously stated)
22,000
-
257,422
279,422

Prior year adjustment - correction of error
-
313,471
(36,738)
276,733


At 1 January 2023 (as restated)
22,000
313,471
220,684
556,155


Comprehensive income for the year

Profit for the year
-
-
26,338
26,338
Total comprehensive income for the year
-
-
26,338
26,338


Contributions by and distributions to owners

Share-based payment credit to equity
-
3,292,063
-
3,292,063



At 1 January 2024 (as restated)
22,000
3,605,534
247,022
3,874,556


Comprehensive income for the year

Loss for the year
-
-
(1,140,697)
(1,140,697)
Total comprehensive income for the year
-
-
(1,140,697)
(1,140,697)


Contributions by and distributions to owners

Share-based payment credit to equity
-
13,113,606
-
13,113,606


At 31 December 2024
22,000
16,719,140
(893,675)
15,847,465



- 11 -



 
DEEPL UK LTD
 


STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

As restated
2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
(1,140,697)
26,338

Adjustments for:

Depreciation of tangible assets
147,264
87,135

Interest paid
20,609
21,048

Interest received
(20)
(10)

Taxation charge
3,990,970
1,014,784

(Increase) in debtors
(16,218,912)
(5,893,067)

Increase in creditors
1,363,593
1,906,107

Share-based payment charge
13,113,606
3,292,063

Corporation tax (paid)
(357,155)
(19,003)

Net cash generated from operating activities

919,258
435,395


Cash flows from investing activities

Purchase of tangible fixed assets
(155,834)
(212,035)

Interest received
20
10

Net cash from investing activities

(155,814)
(212,025)

Cash flows from financing activities

Interest paid
(20,609)
(21,048)

Net cash used in financing activities
(20,609)
(21,048)

Net increase in cash and cash equivalents
742,835
202,322

Cash and cash equivalents at beginning of year
298,612
96,290

Cash and cash equivalents at the end of year
1,041,447
298,612


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,041,447
298,612

1,041,447
298,612


The notes on pages 14 to 29 form part of these financial statements.


- 12 -



 
DEEPL UK LTD
 


ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024





At 1 January 2024
Cash flows
Other non-cash changes
At 31 December 2024
£

£

£

£

Cash at bank and in hand

298,612

742,835

-

1,041,447

Debt due after 1 year

(522,360)

-

24,660

(497,700)


(223,748)
742,835
24,660
543,747

The notes on pages 14 to 29 form part of these financial statements.


- 13 -



 
DEEPL UK LTD
 

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

1.


General information

DeepL UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, One London Wall, London, United Kingdom, EC2Y 5EB.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Going concern

After making enquiries, the director has a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date these financial statements were approved. This is due to the ongoing support of the parent company. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
The company benefits from the support of its parent, DeepL SE in the form of reimbursement at an agreed margin, for trading expenditure and operating overheads incurred in delivering services to its customers. The director has obtained confirmation from the parent company that it is committed to support the activities of DeepL UK Ltd and will continue to provide sufficient funds, as part of that support, to enable DeepL UK Ltd to meet its liabilities as they fall due for at least 12 months from the date of signing the financial statements.

 
2.3

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 
Turnover is recognised in respect of administrative services provided to its parent company, its sole customer, as they are provided on an accruals basis.


- 14 -



 
DEEPL UK LTD
 

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

2.Accounting policies (continued)

 
2.4

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 basis:

Fixtures, fittings and computers
-
33%
Straight Line


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

 
2.5

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans 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.

 
2.6

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.7

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

- 15 -



 
DEEPL UK LTD
 

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

2.Accounting policies (continued)


2.7
Financial instruments (continued)



Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
 

- 16 -



 
DEEPL UK LTD
 

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

2.Accounting policies (continued)


2.7
Financial instruments (continued)


Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.8

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Operating leases: the Company as lessee

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

 
2.11

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.



 
2.12

Interest income

Interest income is recognised in profit or loss using the effective interest method.


- 17 -



 
DEEPL UK LTD
 

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

2.Accounting policies (continued)

 
2.13

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

 
2.14

Current and deferred taxation

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

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

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

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



- 18 -



 
DEEPL UK LTD
 

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

2.Accounting policies (continued)

 
2.15

Share-based payments

Where share appreciation rights are awarded to employees of the Company by the Parent Company, the fair value of the rights at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of rights expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of rights that eventually vest. Market vesting conditions are factored into the fair value of the rights granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party or factors which are within the control of one or other of the parties (such as the Parent Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of rights are modified before they vest, the increase in the fair value of the rights, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where rights are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
The fair values of share appreciation rights denominated in foreign currencies are translated into the functional currency using the spot exchange rates at the date of grant.

 
2.16

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.


- 19 -



 
DEEPL UK LTD
 

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

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial information in conformity with FRS 102 requires the directors to make critical accounting estimates and judgments that affect the application of policies and reported amounts of assets and liabilities.
The virtual share (share appreciation rights) scheme has been classified as a wholly equity settled share-based payment scheme. The parent company has the option to settle in cash or equity instruments. The directors consider the cash settlement made during the year to be exceptional. The directors do not consider this single instance has established a practice of settling in cash. 
The virtual share (share appreciation rights) scheme cash settlement during the year has been treated as a payroll cost paid on behalf of the parent company. The directors consider it is outside the scope of FRS 102 Section 26 Share-based payment. The scheme is in the name of the parent company. The cash settlement of the virtual shares was legally executed by the parent company. The company acted as a "paying agent".
The measurement of the share-based payment expense is a key source of estimation uncertainty. The fair values of the virtual shares (share appreciation rights) at grant date have been calculated using the Monte Carlo model. The key assumptions made are the expected volatility and the risk-free interest rate. The expected volatility has been determined based on the historic volatility of comparable listed companies. The risk-free interest rates reflect the interest rates payable on German government debt.


4.


Turnover

All turnover is from the supply of administrative services to the parent company.

All turnover arose within the European Union excluding the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

As restated
2024
2023
£
£

Exchange differences
23,281
-

Depreciation of tangible fixed assets
147,264
87,135

Other operating lease rentals
1,074,518
285,928

Share-based payment
13,113,606
3,292,063


- 20 -



 
DEEPL UK LTD
 

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

6.


Auditor's remuneration

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


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
14,000
10,400


7.


Employees

As restated
2024
2023
£
£

Wages and salaries
15,813,897
6,346,861

Social security costs
4,106,768
1,410,982

Cost of defined contribution scheme
175,317
68,183

20,095,982
7,826,026


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


        2024
        2023
            No.
            No.







Total
170
78

The directors did not receive any remuneration in respect of the year (2023 - £Nil). The director was the only key management personnel during the year and prior year.


8.


Exceptional item

2024
2023
£
£


Gross payment
204,456
-

Employer's national insurance contributions
28,215
-

232,671
-

During the year, the parent company settled some of the fully vested virtual shares (share appreciation rights) granted to employees of the Company. The Company acted as a "payment agent" and made the payment on behalf of the parent company via the payroll.


- 21 -



 
DEEPL UK LTD
 

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

9.


Interest receivable

2024
2023
£
£


Other interest receivable
20
10

20
10


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
286
-

Loans from group undertakings
20,323
21,048

20,609
21,048


11.


Taxation


As restated
2024
2023
£
£

Corporation tax


Current tax on profits for the year
4,443,366
1,098,385


Total current tax
4,443,366
1,098,385

Deferred tax


Origination and reversal of timing differences
(452,396)
(83,601)

Total deferred tax
(452,396)
(83,601)


Tax on profit
3,990,970
1,014,784

- 22 -



 
DEEPL UK LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.50%). The differences are explained below:

As restated
2024
2023
£
£


Profit on ordinary activities before tax
2,850,273
1,041,122


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.50%)
712,568
244,664

Effects of:


Share-based payments
3,278,402
773,635

Other disallowed expenses
-
1,727

Change in rates
-
(5,242)

Total tax charge for the year
3,990,970
1,014,784


Factors that may affect future tax charges

There is a deferred tax asset of £576,811 (2023 - £124,391) relating to accruals for employer's national insurance contributions on share-based payments of £2,307,242 (2023 - £497,564). The contributions do not become payable to HMRC (or deductible for corporation tax purposes) until the related virtual shares (share appreciation rights) are exercised. 


- 23 -



 
DEEPL UK LTD
 

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

12.


Tangible fixed assets





Fixtures and fittings
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2024
22,781
354,071
376,852


Additions
454
155,380
155,834


Transfers between classes
3,565
(3,565)
-



At 31 December 2024

26,800
505,886
532,686



Depreciation


At 1 January 2024
21,789
104,384
126,173


Charge for the year on owned assets
8,316
138,948
147,264


Transfers between classes
(6,380)
6,380
-



At 31 December 2024

23,725
249,712
273,437



Net book value



At 31 December 2024
3,075
256,174
259,249



At 31 December 2023
992
249,687
250,679


13.


Debtors

As restated
2024
2023
£
£


Amounts owed by group undertakings
22,925,916
7,028,489

Other debtors
368,062
49,616

Prepayments and accrued income
98,056
95,017

Deferred taxation
518,274
65,878

23,910,308
7,239,000


The amounts owed by group undertakings are interest-free and repayable on demand.


- 24 -



 
DEEPL UK LTD
 

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

14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,041,447
298,612

1,041,447
298,612



15.


Creditors: Amounts falling due within one year

As restated
2024
2023
£
£

Trade creditors
43,123
113,536

Amounts owed to group undertakings
-
848,932

Corporation tax
5,257,120
1,170,909

Accruals and deferred income
3,565,596
1,257,998

8,865,839
3,391,375


The amounts owed to group undertakings are interest-free and repayable on demand.


16.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Amount owed to group undertakings
497,700
522,360

497,700
522,360


The amount owed to group undertakings relates to a 600,000 EUR loan repayable by 31 December 2026. The loan attracts interest at a fixed rate of 4% per annum.


- 25 -



 
DEEPL UK LTD
 

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

17.


Deferred taxation




2024


£






At beginning of year (as restated)
65,878


Charged to profit or loss
452,396



At end of year
518,274

The deferred tax asset is made up as follows:

As restated
2024
2023
£
£


Accelerated capital allowances
(63,306)
(60,833)

Pension contributions deductible on paid basis
4,769
2,320

National insurance contribution accruals on share-based payments
576,811
124,391

518,274
65,878


The net reversal of the deferred tax provision expected within the next 12 months is £38,935 (2023 - £23,034).


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2,200,000 (2023 - 2,200,000) Ordinary shares of £0.01 each
22,000
22,000



19.


Reserves

Shared-based payment reserve

The share-based payment reserve represents the accumulated share-based payment charges.

Profit and loss account

The profit and loss account reserve represent the Company's accumulated profits and losses less dividends paid. The reserve is available for distribution to the shareholders.


- 26 -



 
DEEPL UK LTD
 

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

20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £175,317 (2023 -  £68,183). Contributions totalling £52,764 (2023 - £22,834) were payable to the fund at the balance sheet date and are included in creditors.


21.


Commitments under operating leases

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

2024
2023
£
£


Within 1 year
1,281,930
151,479

1,281,930
151,479


22.


Related party transactions

The only related party transactions were with the parent and a wholly owned subsidiary. Transactions and amounts outstanding with wholly owned fellow subsidiary undertakings are not disclosed.


23.


Controlling party

The parent undertaking is DeepL SE , Maarweg 165, 50825 Köln, Germany.


- 27 -



 
DEEPL UK LTD
 

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

24.


Share-based payments

Certain of the Company's employees have been granted virtual shares (share appreciation rights) in the parent company. The virtual shares vest over 4 years subject to continued employment. One quarter of the virtual shares vest after one year. The remaining virtual shares vest in equal monthly tranches over the next 36 months. The virtual shares become exercisable upon defined exit events at prices determined at the grant date. The exit proceeds are calculated in accordance with formulae determined at the grant date. The virtual shares expire after 15 years if a defined exit event does not occur. The parent company has the option to settle in cash or equity instruments. 

Weighted average exercise price per 100 shares (EUR)
2024
Number
2024
Weighted average exercise price per 100 shares (EUR)
2023
Number
2023

Outstanding at the beginning of the year

12.78

357,066

5.67
 
131,742
 
Granted during the year

17.78

201,267

16.90
 
226,194
 
Forfeited during the year

13.78

(11,673)

5.67
 
(870)
 
Cash settled

6.78

(2,554)

0.00
 
-
 
Outstanding at the end of the year
14.63

544,106

12.78
 
357,066
 

2024
2023

Option pricing model used


Monte Carlo simulation

Monte Carlo simulation
 
Equity value (000,000 EUR)


1,606 - 1,883

653 - 1,598
 
Exercise price per 100 shares (EUR)


5.67 - 31.70

5.67 - 17.80
 
Weighted average contractual life (years)


1.2 - 2.7

1.7 - 2.7
 
Expected volatility (%)


33.86 - 40.82

40.70 - 44.59
 
Expected dividend growth rate (%)


0.00

0.00
 
Risk-free interest rate (%)


1.86 - 3.19

2.26 - 3.08
 

2024
2023
£
£


Share-based payment expense
13,113,606
3,292,063

13,113,606
3,292,063


- 28 -



 
DEEPL UK LTD
 

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

25.

Prior year adjustment

The comparatives have been restated to recognise the share-based payment charges, employer national insurance accruals, recharges to the parent company, and corporation tax charges, all relating to the employee share appreciation rights per note 24.

Restated
Previously stated
        £
        £
Profit and loss account brought forward

220,684

(257,422)

Share-based payment reserve brought forward

(313,471)

-

Share-based payment credit to equity

(3,292,063)

-

Share-based payment charge

3,292,063

-

Social security costs

1,410,982

956,677

Accruals and deferred income

(1,257,998)

(760,434)

Turnover

(15,910,899)

(11,902,286)

Amounts owed by group undertakings

7,028,489

2,638,175

Current tax on profits for the year

1,098,385

156,361

Corporation tax liability

(1,170,909)

(156,361)

Deferred tax brought forward

(17,723)

(28,538)

Deferred tax movement on the balance sheet

83,601

(29,975)

Deferred tax charge

(83,601)

29,975


 

- 29 -