REGISTERED NUMBER: 09442760 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

REFRACT SOFTWARE LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

6

DIRECTORS:

Mr Y Lee

Mr R Hill

REGISTERED OFFICE:

123 Wellington Road South

Stockport

Cheshire

SK1 3TH

REGISTERED NUMBER:

09442760 (England and Wales)

AUDITORS:

Allens Accountants Limited

Registered Auditors and

Chartered Accountants

123 Wellington Road South

Stockport

Cheshire

SK1 3TH

FIXED ASSETS

Tangible assets

4

5,803

7,588

CURRENT ASSETS

Debtors

5

2,673,511

2,593,832

Cash at bank

27,009

80,859

2,700,520

2,674,691

CREDITORS

Amounts falling due within one year

6

279,654

457,330

NET CURRENT ASSETS

2,420,866

2,217,361

TOTAL ASSETS LESS CURRENT LIABILITIES

2,426,669

2,224,949

CREDITORS

Amounts falling due after more than one year

7

-

18,215

NET ASSETS

2,426,669

2,206,734

CAPITAL AND RESERVES

Called up share capital

9

4,011

4,011

Share premium

2,999,044

2,999,044

Retained earnings

(576,386

)

(796,321

)

SHAREHOLDERS' FUNDS

2,426,669

2,206,734

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

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

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

Mr R Hill - Director

1.	STATUTORY INFORMATION

Refract Software 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.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

During the year the company has met its working capital requirements from funds provided by the Company's parent company. The directors consider that with this continued support and positive outlook for the Company's trading position it is appropriate to prepare the financial statements on a going concern basis.

Revenue recognition

Turnover represents the total amount receivable by the company for services rendered, excluding value added tax.

For revenue from the provision of software and related services, this is recognised proportionally across the licence period.

For revenue charged to the company's parent company under contract, this is recognised on a monthly basis in line with the contracted terms, corresponding to the cost to the company of providing the relevant services.

Tangible fixed assets

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

Land and buildings

-

over the period of the lease

Financial instruments

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

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

Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

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

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

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.

Research and development

Expenditure on research and development is charged to the profit and loss account in the year in which it is incurred.

Hire purchase and leasing commitments

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

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.

Government and other grants

Grants and other contributions are accounted for on an accruals basis and recognised in the accounting statements when the conditions for their receipt have been complied with and there is reasonable assurance that the grant or contribution will be received.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 42 (2023 - 48 ) .

4.	TANGIBLE FIXED ASSETS

Land and

buildings

£

COST

At 1 January 2024

and 31 December 2024

8,926

DEPRECIATION

At 1 January 2024

1,338

Charge for year

1,785

At 31 December 2024

3,123

NET BOOK VALUE

At 31 December 2024

5,803

At 31 December 2023

7,588

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/24

31/12/23

£

£

Trade debtors

-

69,115

Amounts owed by group undertakings

2,543,419

2,454,268

Other debtors

130,092

70,449

2,673,511

2,593,832

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/24

31/12/23

£

£

Bank loans and overdrafts

-

10,056

Trade creditors

4,807

82,769

Taxation and social security

162,017

183,945

Other creditors

112,830

180,560

279,654

457,330

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/12/24

31/12/23

£

£

Bank loans

-

18,215

8.	LEASING AGREEMENTS

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

31/12/24

31/12/23

£

£

Within one year

56,674

56,674

Between one and five years

127,517

184,191

184,191

240,865

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/12/24

31/12/23

value:

£

£

229,129

Ordinary

£0.01

2,291

2,291

70,832

A

£0.01

708

708

101,152

B

£0.01

1,012

1,012

4,011

4,011

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

The Report of the Auditors was unqualified.

Paul Wright (Senior Statutory Auditor)

for and on behalf of Allens Accountants Limited

11.	ULTIMATE CONTROLLING PARTY