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Registered number:
For the Year Ended
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Sota Solutions Limited
Company Information
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Sota Solutions Limited
Contents
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Sota Solutions Limited
Strategic Report
For the Year Ended 31 December 2024
The directors are pleased to present the Strategic Report for Sota Solutions Limited for the year ended 31 December 2024.
Our Commitment to Customers At Sota, our mission is to empower our customers with secure, resilient, and innovative IT solutions that enable their businesses to thrive in a rapidly evolving digital landscape. Our principal activity remains the provision of managed IT services, including support, cloud, cyber resilience, connectivity, unified communications, and consultancy, all delivered with a relentless focus on customer satisfaction and partnership. Performance Highlights 2024 was a year of strong progress for Sota. We achieved our fifth consecutive year of revenue growth, with turnover increasing by 10.6% to £10.8m and annual recurring revenue (ARR) rising by 10.7% to £8.5m. Our active customer base grew by over 2%, reflecting the trust and loyalty of our clients. We maintained a robust gross margin of 60.6% and delivered a normalised EBITDA margin of 20.7%, positioning us among the top performers in our sector. Administration expenses for 2024 include a one-off exceptional remuneration cost, which was part of a planned adjustment to the company’s capital structure in anticipation of future investment. This non-recurring item does not impact the ongoing operational performance or financial stability of the business. *Normalisation adjustments include: - Sale of fibre asset £470k, February 2022 - Exceptional salary costs £1,687k, December 2024 - Legal and professional costs £20k, December 2024
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Sota Solutions Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
Delivering Value and Building Trust Our financial performance is a direct result of our commitment to delivering exceptional value and service to our customers. We continually invest in our people, processes, and technology to ensure we remain at the forefront of the industry. In 2024, we prioritised organic growth, focusing on deepening relationships with existing customers and expanding our service offering to meet evolving needs. Innovation and Investment for the Future Looking ahead to 2025, we are excited to introduce new products and services designed to help our customers stay ahead of emerging challenges and opportunities. We are investing in advanced tooling, infrastructure, and the ongoing development of our talented team to ensure we deliver the highest standards of service and innovation. Our People, Your Partners We recognise that our success is built on the expertise and dedication of our team. By investing in training, recruitment, and employee wellbeing, we ensure that our customers benefit from a knowledgeable, motivated, and stable workforce. Our people strategy is central to our long-term vision and our ability to deliver outstanding results for our customers. Thank You to Our Customers We are deeply grateful to our customers for their continued trust and partnership. Your feedback and collaboration drive our continuous improvement and innovation. As we look to the future, we remain committed to supporting your success and delivering solutions that make a real difference to your business.
This report was approved by the board on 9 December 2025 and signed on its behalf.
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Sota Solutions Limited
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.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 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.
The directors who served during the year were:
The directors have a strong expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
There has been research and development activities throughout the year. The company is currently completing an R&D claim.
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Sota Solutions Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
No political donations and expenditure has been incurred during the current or prior year.
The company's operations expose it to a variety of financial risks, including credit risk, liquidity risk. The company has in place a risk management framework to monitor and manage these exposures on an ongoing basis. The key financial risks and management policies are summarised below:
Credit risk The company is exposed to credit risk from its trade receivables and cash deposits. Credit exposure is managed by setting credit limits and monitoring the creditworthiness of customers. The company does not have significant concentrations of credit risk. Liquidity risk The company maintains sufficient cash and credit facilities to meet its short-term obligations. Cash flow forecasts are regularly prepared and reviewed to ensure adequate liquidity is maintained.
During the financial year and up to the date of approval of this report, the company maintained qualifying thrid-party indemnity provisions (as defined in Section 234 of the Companies Act 2006) for the benefit of its directors. These provisions were in force throughout the period and remain in force at the date of this report.
The auditors, Clive Owen LLP, will be proposed for reappointment in accordance with section 487(2) of the Companies Act 2006.
This report was approved by the board on
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Sota Solutions Limited
Independent Auditors' Report to the Members of Sota Solutions Limited
We have audited the financial statements of Sota Solutions Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, 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 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.
The other information comprises the information included in the annual report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Sota Solutions Limited
Independent Auditors' Report to the Members of Sota Solutions Limited (continued)
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.
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.
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Sota Solutions Limited
Independent Auditors' Report to the Members of Sota Solutions Limited (continued)
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 Auditors' 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:
Through these procedures, we did not become aware of actual or suspected non-compliance. We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. 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. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve concealment, collusion, forgery, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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 Auditors' 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 an Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Oak Tree House, Harwood Road
Northminster Business Park
Upper Poppleton
North Yorkshire
YO26 6QU
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Sota Solutions Limited
Statement of Income and Retained Earnings
For the Year Ended 31 December 2024
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Sota Solutions Limited
Registered number: 02346249
Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 10 to 24 form part of these financial statements.
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Sota Solutions Limited ("the company") is a private company limited by shares and incorporated in England with the registration number 02346249. The address of the registered office is Building 300, Cornforth Drive, Kent Science park, Sittingbourne, Kent ME9 8PX.
2.Accounting policies
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 company's financial statements are rounded to the nearest pound (£).
The following principal accounting policies have been applied:
Functional and presentation currency
Transactions and balances
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less the accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the statement of income and retained earnings over its useful economic life. Intangible assets are initially recognised at cost. After recognition, under the cost model, customer lists and development costs are measured at cost less accumulated amortisation and accumulated impairment losses. These costs are amortised on a straight line basis to the statement of income and retained earnigs over its useful economic life.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives,
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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 receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost uding 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.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
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 payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immartial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables 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.
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (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.
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
In preparing these financial statements, management has made use of certain estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses. These estimates are based on historical experience and other relevant factors and are reviewed on an ongoing basis. While the preparation of financial statements in conformity with applicable accounting standards requires the use of estimates, management has determined that none of the estimates made involve assumptions or uncertainties that could result in a material adjustment to the carrying amounts of assets or liabilities within the next financial year. Accordingly, there are no areas of the financial statements that involve significant estimation uncertainty. Lease commitments The company has entered into a range of lease commitments in respect of property, plant and equipment. The classification of these leases as either financial or operating leases requires the directors to consider whether the terms and conditions of each lease are such that the company has aquired the risks and reqards associated with the ownership of the underlying assets. The following are the company's sources of estimation uncertainty, although are not considered to give rise to significant uncertainty or key accounting estimates: Intangible assets The company has recognised other intangible assets arising from business combinations with a carrying value of £38,175 (2023 - £76,350 at the reporting date (see note 5)). Taxation Provision has been made in the financial statements for deferred tax amounting to £151,985 (2023 - £214,473) at the reporting date. This provision is based upon estimates of the availability of future taxable profits, the timing of the reversal of timing differences upon which the provision is based and the tax rates that will be in force at that time together with an assessment of the impact of future tax planning strategies. Share-based payments The company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The estimation of fair value at the time of the grant of the options has been calculated by an external valuer. See note 12 for further details.
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
6.Taxation (continued)
There were no factors that may affect future tax charges.
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently adminstered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £70,155 (2023 - £67,003). Contributions totalling £10,897 (2023 - £31,116) were payable to the fund at the balance sheet date and are included in creditors.
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Sota Solutions Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Management has assessed the impact of this transaction on the company’s going concern status and concluded that it does not give rise to a material uncertainty. The financial statements have therefore been prepared on a going concern basis. Since year end to date of signing these accounts, the company reclassified 1,833 Ordinary £0.01 shares to Deferred £0.01 shares. Subsequently, 167 Ordinary shares and 1,169 Deferred shares were repurchased by the company and cancelled immediately upon repurchase.
The ultimate controlling party is Mr P Cowham, a director, by virtue of his majority shareholding.
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