The director presents his annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company in the year under review was that of information technology consultancy and development, specifically the development of the Sterling Cost and Carbon estimating system.

This financial year marks a pivotal chapter in our company’s evolution. We have successfully begun the transition from a predominantly service-based revenue model to a scalable Software-as-a-Service (SaaS) offering. This strategic shift reflects our commitment to delivering long-term value, recurring revenue stability, and enhanced customer experience.

During the year, service revenues naturally declined as we reduced bespoke project work to focus on developing, launching and deploying the Sterling software platform. While this has temporarily impacted short-term income, it has also laid the foundation for sustainable, high-margin growth. Key investments were made in product development, cloud infrastructure, and customer onboarding processes to ensure a seamless migration for existing clients and to attract new subscribers. Early adoption metrics are encouraging, with subscription revenues showing steady month-on-month growth in the final quarter.

We remain mindful of the transitional challenges, including deferred revenue recognition, increased R&D expenditure, and the need to balance cash flow during the ramp-up phase. However, disciplined cost management and a growing base of committed subscribers position us well for accelerated growth in the coming year.

Looking ahead, our focus will be on scaling the platform, enhancing the functionality and new modules whilst expanding integrations, and deepening customer engagement to maximise lifetime value. We are confident that this transformation will deliver sustainable returns for our stakeholders and create a more resilient, future-ready business.

The director who held office during the year and up to the date of signature of the financial statements was as follows:

The company has continued to incur research and development expenditure. Costs in relation to the development of the Sterling system have been capitalised, where the requirements of FRS 102.18 'Intangible Assets other than Goodwill' are met. Research and development expenditure of £1,292,515 (year ended 31 December 2023- £1,039,138) have been capitalised in this report.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Sterling DCS Limited for the year ended 31 December 2024 set out on pages 4 to 10 from the company’s accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.

This report is made solely to the board of directors of Sterling DCS Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Sterling DCS Limited and state those matters that we have agreed to state to the board of directors of Sterling DCS Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Sterling DCS Limited and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Sterling DCS Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Sterling DCS Limited. You consider that Sterling DCS Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Sterling DCS Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 6 to 10 form part of these financial statements.

The notes on pages 6 to 10 form part of these financial statements.

For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

Sterling DCS Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kenmore House, Navigation Road, Chelmsford, Essex, England, CM2 6HX.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales tax.

Revenue includes amounts invoiced during the period, exclusive of VAT, plus contract assets invoiced after date,but relating to work carried out in the period.

In the research phase of an internal project, if it is not possible to demonstrate that the project will generate future economic benefits, all expenditure on research is recognised as an expense when it is incurred.

Intangible assets are recognised from the development phase of a project when it is expected the asset will generate future economic benefits and its costs can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic life.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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 bases:

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The average monthly number of persons (including directors) employed by the company during the year was:

Other loans are secured by a fixed and floating charge on the assets of the company.

At the balance sheet date the company has financial commitments of £21,587 in relation to non cancellable lease agreement in respect of the company premises and a motor vehicle.