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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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CROSSFUZE LIMITED
COMPANY INFORMATION
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CROSSFUZE LIMITED
CONTENTS
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CROSSFUZE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
Crossfuze Limited is the subsidiary of Inergex Holdings LLC. The principal activities of which are the provision of implementation and professional services for customers using the ServiceNow platform. The Company also resells ServiceNow software licenses. The Company has a very strong relationship with our major shareholder, RLJ Equity Partners.
The business continues to increase productivity, the Company’s working from home strategy continues to produce excellent results. The economic environment was challenging in 2024. The revenue was down 18% from 2023. The bookings were down in the first half of the year but improved over the second half. The results show a loss for the year as a result of the lower revenue and lower billable utilization which led to lower margins.
The Company has decreased its turnover by 18% amid a more challenging economic environment. The business continues to show improvement in the second half of the year and Q1-25, strengthening the foundations for future growth.
The Company has created a business strategy for the next two years, committed to provide exceptional service to our clients, together with quality of work-life balance for our employees and doing business responsibly and ethically. The Company has implemented an offshore subcontractor model which has lowered our cost of sales and will contribute to higher gross margins in 2025 and 2026. We have developed a delivery center set of technologies which promotes uniform project management across all our customers utilizing ServiceNow’s customer management capabilities.
Corporate governance is embedded within the business and this, combined with a strong professional management team, means business risks are well controlled and mitigated.
The principal risks to the business are those relating to the relationship with our ServiceNow partnership and the current macroeconomic and global issues. Crossfuze Limited is an Elite ServiceNow Partner and we have expertise in all of the ServiceNow modules. The nature of the business and the growth of the ServiceNow eco-system, with a wide business client base, provides long term stability and resilience for the business. The company has 3 CMA’s (Certified Master Architect) and 2 CTA’s (Certified Technical Architect), which are the highest designations for a ServiceNow technical consultants. This diversity and resilience balance any adverse risks the business might face. The Company has implemented a new Credit Policy which analyses all new customers for creditworthiness before signing any Statement of Work. This has led to lower bad debts and lower DSO. As at December 31, 2024, 94% of all Trade receivables were under 30 days past due. The Company did not establish any new branches in 2024 but have a full-time Sales Executive in the Republic of Ireland to expand our presence there.
Turnover decreased by 18% in the year to £11M (2023 – up 14.5% to £13.4M).
Gross margin was 18.4%, lower than budget (2023 – 29.8%); with a net loss of £952k, a decrease on the previous year (2023 - profit £221k). The 2025 strategic plan projects significant organic growth in the business, with the underlying plans for this well underway. Q1-25 bookings were 142% above Q1-24 and significantly above budget.
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CROSSFUZE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors do not expect any major developments in the business during the coming year but remain open to
strategic opportunities that may arise. The company is always seeking to recruit consultants who can demonstrate a high level of competence and a similar cultural outlook. We are looking to expand our roster of off-shore sub- contractors which have a much lower cost than on-shore full-time employees.
This report was approved by the board and signed on its behalf.
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CROSSFUZE 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 who served during the year were:
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;
∙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.
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CROSSFUZE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditors, Price Bailey LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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CROSSFUZE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROSSFUZE LIMITED
We have audited the financial statements of Crossfuze Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
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.
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CROSSFUZE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROSSFUZE LIMITED (CONTINUED)
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.
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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CROSSFUZE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROSSFUZE 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:
We gained an understanding of the legal and regulatory framework applicable to the Company and the industries in which it operates and considered the risk of the Company not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements, including financial reporting and tax legislation. The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following: • Enquiry of management around actual and potential litigation and claims, and any known instances of non-compliance; • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; • Review of legal expenses and professional fees; and • Reviewing our work throughout the audit file for evidence of non-compliance.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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CROSSFUZE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROSSFUZE LIMITED (CONTINUED)
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
24 Old Bond Street
W1S 4AP
Date:
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CROSSFUZE LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CROSSFUZE LIMITED
REGISTERED NUMBER: 10823578
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 24 form part of these financial statements.
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CROSSFUZE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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CROSSFUZE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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CROSSFUZE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CROSSFUZE LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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CROSSFUZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Crossfuze Limited is a private company limited by shares incorporated in England and Wales. The company registration number is 10823578 and the registered office address 24 Old Bond Street, London, W1S 4AP. The Company trades from 1-2 Paris Gardens, London, SE1 8ND. This company is part of a group.
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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
The directors have reviewed the financial position of the company at the year end and the budgets for a period of more than twelve months from approval of the financial statements and believe they will be sufficient to enable the company to meet its debts as they fall due. Therefore they have prepared these accounts on the going concern basis. However the margin of available cash over forecast requirements is not large and there can be no certainty over this.
The directors therefore acknowledge that the company may require wider group support and have obtained a Letter of Support from the company’s ultimate parent company, RLJ-Crossfuze Holdings LLC. However the ultimate parent company and wider group are reliant on the continued support of it’s shareholders, lenders and backers. The directors have made enquiries and been assured that the ultimate parent company, RLJ-Crossfuze Holding LLC, have obtained a Letter of Support from the groups main funders, RLJ Equity Partners, confirming they will, if necessary, support the group with meeting its debts as they fall due for a period in excess of twelve months from approval of these financial statements. The directors believe that the required support will continue to be available and have therefore prepared the financial statements on the going concern basis.
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CROSSFUZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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CROSSFUZE 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.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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CROSSFUZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CROSSFUZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CROSSFUZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company has taxable losses of £812,026 available to utilise against future trading profits.
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CROSSFUZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CROSSFUZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CROSSFUZE 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 administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £118,908 (2023 - £112,726). Contributions totalling £22,369 (2023 - £Nil) were payable to the fund at the balance sheet date and are included in creditors.
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CROSSFUZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The parent company is Inergex Holdings LLC and the ultimate controlling party is RLJ-Crossfuze Holdings LLC.
The company has taken advantage of the exemption from disclosing transactions with other group entities.
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