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Registered number: 03531982 HIGHER CONCEPT SOFTWARE LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
HIGHER CONCEPT SOFTWARE LIMITED COMPANY INFORMATION
Directors | M Goodrum
| T Harris
| W Harris
Registered number | 03531982
Registered office | The Imperium
| 2nd Floor
| Imperial Way
| Reading
| Berkshire
| RG2 0TD
Independent auditor | James Cowper Kreston Audit
| Chartered Accountants and Statutory Auditor
| Reading Bridge House
| George Street
| Reading
| Berkshire
| RG1 8LS
HIGHER CONCEPT SOFTWARE LIMITED CONTENTS
| Page
Strategic Report | 2
Directors' Report | 3 - 4
Independent Auditor's Report | 5 - 8
Statement of Comprehensive Income | 9
Balance Sheet | 10 - 11
Statement of Changes in Equity | 12
Notes to the Financial Statements | 13 - 24
HIGHER CONCEPT SOFTWARE LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
Introduction
The Directors present the annual report and financial statements for the year ended 31 December 2024. Principal activity Higher Concept Software Limited (the ‘Company’), is part of the Point-of-Rental Software group. The Company’s principal activity during the year was to provide hire and inventory management software solutions.
Business review
The Company saw an increase in revenue from £5,691,412 (as restated) to £6,621,953 due to a combination of new customers, expansion of current customer base into new products and migration from our legacy non-hosted system to our go forward hosted software solution. The Company has also continued and managed their costs over the last 12 months, which has allowed revenue growth to have a direct impact on the profit made in the year. The Company’s pre-tax profit was £371,436.
Principal risks and uncertainties
The Directors believe the main risks and uncertainties for the Company are competitors and macroeconomic factors that impact on the rental industry. The Company continually looks to release new features/functionality on current software products as well as looking for new products to release onto the market. In February 2024, we acquired Record360 and the point solution inspection tool we are now actively selling not only as a cross sell to our RMS customers, but as a point solution to multiple industries requiring inspection and compliance reporting. With the current offerings as well as the new software released in 2024, the Directors believe they have market leading products in both inspection and rental management systems which minimise our competitor and technological risk. Overall macroeconomic trends in the economy are the prevailing risk as recessionary pressures could weaken the construction and equipment markets; however, the Directors have seen that rental is somewhat recession resistant as companies find that renting is preferable to ownership of assets when liquidity becomes more difficult.
Financial key performance indicators
The Directors consider that the Company’s key performance indicators for an understanding of the development and performance of business revenue, EBITDA and bookings. This report was approved by the board and signed on its behalf.
................................................ W Harris Director
Date: 27 March 2026
Page 2
HIGHER CONCEPT SOFTWARE 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.
Directors
The directors who served during the year were:
M Goodrum
T Harris
W Harris
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 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 are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.
Results and dividends
The profit for the year, after taxation, amounted to £255,858 (2023 - £760,589 (as restated)).
Future developments
The Directors remain committed to expanding our UK footprint through a strategic focus on operational excellence. By continuously evolving our software suite, both through proprietary development and seamless integrations, we provide our clients with industry-leading, intuitive technology. These efficiencies are central to our value proposition and serve as a primary catalyst for sustained revenue growth. Page 3
HIGHER CONCEPT SOFTWARE LIMITED 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, James Cowper Kreston Audit, 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.
................................................ W Harris Director
Date: 27 March 2026
Page 4
HIGHER CONCEPT SOFTWARE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HIGHER CONCEPT SOFTWARE LIMITED
Opinion
We have audited the financial statements of Higher Concept Software Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, 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). 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.
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 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. Page 5
HIGHER CONCEPT SOFTWARE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HIGHER CONCEPT SOFTWARE LIMITED (CONTINUED)
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. Page 6
HIGHER CONCEPT SOFTWARE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HIGHER CONCEPT SOFTWARE LIMITED (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. 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. The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows: • Enquiry of management and those charged with governance around actual and potential litigation and claims; • Enquiry of management and those charged with governance to identify any material instances of non- compliance with laws and regulations; • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; • Performing audit work to address the risk of irregularities due to 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 evidence of bias. 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. Page 7
HIGHER CONCEPT SOFTWARE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HIGHER CONCEPT SOFTWARE LIMITED (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 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 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. Darren O'Connor BSc (Hons) ACA FCCA (Senior Statutory Auditor) for and on behalf of James Cowper Kreston Audit Chartered Accountants and Statutory Auditor Reading Bridge House George Street Reading Berkshire RG1 8LS 30 March 2026 Page 8
HIGHER CONCEPT SOFTWARE LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
|  | As restated
| 2024 | 2023
Note | £ | £
Turnover | 4 | 6,621,953 | 5,691,412
Cost of sales |  | (310,281) | (142,765)
Gross profit |  | 6,311,672 | 5,548,647
Administrative expenses |  | (5,963,118) | (4,567,078)
Operating profit | 5 | 348,554 | 981,569
Interest receivable and similar income |  | 22,882 | 4,468
Profit before tax |  | 371,436 | 986,037
Tax on profit | 9 | (115,578) | (225,448)
Profit for the financial year |  | 255,858 | 760,589
There was no other comprehensive income for 2024 (2023:£NIL).
The notes on pages 13 to 24 form part of these financial statements.
Page 9
HIGHER CONCEPT SOFTWARE LIMITED REGISTERED NUMBER: 03531982 BALANCE SHEET AS AT 31 DECEMBER 2024
|  |  |  | As restated
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 10 |  | 32,154 |  | 52,649
Tangible assets | 11 |  | 308,654 |  | 372,450
|  |  | 340,808 |  | 425,099
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 12 | 5,773,741 |  | 5,344,573 |
Cash at bank and in hand | 13 | 1,648,034 |  | 1,311,412 |
|  | 7,421,775 |  | 6,655,985 |
Current liabilities |  |  |  |  |
Creditors: amounts falling due within one year | 14 | (5,288,536) |  | (4,850,515) |
Net current assets |  |  | 2,133,239 |  | 1,805,470
Total assets less current liabilities |  |  | 2,474,047 |  | 2,230,569
Provisions for liabilities |  |  |  |  |
Deferred tax | 15 | (49,509) |  | (61,889) |
|  |  | (49,509) |  | (61,889)
Net assets |  |  | 2,424,538 |  | 2,168,680
Capital and reserves |  |  |  |  |
Called up share capital | 16 |  | 100 |  | 100
Profit and loss account | 17 |  | 2,424,438 |  | 2,168,580
|  |  | 2,424,538 |  | 2,168,680
Page 10
HIGHER CONCEPT SOFTWARE LIMITED REGISTERED NUMBER: 03531982 BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2024 The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ W Harris
Director
Date: 27 March 2026
The notes on pages 13 to 24 form part of these financial statements. Page 11
HIGHER CONCEPT SOFTWARE LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 January 2024 | 100 | 2,150,076 | 2,150,176
Prior year adjustment - correction of error | - | 18,504 | 18,504
At 1 January 2024 (as restated) | 100 | 2,168,580 | 2,168,680
Profit for the year | - | 255,858 | 255,858
At 31 December 2024 | 100 | 2,424,438 | 2,424,538
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 January 2023 (as restated) | 100 | 1,407,991 | 1,408,091
Profit for the year (as restated) | - | 760,589 | 760,589
At 31 December 2023 | 100 | 2,168,580 | 2,168,680
| The notes on pages 13 to 24 form part of these financial statements.
Page 12
HIGHER CONCEPT SOFTWARE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Higher Concept Software Limited is a limited liability company incorporated in England and Wales. The address of its registered office is The Imperium, 2nd Floor, Imperial Way, Reading, Berkshire, RG2 0TD. 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 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); ∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of Point-of-Rental, Inc as at 31 December 2024 and these financial statements may be obtained from theri registered office..
| 2.3 | Revenue
Revenue is recognised over the period the contract relates to. Page 13
HIGHER CONCEPT SOFTWARE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.4 | Intangible assets
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 accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. 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.
| 2.5 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Plant and machinery | - | 20% | Straight line
|  |  |  | Motor vehicles | - | 25% | Straight line
|  |  |  | Fixtures and fittings | - | 20% | Straight line
|  |  |  | Office equipment | - | 25% | Straight line
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.
| 2.6 | 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. Page 14
HIGHER CONCEPT SOFTWARE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.7 | 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.
| 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 | Financial instruments
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.
| 2.10 | 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. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
| 2.11 | 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. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. Page 15
HIGHER CONCEPT SOFTWARE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.12 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
| 2.13 | 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.
| 2.14 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss. Page 16
HIGHER CONCEPT SOFTWARE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
In the application of the Company’s accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. There are no critical accounting judgments or key resources of estimation uncertainty that would have a significant effect on the financial statements.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  |  | As restated
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Revenue | 6,621,953 | 5,691,412
Analysis of turnover by country of destination:
|  |  |  |  |  | As restated
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| United Kingdom | 6,621,953 | 5,691,412
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Amortisation of intangible fixed assets | 20,495 | 22,583
| Exchange differences | 8,279 | 8,346
| Other operating lease rentals | 265,468 | 281,799
| Depreciation of tangible fixed assets | 104,863 | 107,054
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HIGHER CONCEPT SOFTWARE LIMITED 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 | 19,250 | 12,500
| The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
7. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Wages and salaries | 3,511,816 | 3,259,447
| Social security costs | 423,866 | 376,004
| Cost of defined contribution scheme | 67,513 | 65,127
|  | 4,003,195 | 3,700,578
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Employees | 67 | 63
8. | Directors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Directors' emoluments | 170,000 | 188,000
| Company contributions to defined contribution pension schemes | 1,321 | 1,321
|  | 171,321 | 189,321
| During the year retirement benefits were accruing to 1 director (2023 - NIL) in respect of defined contribution pension schemes.
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HIGHER CONCEPT SOFTWARE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
9. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 106,213 | 167,233
| Adjustments in respect of previous periods | 21,745 | (6,098)
|  | 127,958 | 161,135
| Total current tax | 127,958 | 161,135
| Deferred tax |  |
| Origination and reversal of timing differences | (12,380) | 64,313
| Total deferred tax | (12,380) | 64,313
|  | 115,578 | 225,448
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25.0% (2023 - 23.5%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 371,436 | 986,037
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25.0% (2023 - 23.5%) | 92,859 | 227,569
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 150 | 172
| Adjustments to tax charge in respect of prior periods | 21,745 | (6,098)
| Other differences leading to an increase (decrease) in the tax charge | 824 | 3,805
| Total tax charge for the year | 115,578 | 225,448
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 19
HIGHER CONCEPT SOFTWARE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
10. | Intangible assets
|  | Intellectual property
|  | £
| Cost |
| At 1 January 2024 | 131,463
| At 31 December 2024 | 131,463
| Amortisation |
| At 1 January 2024 | 78,814
| Charge for the year | 20,495
| At 31 December 2024 | 99,309
| Net book value |
| At 31 December 2024 | 32,154
| At 31 December 2023 | 52,649
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HIGHER CONCEPT SOFTWARE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
11. | Tangible fixed assets
|  | Plant and machinery | Motor vehicles | Fixtures and fittings | Office equipment | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 January 2024 | 385,743 | 31,365 | 115,981 | 159,666 | 692,755
| Additions | - | - | 5,672 | 35,395 | 41,067
| At 31 December 2024 | 385,743 | 31,365 | 121,653 | 195,061 | 733,822
| Depreciation |  |  |  |  |
| At 1 January 2024 | 119,708 | 31,365 | 69,115 | 100,117 | 320,305
| Charge for the year | 70,721 | - | 11,562 | 22,580 | 104,863
| At 31 December 2024 | 190,429 | 31,365 | 80,677 | 122,697 | 425,168
| Net book value |  |  |  |  |
| At 31 December 2024 | 195,314 | - | 40,976 | 72,364 | 308,654
| At 31 December 2023 | 266,035 | - | 46,866 | 59,549 | 372,450
12. | Debtors
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade debtors | 971,289 | 619,203
| Amounts owed by group undertakings | 4,477,263 | 4,476,616
| Other debtors | 206,992 | 176,461
| Prepayments | 118,197 | 72,293
|  | 5,773,741 | 5,344,573
| Amounts owed by group undertakings are non-interest bearing and repayable on demand.
13. | Cash and cash equivalents
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Cash at bank and in hand | 1,648,034 | 1,311,412
|  | 1,648,034 | 1,311,412
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HIGHER CONCEPT SOFTWARE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
14. | Creditors: Amounts falling due within one year
|  |  |  |  |  | As restated
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade creditors | 93,565 | 19,860
| Amounts owed to group undertakings | 3,916,771 | 3,460,828
| Corporation tax | 129,647 | 133,940
| Other taxation and social security | 329,747 | 295,978
| Other creditors | 65,089 | 43,574
| Accruals | 181,805 | 212,878
| Deferred income | 571,912 | 683,457
|  | 5,288,536 | 4,850,515
| Amounts owed to group undertakings are non-interest bearing and repayable on demand.
15. | Deferred taxation
|  | 2024
|  | £
| At beginning of year | (61,889)
| Charged to profit or loss | 12,380
| At end of year | (49,509)
| The provision for deferred taxation is made up as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fixed asset timing differences | (51,060) | (66,749)
| Short term timing differences | 1,551 | 4,860
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HIGHER CONCEPT SOFTWARE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
16. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 100 (2023 - 100) Ordinary shares of £1.00 each | 100 | 100
17. | Reserves
Profit and loss account The reserve account represents cumulative profits available for distribution to shareholders.
18. | Prior year adjustment
A prior year adjustment has been made to correctly reflect deferred income. The impact of this adjustment was to increase revenue by £18,504, decrease retained earnings by £120,197 and increase deferred revenue by £139,201.
19. | 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 represents contributions payable by the Company to the fund and amounted to £67,513 (2023: £65,127) contributions totalling £45,370 (2023: £31,105) were payable to the fund at the balance sheet date and are included in creditors.
20. | 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
|  |  |  |  | £ | £
| Not later than 1 year | 116,876 | 82,501
| Later than 1 year and not later than 5 years | 288,754 | 282,104
|  | 405,630 | 364,605
21. | Other financial commitments
There is a debenture comprising fixed and floating charges over all the assets and undertakings Point-of-Rental Limited including all present and future equipment, book debts, charged accounts, intellectual property, investments, goodwill, uncalled capital, authorisations, insurance policies; shares in Higher Concept Software Ltd. Page 23
HIGHER CONCEPT SOFTWARE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
22. | Related party transactions
| At the balance sheet date, the company was owed £89,452 (2023: £90,687) by Point-of-Rental Proprietary Limited, its sister company. At the balance sheet date, the company was owed £206,897 (2023: £206,024) by Higher Concept Software SA, its sister company. At the balance sheet date, the company owed £24,714 (2023: £19,379) to Higher Concept Software SA, its sister company. At the balance sheet date, the company was owed £5,753 (2023: £4,744) by Point-of-Rental, Inc, its ultimate parent company. At the balance sheet date, the company owed £3,892,057 (2023: £3,441,489) to Point-of-Rental, Inc, its ultimate parent company. At the balance sheet date, the company was owed £4,175,161 (2023: £4,175,161) by Point-of-Rental Software Limited, its immediate parent company. Intercompany loans are non-interest bearing and repayable on demand.
23. | Controlling party
The company is controlled by Point-of-Rental, Inc, who hold the entire issued share capital of Point-of-Rental Software Limited, the immediate parent entity. The parent of the smallest and largest group for which group accounts including Higher Concept Software Limited are drawn up is Point-of-Rental Inc. Copies of the financial statements can be obtained for their registered office.
Page 24