Caseware UK (AP4) 2025.0.111 2025.0.111 2025-09-302025-09-3002024-10-01true0truefalse 08680618 2024-10-01 2025-09-30 08680618 2023-10-01 2024-09-30 08680618 2025-09-30 08680618 2024-09-30 08680618 2023-10-01 08680618 c:Director1 2024-10-01 2025-09-30 08680618 c:Director2 2024-10-01 2025-09-30 08680618 c:Director3 2024-10-01 2025-09-30 08680618 c:Director3 2025-09-30 08680618 c:Director4 2024-10-01 2025-09-30 08680618 d:Non-currentFinancialInstruments 2025-09-30 08680618 d:Non-currentFinancialInstruments 2024-09-30 08680618 d:ShareCapital 2024-10-01 2025-09-30 08680618 d:ShareCapital 2025-09-30 08680618 d:ShareCapital 2023-10-01 2024-09-30 08680618 d:ShareCapital 2024-09-30 08680618 d:ShareCapital 2023-10-01 08680618 d:RetainedEarningsAccumulatedLosses 2024-10-01 2025-09-30 08680618 d:RetainedEarningsAccumulatedLosses 2025-09-30 08680618 d:RetainedEarningsAccumulatedLosses 2023-10-01 2024-09-30 08680618 d:RetainedEarningsAccumulatedLosses 2024-09-30 08680618 d:RetainedEarningsAccumulatedLosses 2023-10-01 08680618 c:OrdinaryShareClass1 2024-10-01 2025-09-30 08680618 c:OrdinaryShareClass1 2025-09-30 08680618 c:OrdinaryShareClass1 2024-09-30 08680618 c:EntityHasNeverTraded 2024-10-01 2025-09-30 08680618 c:FRS101 2024-10-01 2025-09-30 08680618 c:Audited 2024-10-01 2025-09-30 08680618 c:FullAccounts 2024-10-01 2025-09-30 08680618 c:PrivateLimitedCompanyLtd 2024-10-01 2025-09-30 08680618 d:Subsidiary1 2024-10-01 2025-09-30 08680618 d:Subsidiary1 1 2024-10-01 2025-09-30 08680618 e:PoundSterling 2024-10-01 2025-09-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 08680618









SAGE EURO HEDGECO 1








DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

 
SAGE EURO HEDGECO 1
 

CONTENTS



Page
Directors' Report
1 - 2
Statement of Directors' Responsibilities in respect of the Directors' Report and Financial Statements for the year ended 30 September 2025
3
Independent Auditor's Report to the Members of Sage Euro Hedgeco 1
4 - 7
Statement of Comprehensive Income
8
Balance Sheet
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 17


 
SAGE EURO HEDGECO 1
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025

The Directors present their report and the audited financial statements for the year ended 30 September 2025.

Principal activity

Previously the principal activity of Sage Euro Hedgeco 1 (the “Company”) had been to mitigate Euro related foreign currency risks within the The Sage Group plc. group of companies ("Sage", or the "Group”). This activity ceased in the prior year following a restructure.

Results and dividends

The profit for the year amounted to £150,122 (2024: loss of £125,282) and is reflective of the activity during the period. The Directors do not recommend the payment of a dividend (2024: £nil).

Directors

The Directors who served during the year and to the date of this report were:

Sarah Browne 
Victoria Louise Bradin (appointed 23 January 2025 and resigned 23 January 2026)
Alexander Hall  
James Thomas (appointed 27 February 2026
)

Indemnity provisions

The ultimate parent company, The Sage Group plc., maintained liability insurance for its directors and officers during the financial period and up to the date of approval of these financial statements. The Sage Group plc. has also provided an indemnity for its directors and the secretary, which is a qualifying third party indemnity provision for the purposes of the Companies Act 2006.

Going concern

The Directors have prepared the financial statements on the going concern basis as they have concluded that the Company's financial position means that this is realistic. 

The Directors have robustly tested the going concern assumption in preparing the financial statements ensuring that the Company can continue to pay its liabilities as they fall due through a forecasted period of 12 months from the date of the approval of the financial statements (“the going concern assessment period”).

This included reviewing the Company’s cash position, net asset position and obligations under debt arrangements with other Sage Group companies.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company is exempt from providing the information required by Schedule 7A to the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) in respect of greenhouse gas emissions, energy consumption and action taken to increase its energy efficiency in the UK, as the Company is included in the annual report and accounts of The Sage Group plc. for the year ended 30 September 2025 which include the required disclosures.

Strategic Report

This report has been prepared in accordance with the special provision relating to small companies within Part 15 of the Companies Act 2006 (section 414B) and the Company is therefore exempt from the requirement to prepare a Strategic Report.

Page 1

 
SAGE EURO HEDGECO 1
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025

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 subsequent events identified at the date of this report which would impact the Company.

Auditor

The external auditor of the Company for the prior financial year was Ernst and Young. As a result of an audit tender undertaken by the Company's ultimate parent Company, The Sage Group plc, KPMG LLP were appointed by the Company as auditors for the year ended 30 September 2025.

Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be re-appointed, and KPMG LLP will therefore continue in office.

Small companies note

In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the Board and signed on its behalf.
 





Alexander Hall
Director

Date: 27 February 2026

C23 - 5 &  6 Cobalt Park Way Cobalt Park
Newcastle upon Tyne
NE28 9EJ

Page 2

 
SAGE EURO HEDGECO 1
 
 
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE DIRECTORS' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

The directors are responsible for preparing 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 they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 101 Reduced Disclosure Framework.  

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 and then apply them consistently;  
• make judgements and 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;
• assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and  
• use the going-concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.  
 

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 enable them to ensure that the financial statements comply with the Companies Act 2006.  They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities


Page 3

 
SAGE EURO HEDGECO 1
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAGE EURO HEDGECO 1
 

Opinion
We have audited the financial statements of Sage Euro Hedgeco 1 (“the Company”) for the year ended 30 September 2025 which comprise the Statement of Comprehensive Income, the Balance Sheet and the Statement of Changes in Equity and related notes, including the accounting policies in note 2.  

In our opinion, the financial statements: 
• give a true and fair view of the state of the Company’s affairs as at 30 September 2025 and of its profit for the year then ended;  
• have been properly prepared in accordance with UK accounting standards, including FRS 101 Reduced Disclosure Framework; 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 are described below.  We have fulfilled our ethical responsibilities under, and are independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard.

 We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.   

Going concern
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the directors’ conclusions, we considered the inherent risks to the Company’s business model and analysed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

• we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate;
• we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for the going concern period.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation. 

Fraud and breaches of laws and regulations – ability to detect
Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

• Enquiring of directors, internal audit and inspection of policy documentation as to the Company’s high-level policies and procedures to prevent and detect fraud including the internal audit function, and the Company’s channel for whistleblowing, as well as whether they have knowledge of any actual, suspected or alleged fraud.
• Reading Board minutes.
• Using analytical procedures to identify any unusual or unexpected relationships.
 
Page 4

 
SAGE EURO HEDGECO 1
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAGE EURO HEDGECO 1
 

Fraud and breaches of laws and regulations – ability to detect (continued)

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.  

As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because the Company does not have any revenue.
 
We did not identify any additional fraud risks.

We also performed procedures including: 

• Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted to unusual combination of cash.
• Assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
 
Identifying and responding to risks of material misstatement related to compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and others in management and discussed with the directors and others in management (as required by auditing standards), and discussed the policies and procedures regarding compliance with laws and regulations.  
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. 

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related-companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.  

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: data protection laws, and anti-bribery recognising the nature of the Company’s activities.  Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.  

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-
 
Page 5

 
SAGE EURO HEDGECO 1
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAGE EURO HEDGECO 1
 

Fraud and breaches of laws and regulations – ability to detect (continued)

compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Directors’ report  
The directors are responsible for the directors’ report.  Our opinion on the financial statements does not cover those reports and we do not express an audit opinion thereon.  

Our responsibility is to read the directors’ report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge.  Based solely on that work:  

• we have not identified material misstatements in the directors’ report;  
• in our opinion the information given in the report for the financial year is consistent with the financial statements; and  
• in our opinion the report has been prepared in accordance with the Companies Act 2006.  

Matters on which we are required to report by exception  
Under the Companies Act 2006 we are required 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.  
• the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.

Directors’ responsibilities  
As explained more fully in their 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; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.  

Auditor’s responsibilities  
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 our opinion in an auditor’s report.  Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.  


A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.  






 

Page 6

 
SAGE EURO HEDGECO 1
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAGE EURO HEDGECO 1
 

The purpose of our audit work and to whom we owe our responsibilities  
 
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.  





Luke Baker (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants  
15 Canada Square
London
United Kingdom
E14 5GL
27 February 2026
Page 7

 
SAGE EURO HEDGECO 1
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2025

2025
2024
Note
£
£

  

Foreign exchange gain/(loss)
     5
150,122
(125,282)

Profit/(loss) before tax
  
150,122
(125,282)

Income tax expense
     6
-
-

Profit/(loss) for the financial year
  
150,122
(125,282)

Total comprehensive income/(expense) for the year
  
150,122
(125,282)

The notes on pages 11 to 17 form part of these financial statements.

Page 8

 
SAGE EURO HEDGECO 1
REGISTERED NUMBER: 08680618

BALANCE SHEET
AS AT 30 SEPTEMBER 2025

As restated
2025
2024
Note
£
£

Non-current assets
  

Investments
 7 
-
-

Amounts owed by group undertakings
 8 
2,407,327
2,257,205

  
2,407,327
2,257,205

  

Total assets
  
2,407,327
2,257,205

Net assets
  
2,407,327
2,257,205


Equity attributable to the owners of the parent
  

Ordinary shares
 10 
175
175

Retained earnings
  
2,407,152
2,257,030

  
2,407,327
2,257,205


The comparative balance sheet at 30 September 2024 has been restated as discussed within the ‘Basis of preparation’ (see note 2.1).

The financial statements were approved and authorised for issue by the Board and were signed on its behalf by: 




Alexander Hall
Director

Date: 27 February 2026

The notes on pages 11 to 17 form part of these financial statements.

Page 9

 
SAGE EURO HEDGECO 1
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2025


Ordinary  shares
Retained earnings
Total equity

£
£
£


At 1 October 2023
175
2,382,312
2,382,487



Loss for the year
-
(125,282)
(125,282)
Total comprehensive expense for the year
-
(125,282)
(125,282)



At 1 October 2024
175
2,257,030
2,257,205



Profit for the year
-
150,122
150,122
Total comprehensive income for the year
-
150,122
150,122


At 30 September 2025
175
2,407,152
2,407,327


The notes on pages 11 to 17 form part of these financial statements.

Page 10

 
SAGE EURO HEDGECO 1
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025

1.


General information

Sage Euro Hedgeco 1 (the “Company”) is a company incorporated and domiciled in England, it is a private unlimited company and the Company’s registered address is C23 - 5 & 6 Cobalt Park Way, Cobalt Park, Newcastle upon Tyne, United Kingdom, NE28 9EJ. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The Company is exempt by virtue of s400 of the Companies Act 2006 from the requirement to prepare group financial statements. These financial statements present information about the Company as an individual undertaking and not about its group.  

These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”) and the UK Companies Act 2006.  

In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of International Financial Reporting Standards as adopted by the UK (“Adopted IFRSs”), but makes amendments where necessary in order to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken. 
The Company’s ultimate parent undertaking, The Sage Group plc., includes the Company in its consolidated financial statements. The consolidated financial statements of The Sage Group plc. are prepared in accordance with International Financial Reporting Standards and are available to the public and may be obtained from the address given in note 11.

The Company proposes to continue to adopt the reduced disclosure framework of FRS 101 in its next financial statements. 

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements. 

Judgements made by the Directors, in the application of these accounting policies that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 3.  

The financial statements are prepared on a going concern basis and under the historical cost convention, as modified by derivative financial assets and financial liabilities measured at fair value, and in accordance with the Companies Act 2006. All amounts are presented in Great British Pounds (GBP). 

The Directors have prepared the financial statements on the going concern basis as they have concluded that the Company's financial position means that this is realistic. 

The Directors have robustly tested the going concern assumption in preparing the financial statements ensuring that the Company can continue to pay its liabilities as they fall due through a forecasted period of 12 months from the date of the approval of the financial statements (“the going concern assessment period”).

This included reviewing the Company’s cash position, net asset position and obligations under debt arrangements with other Sage Group companies.

The Directors have restated the comparative balance sheet for the year ended 30 September 2024 by way of a prior year adjustment in accordance with the requirements of FRS 101 IAS 8 paragraph 42.
 
Page 11

 
SAGE EURO HEDGECO 1
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)


2.1
Basis of preparation of financial statements (continued)


Intercompany loan receivables were classified as current assets due to their nature as being repayable on demand, rather than management’s expectation as to whether the asset would be realised in the next 12 months (IAS 1 para 66). This resulted in the overstatement of current assets in the prior year by £2,257,205. The restatement resulted in a decrease of current assets by £2,257,205 and increase in non-current assets by £2,257,205.

The principal accounting policies, which have been applied consistently throughout the year, are set out below. 

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

In these financial statements, the Company, as a qualifying entity under FRS 101, has applied the exemptions available under the standard in respect of the following disclosures:

• Cash Flow Statement and related notes, as required by IAS 7 Statement of cash flows; 
• Disclosures in respect of transactions with wholly owned subsidiaries, as required by IAS 24
Related party disclosures;
• Disclosures in respect of capital management, as required by paragraphs 134 to 136 of IAS 1 Presentation of financial statements;  
• The effects of new but not yet effective IFRSs, as required by paragraphs 30 and 31 of IAS 8 Accounting policies, changes in accounting estimates and errors;
• Disclosures in respect of the compensation of Key Management Personnel, as required by paragraph 17 of IAS 24 Related party disclosures; and

As the consolidated financial statements of The Sage Group plc. include the equivalent disclosures, the Company has also taken the exemptions under FRS 101 available in respect of the following disclosures:

• Certain disclosures required by paragraphs 91 to 99 of IFRS 13 Fair Value Measurement and the disclosures required by IFRS 7 Financial Instrument Disclosures.
 
 
2.3

Foreign currencies

Monetary assets and liabilities expressed in foreign currencies are translated into sterling at rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into sterling at the rate prevailing at the dates of the transactions. All differences on exchange are taken to the income statement.

Page 12

 
SAGE EURO HEDGECO 1
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

  
2.4

Amounts owed by group undertakings

Amounts owed by group undertakings are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for expected credit losses.

The carrying amounts of amounts owed by group undertakings are reduced by allowances for expected credit losses using the simplified approach under IFRS 9. The Company uses a matrix approach to determine the allowance. The default rates applied are based on the ageing of the receivable, past experience of credit losses and forward looking information. An allowance for a receivable’s estimated lifetime expected credit losses is first recorded when the receivable is initially recognised, and subsequently adjusted to reflect changes in credit risk until the balance is collected. In the event that management considers that a receivable cannot be collected, the balance is written off.

 
2.5

Taxation

The taxation expense for the year represents the sum of current tax payable and deferred tax. The expense is recognised in the income statement and statement of comprehensive income according to the accounting treatment of the related transaction.

Current tax payable or receivable is based on the taxable income for the period and any adjustment in respect of prior periods. Current tax is measured at the amount expected to be recovered from or paid to the taxation authorities, calculated using tax rates that have been enacted at the end of the reporting period.

The Company and its fellow group undertakings are able to relieve their tax losses by surrendering them to other group companies, within the UK corporation tax group, where capacity to utilise these losses exists. There is an agreement between members of the group that losses will not be paid for by the recipient company.

 
2.6

Financial instruments

Financial assets and financial liabilities are recognised in the Company’s balance sheet when the Company becomes a party to the contractual provisions of the instrument. 

Financial assets are derecognised (i.e., removed from the Company’s balance sheet) when the rights to receive cash flows from the asset have expired; or when the Company has transferred those rights and either has also transferred substantially all the risks and rewards of the asset or has neither transferred nor retained substantially all the risks and rewards of the asset but no longer has control of the asset. 

Financial liabilities are derecognised when the obligation specified in the contract is discharged, cancelled or expires.

Financial assets and financial liabilities are initially measured at fair value. 

All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.

Page 13

 
SAGE EURO HEDGECO 1
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

  
2.7

Equity

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amount of the assets and liabilities within the next year.  

Recoverability of amounts owed by group undertakings

Amounts owed by group undertakings to which IFRS 9’s general approach to recognising expected credit losses applies requires determination of whether the amounts are recoverable based on whether the other party is able to repay. This is performed by assessing the probability of default and a provision is recognised for any shortfall.  Where a balance attracts interest, the amount to be repaid is discounted at the applicable interest rate. 

The carrying value of amounts owed by group undertakings at 30 September 2025 was £2,407,327 (Restated 2024: £2,257,205) and no impairment loss has been recognised (2024: £nil). 


4.


Profit/(loss) before tax

Auditor's remuneration is borne by the ultimate parent company, The Sage Group plc, in both the current and prior year. The audit fees payable in relation to the audit of the financial statements of the Company are £21,000 (2024: £17,000).

The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent Company.

The Directors did not receive any emoluments during the year in respect of their services to the Company (2024: £nil). No other persons were employed by the Company during the year (2024: none).


5.


Foreign exchange gain/(loss)

2025
2024
£
£


Foreign exchange gain/(loss)
150,122
(125,282)

150,122
(125,282)


Page 14

 
SAGE EURO HEDGECO 1
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025

6.


Taxation


2025
2024
£
£



Total current tax
-
-

Deferred tax

Total deferred tax
-
-


Taxation on profit/loss
-
-

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2024 - higher than) the rate of corporation tax in the UK of25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Profit/(loss) before tax
150,122
(125,282)


Profit/(loss) multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
37,531
(31,320)

Effects of:


Non-taxable foreign exchange gains/(losses)
(37,531)
31,320

Imputed interest
52,144
452,060

Group relief utilised not paid
(52,144)
(452,060)

Total tax charge for the year
-
-

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SAGE EURO HEDGECO 1
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025

7.


Investments













Subsidiary undertaking



The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Sage Euro Hedgeco 2
 C23 - 5 & 6 Cobalt Park Way, Cobalt Park, Newcastle upon Tyne, NE28 9EJ, United Kingdom.
Ordinary
100%


8.


Amounts owed by group undertakings

As restated
2025
2024
£
£

Due after more than one year

Amounts owed by group undertakings
2,407,327
2,257,205

2,407,327
2,257,205


Amounts owed by group undertakings are non-interest bearing, unsecured and repayable upon demand. Whilst the amount is repayable on demand, no expectation exists that the balance will be recovered within twelve months of the period end date and as such has been classified as non-current.

The comparative amounts owed by group undertakings at 30 September 2024 have been restated as discussed within the ‘Basis of preparation’ (see note 2.1).

Page 16

 
SAGE EURO HEDGECO 1
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025

9.


Financial instruments

As the consolidated financial statements of The Sage Group plc. include the equivalent disclosures, the Company has taken the exemptions under FRS 101 available in respect of certain disclosures required by IFRS 13 Fair Value Measurement and the disclosures required by IFRS 7 Financial Instrument Disclosures. The disclosures below cover statutory balances in relation to Amounts owed by / to group undertakings that are not covered in The Sage Group plc. consolidated financial statements. 

Fair value measurement of financial assets and financial liabilities 

Amounts owed by group undertakings and amounts owed to group undertakings are initially measured at fair value and are subsequently measured at amortised cost. The Directors consider that the carry amounts of the financial assets and financial liabilities recognised in the financial statements approximate their fair values.




10.


Equity

2025
2024
£
£
Allotted, called up and fully paid



200 (2024 - 200) Ordinary shares of  €1.000 each
175
175

Retained earnings represent cumulative comprehensive income less dividends paid.



11.


Immediate and ultimate parent company

The Company’s immediate parent company is Sage Treasury Company Limited, a company registered in England and Wales.

The ultimate parent undertaking and ultimate controlling party is The Sage Group plc. a company registered in England and Wales. The Sage Group plc. is the largest and smallest group to consolidate these financial statements. Copies of the group financial statements can be obtained from the registered office at The Sage Group plc., C23 - 5 & 6 Cobalt Park Way, Cobalt Park, Newcastle upon Tyne, NE28 9EJ, United Kingdom. 

Page 17