Sourced Group Cloud Services Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 08464231

Sourced Group Cloud Services Limited

Filleted Financial Statements

For the period ended

30 September 2023

Sourced Group Cloud Services Limited

Statement of Financial Position

30 September 2023

	2023		2022
Note	£	£	£

Fixed assets

Intangible assets	5	1,933	–
Tangible assets	6	169,314	58,967
		---------	--------
		171,247	58,967

Current assets

Debtors	7	4,283,946	1,698,892
Cash at bank and in hand		2,066	368,941
		------------	------------
		4,286,012	2,067,833

Creditors: amounts falling due within one year	8	2,047,743		1,660,820
		------------		------------
Net current assets			2,238,269	407,013
			------------	---------
Total assets less current liabilities			2,409,516	465,980

Creditors: amounts falling due after more than one year	9	100,394	59,812
		------------	---------
Net assets		2,309,122	406,168
		------------	---------

Capital and reserves

Called up share capital	11	191	191
Share premium account	12	2,574,353	2,574,353
Profit and loss account	12	( 265,422)	( 2,168,376)
		------------	------------
Shareholders funds		2,309,122	406,168
		------------	------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements were approved by the board of directors and authorised for issue on 14 May 2026 , and are signed on behalf of the board by:

Mrs M C Cordero

Director

Company registration number: 08464231

Sourced Group Cloud Services Limited

Notes to the Financial Statements

Year ended 30 September 2023

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 3rd Floor Chiswick Park Building 4, 566 Chiswick High Road, London, England, W4 5YE.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The directors have assessed whether there are any material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. In assessing whether the going concern assumption is appropriate, the directors have taken in to account all available information including reviewing: (i) Post year end receipt of trade and intercompany debtors to improve cash reserves (ii) Group support including with cashflow to enable it to meet its current and ongoing liabilities (iii) Current year end post year end returns to profit and correspondence improvement to reserves On this basis the directors have concluded that the company has adequate recourses to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable services rendered, stated net of discounts and of Value Added Tax. Revenue from the provision of services are recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The company recognises revenue from the rendering of consultancy services in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed based on delivery milestones agreed at the start of the project. Billing terms and conditions generally vary by contract. Amounts are typically billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g. monthly or quarterly) or upon achievement of contractual milestones.

Exceptional items

Under the financial reporting standard 102 (FRS 102). exceptional items are defined as items of income or expense that arise from events or transactions that are considered both significant and unusual in nature and are not expected to occur regularly or frequently.

These items are required to be disclosed separately in the financial statements to provide a clear understanding of financial performance of an equity.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Intangible assets

Intangible assets are initially recorded at cost , and are subsequently stated at cost less any accumulated amortisation and impairment losses.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill	-	10 years
Website development	-	5 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research and development

Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold improvements	-	Straight line over the lease term
Fixtures and fittings	-	20% straight line
Equipment	-	33% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognised on a systematic basis under the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as a compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no no future related costs are recognised in income in the period which it becomes receivable.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form. Compound financial instruments The company determines the classification of its financial liabilities at initial recognition. The proceeds received on issue of the company's ordinary shares, where there are preferred dividends, re allocated in to their liability and equity components and presented separately on the balance sheet. The amount initially attributed to the debt component equals the discounted cash flows using a market rate of interest that would be payable on a similar debt instrument. The difference between the net proceeds of the shares and the amount allocated to the debt component is credited direct to equity and is not subsequently remeasured. Derecognition of financial liabilities The company shall derecognise a financial liability (or a part of a financial liability) only when it is extinguished – i.e. when the obligation specified in the contract is discharged, is cancelled or expires. If an existing borrower and lender exchange financial instruments with substantially different terms, the entities shall account for the transaction as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the company accounts for a substantial modification of the terms of an existing financial liability or a part of it (whether or not attributable to the financial difficulty of the debtor) as an extinguishment of the original financial liability and the recognition of a new financial liability. The company recognises in profit or loss any difference between the carrying amount of the financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Share-based payments

Equity-settled share-based payment transactions are measured at fair value at the date of grant. The fair value is expensed on a straight-line basis over the vesting period, with a corresponding increase in equity. This is based upon the company's estimate of the shares or share options that will eventually vest which takes into account all vesting conditions and non-market performance conditions, with adjustments being made where new information indicates the number of shares or share options expected to vest differs from previous estimates. Fair value is determined using an appropriate pricing model. All market conditions and non-vesting conditions are taken into account when estimating the fair value of the shares or share options. As long as all other vesting conditions are satisfied, no adjustment is made irrespective of whether market or non-vesting conditions are met. Where the terms of an equity-settled transaction are modified, an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the fair value of the transaction, as measured at the date of modification. Where an equity-settled transaction is cancelled or settled, it is treated as if it had vested on the date of cancellation or settlement, and any expense not yet recognised in profit or loss is expensed immediately. Cash-settled share-based payment transactions are measured at the fair value of the liability. Until the liability is settled, the fair value of the liability is re-measured at each reporting date and at the date of settlement, with any changes in fair value recognised in profit or loss for the period.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset.

4. Staff costs

The average number of persons employed by the company during the year amounted to 79 (2022: 73 ).

The aggregate payroll costs incurred during the year, relating to the above, were:

		Period from
	Year to	1 Apr 21 to
	30 Sep 23	30 Sep 22
	£	£
Wages and salaries	5,717,784	7,631,055
Social security costs	690,773	924,696
Other pension costs	291,162	399,972
	------------	------------
	6,699,719	8,955,723
	------------	------------

5. Intangible assets

	Goodwill	Website development	Total
	£	£	£
Cost
At 1 October 2022	121,500	20,095	141,595
Additions	–	1,974	1,974
	---------	--------	---------
At 30 September 2023	121,500	22,069	143,569
	---------	--------	---------
Amortisation
At 1 October 2022	121,500	20,095	141,595
Charge for the year	–	41	41
	---------	--------	---------
At 30 September 2023	121,500	20,136	141,636
	---------	--------	---------
Carrying amount
At 30 September 2023	–	1,933	1,933
	---------	--------	---------
At 30 September 2022	–	–	–
	---------	--------	---------

6. Tangible assets

	Leasehold improvements	Fixtures and fittings	Equipment	Total
	£	£	£	£
Cost
At 1 October 2022	–	139,270	232,298	371,568
Additions	19,695	98,394	30,910	148,999
	--------	---------	---------	---------
At 30 September 2023	19,695	237,664	263,208	520,567
	--------	---------	---------	---------
Depreciation
At 1 October 2022	–	131,469	181,132	312,601
Charge for the year	1,099	20,539	17,014	38,652
	--------	---------	---------	---------
At 30 September 2023	1,099	152,008	198,146	351,253
	--------	---------	---------	---------
Carrying amount
At 30 September 2023	18,596	85,656	65,062	169,314
	--------	---------	---------	---------
At 30 September 2022	–	7,801	51,166	58,967
	--------	---------	---------	---------

7. Debtors

	2023	2022
	£	£
Trade debtors	1,881,234	1,408,588
Amounts owed by group undertakings	1,925,102	–
Deferred tax asset	304,081	–
Prepayments and accrued income	58,444	177,160
Other debtors	115,085	113,144
	------------	------------
	4,283,946	1,698,892
	------------	------------

8. Creditors: amounts falling due within one year

	2023	2022
	£	£
Trade creditors	36,266	13,781
Amounts owed to group undertakings	119,324	296,090
Accruals and deferred income	775,763	638,625
Corporation tax	425,868	–
Social security and other taxes	686,294	551,989
Other creditors	4,228	160,335
	------------	------------
	2,047,743	1,660,820
	------------	------------

Amounts owed to group undertakings are unsecured, bear interest at commercial rates, and are repayable on demand.

9. Creditors: amounts falling due after more than one year

	2023	2022
	£	£
Accruals and deferred income	100,394	59,812
	---------	--------

10. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2023	2022
	£	£
Included in debtors (note 7)	304,081	–
	---------	----

The deferred tax account consists of the tax effect of timing differences in respect of:

	2023	2022
	£	£
Unused tax losses	304,081	–
	---------	----

11. Called up share capital

Issued, called up and fully paid

	2023		2022
	No.	£	No.	£
Ordinary shares of £ 0.00005 each	2,251,390	113	2,251,390	113
Ordinary A shares of £ 0.00005 each	87,456	4	87,456	4
Ordinary B shares of £ 0.00005 each	1,135,343	57	1,135,343	57
Ordinary C shares of £ 0.00005 each	31,301	2	31,301	2
Ordinary D shares of £ 0.00005 each	316,492	16	316,492	16
	------------	----	------------	----
	3,821,982	191	3,821,982	191
	------------	----	------------	----

On 26 October 2023 the company converted and re-designated the entire Ordinary A,B,C and D shares to 3,821,982 Ordinary Shares of £0.00005 each. The rights attaching to the previous shares have been varied and all the Ordinary Shares now have attached to them full voting, dividend and capital distribution.

12. Reserves

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses .

13. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2023	2022
	£	£
Not later than 1 year	88,928	88,928
Later than 1 year and not later than 5 years	326,069	148,213
	---------	---------
	414,997	237,141
	---------	---------

14. Summary audit opinion

The auditor's report dated 14 May 2026 was unqualified.

The senior statutory auditor was Tania Cregg FCCA , for and on behalf of Xeinadin Audit Limited .

In relation to going concern, attention was drawn to note 3.

15. Directors' advances, credits and guarantees

The company was owed £114,433 (2022: £114,433) by J C Smith, a former director and shareholder. The company was owed £106,282 (2022: £106,282) by S T Thair, a former director and shareholder. As part of the company takeover, the company also agreed to waive amounts owed to the company, by former company directors, to the amount of £220,715. There was no interest charged on the above loans and no balance remains outstanding at the reporting period.

16. Related party transactions

The company has availed of the exemption provided in FRS102, reduced disclosure framework, for wholly owned subsidiary of undertakings within the group, from the requirement to give details of transactions with entities that are part of the group. The company has also availed exemptions under FRS102 section 1A, not to disclose related party transactions, unless the information is necessary for an understanding of the financial position of the entity as follows: On 15 November 2021 the company was subject to a takeover by Amdocs (UK) Limited. As part of the takeover, Amdocs (UK) Limited settled financial liabilities on behalf of the company owed to the British Growth Fund, a shareholder with significant influence over the company. The first being an outstanding loan with a carrying value of £882,762 and the second being the liability of unpaid dividends on preference shares to the value of £567,177. The total of each financial liability settlements came to £1,449,939.

17. Controlling party

The company's immediate parent is Amdocs (UK) Limited following the company takeover on 15 November 2021, a company incorporated in the United Kingdom. The ultimate parent is Amdocs Limited, a company incorporated in Guernsey. The financial statements of Amdocs Limited are available from the company's website www.amdocs.com