0 0 Sword Technology Solutions Limited 07491501 false 2025-01-01 2025-12-31 2025-12-31 The principal activity of the company is the provision of IT services. Digita Accounts Production Advanced 6.30.9574.0 true true Class 1 Class 2 Class 3 false false true true 07491501 2025-01-01 2025-12-31 07491501 2025-12-31 07491501 bus:Director4 2025-12-31 07491501 bus:Director5 2025-12-31 07491501 bus:OrdinaryShareClass1 2025-12-31 07491501 bus:Consolidated 2025-12-31 07491501 core:RetainedEarningsAccumulatedLosses 2025-12-31 07491501 core:ShareCapital 2025-12-31 07491501 core:CurrentFinancialInstruments core:WithinOneYear 2025-12-31 07491501 core:OtherPropertyPlantEquipment 2025-12-31 07491501 bus:FRS102 2025-01-01 2025-12-31 07491501 bus:Audited 2025-01-01 2025-12-31 07491501 bus:FullAccounts 2025-01-01 2025-12-31 07491501 bus:RegisteredOffice 2025-01-01 2025-12-31 07491501 bus:Director1 2025-01-01 2025-12-31 07491501 bus:Director2 2025-01-01 2025-12-31 07491501 bus:Director4 2025-01-01 2025-12-31 07491501 bus:Director5 2025-01-01 2025-12-31 07491501 bus:OrdinaryShareClass1 2025-01-01 2025-12-31 07491501 bus:Consolidated 2025-01-01 2025-12-31 07491501 bus:PrivateLimitedCompanyLtd 2025-01-01 2025-12-31 07491501 countries:Europe 2025-01-01 2025-12-31 07491501 countries:OtherCountriesRegions 2025-01-01 2025-12-31 07491501 countries:UnitedKingdom 2025-01-01 2025-12-31 07491501 core:ReportableOperatingSegment1 2025-01-01 2025-12-31 07491501 core:ReportableOperatingSegment2 2025-01-01 2025-12-31 07491501 core:ReportableOperatingSegment3 2025-01-01 2025-12-31 07491501 core:ComputerEquipment 2025-01-01 2025-12-31 07491501 core:OtherPropertyPlantEquipment 2025-01-01 2025-12-31 07491501 core:Subsidiary1 2025-01-01 2025-12-31 07491501 core:Subsidiary1 countries:India 2025-01-01 2025-12-31 07491501 core:ForeignTax 2025-01-01 2025-12-31 07491501 core:UKTax 2025-01-01 2025-12-31 07491501 1 2025-01-01 2025-12-31 07491501 countries:EnglandWales 2025-01-01 2025-12-31 07491501 2024-12-31 07491501 core:CostValuation 2024-12-31 07491501 core:OtherPropertyPlantEquipment 2024-12-31 07491501 2024-01-01 2024-12-31 07491501 2024-12-31 07491501 bus:OrdinaryShareClass1 2024-12-31 07491501 core:RetainedEarningsAccumulatedLosses 2024-12-31 07491501 core:ShareCapital 2024-12-31 07491501 core:CurrentFinancialInstruments core:WithinOneYear 2024-12-31 07491501 core:OtherPropertyPlantEquipment 2024-12-31 07491501 countries:Europe 2024-01-01 2024-12-31 07491501 countries:OtherCountriesRegions 2024-01-01 2024-12-31 07491501 countries:UnitedKingdom 2024-01-01 2024-12-31 07491501 core:Subsidiary1 2024-01-01 2024-12-31 07491501 core:ForeignTax 2024-01-01 2024-12-31 07491501 core:UKTax 2024-01-01 2024-12-31 xbrli:pure iso4217:GBP xbrli:shares

Registration number: 07491501

Sword Technology Solutions Limited Annual Report and Financial Statements for the Year Ended 31 December 2025
Brebners Chartered Accountants & Statutory Auditor 130 Shaftesbury Avenue London W1D 5AR

Sword Technology Solutions Limited

Contents

Company Information | 1
Directors' Report | 2
Statement of Directors' Responsibilities | 3
Independent Auditor's Report | 4 to 7
Statement of Income and Retained Earnings | 8
Statement of Financial Position | 9
Notes to the Financial Statements | 10 to 17

Sword Technology Solutions Limited

Company Information

Directors | J F Mottard K Moreton P R P Blanche

Registered office | Staines One Station Approach Staines-upon-Thames United Kingdom TW18 4LY

Auditor | Brebners Chartered Accountants & Statutory Auditor 130 Shaftesbury Avenue London W1D 5AR

Sword Technology Solutions Limited

Directors' Report for the Year Ended 31 December 2025

The directors present their report and the financial statements for the year ended 31 December 2025.

Directors of the company

The directors who held office during the year were as follows:

J F Mottard

K Moreton

F Goosse (resigned 6 July 2025)

P R P Blanche (appointed 6 July 2025)

Directors' liabilities

As permitted by Articles of Association, the directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Approved by the director on 4 June 2026 and signed by:

.........................................
K Moreton
Director

Sword Technology Solutions Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• | 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 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.

Sword Technology Solutions Limited

Independent Auditor's Report to the Members of Sword Technology Solutions Limited
for the Year Ended 31 December 2025

Opinion

We have audited the financial statements of Sword Technology Solutions Limited (the 'company') for the year ended 31 December 2025, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, and Notes to the Financial Statements, 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 2025 and of its loss 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 UK, including the FRC’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 director's 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Sword Technology Solutions Limited

Independent Auditor's Report to the Members of Sword Technology Solutions Limited
for the Year Ended 31 December 2025

Opinions 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.

We have nothing to report in respect of the following matters where 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; or

• | the directors were not entitled to take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities (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.

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.

Sword Technology Solutions Limited

Independent Auditor's Report to the Members of Sword Technology Solutions Limited
for the Year Ended 31 December 2025

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the company and the industry in which it operates, we determined that the principle risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006), UK corporate taxation laws, health and safety legislation, IR35 regulations and data protection legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.
We understood how the company is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company's financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management's incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission, misrepresentation or forgery.

Sword Technology Solutions Limited

Independent Auditor's Report to the Members of Sword Technology Solutions Limited
for the Year Ended 31 December 2025

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 Bond (Senior Statutory Auditor)
For and on behalf of
Brebners, Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

5 June 2026

Sword Technology Solutions Limited

Statement of Income and Retained Earnings for the Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 2,939,130 | 2,426,611
Cost of sales |  | (3,139,141) | (2,627,085)
Gross loss |  | (200,011) | (200,474)
Administrative expenses |  | (40,289) | (38,819)
Operating loss | 4 | (240,300) | (239,293)
Other interest receivable and similar income |  | 20,062 | 37,657
Interest payable and similar charges | 5 | (29,171) | (42,670)
|  | (9,109) | (5,013)
Loss before tax |  | (249,409) | (244,306)
Taxation | 8 | 62,654 | 61,331
Loss for the financial year |  | (186,755) | (182,975)
Retained earnings brought forward |  | 1,389,493 | 1,572,468
Retained earnings carried forward |  | 1,202,738 | 1,389,493

Sword Technology Solutions Limited

Statement of Financial Position as at 31 December 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 9 | 2,703 | 298
Investments | 10 | 40,308 | 40,308
|  | 43,011 | 40,606
Current assets |  |  |
Debtors | 11 | 2,057,421 | 2,219,039
Cash at bank and in hand |  | 1,066,329 | 655,968
|  | 3,123,750 | 2,875,007
Creditors: Amounts falling due within one year | 13 | (1,764,023) | (1,326,120)
Net current assets |  | 1,359,727 | 1,548,887
Net assets |  | 1,402,738 | 1,589,493
Capital and reserves |  |  |
Called up share capital | 15 | 200,000 | 200,000
Profit and loss account |  | 1,202,738 | 1,389,493
Total equity |  | 1,402,738 | 1,589,493

Approved and authorised by the Board on 4 June 2026 and signed on its behalf by:

......................................................................

K Moreton

Director

Company registration number: 07491501

Sword Technology Solutions Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The principal activity of the company is the provision of IT services.

The address of its registered office is:
Staines One Station Approach
Staines-upon-Thames
TW18 4LY
United Kingdom

2 | Accounting policies

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Summary of disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Sword Group SE, which can be obtained from sword-group.com/investors. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) No cash flow statement has been presented for the company.
(b) Disclosures in respect of financial instruments have not been presented.
(c) No disclosure has been given for the aggregate remuneration of key management personnel.

Going concern

The company made a loss after tax for the year ended 31 December 2025 which represents this company's share of the total IT costs of the group for providing services to the group. At 31 December 2025 the company had net assets of £1,402,738 and cash at bank of £1,066,329.
From April 2023 the company solely operates to provide IT services to the group and no longer provides consultancy services to non-group entities. Therefore, the company aim to maximise its results and income through recharging IT expenses to elsewhere in the Sword group.
Sword Group will continue to support the financing requirements of Sword Technology Solutions Limited in order to fulfil its role in the group and as such, having made enquiries, the directors have a reasonable expectation that the company has adequate resources to continue operating for the foreseeable future. Also, the company has an overseas profitable trading company and periodically will receive dividends from this subsidiary company investment. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Sword Technology Solutions Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Consolidation

The entity has taken advantage of the exemption from preparing consolidated financial statements contained in Section 401 of the Companies Act 2006 and its financial statements are consolidated into the financial statements of Sword Group SE, which can be obtained from sword-group.com/investors.

Key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. Key assumptions and other estimation uncertainty may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Judgements and estimates that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Deferred tax
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. The company exercises judgement to estimate such recoverability.

Revenue recognition

Turnover represents the fair value of consideration received and receivable in respect of sales of software, professional services and support services provided in the normal course of business, net of discounts and Value Added Tax.
The company recognises revenue when the amount can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria has been met for each of the company's activities.
Revenues from support contracts and other periodically contracted services or products are recognised on a pro-rata basis over the term of the contract. Amounts invoiced but not recognised are accounted for within deferred income.
Revenues from consultancy services are normally recognised as services are performed, on a time and materials basis. Occasionally consultancy projects are sold on a fixed price basis. In these cases, the profitability of the project is measured on a monthly basis and any loss is recognised immediately in the profit and loss account. If the project to date is profitable then revenue is recognised to the extent that the contract is performed and the right to consideration has been earned.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated.
When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Sword Technology Solutions Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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 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.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Computer equipment | 20 - 33% straight line

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Sword Technology Solutions Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due.

3 | Revenue

The analysis of the company's Turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Rendering of services | 2,939,130 | 2,426,611

The analysis of the company's turnover for the year by market is as follows:

| 2025 £ | 2024 £
UK | 911,483 | 734,604
Europe | 1,802,582 | 1,512,361
Rest of the World | 225,065 | 179,646
| 2,939,130 | 2,426,611

4 | Operating loss

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 1,078 | 3,440
Foreign exchange losses | 6,564 | 3,655

5 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest expense on other finance liabilities | 29,171 | 42,670

Sword Technology Solutions Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

6 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Recharged wages and salaries | 678,107 | 560,568
Social security costs | 75,444 | 59,477
Pension costs, defined contribution scheme | 21,982 | 17,623
| 775,533 | 637,668

7 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 17,600 | 16,750
Other fees to auditors |  |
Taxation compliance services | 2,250 | 2,150
Half year review engagement services | 9,750 | 9,350
| 12,000 | 11,500

8 | Taxation

Tax charged/(credited) in the income statement

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | (123,729) | (70,323)
UK corporation tax adjustment to prior periods | (302) | (255)
| (124,031) | (70,578)
Subvention payment | 60,880 | 8,947
Total current income tax | (63,151) | (61,631)
Deferred taxation |  |
Arising from changes in tax rates and laws | 497 | 300
Tax receipt in the income statement | (62,654) | (61,331)

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of 25%. The standard rate of UK corporation tax is 25% from 1 April 2023.
The differences are reconciled below:

Sword Technology Solutions Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 2025 £ | 2024 £
Loss before tax | (249,409) | (244,306)
Corporation tax at standard rate | (62,352) | (61,076)
Decrease in UK current tax from adjustment for prior periods | (302) | (255)
Total tax credit | (62,654) | (61,331)

Deferred tax

The deferred tax balance as at 31 December 2025 was £3,782 (2024 - £3,586).

9 | Tangible assets

| Computer equipment £ | Total £
Cost or valuation
At 1 January 2025 | 14,363 | 14,363
Additions | 3,483 | 3,483
Disposals | (1,027) | (1,027)
At 31 December 2025 | 16,819 | 16,819
Depreciation
At 1 January 2025 | 14,065 | 14,065
Charge for the year | 1,078 | 1,078
Eliminated on disposal | (1,027) | (1,027)
At 31 December 2025 | 14,116 | 14,116
Carrying amount
At 31 December 2025 | 2,703 | 2,703
At 31 December 2024 | 298 | 298

10 | Investments in subsidiaries, joint ventures and associates

| 2025 £ | 2024 £
Investments in subsidiaries | 40,308 | 40,308

Subsidiaries | £
Cost or valuation
At 1 January 2025 and 31 December 2023 | 40,308
Carrying amount
At 31 December 2025 | 40,308
At 31 December 2024 | 40,308

Sword Technology Solutions Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking | Registered office | Holding | Proportion of voting rights and shares held
|  |  | 2025 | 2024
Subsidiary undertakings
Sword Global (India) Private Limited | Elnet Software City, 3rd Floor, TS 140 Block 2 & 9, Rajiv Gandhi Salai, Taramani, Chennai 600 113 | Ordinary 10 INR shares | 100% | 100%
| India |  |  |

The principal activity of Sword Global (India) Private Limited is the provision of software and consultancy services.
The company is not required to disclose the aggregate capital and reserves, and the profit and loss account under the Companies Act 2006 for the principal subsidiary undertakings as it is exempt by virtue of Section 401 of the Companies Act 2006 from preparing group accounts as it is part of a larger group preparing consolidated accounts. The information in the financial statements is for the company only.

11 | Debtors

| 2025 £ | 2024 £
Amounts owed by group undertakings | 257,643 | 844,274
Other debtors | 758,185 | 558,844
Prepayments and accrued income | 975,158 | 751,259
Deferred tax assets | 3,782 | 3,586
Corporation tax asset | 62,653 | 61,076
| 2,057,421 | 2,219,039

12 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash at bank | 1,066,329 | 655,968

13 | Creditors

| 2025 £ | 2024 £
Due within one year |  |
Trade creditors | 183,833 | 106,964
Amounts due to group undertakings | 1,437,154 | 1,061,942
Accrued expenses and deferred income | 143,036 | 157,214
| 1,764,023 | 1,326,120

Sword Technology Solutions Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

14 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £21,982 (2024 - £17,623).

15 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £1 each | 200,000 | 200,000 | 200,000 | 200,000

16 | Related party transactions

Amounts due to and from group undertakings at 31 December 2025 are aggregated as permitted by FRS 102 and shown separately in debtors and creditors.
In accordance with FRS 102 paragraph 33.1A, exemption is taken not to disclose transactions in the year between wholly owned group undertakings.
During the year sales of £Nil (2024: £8,508) were made to companies under common control.

17 | Parent and ultimate parent undertaking

The company's immediate parent is Sword Soft Limited, incorporated in England and Wales.
Ultimate control vests with Sword Group SE. Sword Group SE produces financial statements available for public use.

Sword Group SE, whose registered office is situated at Route d'Arlon 2-4, L-8399 Windhof, Luxembourg, is the parent of the largest and smallest group preparing consolidated financial statements incorporating the results of the company.