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Registered number: 15184072
186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 JUNE 2025
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186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
REGISTERED NUMBER: 15184072
BALANCE SHEET
AS AT 30 JUNE 2025
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The Company's financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 2 to 11 form part of these financial statements.
Page 1
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186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
186kloud Europe Ltd. (formerly SCSC Cascade Ltd) is a company limited by shares and incorporated in the UK (England). The Company's registered office and principal place of business is included on the company information page. The principal activity of the Company is to serve as a master agent to broker cloud business communications services between master principals/suppliers and agency sales partners.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
The following principal accounting policies have been applied:
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Financial Reporting Standard 101 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 79(a)(iv) of IAS 1;
- paragraph 118(e) of IAS 38 Intangible Assets;
∙the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
∙the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
∙the requirements of paragraphs 30 and 31 of IAS 8.
This information is included in the consolidated financial statements of ScanSource, Inc. as at 30 June 2025 and these financial statements may be obtained from 6 Logue Ct, Greenville, SC 29615, United States.
Page 2
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186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
The Director has assessed the Company's ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.
In making this assessment, the Director has considered the Company's current trading performance, cash resources and forecast financial position. The Company operates a low-overhead business model and is not dependent upon external financing facilities to fund its ongoing operations.
Based on the forecasts and resources available to the Company, the Director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going concern basis.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Page 3
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186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
On all customer contracts the Company acts as an agent and therefore revenue is recognised as total invoiced value net of direct costs, being the profit margin generated from the provision of the services as an agent.
All revenue is recognised excluding VAT and trade discounts.
The principles for revenue recognition defined by the standard IFRS 15 are based on an analysis in five successive stages:
a) identification of the agreement
b) The identification of the different performance obligations, i.e. the list of separate goods and services that the seller has undertaken to provide to the buyer;
c) the determination of the overall price of the agreement;
d) the allocation of the overall price of each performance obligation;
e) the recognition of revenue when a performance obligation is satisfied.
In practice, the rules for the recognition of revenue according to the main performance obligations identified are presented below:
Revenue and profit for license products are recognised on a straight line basis over the life of the contract.
Principal versus Agent Considerations:
The Company derives the majority of its revenue from its activity as a Reseller/Distributor of cloud- based SaaS products. These products are purchased from various Vendors and resold to other Resellers or end users depending on the business model used with the customer.
The Vendor has the responsibility to ensure that their products perform as required and technical support beyond ‘first-Iine’.
The Company does not have any input in establishing the price for the software licenses.
The Company does not take control of the software before it is provided to the customer — control is directly transferred from the supplier to the customer.
Management has determined that the Company acts as agent for its sales. The primary determination for this assertion is on the position of control of the software.
Because the Company acts as an agent, revenue is recognised net of cost.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Page 4
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186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Goodwill acquired arises from historical goodwill recognised in the former agency business within intY Limited. Cost comprises the fair value acquired.
Goodwill is capitalised as an intangible asset and is not amortised. Instead it is reviewed annually for impairment with any impairment in carrying value being charged to profit or loss.
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186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Intellectual property - 3 years straight line
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Impairment of intangible assets
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Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, except for goodwill which is reviewed for impairment annually. For intangible assets not yet available for use, or those with an indefinite useful life, an impairment test is performed at least annually, irrespective of whether there is any indication of impairment.
An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
For the purposes of impairment testing, assets are grouped at the lowest level for which there are separately identifiable cash flows (cash-generating units).
Impairment losses are recognised in the income statement. If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, provided that it does not exceed the carrying amount that would have been determined had no impairment loss been recognised previously. Reversals of impairment losses are recognised in the income statement.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Page 6
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186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
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.
Fair value through profit or loss
All of the Company's financial assets are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses being recognised in profit or loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.
Impairment of financial assets
The Company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.
Financial liabilities
At amortised cost
Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.
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186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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The average monthly number of employees, including the Directors, during the year was as follows:
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The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £17,886 (2024: £20,033). The total contributions payable to the fund at the balance sheet date were £Nil (2024: £525).
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Goodwill is allocated to the company's cash generating unit as follows:
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The recoverable amount has been determined based on value in use.
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186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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During the year, an impairment loss of £50,339 was recognised in respect of intangible assets and included within administrative expenses in the profit and loss account.
The impairment arose as a result of a significant adverse change in the manner of use of the software following the decision to transition to a third party provider. As a consequence of this decision, the software was taken out of use and replaced during the year, indicating that the carrying amount of the related intangible assets was no longer recoverable.
The recoverable amount of the intangible assets was determined based on their value in use. Following the recognition of the impairment loss, the carrying amount of the intangible assets has been reduced to nil.
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Page 9
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186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings are unsecured and is non interest bearing. These amounts are repayable on demand.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Loans owed to group undertakings
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Amounts owed to group undertakings
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Accruals and deferred income
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The loan owed to group undertakings is unsecured and bears interest of the reference rate of SONIA plus 0.25% spread. The loan is repayable on demand and has a maturity date of 28 September 2027.
Other amounts owed to group are unsecured and is non interest bearing. These amounts are repayable on demand.
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186KLOUD EUROPE LTD. (FORMERLY SCSC CASCADE LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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Allotted, called up and fully paid
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1 (2024 - 1) Ordinary share of £1.00
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The share represents 100% of the issued share capital and voting rights.
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Profit and loss account
The profit and loss account represents cumulative profits available for distribution.
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Related party transactions
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As a subsidiary of ScanSource Inc. during the year, the Company has taken advantage of the exemption of paragraph 17 and 18A of IAS 24 Related party Disclosures of FRS 101 not to disclose transactions with other wholly owned members of the group headed by ScanSource Inc.
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At 30 June 2025, ScanSource, Inc. was the ultimate parent undertaking and controlling party of the Company and was the parent undertaking of the largest and smallest group of undertakings to consolidate the Company. The consolidated financial statements of ScanSource, Inc. are available to the public and may be obtained from 6 Logue Ct, Greenville, SC 29615, United States.
Subsequent to the reporting date, the Company was sold and is now controlled by 186Kloud Ltd, which is the immediate and ultimate parent undertaking of the Company at the date of approval of these financial statements. 186Kloud Ltd does not prepare consolidated financial statements. The ultimate controlling party is Stephen Hackett.
The auditor's report on the financial statements for the year ended 30 June 2025 was unqualified.
The audit report was signed on 29 June 2026 by Samuel Britton FCCA (Senior Statutory Auditor) on behalf of James Cowper Kreston Audit.
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