Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Financial Statements of
Knadel Software Solutions Limited
for the Year Ended 31 December 2025

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Knadel Software Solutions Limited for the year ended 31 December 2025 which comprise the statement of comprehensive income, balance sheet, statement of changes in equity, and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
https://www.icaew.com/regulation/a-z.

It is your duty to ensure that Knadel Software Solutions Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Knadel Software Solutions Limited. You consider that Knadel Software Solutions Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Knadel Software Solutions Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

Use of our report
This report is made solely to the Board of Directors of Knadel Software Solutions Limited, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the accounts of Knadel Software Solutions Limited and state those matters that we have agreed to state to the Board of Directors of Knadel Software Solutions Limited, as a body, in this report in accordance with ICAEW Technical Release TECH 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Knadel Software Solutions Limited and its Board of Directors, as a body, for our work or for this report.

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

KSEG
Chartered Accountants
Belfry House
Champions Way
Hendon
London
NW4 1PX

29 June 2026

Knadel Software Solutions Limited

(Registration number: 08443083)
Balance Sheet as at 31 December 2025

	Note	2025 £	2024 £
Fixed assets
Tangible assets	4	3,946	3,773
Current assets
Debtors	5	382,333	148,418
Cash at bank and in hand		446,216	768,569
		828,549	916,987
Creditors: Amounts falling due within one year	6	(432,848)	(415,462)
Net current assets		395,701	501,525
Total assets less current liabilities		399,647	505,298
Provision for liabilities	7	-	(943)
Net assets		399,647	504,355
Capital and reserves
Called up share capital	8	126,710	134,210
Capital redemption reserve		23,290	15,790
Profit and loss account		249,647	354,355
Shareholders' funds		399,647	504,355

For the financial year ended 31 December 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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 have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The statement of comprehensive income and directors' report are not delivered to the Registrar of Companies in accordance with the special provisions applicable to companies subject to the small companies regime.

Approved and authorised by the Board on 29 June 2026 and signed on its behalf by:
 

......................................... D J Lumer Director

Knadel Software 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 and is incorporated in England. The registered office address is shown on page 1.

2	Accounting policies

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A Small Entities and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historic cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

Summary of significant accounting policies

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for provision of software and consultancy services to clients, stated net of discounts and of Value Added Tax. Turnover is recognised by reference to term of software licence and stage of completion of the consultancy services at the Balance Sheet date.

Tax

The tax expense for the year comprises current and deferred tax where applicable. Tax is recognised in profit or loss, except that a charge attributable to an item of income or 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 company's liability for current tax is calculated using tax rates and laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised in respect of all significant 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 suitable future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the end of the reporting date and that are expected to apply to the reversal of the timing difference.

Current and deferred tax assets and liabilities are not discounted.

Knadel Software Solutions Limited

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

2	Accounting policies (continued)

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and 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 on a straight line basis, evenly over their estimated useful economic life as follows:

Asset class	Life
Fixtures, fittings & equipment	5 years

Software development

Software development costs are charged to profit or loss in the year.

Cash at bank and in hand

This comprises cash at bank.

Trade debtors

Trade debtors are amounts due from customers for software licences sold and consultancy services performed in the ordinary course of business.

A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Financial instruments

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than its legal form.

The company's cash at bank and in hand, trade and other debtors, trade and other creditors are measured initially at transaction price, and subsequently at amortised cost using the effective interest method, where appropriate.

Leases

Rentals payable under operating leases are charged to profit or loss on a straight line basis over the lease term.

Pensions

Contributions to the company's defined contribution pension scheme, being the Workplace Pension contributions, are charged to the profit or loss in the year they are payable. The assets of the scheme are held separately from those of the company in an independent administered fund.

Knadel Software Solutions Limited

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

3	Employee information

The average number of persons employed by the company, including directors, during the year was 8 (2024 - 7).

4	Tangible assets

	Fixtures, fittings & equipment £
Cost
At 1 January 2025	10,642
Additions in the year	1,306
At 31 December 2025	11,948
Depreciation
At 1 January 2025	6,869
Charge for the year	1,133
At 31 December 2025	8,002
Carrying amount
At 31 December 2025	3,946
At 31 December 2024	3,773

5

Debtors

	2025 £	2024 £
Trade debtors	366,631	115,963
Other debtors	13,470	12,750
Prepayments	2,232	2,177
Corporation tax refund	-	17,528
	382,333	148,418

Knadel Software Solutions Limited

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

6	Creditors : amounts falling due within one year

	2025 £	2024 £
Trade creditors	5,576	6,185
Other taxes and social security	38,235	43,570
Other creditors	1,039	1,432
Accruals and deferred income	387,998	364,275
	432,848	415,462

 

7	Provision for liabilities

	Deferred tax £
At 1 January 2025	943
Decrease in provision	(943)
At 31 December 2025	-

8	Share capital

Allotted, called up and fully paid shares

	2025		2024
	No.	£	No.	£
Ordinary shares of £1 each	126,710	126,710	134,210	134,210

During the year, the company bought back 7,500 ordinary shares of £1 each for £7,500.

9	Commitments under operating leases

As at 31 December 2025 the company had total future commitments under non-cancellable operating leases over the remaining life of those leases of £62,560 (2024 - £60,580).

Knadel Software Solutions Limited

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

10	Controlling party

There is no controlling party as no shareholder has more than 50% beneficial holding in the company.