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Registered number: 05054175
AUDITED
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024 |
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COMPANY INFORMATION
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CONTENTS
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STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their Strategic Report for Inetum UK Limited ("the Company") for the year ended 31 December 2024. The report addresses the acquisition of Inetum Digital Services Ltd, providing a fair and balanced analysis of the group’s operations, performance, principal risks, and outlook. The group remains committed to supporting the acquired entity and is actively pursuing plans for a merger and operational efficiencies to enhance overall business value.
Inetum UK Limited operates as a provider of digital transformation and IT services in the UK and forms part of the Inetum Group. Within the group structure, the Company sits in the Inetum Growing Markets region. During the period, the Company continued to support its subsidiary Inetum Digital Services UK Limited (IDS), which operates in the UK and has subsidiaries in Ireland and India. Management is undertaking a reorganisation across the UK, Ireland and India entities to simplify the operating model, improve efficiency and better align delivery capability to client demand.
Strategy and operating priorities
∙Maintain continuity of service delivery and customer satisfaction while executing organisational change.
∙Simplify the operating model across the UK, Ireland and India entities to improve efficiency and governance.
∙Improve delivery economics and direct margin through a more efficient delivery model, including appropriate use of nearshoring/offshoring.
∙Strengthen scalable growth capability through investment in sales and delivery capacity and an expanded solutions portfolio.
Performance and financial review
Turnover increased to £1,459,513 (2023: £767,207), comprising application software services of £716,268 (2023: £659,630) and intercompany revenues of £743,245 (2023: £107,577). Gross profit reduced to £70,250 (2023: £174,686) reflecting a higher cost base, and administrative expenses rose to £332,239 (2023: £140,016), resulting in an operating loss of £261,989 (2023: operating profit £34,670). The statutory loss after tax was £18,047,800 (2023: £241,354 loss), driven principally by an investment impairment charge of £14,796,577 and interest payable of £2,989,740. As at 31 December 2024 the Company reported cash of £204,791, net current liabilities of £3,726,490 and net liabilities (shareholders’ deficit) of £19,112,973.
∙Integration and transformation execution risk across the Company and IDS, including disruption to service continuity, delivery capacity, knowledge retention and cost outcomes.
∙Reputational risk and customer attrition risk during integration into the wider Inetum Group operating model.
∙People, engagement and retention risks associated with organisational redesign and potential workforce change.
∙Financial risks including credit risk on receivables, liquidity and cash flow management, and risk that transformation benefits are delayed or not fully realised.
∙Market volatility, competitive pressures and regulatory changes impacting demand and profitability.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
∙Year-on-year revenue grew by 90%, driven by:
°8% external growth, reflecting higher delivery volumes with existing clients.
°591% internal growth, mainly due to investment in UK-based Group roles (EVP and SVP Solutions), which are recharged to the Group with a 5% markup under the transfer pricing policy.
∙Staff costs increased by 155%, in line with the investment described above and the related revenue growth.
∙Loan interest increased in 2024 following Inetum UK’s acquisition of Unifii.
∙Administrative expenses doubled compared with 2023, mainly due to acquisition-related fees and higher travel costs linked to the new role between London and the Paris headquarters.
∙The Company reported an operating loss compared with 2023, as 2024 was an exceptional year of acquisitions and investments.
The Directors expect 2025 to be a year of continued transformation and reorganisation across Inetum UK and the IDS sub-group (including the subsidiaries in Ireland and India). The programme is intended to simplify the operating model, strengthen governance and improve cost efficiency while maintaining customer satisfaction. Management will monitor progress using operational and financial indicators such as solutions portfolio growth, client base expansion, improved direct margin from delivery efficiencies (including nearshoring/offshoring), and sustained customer satisfaction.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their report and the financial statements for the year ended 31 December 2024.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:
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 to 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.
The loss for the year, after taxation, amounted to £18,047,800 (2023 - loss £241,354).
The Directors do not recommend a dividend to be paid in respect of the current or prior year.
The Directors who served during the year were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Company since the year end.
The auditors, Wellden Turnbull Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INETUM UK LIMITED
We have audited the financial statements of Inetum UK Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, 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 auditing the financial statements, we have concluded that the Directors' 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INETUM UK LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INETUM UK LIMITED (CONTINUED)
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 Auditors' 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.
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. We have identified the greatest risk of a material impact on the financial statements from irregularities, including fraud, to relate to the timing and recognition of revenue and the override of controls by management. We have obtained an understanding of the legal and regulatory frameworks that the Company operates within including both those that directly have an impact on the financial statements and more widely those for which non-compliance could have a significant impact on the Company’s operations and reputation. The Companies Act 2006, employee legislation, health and safety legislation, data protection and UK company tax law are those we have identified in this regard. Auditing standards limit the required procedures as to non-compliance with laws and regulations to enquiries of those charged with governance and review of any applicable correspondence.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Assessing the susceptibility of the Company's financial statements to material misstatements by obtaining an understanding of how fraud might occur;
∙Enquiring of management and those charged with governance as to actual and potential litigation and claims and testing of internal controls in place, where applicable, to mitigate risks of fraud and non-compliance with laws and regulations;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work over the risk of timing and recognition of revenue to ensure completeness, and substantive procedures to ensure accuracy, based on underlying contractual terms and obligations and the requirements of accounting standards; and
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and performing analytical procedures to identify any significant unusual or unexpected transactions or relationships.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INETUM UK LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Albany House
Claremont Lane
Surrey
KT10 9FQ
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 22 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Inetum UK Limited is a private company, limited by shares, incorporated in England and Wales, registration number
2.Accounting policies
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The financial statements are rounded to the nearest £.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Granite (BC) Holdco S.à.r.l as at 31 December 2024 and these financial statements may be obtained from Luxembourg Business Registers.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The loss for the year is principally attributable to non-recurring and non-cash items rather than to the Company's underlying trading. In particular, the loss includes an impairment of the investment in subsidiary of £14,796,577; excluding this impairment, the Company recorded only a small operating loss. The result was also affected by significant one-off legal and professional costs incurred in connection with the acquisition, and by interest payable on intercompany loan funding. Interest payable has increased significantly year on year, from £276k in FY23 to £2.99m in FY24. This reflects a full year's interest on the loan funding put in place to finance the December 2023 acquisition, the prior year having comprised only the short period following completion; the applicable interest rates were unchanged between the two periods. Notwithstanding the loss and net liability position, the Company is able to meet its operating costs as they fall due. The Company provides UK market access for software support, together with development services, to fellow group companies. In assessing the appropriateness of the going concern basis of preparation, the Directors have taken into account the key risks to the business, the Company's business model and the availability of cash resources. The parent company has provided written confirmation that it will provide ongoing financial support as necessary, including by not requiring repayment of, or collecting interest on, intercompany loan balances where to do so would be to the detriment of the Company, for a period of at least 12 months from the date of approval of these financial statements. On the basis of the above, the Directors believe the Company will have sufficient resources to continue to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements, and consider it appropriate to prepare the financial statements on a going concern basis.
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Management do not consider the Company to have any key sources of estimation uncertainty nor significant judgements or assumptions in preparing these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
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 £60,805 (2023 - £30,255). Contributions totalling £NIL (2023 - £6,706) were payable to the fund at the reporting date and are included in creditors.
The Company's immediate parent undertaking is
The smallest and largest group of undertakings into which the results of the Company are consolidated is The registered office address of Granite (BC) Holdco S.à.r.l is The ultimate controlling undertaking is
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