The directors are responsible for preparing 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 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 then apply them consistently;

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

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

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.true

Lightspeed Systems (Europe) Limited is a private company limited by shares registered in England and Wales. The registered office is 169 New London Road, Chelmsford, Essex, United Kingdom, CM2 0AE. Its principle place of business is Phoenix Business Park, Christopher Martin Road, Basildon, Essex, SS14 3EZ.

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

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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

These financial statements have been rounded to the nearest £1.

Revenue is measured at the fair value of the consideration received or receivable for services rendered, stated net of discounts and of Value Added Tax.

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.

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

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

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

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other receivables and payable.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

The taxation expense represents the aggregate amount of current tax recognised in the reporting period. Tax is recognised in the Income Statement, 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.

The Company contibutes to a pension plan started in February 2016 under the auto enrolment scheme. These contributions are expensed to the profit and loss account as incurred.

Deferred income

The company supplies after-sales and support to the customers of the software product supplied by its parent (which the company also resells). This software is a system of supporting online learning for higher education institutions for their students and generally the subscriptions with the customers being recognized rateably over the contract period.

Contract asset commission

The company capitalises commission payments to the company's direct sales personnel. These are shown as contract assets in note 6. These payments are based on agreed commission percentages to sales personals. The capitalised commission is released to the profit and loss account over the duration of contracts with customers.

The preparation of financial statements requires management and the Board of Directors to make estimates and judgments that affect reported amounts of assets, liabilities, revenues and expenses, and related disclosure of deferred revenue and contract asset commission. Revenue from contracts with customers is calculated on a pro-rata basis based on the period for which sales order are being raised. Management applies judgement in estimating the timing and amount of revenue recognition to ensure compliance with the revenue recognition policy. Actual results may differ from these estimates under different assumptions or conditions, significantly impacting the company's earnings and financial position.

The average monthly number of persons employed by the company during the year amounted to 18 (2024: 18).

There are no adjusting events after the year end of the reporting period that require inclusion or disclosure in the financial statements.

During the year under review the company bought goods and services from and recharged costs to its immediate parent undertaking, Lightspeed Solutions LLC. These amounted to £2,691,661 (2024: £2,743,991) and £428,284 (2024: £870,731) respectively. At the year end £5,309,687 (2024: £3,639,410) was owed from the immediate parent undertaking.

The directors regard LS Topco Holdings LLC, incorporated in Delaware, USA, as being the company's ultimate parent undertaking.