1.
General Information
Sauce Labs Software UK Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
11848560
. The registered office is 66 Birmingham Street, Oldbury, B69 4DZ.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with the provisions of FRS 102 Section 1A – Small Entities and the requirements of the Companies Act 2006 applicable to small companies. The accounts are prepared under the historical cost convention.
2.2.
Going Concern Disclosure
The financial statements have been prepared on a going concern basis. The company made a profit for the year ended 31 January 2026 and had net assets of £672,549 at the year end (2025: £397,184).
The company’s activities are closely integrated with those of its ultimate parent undertaking, Sauce Labs Inc., and substantially all of its revenue arises from sales to the group entities. At 31 January 2026, the company was owed £2,248,193 by group undertakings and owed £1,768,525 to group undertakings, which is repayable on demand.
The directors have received confirmation from the parent company of its intention to continue to provide such financial and operational support as is necessary for the company to continue to meet its obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements.
In assessing the appropriateness of relying on this support, the directors have considered the financial position and forecast cash flows of the parent and wider group, including the level of available cash and liquidity throughout the going concern assessment period. Although the group has reported a consolidated loss, the directors' assessment indicates that the group has sufficient forecast liquidity and cash resources to enable the parent company to fulfil its commitment to provide the necessary support to the company.
Having considered the company’s financial position and forecasts, together with the financial resources available to the parent and wider group and the confirmation of continuing financial and operational support received from the parent company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements.
Accordingly, the directors consider it appropriate to prepare the financial statements on a going concern basis.
2.3.
Significant judgements and estimations
Critical accounting judgements
In the application of the company's accounting policies, the director is required to make judgements that may affect the amounts recognised in the financial statements.
Deferred contract acquisition costs
The company incurs commission and bonus costs in connection with customer subscription contracts. Judgement is required in determining whether such costs are incremental and directly attributable to obtaining the related contracts and therefore qualify for recognition as an asset. Judgement is also applied in determining the period over which the costs are amortised, having regard to the period over which the related services are expected to be provided and the associated economic benefits received.
Recoverability of deferred contract acquisition costs
The carrying value of deferred contract acquisition costs is reviewed for indicators of impairment. In assessing recoverability, the director considers the expected future economic benefits arising from the related contracts. Changes in customer retention, expected contract duration or other relevant circumstances could affect the recoverability and amortisation period of these assets.
2.4.
Turnover
Turnover represents amounts receivable from the parent undertaking for services provided under the group’s cost-plus arrangement, excluding VAT. Revenue is recognised as the related services are provided and the associated costs are incurred, where the amount of revenue can be measured reliably and collection is probable.
Sauce Labs Software UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
2.5.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life
| Computer Equipment |
|
2.6.
Leasing and Hire Purchase Contracts
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
2.7.
Financial Instruments
Basic financial assets and basic financial liabilities as defined under section 11 of FRS 102, including trade and other debtors, trade and other creditors, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
2.8.
Foreign Currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
2.9.
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
2.10.
Pensions
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
2.11.
Capitalised costs to obtain revenue contracts
Incremental commission and bonus costs directly attributable to obtaining customer subscription contracts are recognised as an asset where they are expected to be recovered. These costs are amortised on a systematic basis over the period in which the related services are provided. The carrying amount is reviewed for impairment where circumstances indicate that it may not be recoverable. Amounts expected to be amortised within 12 months of the reporting date are classified as current assets, with the balance classified as non-current.
2.12.
Auditor's Remuneration
Fees payable to the company's auditor for the audit of the financial statements were £10,250.
Sauce Labs Software UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
3.
Average Number of Employees
Average number of employees, including directors, during the year was: 12 (2025: 12)
4.
Prior Period Adjustment
During the preparation of the financial statements for the year ended 31 January 2026, the company identified that amounts owed to Sauce Labs Inc (SLI) had been incorrectly offset against amounts owed by Sauce Labs Europe (SLE) in the prior year financial statements. As the company did not have a legally enforceable right of set-off, these balances should have been presented separately.
The comparative figures at 31 January 2025 have therefore been restated to recognise the amounts owed by and to group undertakings on a gross basis. The effect of the correction is as follows:
|
As previously reported
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Adjustment
|
As restated
|
|
|
£
|
£
|
£
|
|
|
Amounts owed by group undertakings
|
75,240
|
1,840,767
|
1,916,007
|
|
Amounts owed to group undertakings
|
279,219
|
1,840,767
|
2,119,986
|
|
|
![1](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 2" preserveAspectRatio="none"> <line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/> </svg>){kind=small}
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![1](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 5" preserveAspectRatio="none"> <line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/> <line x1="0" y1="4" x2="80" y2="4" stroke="black" shape-rendering="crispEdges"/> </svg>){kind=small}
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The adjustment increases both debtors and creditors by £1,840,786 and has no effect on net assets, profit for the year, taxation or shareholders’ funds. It does not give rise to any cash movement.
The balances at 31 January 2026 have been presented on the same gross basis, comprising amounts owed by SLE of £2,248,193 and amounts owed to SLI of £1,768,525.
5.
Tangible Assets
| Computer Equipment | |
|---|---|
| £ | |
| Cost | |
| As at 1 February 2025 |
|
| Additions |
|
| Disposals |
( |
| As at 31 January 2026 |
|
| Depreciation | |
| As at 1 February 2025 |
|
| Provided during the period |
|
| As at 31 January 2026 |
|
| Net Book Value | |
| As at 31 January 2026 |
|
| As at 1 February 2025 |
|
Sauce Labs Software UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
6.
Debtors
| 2026 | 2025 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Prepaid Employee Benefits |
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| Prepaid Expenses - Other |
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| Intercompany Receivable |
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| Deferred Sales Bonus Costs |
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| Deferred Variable Bonus Costs | - |
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| Corporation tax recoverable assets | - |
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| VAT |
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| Due after more than one year | |||
| Deferred Contract Acquisition Costs -- Noncurrent |
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7.
Creditors: Amounts Falling Due Within One Year
| 2026 | 2025 as restated |
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|---|---|---|---|
| £ | £ | ||
| Trade creditors |
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| Corporation tax |
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| Other taxes and social security |
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| Other creditors |
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| Intercompany payable |
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| Pension liability |
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| Accruals and deferred income |
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8.
Deferred Taxation
The provision for deferred tax is made up as follows:
|
2026
|
2025
|
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|
£
|
£
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||
|
Opening balance as at 1 February 2025
|
2,453
|
631
|
|
|
P&L Movement
|
(28)
|
1,822
|
|
|
|
|
||
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Closing balance as at 31 January 2026
|
2,425
|
2,453
|
Sauce Labs Software UK Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
10.
Post Balance Sheet Events
After the balance sheet date, the company agreed the basis of a proposed settlement with HM Revenue and Customs in respect of a Pay As You Earn and National Insurance Liability relating to the tax year 2022/23 and 2023/24. The financial statements include an estimate of £38,992 included within other creditors falling due within one year. At the reporting date the settlement remained subject to formal acceptance by HM Revenue & Customs.
11.
Related Party Transactions
During the year, the company made sales of £2,120,285 (2025: £2,123,173) to a fellow group company. At 31 January 2026, the company was owed £2,248,193 (2025: £1,916,007) by group undertakings and owed £1,768,525 (2025: £2,119,986) to its parent undertaking.
These balances are repayable on demand, unsecured and interest free and disclosed within group undertakings.
12.
Ultimate Controlling Party
The ultimate controlling party is the company's parent company Sauce Labs Inc. a company incorporated in the United States of America. The consolidated financial statements of the group can be obtained from the groups head office 450 Sansome Street, 9th Floor San Francisco, CA 94111 USA.