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1 Accounting policies
1.1 General information
Bytes Technology Group plc, together with its subsidiaries
(\u2018the Group\u2019 or \u2018the Bytes business\u2019) is one of the UK\u2019s
leading providers of IT software offerings and solutions,
with a focus on cloud and security products. The Group
enables effective and cost-efficient technology sourcing,
adoption and management across software services,
including in the areas of security and cloud. The Group
aims to deliver the latest technology to a diverse and
embedded non-consumer customer base and has a long
track record of delivering strong financial performance.
The Group has a primary listing on the Main Market of the
London Stock Exchange (LSE) and a secondary listing on
the Johannesburg Stock Exchange (JSE).
1.2 Basis of preparation
The Group\u2019s consolidated financial statements have been
prepared in accordance with UK-adopted International
Accounting Standards (IAS) in conformity with the
requirements of the Companies Act 2006.
The Group\u2019s material accounting policies and presentation
considerations on both the current and comparative periods
are detailed below.
In adopting the going concern basis for preparing the financial
statements, the directors have considered the business
activities and the Group\u2019s principal risks and uncertainties
in the context of the current operating environment. This
includes the current geopolitical environment, the current
challenging economic conditions, and reviews of future
liquidity headroom against the Group\u2019s revolving credit
facilities, during the period under assessment. The
approach and conclusion are set out fully in note 1.3.
The consolidated financial statements have been
prepared on a historical cost basis, as modified to include
derivative financial assets and liabilities at fair value
through the consolidated statement of profit or loss.
1.3 Going concern
The going concern of the Group is dependent on
maintaining adequate levels of resources to continue to
operate for the foreseeable future. The directors have
considered the principal risks, which are set out in the
Group\u2019s risk report within the strategic report, in addition to
ever-present risks such as the Group\u2019s exposure to credit
risk as described in note 17, and liquidity risk, currency risk
and foreign exchange risk as described in note 23.
When assessing the going concern of the Group, the
directors have reviewed the year-to-date financial actuals,
as well as detailed financial forecasts for the period up to
31 August 2025, being the going concern assessment
period. This represents 18 months from the end of the
reporting period, rather than the minimum 12 months
required under International Accounting Standard (IAS) 1,
to reflect the possible effect of events occurring after the
end of the reporting period up to the date that the financial
statements are authorised for issue.
The assumptions used in the financial forecasts are
based on the Group\u2019s historical performance and
management\u2019s extensive experience of the industry.
Taking into consideration the Groups principal risks,
the impact of the current economic conditions and
geopolitical environment, and future expectations, the
forecasts have been stress-tested through a number of
downside scenarios to ensure that a robust assessment
of the Group\u2019s working capital and cash requirements
has been performed.
Operational performance and operating model
The Group is now reporting its fourth year of strong growth
since it listed in December 2020. In the current year of
reporting, the Group has achieved double-digit growth in
gross invoiced income (GII), revenue, gross profit (GP) and
operating profit, and finished the year with \u00a388.8 million of
cash compared to the prior year \u00a373.0 million.
During the year, customers have continued to move their
software products and data off-site and into the cloud,
requiring the Group\u2019s advice and ongoing support around this,
as well as needing flexibility and added security, with hybrid
working continuing to be significant for many customers.
On top of these existing opportunities, we are seeing
growing requirements for artificial intelligence (AI)
functionality within IT applications and a demand for
guidance and support from our customers. While we also
recognise this as an emerging risk, due to the potential of
this technology to change the IT and working landscape
and the associated risks from security, moral, legal and
ethical standpoints, we primarily consider AI and machine
learning an opportunity for our business, as we expand
sales into areas such as Microsoft\u2019s Copilot and support
our customers to capitalise on this emerging technology.
Resilience continues to be built into the Group\u2019s operating
model from its wide customer base, high levels of repeat
business, strong vendor relationships, increased demand
driven by heightened IT security risks, and the back-to-back
nature of most of its sales. This is explained further below.
\u2022 \u2022 Wide ranging customer base \u2013 The Group\u2019s income
includes a large volume of non-discretionary spend
from UK corporates because IT is vital to run their
day-to-day operations and to establish competitive
advantage in an increasingly digital age. Public sector
organisations have similarly sought efficiencies,
resilience, and security within their IT infrastructures.
This is evident from the 26.7% increase in GII during the
year, and our mix of private and public customers means
that a downturn in one area can be compensated by
upturns in others. This year, though, both sectors
have performed strongly, with public sector GII
growing by 32.8% and corporate GII by 17.6%.
Sales risk is further mitigated by the fact that none
of the Group\u2019s wide range of customers contributes
more than 1% of GP. Indeed, during the year only two
customers generated GP in excess of \u00a31 million out
of a total Group GP of \u00a3145.8 million. While we have
some significant contributions to our GII by individual
customers, most notably the NHS, these are primarily
long-term (three-year) contracts within the public
sector, which makes our income even more secure
and provides the opportunity to develop and monetise
those accounts further. Even then, the largest customer
has provided only 8% of our total GII of \u00a31.8 billion
during the year.
\u2022 High levels of repeat business \u2013 Due to the nature of licensing schemes and service contracts, a high proportion of business is repeatable in nature, with subscriptions needing to be renewed for the customer to continue to enjoy the benefit of the product or service. Indeed, excluding sales of hardware and services, the remaining dominant balance of our GII \u2013 some \u00a31.7 billion (94%) of software \u2013 falls into this bracket. The largest software contracts, Microsoft enterprise agreements (EAs), run for three years and it is rare to lose a contract mid-term, which mitigates the risk of income reducing rapidly. The Group has a high success rate in securing renewals of existing EA agreements and winning new ones. Increasingly, customers transact their cloud software requirements under usage-based cloud solution provider (CSP) contracts, which provide flexibility but also make the running of many of their key business functions dependent on maintaining these agreements and reliant on the Group\u2019s support to manage them. The high level of customer retention and growth is illustrated by the renewal rate for the year of 109%, a measure of the rate of growth in GP from existing customers, who also contributed 97% of total GP in the year. The Group will continue to focus on increasing its customer base and spend per customer during the going concern period. \u2022 \u2022 Microsoft relationship strength \u2013 With 68% of the Group\u2019s GII and 50% of GP generated from sales of Microsoft products and associated service solutions, this continues to be a very important partnership for both sides. These contributions from Microsoft remain closely in line with previous years in percentage terms; in absolute terms, as our largest vendor, we have now seen their contribution to GII and GP exceed \u00a31.2 billion and \u00a370 million respectively. As with the customer side, the licensing of a large proportion of EA software over three-year terms reduces the risk of income falling away quickly. Also, with the notable move towards more agile \u2018pay-as-you-go\u2019 CSP contracts around cloud-based applications, this makes those agreements even more \u2018sticky\u2019, by increasing the dependency of the customer on the cloud infrastructure and products which Microsoft provides. Further, the Microsoft partnership has created the opportunity for the Group to develop a host of skill sets, so it is best placed to advise and support the customers in whatever direction they choose to fulfil their licensing requirements from a programmatic, purchasing and consumption perspective. To this end, the Group has attained high levels of Microsoft expert status, specialisations and solution partner designations in numerous Microsoft technology areas. In turn, Microsoft rewards partners who have these awards with additional levels of funding. The Board is engaged directly with Microsoft executives in developing the partnership further and Microsoft business is currently growing at double-digit rates. Within the Microsoft program offerings, and also those of other vendors, including dedicated security software providers, the Group has seen an increased demand for security products and functionality to protect customer IT systems. This has arisen from the increased risk of cyber threats and attacks and has generated additional requirements for the Group\u2019s support in this area. Most recently we have seen Microsoft develop and launch its AI product, Copilot. The Group enrolled in its early access programme during the year in preparation to support customers to improve productivity using Copilot within their Microsoft 365 applications, and we have developed associated services to support customer readiness and adoption. We will continue to carefully expand our internal skills in preparation for this to gain increasing momentum in 2024/25 and beyond and to complement the existing Microsoft solutions we sell. While vendor concentration, and over-reliance on any one supplier, is identified as one of our principal risks, the very close daily workings between the two sides, the mutually beneficial growth in business, and the increase in accreditations and awards, makes the Group a key partner to Microsoft, as they are to us. We therefore believe the risk of cessation of the Microsoft relationship to be remote. \u2022 \u2022 Back-to-back sales model \u2013 The Group\u2019s business is substantially derived from the sale of software that it transacts on a \u2018back-to-back\u2019 basis, meaning all orders placed with vendors follow the receipt of a customer order, and the intangible nature of software products means that the Group is not exposed to inventory risk. Hardware sales are also made on a back-to-back basis, and delivered direct from suppliers to customers, so the Group is not required to invest in, or hold, stock. As a result of these factors described above, the directors believe that the Group operates in a resilient industry, which will enable it to continue its profitable growth trajectory \u2013 but it remains very aware of the risks that exist in the wider economy. Over the past year we have seen the continued risks around energy, wage and commodities inflation; supply problems and product shortages caused by the ongoing conflicts in Ukraine and the Middle East; and climate change. These risks align to those identified in our principal risks statement, notably economic disruption, inflation, and attraction and retention of staff. The Board monitors these macroeconomic and geopolitical risks on an ongoing basis. These risks are considered further below. Macroeconomic risks \u2022 \u2022 Energy cost inflation \u2013 Our businesses are not naturally heavy consumers of energy, and hence this element of our overall cost base is very small, at less than 0.5% of the total Group administrative expenses. Even a substantial percentage rise would not have a significant impact on our operating profit. Indeed, we are now starting to see a downward trend following many months with high prices. \u2022 Cost of sales inflation and competition leading to margin pressure \u2013 While pricing from our suppliers may be at risk of increasing, as they too face the same macroeconomic pressures as ourselves, our commercial model is based on passing on supplier price increases to our customers. We also see pressure from our customers, notably in the public sector space where new business must often be won under highly competitive tendering processes. So, while there has been a reduction in our gross profit/ gross invoiced income (GP/GII%) in the period, this is almost entirely attributable to two exceptionally large new public sector contracts which were secured at reduced margins, for strategic reasons, in order to monetise those accounts over the longer contract terms. Excluding those deals, we have seen only a minimal reduction in our GP/GII% compared to the prior period and this remains one of the biggest focus areas in our business. \u2022 \u2022 Wage inflation \u2013 The business has been facing pressure from wage inflation over the past two to three years. Where strategically required, we have increased salaries to retain key staff in the light of approaches from competitors, especially where staff have specialist or technical skills. We monitor our staff attrition rate and have maintained a level around 16%, which is consistent with last year. We do not believe there has been any significant outflow of staff due to being uncompetitive with salaries. We have a strong, collaborative and supportive culture and offer our staff employment in a business that is robust and they are proud of. This is a key part of our attraction and retention strategy. In addition, when we look at our key operational efficiency ratio of adjusted operating profit/gross profit (AOP/GP), we have achieved 43.4%, which is in line with last year, demonstrating the control over rising staff costs in response to the growth of the business. While we have already aligned staff salaries to market rates, further expected rises have been factored into the financial forecasts in line with those awarded in the past year. \u2022 \u2022 Interest rates \u2013 The substantial rise in UK and global interest rates since the pandemic has had a negative financial impact on many organisations and households. The Group, however, has no debt and so currently no exposure, nor has it ever needed to call on its revolving credit facility (RCF). We have taken advantage of the recent higher interest rates to generate a significant \u00a35.1 million of interest income in the reporting period, due to the timing difference we see in our cash flow model between customer receipts and supplier payments, and by placing cash on the money markets through our monthly cash cycle. While there are indications that interest rates may start to fall in the coming months, as inflation comes down, we still see substantial earnings opportunity over the going concern period. \u2022 \u2022 Foreign currency rate changes \u2013 The vast majority of our business is transacted in GBP. Where we do transact in foreign currencies, fluctuations in the value of the pound sterling can have both positive and negative impacts but we have the ability to self-hedge as we make both sales and purchases in US dollars and euros. \u2022 \u2022 Inflation and rising interest rates impacting on customer spending \u2013 While customers may consider reducing spending on IT goods and services, if they are seen as non-essential, we have seen increased spending by our customers, because IT may be a means to efficiencies and savings elsewhere. As our customers undergo IT transformation, trending to the cloud, automation and managed service, and with growing cybersecurity concerns also heightening the requirements for IT security, we are seeing no let-up in demand, as illustrated by our reported trading performance. This is supported by our very robust operating model, with business spread over many customers in repeat subscription programs and service contracts, and high renewal rates. \u2022 \u2022 Inflation and rising interest rates impacting on customer payments \u2013 Across the year we have seen a reduction in our average debtor days from 39 to 37 and in our closing debtor days from 37 to 34 compared to prior year, and with minimal evidence that customers ultimately do not pay. Indeed, we have suffered only a small level of bad debt during the year: \u00a30.3 million against GII of \u00a31.8 billion (see note 17). While we have provided for a higher loss allowance against trade receivables at the year end, this is due to the increased volumes of business, and still only represents 1% of the closing balances due. As in previous years, the majority of our GII (62%), came from the public sector, traditionally very safe and with low credit risk, while our corporate customer base includes a wide range of blue-chip organisations and with no material reliance on any single customer. Geopolitical risks The current geopolitical environment, most notably the conflicts in Ukraine and the Middle East, has created potential supply problems, product shortages and general price rises, particularly in relation to fuel, gas and electricity. \u2022 \u2022 As noted above, increasing energy prices are not having a noticeable impact on our profitability. \u2022 \u2022 In terms of supply chain, we are not significantly or materially dependent on the movement of goods, so physical trade obstacles are not likely to affect us directly, with hardware only making up 2% of our GII during the year. Nevertheless, we have ensured that we have a number of suppliers with substitute, or alternative, technologies that we can rely on if one supplier cannot meet our requirements or timescales. This indicates that we have managed the supply chain well. \u2022 \u2022 Software sales, though, continue to be the dominant element of our overall GII and so are not inherently affected by cross-border issues.
Climate change risks
The Group does not believe that the effects of climate
change will have a material impact on its operations and
performance over the going concern assessment period
considering:
\u2022 \u2022 The small number of UK locations it operates from
\u2022 \u2022 A customer base substantially located within the UK
\u2022 \u2022 A supply chain that is not reliant on international trade
and does not source products and services from
parts of the world that may be affected more severely
by climate change
\u2022 \u2022 It sells predominantly electronic software licences
and so has no manufacturing or storage requirements
\u2022 \u2022 Its workforce can work seamlessly from home should
any of their normal work locations be affected by a
climatic event, although in the UK these tend to be
thankfully infrequent and not extreme.
Climate risks are considered fully in the Task Force on
Climate-related Financial Disclosures (TCFD) included
in the Annual Report.
Additional risk considerations in relation to resignation
of Group CEO
The Group\u2019s former CEO, Neil Murphy, resigned on
21 February 2024, when it transpired he had engaged in
unauthorised and undisclosed trading in the company\u2019s
shares between January 2021 to November 2023, which
the company was notified of and also announced to the
market on 23 February 2024 and then again on 13 March
2024 when further undisclosed trades were identified.
In the subsequent investigation conducted by the Group
regarding these breaches of market regulations, we have
considered whether this has, or may in the future, create
reputational damage, which could in turn affect the
Group\u2019s relationships with key stakeholders and ultimately
affect the Group\u2019s future financial performance, including
its profits and cash flows. We have considered potential
adverse impacts in the context of the going concern
assessment, notably whether we believe the maximum
extent of possible risks would be catered for within our
stress tests and downside models. We have taken into
account the effect, if any, on our major stakeholders,
being our customers, suppliers, staff, and other external
parties such as our bank, HSBC.
In summary, our customers and vendors deal with our
two operating companies, because that is where their
contractual arrangements sit, and not at Group level. Their
relationships are with the managing directors, leadership
teams and staff at the two operational entities, many
established over years or decades. In the case of
customers, they deal ostensibly with one operation or the
other and, as noted in the operating model section above,
resilience comes from our wide customer base and from
having no reliance on any one customer. Certain vendors
deal with both operations but not with the Group per se. For
some of the largest customer and vendor accounts there
may also be relationships at Group Board level, as would
be expected, most notably with Microsoft. These are
long-standing, deep and close relationships and, from our
observations and direct dialogue with key parties, we have
seen no impact on our operational performance to date.
For our staff too, its business as usual and we have not
seen any change to staff attrition rates or ability to attract
new staff. Our bank has not raised any concerns or
questions and the availability of our RCF is unaffected.
As time passes, we believe the possibility of impacts
materialising will diminish even further. Therefore, based
on the above considerations, any potential impacts from
this matter have not been specifically factored into the
modelling scenarios described below as we believe the
sensitivities modelled under our most stressed downside
(30% reductions in GII and GP) would be sufficient to cater
for any losses, should they arise.
Liquidity and financing position
At 29 February 2024, the Group held instantly accessible
cash and cash equivalents of \u00a388.8 million.
The balance sheet shows net current assets of
\u00a324.5 million at year end; this amount is after the Group
paid final and special dividends for the prior year totalling
\u00a330.2 million and an interim dividend for the current year
of \u00a36.5 million. Post year end the Group has remained
cash positive and this is expected to remain the case with
continued profitable operations in the future and customer
receipts collected ahead of making the associated
supplier payments.
The Group has access to a committed RCF of \u00a330 million
with HSBC. The facility commenced on 17 May 2023,
replacing the Group\u2019s previous facility for the same
amount, and runs for three years, until 17 May 2026.
The new facility includes an optional one-year extension to
17 May 2027 and a non-committed \u00a320 million accordion
to increase the availability of funding should it be required
for future activity. To date, the Group has not been required
to use either its previous or new facilities, and we do not
forecast use of the new facility over the going concern
assessment period.
Approach to cash flow forecasts and downside testing
The going concern analysis reflects the actual trading
experience through the financial year to date, Board-
approved budgets to 28 February 2025 and detailed
financial forecasts for the period up to 31 August 2025,
being the going concern assessment period. The Group
has taken a measured approach to its forecasting and
has balanced the expected trading conditions with
available opportunities.
In its assessment of going concern, the Board has
considered the potential impact of the current economic
conditions and geopolitical environment as described
above. If any of these factors leads to a reduction in
spending by the Group\u2019s customers, there may be
an adverse effect on the Group\u2019s future GII, GP,
operating profit, and debtor collection periods. Under
such downsides, the Board has factored in the extent to
which they might be offset by reductions in headcount,
recruitment freezes and savings in pay costs (including
commissions and bonuses). As part of the stressed
scenario, where only partial mitigation of downsides is
possible, the Board confirmed that the RCF would not
need to be used during the going concern period up to
31 August 2025.
Details of downside testing
The Group assessed the going concern by comparing
a base case scenario to two downside scenarios and, in
each of the downside cases, taking into consideration two
levels of mitigation: full and partial. These scenarios are
set out below.
\u2022 \u2022 Base case was forecast using the Board-approved
budget for the year ending 28 February 2025 and
extended across the first six months of the following
year to 31 August 2025.
\u2022 \u2022 Downside case 1, Severe but plausible, modelled GII
reducing by 10% year on year, GP reducing by 15%
year on year and debtor collection periods extending
by five days, in each case effective from June 2024.
\u2022 \u2022 Downside case 2, Stressed, modelled both GII
and GP reducing by 30% year on year and debtor
collection periods extending by ten days, again in
each case effective from June 2024.
\u2022 \u2022 Partial mitigation measures modelled immediate
\u2018self-mitigating\u2019 reduction of commission in line with
falling GP, freezing recruitment of new heads and not
replacing natural leavers from September 2024,
freezing future pay from March 2025 (as current year
rises are already committed) and freezing rises in
general overheads from March 2025.
\u2022 \u2022 Full mitigation measures modelled additional headcount
reductions from March 2025, in line with falling GP.
The pay and headcount mitigations applied in the
downside scenarios are within the Group\u2019s control and,
depending on how severe the impacts of the modelled
downside scenarios are, the Group could activate further
levels of mitigation. For example:
\u2022 \u2022 Those relating to headcount freezes or reductions
could be implemented even more quickly than
indicated above to respond to downward trends as,
considering the sudden and significant falls in
profitability and cash collections modelled under both
downsides, we would not wait for a full three months
before taking any action.
\u2022 \u2022 We would also be able to take more action to lower
our operating cost base, given the flexibility of our
business model.
\u2022 \u2022 A natural reduction in the level of shareholder
dividends would follow, in line with the modelled
reductions in profit after tax.
Therefore, the Board believes that all mitigations have
been applied prudently and are within the Group\u2019s control.
Under all scenarios assessed, the Group would remain
cash positive throughout the whole of the going concern
period, have no requirement to call on the RCF and remain
compliant with the facility covenants. Dividends are
forecast to continue to be paid in line with the Group\u2019s
dividend policy to distribute 40% of the post-tax pre-
exceptional earnings to shareholders.
The directors consider that the level of stress-testing is
appropriate to reflect the potential collective impact of all
the macroeconomic and geopolitical matters described
and considered above.
Going concern conclusion
Based on the analysis described above, the Group has
sufficient liquidity headroom through the forecast period.
The directors therefore have reasonable expectation that
the Group has the financial resources to enable it to
continue in operational existence for the period up to
31 August 2025, being the going concern assessment
period. Accordingly, the directors conclude it to be
appropriate that the consolidated financial statements
be prepared on a going concern basis.
1.4 Critical accounting estimates and judgements
The preparation of the consolidated financial statements
requires the use of accounting estimates which,
by definition, will seldom equal the actual results.
Management also needs to exercise judgement
in applying the Group\u2019s accounting policies.
This note provides an overview of the areas that involved
significant judgement or complexity. Estimates and
judgements are continually evaluated and are based
on historical experience and other factors, including
expectations of future events that are believed to be
reasonable under the circumstances. Detailed information
about each of these estimates and judgements is included
in other notes, together with information about the basis of
calculation for each affected line item in the consolidated
financial statements.
(i) Key accounting judgements
The areas involving key accounting judgements are:
\u2022 \u2022 Revenue recognition \u2013 Principal versus agent,
see note 1.10.
Under IFRS 15, Revenue from Contracts with
Customers, when recognising revenue, the Group
is required to assess whether its role in satisfying
its various performance obligations is to provide the
goods or services itself (in which case it is considered
to be acting as principal) or arrange for a third party
to provide the goods or services (in which case it is
considered to be acting as agent). Where it is
considered to be acting as principal, the Group
recognises revenue at the gross amount of
consideration to which it expects to be entitled.
Where it is considered to be acting as agent, the
Group recognises revenue at the amount of any fee or
commission to which it expects to be entitled or the
net amount of consideration that it retains after paying
the other party.
To determine the nature of its obligation, the standard
primarily requires that an entity shall:
(a) Identify the specified goods or services to be
provided to the customer
(b) Assess whether it controls each specified good
or service before that good or service is transferred
to the customer by considering if it:
a. is primarily responsible for fulfilling the promise
to provide the specified good or service
b. has inventory risk before the specified good
or service has been transferred to a customer
c. has discretion in establishing the price for the
specified good or service.
Judgement is therefore required as to whether the
Group is a principal or agent against each specified
good or service, noting that a balanced weighting of
the above indicators may be required when making
the assessment.
The specific judgements made for each revenue
category are discussed in the accounting policy for
revenue, note 1.10, as disclosed below.
(ii) Significant accounting estimates and uncertainties
There are no major sources of estimation uncertainty at the
end of the reporting period that have a significant risk of
resulting in a material adjustment to the carrying amounts
of assets and liabilities within the next financial year.
(iii) Other accounting estimates and uncertainties
The other areas involving accounting estimates are
included below. The effect of climate change has been
considered in determining any critical judgements or
adjustments required in the preparation of the Group\u2019s
financial statements. During the current year, and within
the next financial year, the impact, if any, is not expected
to create any significant risks which result in a material
misstatement to the financial statements occurring.
However, the effects of climate change over the longer
term are more uncertain and may be more significant.
\u2022 \u2022 Property, plant and equipment (see notes 1.20 and 9)
and leases (see notes 1.14 and 10).
The Group\u2019s assets under these categories primarily
comprise freehold land and buildings and leasehold
buildings with much smaller net book values reported
for computer equipment, furniture and fittings. IAS 16
Property, Plant and Equipment requires an item of
property, plant and equipment (PPE) to be recognised
if it is probable that future economic benefits
associated with the item will flow to the entity
and its cost can be measured reliably.
Consideration has been made as to whether climate-
related matters may affect the value of any items of
PPE, their economic life or residual value. As noted
in the Task Force on Climate-related Financial
Disclosures (TCFD) statement with the strategic report,
none of the Group\u2019s items of PPE, the properties and
the assets included within them, are deemed to be at
risk or prone to damage from acute or chronic weather
events which could arise as part of climate change.
Also, none of the items of PPE is deemed susceptible to
being phased out, replaced or made redundant under
any climate-related legislative changes.
Hence it is judged that there is no material risk from
climate change to the carrying values of any items of
PPE on the balance sheet at 29 February 2024.
\u2022 \u2022 Estimation of recoverable amount of goodwill
(see notes 1.15 and 11).
The Group tests annually whether goodwill has
suffered any impairment, in accordance with the
accounting policy stated in note 1.15. The recoverable
amounts of cash generating units (CGUs) have been
determined based on value-in-use calculations which
require the use of assumptions. The calculations use
cash flow projections based on forecasts approved by
management covering a five-year period. The growth
rates used in the forecasts are based on historical
growth rates achieved by the Group. Cash flows
beyond the five-year period are extrapolated using the
estimated growth rates disclosed in note 11. The
forecast cash flows are discounted, at the rates
disclosed in note 11, to determine the CGUs value-in-
use. The sensitivity of changes in the estimated growth
rates and the discount rate are disclosed in note 11.
\u2022 \u2022 Impairment of intangible assets (see notes 1.15,
1.21 and 11).
The Group\u2019s assets under this category comprise
goodwill, customer relationships and brands, arising
on acquisition of subsidiaries. Customer relationships
and brands are recognised at fair value after deduction
of accumulated amortisation over their useful lives.
IAS 36 Impairment of Assets requires an entity to
assess, at the end of each reporting period, whether
there are any impairment indicators for an entity\u2019s
assets. Impairment indicators include significant
changes in the technological, market, economic
or legal environment in which the entity operates.
Consideration has been made as to whether climate-
related matters may affect any of these conditions
which in turn may affect the economic performance
of an asset or CGU, or its long-term growth rates. For
example, customer buying behaviours, requirement to
make significant investments in new technologies, or
an increase in costs generally charged by suppliers.
Further, climate change indirectly resulting in an
increase in market interest rates is likely to affect the
discount rate used in calculating an asset\u2019s or CGU\u2019s
value in use. This, in turn, could decrease the asset\u2019s
or CGU\u2019s recoverable amount by reducing the present
value of the future cash flows and result in a lower
value in use.
However, as noted in the TCFD statement with the
strategic report, the Group continually monitors the
regulatory and legal environment and takes external
advice as required. It expects the impact from changing
customer behaviours to be small given the Group\u2019s
primary business is the supply of critical cloud, security
and software products and IT services. Further, the
Group does not rely on overseas operations, or
require colleagues to work on-site at all times. Nor
does it need to have physical products transported
to maintain the economic performance of its CGUs.
Hence it is judged that there is no material risk from
climate change to the carrying values of any intangible
assets on the balance sheet at 29 February 2024.
\u2022 Provisions (see note 1.24) IAS 37 Provisions, Contingent Liabilities and Contingent Assets requires a provision to be recognised when an entity has a present obligation (legal or constructive) because of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the obligation. If any of the conditions for recognition are not met, no provision is recognised, and an entity may instead have a contingent liability. Contingent liabilities are not recognised, but explanatory disclosures are required, unless the possibility of an outflow in settlement is remote. In the case of an onerous contract, the provision reflects the lower of the costs of fulfilling the contract and any compensation or penalties from a failure to fulfil it. Consideration has been made as to whether climate- related matters may result in the recognition of new liabilities or, where the criteria for recognition are not met, new contingent liabilities may have to be disclosed. Further consideration has been made as to whether climate change, and any resulting associated legislation, may require past judgements to be reconsidered. The Group has judged that there is no material risk from climate change which requires new provisions to be made or existing provisions to be reconsidered at 29 February 2024. The Group will continue to review and assess potential climate change impacts when making judgements in relation to its accounting for assets and liabilities or for its future earnings and cash flows. However, for the financial statements for the year ended 29 February 2024, the Group believes there is no material impact or risk of misstatement. 1.5 New standards, interpretations and amendments adopted by the Group (a) New and amended standards adopted by the Group The Group has applied the following standard or amendments for the first time in the annual reporting period commencing 1 March 2023: \u2022 \u2022 Definition of Accounting Estimates \u2013 Amendments to IAS 8 \u2022 \u2022 Disclosure of Accounting Policies \u2013 Amendments to IAS 1 and IFRS Practice Statement 2 \u2022 \u2022 Deferred Tax related to Assets and Liabilities arising from a Single Transaction \u2013 Amendments to IAS 12 \u2022 \u2022 International Tax Reform \u2013 Pillar Two Model Rules \u2013 Amendments to IAS 12 The amendments listed above did not have any impact on the amounts recognised in current or prior periods and are not expected to affect future periods. (b) New standards and interpretations not yet adopted Certain new accounting standards and interpretations have been published that are not mandatory for 29 February 2024 reporting periods and have not been adopted early by the Group. These standards are not expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions. 1.6 Principles of consolidation 1.6.1 Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity where the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. 1.6.2 Associate An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The Group\u2019s investment in its associate is accounted for using the equity method. Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group\u2019s share of net assets of the associate since the acquisition date. The statement of profit or loss reflects the Group\u2019s share of profit of the associate. Where there is objective evidence that the investment in associate is impaired, the amount of the impairment is recognised within \u2018Share of profit of associate\u2019 in the statement of profit or loss. 1.7 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker who views the Group\u2019s operations on a combined level, given they sell similar products and services, and substantially purchase from the same suppliers and under common customer frameworks. The Group has therefore determined that it has only one reportable segment under IFRS 8, which is that of \u2018IT solutions provider\u2019. 1.8 Finance income and costs Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Finance costs comprises interest expense on borrowings and the unwinding of the discount on lease liabilities, that are recognised in profit or loss as it accrues using the effective interest method. 1.9 Foreign currency translation (i) Functional and presentation currency Items included in the consolidated financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019).
(ii) Transactions and balances
Foreign currency transactions are translated into the
functional currency using the exchange rates at the dates
of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions, and
from the translation of monetary assets and liabilities
denominated in foreign currencies at year-end exchange
rates, are generally recognised in profit or loss. They are
deferred in equity if they relate to qualifying cash flow
hedges and qualifying net investment hedges or are
attributable to part of the net investment in a
foreign operation.
All foreign exchange gains and losses are presented
in the statement of profit or loss on a net basis,
within \u2018other gains/(losses)\u2019.
1.10 Revenue recognition
Revenue recognition principles across all
revenue streams
The Group recognises revenue on completion of its
performance obligations at the fixed transaction prices
specified in the underlying contracts or orders. There are
no variable price elements arising from discounts, targets,
loyalty points or returns. Where the contract or order
includes more than one performance obligation, the
transaction price is allocated to each obligation based
on their stand-alone selling prices. These are separately
listed as individual items within the contract or order.
In the case of sales of third-party products and services,
the Group\u2019s performance obligations are satisfied by
fulfilling its contractual requirements with both the
customer and the supplier (which may be direct with the
product vendor), ensuring that orders are processed
within any contractual timescales stipulated. In the case of
sales of the Group\u2019s own in-house products and internal
services, this includes the Group fulfilling its contractual
responsibilities with the customer.
That primary areas of judgement for revenue recognition
as principal versus agent are set out above under our key
accounting judgements policy and described further
below for each revenue category.
Software
The Group acts as an advisor, analysing customer
requirements and designing an appropriate mix of
software products under different licensing programs.
This may include a combination of cloud and on-premise
products, typically used to enhance users\u2019 productivity,
strengthen IT security or assist in collaboration. The way in
which the Group satisfies its performance obligations
depends on the licensing programs selected.
Direct software sales \u2013 the Group\u2019s performance
obligation is to facilitate software sales between vendors and
customers, but the Group is not party to those sales contracts.
Supply and activation of the software licences, invoicing
and payment all take place directly between the vendor
and the customer. The transaction price for the customer
is set by the vendor with no involvement from the Group.
Therefore, the Group does not control the licences prior
to their delivery to the customer and hence acts as agent.
The Group is compensated by the vendor with a fee based
on fixed rates set by the vendor applied to the customer
transaction price and determined according to the
quantity and type of products sold. Revenue is recognised
as the fee received from the vendor on a point in time basis
when the vendor\u2019s invoicing to the customer takes place.
Indirect software sales \u2013 the Group\u2019s performance
obligation is to fulfil customers\u2019 requirements through
the procurement of appropriate on-premise software
products, or cloud-based software, from relevant
vendors. Operating as a reseller, the Group invoices,
and receives payment from, the customer itself. Whilst
the transaction price is set by the Group at the amount
specified in its contract with the customer, the software
licensing agreement is between the vendor and the
customer. The vendor is responsible for issuing the
licences and activation keys, for the software\u2019s
functionality, and for fulfilling the promise to provide the
licences to the customer. Therefore, the Group acts as
agent and revenue is recognised as the amount retained
after paying the software vendor. As a reseller, the Group
recognises indirect software sales revenue on a point-in-
time basis once it has satisfied its performance
obligations. This takes two main forms as follows:
In the case of cloud-based software sales, the Group
arranges for third-party vendors to provide customers
with access to software in the cloud. As the sales
value varies according to monthly usage, revenue is
recognised once the amount is confirmed by the
vendor and the Group has analysed the data and
advised the customer. This is because the
responsibilities of the Group to undertake such
activities mean that these performance obligations
are satisfied at each point usage occurs and the
Group has a right to receive payment.
In the case of licence sales (non cloud-based
software) arising from fixed-price subscriptions where
the customer makes an up-front payment, the Group
recognises revenue when the contract execution or
order is fulfilled by the Group because its
performance obligation is fully satisfied at that point.
Typically, these take the form of annual instalments
where the Group is required to undertake various
contract review activities at each anniversary date.
Hardware \u2013 resale of hardware products
The Group\u2019s activities under this revenue stream comprise
the sale of hardware items such as servers, laptops and
devices. For hardware sales, the Group acts as principal,
as it assumes primary responsibility for fulfilling the
promise to provide the goods and for their acceptability,
is exposed to inventory risk during the delivery period
and has discretion in establishing the selling price.
Revenue is recognised at the gross amount receivable
from the customer for the hardware provided and on a
point-in-time basis when delivered to the customer.
Services internal \u2013 provision of services to customers
using the Group\u2019s own internal resources
The Group\u2019s activities under this revenue stream comprise
the provision of consulting services using its own internal
resources. The services provided include, but are not
limited to, helpdesk support, cloud migration,
implementation of security solutions, infrastructure, and
software asset management services. The services may
be one-off projects where completion is determined on
delivery of contractually agreed tasks, or they may
constitute an ongoing set of deliverables over a contract
term which may be multi-year.
When selling internally provided services, the Group acts
as principal as there are no other parties involved in the
process. Revenue is recognised at the gross amount
receivable from the customer for the services provided.
The Group recognises revenue from internally provided
consulting services on an over-time basis. This is because
the customer benefits from the Group\u2019s activities as the
Group performs them. For service projects extending over
more than one month the Group applies an inputs basis by
reference to the hours expended to the measurement
date, and the day rates specified in the contract. For
managed services and support contracts the revenue is
recognised evenly over the contract term.
Services external \u2013 provision of services to customers
using third-party contractors
The Group\u2019s activities under this revenue stream comprise
the sale of a variety of IT services which are provided by
third-party contractors. These may be similar to the
internally provided consulting services, where the Group
does not have the internal capacity at the time required by
the customer or may be services around different IT
technologies and solutions where the Group does not
have the relevant skills in-house.
Whilst the transaction price is set by the Group at the
amount specified in its contract with the customer, when
selling externally provided services, the Group acts as
agent because responsibility for delivering the service
relies on the performance of the third-party contractor. If
the customer is not satisfied with their performance, the
third party will assume responsibility for making good the
service and obtaining customer sign-off. The Group will
not pay the third party until customer sign-off has been
received. Revenue is recognised at the amount retained
after paying the service provider for the services delivered
to the customer on a point-in-time basis. The Group does
not control the services prior to their delivery and its
performance obligations are satisfied at the point the
service has been delivered by the third party and
confirmed with the customer.
1.11 Contract costs, assets and liabilities
Contract costs
Incremental costs of obtaining a contract
The Group recognises the incremental costs of obtaining
a contract when those costs are incurred. For revenue
recognised on a point-in-time basis, this is consistent with the
transfer of the goods or services to which those costs relate.
For revenue recognised on an over-time basis, the Group
applies the practical expedient available in IFRS 15 and
recognises the costs as an expense when incurred
because the amortisation period of the asset that would
otherwise be recognised is less than one year.
Costs to fulfil a contract
The Group recognises the costs of fulfilling a contract
when those costs are incurred. This is because the
nature of those costs does not generate or enhance the
Group\u2019s resources in a way that enables it to satisfy its
performance obligations in the future and those costs
do not otherwise qualify for recognition as an asset.
Contract assets
The Group recognises a contract asset for accrued
revenue. Accrued revenue is revenue recognised from
performance obligations satisfied in the period that has
not yet been invoiced to the customer.
Contract assets also include costs to fulfil services
contracts (deferred costs) when the Group is invoiced by
suppliers before the related performance obligations of
the contract are satisfied by the third party. Deferred costs
are measured at the purchase price of the associated
services received. Deferred costs are released from the
consolidated statement of financial position in line with
the recognition of revenue on the specific transaction.
Contract liabilities
The Group recognises a contract liability for deferred
revenue when the customer is invoiced before the related
performance obligations of the contract are satisfied.
A contract liability is also recognised for payments
received in advance from customers. Contract liabilities
are recognised as revenue when the Group performs its
obligations under the contract to which they relate.
1.12 Rebates
Rebates from suppliers are accounted for in the period in
which they are earned and are based on commercial
agreements with suppliers. Rebates earned are mainly
determined by the type and quantity of products within
each sale but may also be volume-purchase related. They
are generally short term in nature, with rebates earned but
not yet received typically relating to the preceding month\u2019s
or quarter\u2019s trading. Rebate income is recognised in cost
of sales in the consolidated statement of profit or loss and
rebates earned but not yet received are included within
trade and other receivables in the consolidated statement
of financial position.
1.13 Income tax
The income tax expense or credit for the period is the tax
payable on the current period\u2019s taxable income, based on
the applicable income tax rate for each jurisdiction, adjusted
by changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses.
The current income tax charge is calculated based on the
tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the company and
its subsidiaries operate and generate taxable income.
Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes
provisions, where appropriate, based on amounts
expected to be paid to the tax authorities.
Deferred income tax is provided for in full, using the liability
method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts
in the consolidated financial statements. However,
deferred tax liabilities are not recognised if they arise from
the initial recognition of goodwill. Deferred income tax is
also not accounted for if it arises from initial recognition of
an asset or liability in a transaction other than a business
combination that, at the time of the transaction, affects
neither accounting nor taxable profit or loss. Deferred
income tax is determined using tax rates (and laws) that
have been enacted or substantially enacted by the end of
the reporting period and are expected to apply when the
related deferred income tax asset is realised, or the
deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable
that future taxable amounts will be available to utilise
those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for
temporary differences between the carrying amount and
tax bases of investments in foreign operations where the
Group is able to control the timing of the reversal of the
temporary differences and it is probable that the
differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset where there
is a legally enforceable right to offset current tax assets
and liabilities and where the deferred tax balances relate
to the same taxation authority. Current tax assets and
tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on
a net basis, or to realise the asset and settle the liability
simultaneously .
Current and deferred tax is recognised in profit or loss,
except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this
case, the tax is also recognised in other comprehensive
income or directly in equity, respectively.
1.14 L eas es
Lessee
The Group leases a property and various motor vehicles.
Lease agreements are typically made for fixed periods but
may have extension options included. Lease terms are
negotiated on an individual basis and contain different
terms and conditions. The lease agreements do not
impose any covenants, but leased assets may not be
used as security for borrowing purposes.
Leases are recognised as a right-of-use asset and a
corresponding liability at the date at which the leased
asset is available for use by the Group. Each lease
payment is allocated between the liability and finance
cost. The finance cost is charged to profit or loss over
the lease period to produce a constant periodic rate of
interest on the remaining balance of the liability for each
period. The right-of-use asset is depreciated over the
shorter of the asset\u2019s useful life and the lease term on a
straight-line basis. The Group is depreciating the right-of-
use assets over the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially
measured at the net present value of the minimum lease
payments. The net present value of the minimum lease
payments is calculated as follows:
\u2022 \u2022 Fixed payments, less any lease incentives receivable
\u2022 \u2022 Variable lease payments that are based on an index
or a rate
\u2022 \u2022 Amounts expected to be payable by the lessee under
residual value guarantees
\u2022 \u2022 The exercise price of a purchase option if the lessee
is reasonably certain to exercise that option
\u2022 \u2022 Payments of penalties for terminating the lease, if the
lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate
implicit in the lease; where this rate cannot be determined,
the Group\u2019s incremental borrowing rate is used.
Right-of-use assets are measured at cost comprising
the following:
\u2022 \u2022 The net present value of the minimum lease payments
\u2022 \u2022 Any lease payments made at, or before, the
commencement date less any lease incentives received
\u2022 \u2022 Any initial direct costs.
Payments associated with short-term leases and leases of
low-value assets are recognised on a straight-line basis as
an expense in profit or loss. Short-term leases are leases
with a lease term of 12 months or less. Low-value assets
comprise IT equipment and small items of office furniture.
Depreciation
Depreciation is recognised in profit or loss for each category
of assets on a straight-line basis over the lease term.
The estimated useful lives for the current and comparative
periods are as follows:
\u2022 \u2022 Buildings, 8 years
\u2022 \u2022 Motor vehicles, 2 to 3 years.
The depreciation methods, useful lives and residual values
are reassessed annually and adjusted if appropriate.
Gains and losses arising on the disposal of leased assets
are included as capital items in profit or loss.
1.15 Impairment of non-financial assets
Goodwill and intangible assets that have an indefinite
useful life are not subject to amortisation and are tested
annually for impairment, or more frequently if events or
changes in circumstances indicate that they might be
impaired. Other assets are tested for impairment whenever
events or changes in circumstances indicate that the
carrying amount might not be recoverable. An impairment
loss is recognised for the amount by which the asset\u2019s
carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset\u2019s fair value
less costs of disposal and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash
inflows which are largely independent of the cash inflows
from other assets or groups of assets (cash generating
units). Non-financial assets other than goodwill that
suffered an impairment are reviewed for possible reversal
of the impairment at the end of each reporting period.
1.16 Cash and cash equivalents
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.
For purposes of the consolidated statement of cash flows,
cash and cash equivalents consist of cash and short-term
deposits as defined above.
1.17 Trade receivables
Trade receivables are amounts due from customers for
merchandise sold or services rendered in the ordinary course
of business. Trade receivables are recognised initially at the
amount of consideration that is unconditional, i.e. fair value
and subsequently measured at amortised cost using the
effective interest method, less loss allowance. Prepayments
and other receivables are stated at their nominal values.
1.18 Inventories
Inventories are measured at the lower of cost and net
realisable value considering market conditions and
technological changes. Cost is determined on the first-in
first-out and weighted average cost methods. Work and
contracts in progress and finished goods include direct
costs and an appropriate portion of attributable overhead
expenditure based on normal production capacity.
Net realisable value is the estimated selling price in the
ordinary course of business, less the estimated costs
of completion and selling expenses.
1.19 Financial instruments
Financial instruments comprise investments in equity,
loans receivable, trade and other receivables (excluding
prepayments), investments, cash and cash equivalents,
restricted cash, non-current loans, current loans, bank
overdrafts, derivatives and trade and other payables.
Recognition
Financial assets and liabilities are recognised in the
Group\u2019s statement of financial position when the Group
becomes a party to the contractual provisions of the
instruments. Financial assets are recognised on the date
the Group commits to purchase the instruments (trade
date accounting).
Financial assets are classified as current if expected to
be realised or settled within 12 months from the reporting
date; if not, they are classified as non-current. Financial
liabilities are classified as non-current if the Group has
an unconditional right to defer payment for more than
12 months from the reporting date.
Classification
The Group classifies financial assets on initial recognition
as measured at amortised cost, fair value through other
comprehensive income (FVOCI), or fair value through
profit or loss (FVTPL) based on the Group\u2019s business
model for managing the financial asset and the cash
flow characteristics of the financial asset.
Financial assets are classified as follows:
\u2022 \u2022 Financial assets to be measured subsequently at fair
value (either through other comprehensive income
(OCI) or through profit or loss)
\u2022 \u2022 Financial assets to be measured at amortised cost.
Financial assets are not reclassified unless the Group
changes its business model. In rare circumstances
where the Group does change its business model,
reclassifications are done prospectively from the date
that the Group changes its business model.
Financial liabilities are classified and measured at
amortised cost except for those derivative liabilities and
contingent considerations that are measured at FVTPL.
Measurement on initial recognition
All financial assets and financial liabilities are initially
measured at fair value, including transaction costs, except
for those classified as FVTPL which are initially measured
at fair value excluding transaction costs. Transaction costs
directly attributable to the acquisition of financial assets or
financial liabilities at FVTPL are recognised immediately in
profit or loss.
Subsequent measurement: financial assets
Subsequent to initial recognition, financial assets are
measured as described below:
\u2022 \u2022 FVTPL \u2013 these financial assets are subsequently
measured at fair value and changes therein (including
any interest or dividend income) are recognised in
profit or loss
\u2022 \u2022 Amortised cost \u2013 these financial assets are
subsequently measured at amortised cost using the
effective interest method, less impairment losses.
Interest income, foreign exchange gains and losses and
impairments are recognised in profit or loss. Any gain
or loss on derecognition is recognised in profit or loss
\u2022 \u2022 Equity instruments at FVOCI \u2013 these financial assets
are subsequently measured at fair value. Dividends
are recognised in profit or loss when the right to
receive payment is established. Other net gains and
losses are recognised in OCI. On derecognition,
gains and losses accumulated in OCI are not
reclassified to profit or loss.
Subsequent measurement: financial liabilities
All financial liabilities, excluding derivative liabilities and
contingent consideration, are subsequently measured
at amortised cost using the effective interest method.
Derivative liabilities are subsequently measured at fair
value with changes therein recognised in profit or loss.
Derecognition
Financial assets are derecognised when the rights to
receive cash flows from the assets have expired or have
been transferred and the Group has transferred
substantially all risks and rewards of ownership. Financial
liabilities are derecognised when the obligations specified
in the contracts are discharged, cancelled or expire.
On derecognition of a financial asset or liability, any
difference between the carrying amount extinguished
and the consideration paid is recognised in profit or loss.
Offsetting financial instruments
Offsetting of financial assets and liabilities is applied when
there is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net basis
or realise the asset and settle the liability simultaneously.
The net amount is reported in the statement of
financial position.
Impairment
The Group applies the IFRS 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables.
To measure the expected credit losses, trade receivables
have been grouped based on credit risk characteristics
and the days past due.
The expected credit loss (ECL) rates are based on the
payment profiles of sales over a 12-month period before
29 February 2024, 28 February 2023 and 1 March 2022
respectively and the corresponding historical credit
losses experienced within this period. The historical loss
rates are reviewed and adjusted to reflect current and
forward-looking information on macroeconomic
factors affecting the ability of the customers to settle
the receivables.
Trade receivables are written off where there is no
reasonable expectation of recovery. Indicators that there
is no reasonable expectation of recovery include, among
others, the failure of a debtor to engage in a repayment
plan with the Group, and a failure to make contractual
payments for a period of greater than 120 days past due.
Impairment losses on trade receivables are presented as
net impairment losses within operating profit. Subsequent
recoveries of amounts previously written off are credited
against the same line item.
Derivatives
Derivatives are initially recognised at fair value on the
date that a derivative contract is entered into as either a
financial asset or financial liability if they are considered
material. Derivatives are subsequently remeasured to
their fair value at the end of each reporting period, with
the change in fair value being recognised in profit or loss.
1.20 Property, plant and equipment
Owned assets
Property, plant and equipment is measured at cost less
accumulated depreciation and impairment losses. When
components of an item of property, plant and equipment
have different useful lives, those components are
accounted for as separate items of property, plant
and equipment.
Cost includes expenditure that is directly attributable to
the acquisition of the asset. Purchased software that is
integral to the functionality of the related equipment is
capitalised as part of that equipment.
Subsequent costs
The Group recognises in the carrying amount of an item of
property, plant and equipment the cost of replacing part of
such an item when the cost is incurred, if it is probable that
future economic benefits embodied within the item will flow
to the Group and the cost of such item can be measured
reliably. The carrying amount of the replaced item of property,
plant and equipment is derecognised. All other costs are
recognised in profit or loss as an expense when incurred.
Depreciation
Depreciation is recognised in profit or loss for each
category of assets on a straight-line basis over their
expected useful lives up to their respective estimated
residual values. Land is not depreciated.
The estimated useful lives for the current and comparative
periods are as follows:
\u2022 \u2022 Buildings, 20 to 50 years
\u2022 \u2022 Leasehold improvements (included in land and
buildings), shorter of lease period or useful life
of asset
\u2022 \u2022 Plant and machinery, 3 to 20 years
\u2022 \u2022 Motor vehicles, 4 to 8 years
\u2022 \u2022 Furniture and equipment, 5 to 20 years
\u2022 \u2022 IT equipment and software, 2 to 8 years.
The depreciation methods, useful lives and residual values
are reassessed annually and adjusted if appropriate. Gains
and losses arising on the disposal of property, plant and
equipment are included as capital items in profit or loss.
1.21 Intangible assets
Goodwill
Goodwill is measured as described in note 1.15. Goodwill
on acquisitions of subsidiaries is included in intangible
assets. Goodwill is not amortised, but it is tested for
impairment annually, or more frequently if events or
changes in circumstances indicate that it might be
impaired and is carried at cost less accumulated
impairment losses. Gains and losses on the disposal of an
entity include the carrying amount of goodwill relating to
the entity sold.
Goodwill is allocated to cash generating units for the
purpose of impairment testing. The allocation is made to
those cash generating units or groups of cash generating
units that are expected to benefit from the business
combination in which the goodwill arose. The units or
groups of units are identified at the lowest level at which
goodwill is monitored for internal management purposes.
Brands and customer relationships
Brands and customer relationships acquired in a business
combination are recognised at fair value at the acquisition
date. They have a finite useful life and are subsequently
carried at cost less accumulated amortisation and
impairment losses.
The useful lives for the brands and customer
relationships are as follows:
\u2022 \u2022 Customer relationships, 10 years
\u2022 \u2022 Brands, 5 years.
Software
Costs associated with maintaining software programs
are recognised as an expense as incurred. Development
costs that are directly attributable to the design and
testing of identifiable and unique software products
controlled by the Group are recognised as intangible
assets where the following criteria are met:
\u2022 \u2022 It is technically feasible to complete the software
so that it will be available for use
\u2022 \u2022 Management intends to complete the software
and use or sell it
\u2022 \u2022 There is an ability to use or sell the software
\u2022 \u2022 It can be demonstrated how the software will
generate probable future economic benefits
\u2022 \u2022 Adequate technical, financial and other resources
to complete the development and to use or sell
the software are available
\u2022 \u2022 The expenditure attributable to the software during
its development can be reliably measured.
The useful lives for software is 2 to 8 years.
Research and development
Research expenditure and development expenditure
that do not meet the criteria above are recognised as
an expense as incurred. Development costs previously
recognised as an expense are not recognised as an
asset in a subsequent period.
1.22 Trade and other payables
Trade payables, sundry creditors and accrued expenses
are obligations to pay for goods or services that have
been acquired in the ordinary course of business from
suppliers. They are accounted for in accordance with
the accounting policy for financial liabilities as included
above. Amounts received from customers in advance,
prior to confirming the goods or services required, are
recorded as other payables. Upon delivery of the goods
and services, these amounts are recognised in revenue.
Other payables are stated at their nominal values.
1.23 Borrowings
Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of
the borrowings using the effective-interest method. Fees
paid on the establishment of loan facilities are recognised
as transaction costs of the loan to the extent that it is
probable that some or all of the facility will be drawn down.
In this case, the fee is deferred until the drawdown occurs.
To the extent that there is no evidence that it is probable
that some or all of the facility will be drawn down, the fee is
capitalised as a prepayment for liquidity services and
amortised over the period of the facility to which it relates.
1.24 Provisions
Provisions are recognised when the Group has a present
legal or constructive obligation because of past events, for
which it is probable that an outflow of economic benefits
will be required to settle the obligation, and where a reliable
estimate can be made of the amount of the obligation.
Provisions are determined by discounting the expected
future cash flows at a pre-tax discount rate that reflects
current market assessments of the time value of money
and, where appropriate, the risks specific to the liability.
1.25 Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary
benefits, annual leave and accumulating sick leave, that
are expected to be settled wholly within 12 months after
the end of the period in which the employees render the
related service are recognised in respect of employees\u2019
services up to the end of the reporting period and are
measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as
current employee benefit obligations in the balance sheet.
Post-employment obligations
The Group operates various defined contribution plans
for its employees. Once the contributions have been paid,
the Group has no further payment obligations. The
contributions are recognised as employee benefit
expense when they are due. Prepaid contributions are
recognised as an asset to the extent that a cash refund
or a reduction in the future payments is available.
Termination benefits
Termination benefits are payable when employment is
terminated by the Group before the normal retirement date, or
when an employee accepts voluntary redundancy in exchange
for these benefits. The Group recognises termination benefits
at the earlier of the following dates: (a) when the Group can no
longer withdraw the offer of those benefits; and (b) when the
Group recognises costs for a restructuring that is within the
scope of IAS 37 and involves the payment of termination
benefits. In the case of an offer made to encourage voluntary
redundancy, the termination benefits are measured based
on the number of employees expected to accept the offer.
Benefits falling due more than 12 months after the end of
the reporting period are discounted to present value.
Share-based payments
Equity settled share-based payment incentive scheme
Share-based compensation benefits are provided to
particular employees of the Group through the Bytes
Technology Group plc share option plans. Information
relating to all schemes is provided in note 27.
Employee options
The fair values of options granted under the Bytes Technology Group plc share option plans are recognised as an employee
benefit expense, with a corresponding increase in equity. The total amount to be expensed is determined by reference to the
fair value of the options granted. The share-based payment reserve comprises the fair value of share awards granted which
are not yet exercised. The amount will be reversed to retained earnings as and when the related awards vest and are exercised
by employees.
The total expense is recognised over the vesting period, which is the period over which all the specified vesting conditions
are to be satisfied. At the end of each period, the Group revises its estimates of the number of options issued that are
expected to vest based on the service conditions. It recognises the impact of the revision to original estimates, if any,
in profit or loss, with a corresponding adjustment to equity.
1.26 Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are
recognised as a deduction from equity, net of any tax effects.
1.27 Dividends
Dividends paid on ordinary shares are classified as equity and are recognised as distributions in equity.
1.28 Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
\u2022 \u2022 The profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary shares
\u2022 \u2022 By the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in
ordinary shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to consider:
\u2022 \u2022 The after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares
\u2022 \u2022 The weighted average number of additional ordinary shares that would have been outstanding, assuming the conversion
of all dilutive potential ordinary shares.
1.29 Rounding of amounts
All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand,
unless otherwise stated.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-210": { "value": "1.1 General information Bytes Technology Group plc, together with its subsidiaries (\u2018the Group\u2019 or \u2018the Bytes business\u2019) is one of the UK\u2019s leading providers of IT software offerings and solutions, with a focus on cloud and security products. The Group enables effective and cost-efficient technology sourcing, adoption and management across software services, including in the areas of security and cloud. The Group aims to deliver the latest technology to a diverse and embedded non-consumer customer base and has a long track record of delivering strong financial performance. The Group has a primary listing on the Main Market of the London Stock Exchange (LSE) and a secondary listing on the Johannesburg Stock Exchange (JSE). ", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-2": { "value": "Bytes Technology Group plc", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-205": { "value": "Bytes Technology Group plc", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-208": { "value": "Bytes Technology Group plc", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-3": { "value": "one of the UK\u2019s leading providers of IT software offerings and solutions, with a focus on cloud and security products. The Group enables effective and cost-efficient technology sourcing, adoption and management across software services, including in the areas of security and cloud.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-211": { "value": "1.2 Basis of preparation The Group\u2019s consolidated financial statements have been prepared in accordance with UK-adopted International Accounting Standards (IAS) in conformity with the requirements of the Companies Act 2006. The Group\u2019s material accounting policies and presentation considerations on both the current and comparative periods are detailed below. In adopting the going concern basis for preparing the financial statements, the directors have considered the business activities and the Group\u2019s principal risks and uncertainties in the context of the current operating environment. This includes the current geopolitical environment, the current challenging economic conditions, and reviews of future liquidity headroom against the Group\u2019s revolving credit facilities, during the period under assessment. The approach and conclusion are set out fully in note 1.3. The consolidated financial statements have been prepared on a historical cost basis, as modified to include derivative financial assets and liabilities at fair value through the consolidated statement of profit or loss. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-265": { "value": "The Group\u2019s consolidated financial statements have been prepared in accordance with UK-adopted International Accounting Standards (IAS) in conformity with the requirements of the Companies Act 2006. ", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-212": { "value": "1.3 Going concern The going concern of the Group is dependent on maintaining adequate levels of resources to continue to operate for the foreseeable future. The directors have considered the principal risks, which are set out in the Group\u2019s risk report within the strategic report, in addition to ever-present risks such as the Group\u2019s exposure to credit risk as described in note 17, and liquidity risk, currency risk and foreign exchange risk as described in note 23. When assessing the going concern of the Group, the directors have reviewed the year-to-date financial actuals, as well as detailed financial forecasts for the period up to 31 August 2025, being the going concern assessment period. This represents 18 months from the end of the reporting period, rather than the minimum 12 months required under International Accounting Standard (IAS) 1, to reflect the possible effect of events occurring after the end of the reporting period up to the date that the financial statements are authorised for issue. The assumptions used in the financial forecasts are based on the Group\u2019s historical performance and management\u2019s extensive experience of the industry. Taking into consideration the Groups principal risks, the impact of the current economic conditions and geopolitical environment, and future expectations, the forecasts have been stress-tested through a number of downside scenarios to ensure that a robust assessment of the Group\u2019s working capital and cash requirements has been performed. Operational performance and operating model The Group is now reporting its fourth year of strong growth since it listed in December 2020. In the current year of reporting, the Group has achieved double-digit growth in gross invoiced income (GII), revenue, gross profit (GP) and operating profit, and finished the year with \u00a388.8 million of cash compared to the prior year \u00a373.0 million. During the year, customers have continued to move their software products and data off-site and into the cloud, requiring the Group\u2019s advice and ongoing support around this, as well as needing flexibility and added security, with hybrid working continuing to be significant for many customers. On top of these existing opportunities, we are seeing growing requirements for artificial intelligence (AI) functionality within IT applications and a demand for guidance and support from our customers. While we also recognise this as an emerging risk, due to the potential of this technology to change the IT and working landscape and the associated risks from security, moral, legal and ethical standpoints, we primarily consider AI and machine learning an opportunity for our business, as we expand sales into areas such as Microsoft\u2019s Copilot and support our customers to capitalise on this emerging technology. Resilience continues to be built into the Group\u2019s operating model from its wide customer base, high levels of repeat business, strong vendor relationships, increased demand driven by heightened IT security risks, and the back-to-back nature of most of its sales. This is explained further below. \u2022 \u2022 Wide ranging customer base \u2013 The Group\u2019s income includes a large volume of non-discretionary spend from UK corporates because IT is vital to run their day-to-day operations and to establish competitive advantage in an increasingly digital age. Public sector organisations have similarly sought efficiencies, resilience, and security within their IT infrastructures. This is evident from the 26.7% increase in GII during the year, and our mix of private and public customers means that a downturn in one area can be compensated by upturns in others. This year, though, both sectors have performed strongly, with public sector GII growing by 32.8% and corporate GII by 17.6%. Sales risk is further mitigated by the fact that none of the Group\u2019s wide range of customers contributes more than 1% of GP. Indeed, during the year only two customers generated GP in excess of \u00a31 million out of a total Group GP of \u00a3145.8 million. While we have some significant contributions to our GII by individual customers, most notably the NHS, these are primarily long-term (three-year) contracts within the public sector, which makes our income even more secure and provides the opportunity to develop and monetise those accounts further. Even then, the largest customer has provided only 8% of our total GII of \u00a31.8 billion during the year. \u2022 High levels of repeat business \u2013 Due to the nature of licensing schemes and service contracts, a high proportion of business is repeatable in nature, with subscriptions needing to be renewed for the customer to continue to enjoy the benefit of the product or service. Indeed, excluding sales of hardware and services, the remaining dominant balance of our GII \u2013 some \u00a31.7 billion (94%) of software \u2013 falls into this bracket. The largest software contracts, Microsoft enterprise agreements (EAs), run for three years and it is rare to lose a contract mid-term, which mitigates the risk of income reducing rapidly. The Group has a high success rate in securing renewals of existing EA agreements and winning new ones. Increasingly, customers transact their cloud software requirements under usage-based cloud solution provider (CSP) contracts, which provide flexibility but also make the running of many of their key business functions dependent on maintaining these agreements and reliant on the Group\u2019s support to manage them. The high level of customer retention and growth is illustrated by the renewal rate for the year of 109%, a measure of the rate of growth in GP from existing customers, who also contributed 97% of total GP in the year. The Group will continue to focus on increasing its customer base and spend per customer during the going concern period. \u2022 \u2022 Microsoft relationship strength \u2013 With 68% of the Group\u2019s GII and 50% of GP generated from sales of Microsoft products and associated service solutions, this continues to be a very important partnership for both sides. These contributions from Microsoft remain closely in line with previous years in percentage terms; in absolute terms, as our largest vendor, we have now seen their contribution to GII and GP exceed \u00a31.2 billion and \u00a370 million respectively. As with the customer side, the licensing of a large proportion of EA software over three-year terms reduces the risk of income falling away quickly. Also, with the notable move towards more agile \u2018pay-as-you-go\u2019 CSP contracts around cloud-based applications, this makes those agreements even more \u2018sticky\u2019, by increasing the dependency of the customer on the cloud infrastructure and products which Microsoft provides. Further, the Microsoft partnership has created the opportunity for the Group to develop a host of skill sets, so it is best placed to advise and support the customers in whatever direction they choose to fulfil their licensing requirements from a programmatic, purchasing and consumption perspective. To this end, the Group has attained high levels of Microsoft expert status, specialisations and solution partner designations in numerous Microsoft technology areas. In turn, Microsoft rewards partners who have these awards with additional levels of funding. The Board is engaged directly with Microsoft executives in developing the partnership further and Microsoft business is currently growing at double-digit rates. Within the Microsoft program offerings, and also those of other vendors, including dedicated security software providers, the Group has seen an increased demand for security products and functionality to protect customer IT systems. This has arisen from the increased risk of cyber threats and attacks and has generated additional requirements for the Group\u2019s support in this area. Most recently we have seen Microsoft develop and launch its AI product, Copilot. The Group enrolled in its early access programme during the year in preparation to support customers to improve productivity using Copilot within their Microsoft 365 applications, and we have developed associated services to support customer readiness and adoption. We will continue to carefully expand our internal skills in preparation for this to gain increasing momentum in 2024/25 and beyond and to complement the existing Microsoft solutions we sell. While vendor concentration, and over-reliance on any one supplier, is identified as one of our principal risks, the very close daily workings between the two sides, the mutually beneficial growth in business, and the increase in accreditations and awards, makes the Group a key partner to Microsoft, as they are to us. We therefore believe the risk of cessation of the Microsoft relationship to be remote. \u2022 \u2022 Back-to-back sales model \u2013 The Group\u2019s business is substantially derived from the sale of software that it transacts on a \u2018back-to-back\u2019 basis, meaning all orders placed with vendors follow the receipt of a customer order, and the intangible nature of software products means that the Group is not exposed to inventory risk. Hardware sales are also made on a back-to-back basis, and delivered direct from suppliers to customers, so the Group is not required to invest in, or hold, stock. As a result of these factors described above, the directors believe that the Group operates in a resilient industry, which will enable it to continue its profitable growth trajectory \u2013 but it remains very aware of the risks that exist in the wider economy. Over the past year we have seen the continued risks around energy, wage and commodities inflation; supply problems and product shortages caused by the ongoing conflicts in Ukraine and the Middle East; and climate change. These risks align to those identified in our principal risks statement, notably economic disruption, inflation, and attraction and retention of staff. The Board monitors these macroeconomic and geopolitical risks on an ongoing basis. These risks are considered further below. Macroeconomic risks \u2022 \u2022 Energy cost inflation \u2013 Our businesses are not naturally heavy consumers of energy, and hence this element of our overall cost base is very small, at less than 0.5% of the total Group administrative expenses. Even a substantial percentage rise would not have a significant impact on our operating profit. Indeed, we are now starting to see a downward trend following many months with high prices. \u2022 Cost of sales inflation and competition leading to margin pressure \u2013 While pricing from our suppliers may be at risk of increasing, as they too face the same macroeconomic pressures as ourselves, our commercial model is based on passing on supplier price increases to our customers. We also see pressure from our customers, notably in the public sector space where new business must often be won under highly competitive tendering processes. So, while there has been a reduction in our gross profit/ gross invoiced income (GP/GII%) in the period, this is almost entirely attributable to two exceptionally large new public sector contracts which were secured at reduced margins, for strategic reasons, in order to monetise those accounts over the longer contract terms. Excluding those deals, we have seen only a minimal reduction in our GP/GII% compared to the prior period and this remains one of the biggest focus areas in our business. \u2022 \u2022 Wage inflation \u2013 The business has been facing pressure from wage inflation over the past two to three years. Where strategically required, we have increased salaries to retain key staff in the light of approaches from competitors, especially where staff have specialist or technical skills. We monitor our staff attrition rate and have maintained a level around 16%, which is consistent with last year. We do not believe there has been any significant outflow of staff due to being uncompetitive with salaries. We have a strong, collaborative and supportive culture and offer our staff employment in a business that is robust and they are proud of. This is a key part of our attraction and retention strategy. In addition, when we look at our key operational efficiency ratio of adjusted operating profit/gross profit (AOP/GP), we have achieved 43.4%, which is in line with last year, demonstrating the control over rising staff costs in response to the growth of the business. While we have already aligned staff salaries to market rates, further expected rises have been factored into the financial forecasts in line with those awarded in the past year. \u2022 \u2022 Interest rates \u2013 The substantial rise in UK and global interest rates since the pandemic has had a negative financial impact on many organisations and households. The Group, however, has no debt and so currently no exposure, nor has it ever needed to call on its revolving credit facility (RCF). We have taken advantage of the recent higher interest rates to generate a significant \u00a35.1 million of interest income in the reporting period, due to the timing difference we see in our cash flow model between customer receipts and supplier payments, and by placing cash on the money markets through our monthly cash cycle. While there are indications that interest rates may start to fall in the coming months, as inflation comes down, we still see substantial earnings opportunity over the going concern period. \u2022 \u2022 Foreign currency rate changes \u2013 The vast majority of our business is transacted in GBP. Where we do transact in foreign currencies, fluctuations in the value of the pound sterling can have both positive and negative impacts but we have the ability to self-hedge as we make both sales and purchases in US dollars and euros. \u2022 \u2022 Inflation and rising interest rates impacting on customer spending \u2013 While customers may consider reducing spending on IT goods and services, if they are seen as non-essential, we have seen increased spending by our customers, because IT may be a means to efficiencies and savings elsewhere. As our customers undergo IT transformation, trending to the cloud, automation and managed service, and with growing cybersecurity concerns also heightening the requirements for IT security, we are seeing no let-up in demand, as illustrated by our reported trading performance. This is supported by our very robust operating model, with business spread over many customers in repeat subscription programs and service contracts, and high renewal rates. \u2022 \u2022 Inflation and rising interest rates impacting on customer payments \u2013 Across the year we have seen a reduction in our average debtor days from 39 to 37 and in our closing debtor days from 37 to 34 compared to prior year, and with minimal evidence that customers ultimately do not pay. Indeed, we have suffered only a small level of bad debt during the year: \u00a30.3 million against GII of \u00a31.8 billion (see note 17). While we have provided for a higher loss allowance against trade receivables at the year end, this is due to the increased volumes of business, and still only represents 1% of the closing balances due. As in previous years, the majority of our GII (62%), came from the public sector, traditionally very safe and with low credit risk, while our corporate customer base includes a wide range of blue-chip organisations and with no material reliance on any single customer. Geopolitical risks The current geopolitical environment, most notably the conflicts in Ukraine and the Middle East, has created potential supply problems, product shortages and general price rises, particularly in relation to fuel, gas and electricity. \u2022 \u2022 As noted above, increasing energy prices are not having a noticeable impact on our profitability. \u2022 \u2022 In terms of supply chain, we are not significantly or materially dependent on the movement of goods, so physical trade obstacles are not likely to affect us directly, with hardware only making up 2% of our GII during the year. Nevertheless, we have ensured that we have a number of suppliers with substitute, or alternative, technologies that we can rely on if one supplier cannot meet our requirements or timescales. This indicates that we have managed the supply chain well. \u2022 \u2022 Software sales, though, continue to be the dominant element of our overall GII and so are not inherently affected by cross-border issues. Climate change risks The Group does not believe that the effects of climate change will have a material impact on its operations and performance over the going concern assessment period considering: \u2022 \u2022 The small number of UK locations it operates from \u2022 \u2022 A customer base substantially located within the UK \u2022 \u2022 A supply chain that is not reliant on international trade and does not source products and services from parts of the world that may be affected more severely by climate change \u2022 \u2022 It sells predominantly electronic software licences and so has no manufacturing or storage requirements \u2022 \u2022 Its workforce can work seamlessly from home should any of their normal work locations be affected by a climatic event, although in the UK these tend to be thankfully infrequent and not extreme. Climate risks are considered fully in the Task Force on Climate-related Financial Disclosures (TCFD) included in the Annual Report. Additional risk considerations in relation to resignation of Group CEO The Group\u2019s former CEO, Neil Murphy, resigned on 21 February 2024, when it transpired he had engaged in unauthorised and undisclosed trading in the company\u2019s shares between January 2021 to November 2023, which the company was notified of and also announced to the market on 23 February 2024 and then again on 13 March 2024 when further undisclosed trades were identified. In the subsequent investigation conducted by the Group regarding these breaches of market regulations, we have considered whether this has, or may in the future, create reputational damage, which could in turn affect the Group\u2019s relationships with key stakeholders and ultimately affect the Group\u2019s future financial performance, including its profits and cash flows. We have considered potential adverse impacts in the context of the going concern assessment, notably whether we believe the maximum extent of possible risks would be catered for within our stress tests and downside models. We have taken into account the effect, if any, on our major stakeholders, being our customers, suppliers, staff, and other external parties such as our bank, HSBC. In summary, our customers and vendors deal with our two operating companies, because that is where their contractual arrangements sit, and not at Group level. Their relationships are with the managing directors, leadership teams and staff at the two operational entities, many established over years or decades. In the case of customers, they deal ostensibly with one operation or the other and, as noted in the operating model section above, resilience comes from our wide customer base and from having no reliance on any one customer. Certain vendors deal with both operations but not with the Group per se. For some of the largest customer and vendor accounts there may also be relationships at Group Board level, as would be expected, most notably with Microsoft. These are long-standing, deep and close relationships and, from our observations and direct dialogue with key parties, we have seen no impact on our operational performance to date. For our staff too, its business as usual and we have not seen any change to staff attrition rates or ability to attract new staff. Our bank has not raised any concerns or questions and the availability of our RCF is unaffected. As time passes, we believe the possibility of impacts materialising will diminish even further. Therefore, based on the above considerations, any potential impacts from this matter have not been specifically factored into the modelling scenarios described below as we believe the sensitivities modelled under our most stressed downside (30% reductions in GII and GP) would be sufficient to cater for any losses, should they arise. Liquidity and financing position At 29 February 2024, the Group held instantly accessible cash and cash equivalents of \u00a388.8 million. The balance sheet shows net current assets of \u00a324.5 million at year end; this amount is after the Group paid final and special dividends for the prior year totalling \u00a330.2 million and an interim dividend for the current year of \u00a36.5 million. Post year end the Group has remained cash positive and this is expected to remain the case with continued profitable operations in the future and customer receipts collected ahead of making the associated supplier payments. The Group has access to a committed RCF of \u00a330 million with HSBC. The facility commenced on 17 May 2023, replacing the Group\u2019s previous facility for the same amount, and runs for three years, until 17 May 2026. The new facility includes an optional one-year extension to 17 May 2027 and a non-committed \u00a320 million accordion to increase the availability of funding should it be required for future activity. To date, the Group has not been required to use either its previous or new facilities, and we do not forecast use of the new facility over the going concern assessment period. Approach to cash flow forecasts and downside testing The going concern analysis reflects the actual trading experience through the financial year to date, Board- approved budgets to 28 February 2025 and detailed financial forecasts for the period up to 31 August 2025, being the going concern assessment period. The Group has taken a measured approach to its forecasting and has balanced the expected trading conditions with available opportunities. In its assessment of going concern, the Board has considered the potential impact of the current economic conditions and geopolitical environment as described above. If any of these factors leads to a reduction in spending by the Group\u2019s customers, there may be an adverse effect on the Group\u2019s future GII, GP, operating profit, and debtor collection periods. Under such downsides, the Board has factored in the extent to which they might be offset by reductions in headcount, recruitment freezes and savings in pay costs (including commissions and bonuses). As part of the stressed scenario, where only partial mitigation of downsides is possible, the Board confirmed that the RCF would not need to be used during the going concern period up to 31 August 2025. Details of downside testing The Group assessed the going concern by comparing a base case scenario to two downside scenarios and, in each of the downside cases, taking into consideration two levels of mitigation: full and partial. These scenarios are set out below. \u2022 \u2022 Base case was forecast using the Board-approved budget for the year ending 28 February 2025 and extended across the first six months of the following year to 31 August 2025. \u2022 \u2022 Downside case 1, Severe but plausible, modelled GII reducing by 10% year on year, GP reducing by 15% year on year and debtor collection periods extending by five days, in each case effective from June 2024. \u2022 \u2022 Downside case 2, Stressed, modelled both GII and GP reducing by 30% year on year and debtor collection periods extending by ten days, again in each case effective from June 2024. \u2022 \u2022 Partial mitigation measures modelled immediate \u2018self-mitigating\u2019 reduction of commission in line with falling GP, freezing recruitment of new heads and not replacing natural leavers from September 2024, freezing future pay from March 2025 (as current year rises are already committed) and freezing rises in general overheads from March 2025. \u2022 \u2022 Full mitigation measures modelled additional headcount reductions from March 2025, in line with falling GP. The pay and headcount mitigations applied in the downside scenarios are within the Group\u2019s control and, depending on how severe the impacts of the modelled downside scenarios are, the Group could activate further levels of mitigation. For example: \u2022 \u2022 Those relating to headcount freezes or reductions could be implemented even more quickly than indicated above to respond to downward trends as, considering the sudden and significant falls in profitability and cash collections modelled under both downsides, we would not wait for a full three months before taking any action. \u2022 \u2022 We would also be able to take more action to lower our operating cost base, given the flexibility of our business model. \u2022 \u2022 A natural reduction in the level of shareholder dividends would follow, in line with the modelled reductions in profit after tax. Therefore, the Board believes that all mitigations have been applied prudently and are within the Group\u2019s control. Under all scenarios assessed, the Group would remain cash positive throughout the whole of the going concern period, have no requirement to call on the RCF and remain compliant with the facility covenants. Dividends are forecast to continue to be paid in line with the Group\u2019s dividend policy to distribute 40% of the post-tax pre- exceptional earnings to shareholders. The directors consider that the level of stress-testing is appropriate to reflect the potential collective impact of all the macroeconomic and geopolitical matters described and considered above. Going concern conclusion Based on the analysis described above, the Group has sufficient liquidity headroom through the forecast period. The directors therefore have reasonable expectation that the Group has the financial resources to enable it to continue in operational existence for the period up to 31 August 2025, being the going concern assessment period. Accordingly, the directors conclude it to be appropriate that the consolidated financial statements be prepared on a going concern basis. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-213": { "value": "1.4 Critical accounting estimates and judgements The preparation of the consolidated financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Group\u2019s accounting policies. This note provides an overview of the areas that involved significant judgement or complexity. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Detailed information about each of these estimates and judgements is included in other notes, together with information about the basis of calculation for each affected line item in the consolidated financial statements. (i) Key accounting judgements The areas involving key accounting judgements are: \u2022 \u2022 Revenue recognition \u2013 Principal versus agent, see note 1.10. Under IFRS 15, Revenue from Contracts with Customers, when recognising revenue, the Group is required to assess whether its role in satisfying its various performance obligations is to provide the goods or services itself (in which case it is considered to be acting as principal) or arrange for a third party to provide the goods or services (in which case it is considered to be acting as agent). Where it is considered to be acting as principal, the Group recognises revenue at the gross amount of consideration to which it expects to be entitled. Where it is considered to be acting as agent, the Group recognises revenue at the amount of any fee or commission to which it expects to be entitled or the net amount of consideration that it retains after paying the other party. To determine the nature of its obligation, the standard primarily requires that an entity shall: (a) Identify the specified goods or services to be provided to the customer (b) Assess whether it controls each specified good or service before that good or service is transferred to the customer by considering if it: a. is primarily responsible for fulfilling the promise to provide the specified good or service b. has inventory risk before the specified good or service has been transferred to a customer c. has discretion in establishing the price for the specified good or service. Judgement is therefore required as to whether the Group is a principal or agent against each specified good or service, noting that a balanced weighting of the above indicators may be required when making the assessment. The specific judgements made for each revenue category are discussed in the accounting policy for revenue, note 1.10, as disclosed below. (ii) Significant accounting estimates and uncertainties There are no major sources of estimation uncertainty at the end of the reporting period that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year. (iii) Other accounting estimates and uncertainties The other areas involving accounting estimates are included below. The effect of climate change has been considered in determining any critical judgements or adjustments required in the preparation of the Group\u2019s financial statements. During the current year, and within the next financial year, the impact, if any, is not expected to create any significant risks which result in a material misstatement to the financial statements occurring. However, the effects of climate change over the longer term are more uncertain and may be more significant. \u2022 \u2022 Property, plant and equipment (see notes 1.20 and 9) and leases (see notes 1.14 and 10). The Group\u2019s assets under these categories primarily comprise freehold land and buildings and leasehold buildings with much smaller net book values reported for computer equipment, furniture and fittings. IAS 16 Property, Plant and Equipment requires an item of property, plant and equipment (PPE) to be recognised if it is probable that future economic benefits associated with the item will flow to the entity and its cost can be measured reliably. Consideration has been made as to whether climate- related matters may affect the value of any items of PPE, their economic life or residual value. As noted in the Task Force on Climate-related Financial Disclosures (TCFD) statement with the strategic report, none of the Group\u2019s items of PPE, the properties and the assets included within them, are deemed to be at risk or prone to damage from acute or chronic weather events which could arise as part of climate change. Also, none of the items of PPE is deemed susceptible to being phased out, replaced or made redundant under any climate-related legislative changes. Hence it is judged that there is no material risk from climate change to the carrying values of any items of PPE on the balance sheet at 29 February 2024. \u2022 \u2022 Estimation of recoverable amount of goodwill (see notes 1.15 and 11). The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 1.15. The recoverable amounts of cash generating units (CGUs) have been determined based on value-in-use calculations which require the use of assumptions. The calculations use cash flow projections based on forecasts approved by management covering a five-year period. The growth rates used in the forecasts are based on historical growth rates achieved by the Group. Cash flows beyond the five-year period are extrapolated using the estimated growth rates disclosed in note 11. The forecast cash flows are discounted, at the rates disclosed in note 11, to determine the CGUs value-in- use. The sensitivity of changes in the estimated growth rates and the discount rate are disclosed in note 11. \u2022 \u2022 Impairment of intangible assets (see notes 1.15, 1.21 and 11). The Group\u2019s assets under this category comprise goodwill, customer relationships and brands, arising on acquisition of subsidiaries. Customer relationships and brands are recognised at fair value after deduction of accumulated amortisation over their useful lives. IAS 36 Impairment of Assets requires an entity to assess, at the end of each reporting period, whether there are any impairment indicators for an entity\u2019s assets. Impairment indicators include significant changes in the technological, market, economic or legal environment in which the entity operates. Consideration has been made as to whether climate- related matters may affect any of these conditions which in turn may affect the economic performance of an asset or CGU, or its long-term growth rates. For example, customer buying behaviours, requirement to make significant investments in new technologies, or an increase in costs generally charged by suppliers. Further, climate change indirectly resulting in an increase in market interest rates is likely to affect the discount rate used in calculating an asset\u2019s or CGU\u2019s value in use. This, in turn, could decrease the asset\u2019s or CGU\u2019s recoverable amount by reducing the present value of the future cash flows and result in a lower value in use. However, as noted in the TCFD statement with the strategic report, the Group continually monitors the regulatory and legal environment and takes external advice as required. It expects the impact from changing customer behaviours to be small given the Group\u2019s primary business is the supply of critical cloud, security and software products and IT services. Further, the Group does not rely on overseas operations, or require colleagues to work on-site at all times. Nor does it need to have physical products transported to maintain the economic performance of its CGUs. Hence it is judged that there is no material risk from climate change to the carrying values of any intangible assets on the balance sheet at 29 February 2024. \u2022 Provisions (see note 1.24) IAS 37 Provisions, Contingent Liabilities and Contingent Assets requires a provision to be recognised when an entity has a present obligation (legal or constructive) because of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the obligation. If any of the conditions for recognition are not met, no provision is recognised, and an entity may instead have a contingent liability. Contingent liabilities are not recognised, but explanatory disclosures are required, unless the possibility of an outflow in settlement is remote. In the case of an onerous contract, the provision reflects the lower of the costs of fulfilling the contract and any compensation or penalties from a failure to fulfil it. Consideration has been made as to whether climate- related matters may result in the recognition of new liabilities or, where the criteria for recognition are not met, new contingent liabilities may have to be disclosed. Further consideration has been made as to whether climate change, and any resulting associated legislation, may require past judgements to be reconsidered. The Group has judged that there is no material risk from climate change which requires new provisions to be made or existing provisions to be reconsidered at 29 February 2024. The Group will continue to review and assess potential climate change impacts when making judgements in relation to its accounting for assets and liabilities or for its future earnings and cash flows. However, for the financial statements for the year ended 29 February 2024, the Group believes there is no material impact or risk of misstatement. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-214": { "value": "
1.5 New standards, interpretations and amendments
adopted by the Group
(a) New and amended standards adopted by the Group
The Group has applied the following standard or
amendments for the first time in the annual reporting
period commencing 1 March 2023:
\u2022 \u2022 Definition of Accounting Estimates \u2013 Amendments
to IAS 8
\u2022 \u2022 Disclosure of Accounting Policies \u2013 Amendments
to IAS 1 and IFRS Practice Statement 2
\u2022 \u2022 Deferred Tax related to Assets and Liabilities arising
from a Single Transaction \u2013 Amendments to IAS 12
\u2022 \u2022 International Tax Reform \u2013 Pillar Two Model Rules \u2013
Amendments to IAS 12
The amendments listed above did not have any impact on
the amounts recognised in current or prior periods and
are not expected to affect future periods.
(b) New standards and interpretations not yet adopted
Certain new accounting standards and interpretations
have been published that are not mandatory for
29 February 2024 reporting periods and have not been
adopted early by the Group. These standards are not
expected to have a material impact on the Group in the
current or future reporting periods and on foreseeable
future transactions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-266": { "value": "(a) New and amended standards adopted by the Group The Group has applied the following standard or amendments for the first time in the annual reporting period commencing 1 March 2023: \u2022 \u2022 Definition of Accounting Estimates \u2013 Amendments to IAS 8 \u2022 \u2022 Disclosure of Accounting Policies \u2013 Amendments to IAS 1 and IFRS Practice Statement 2 \u2022 \u2022 Deferred Tax related to Assets and Liabilities arising from a Single Transaction \u2013 Amendments to IAS 12 \u2022 \u2022 International Tax Reform \u2013 Pillar Two Model Rules \u2013 Amendments to IAS 12 The amendments listed above did not have any impact on the amounts recognised in current or prior periods and are not expected to affect future periods. ", "dimensions": { "concept": "ifrs-full:DescriptionOfInitialApplicationOfStandardsOrInterpretations", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-267": { "value": "(b) New standards and interpretations not yet adopted Certain new accounting standards and interpretations have been published that are not mandatory for 29 February 2024 reporting periods and have not been adopted early by the Group. These standards are not expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions. ", "dimensions": { "concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-215": { "value": "
1.6 Principles of consolidation
1.6.1 Subsidiaries
Subsidiaries are all entities over which the Group has
control. The Group controls an entity where the Group is
exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect
those returns through its power to direct the activities of
the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the Group. They are
deconsolidated from the date that control ceases.
Inter-company transactions, balances and unrealised
gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of the
transferred asset. Accounting policies of subsidiaries
have been changed where necessary to ensure
consistency with the policies adopted by the Group.
1.6.2 Associate
An associate is an entity over which the Group has
significant influence. Significant influence is the power to
participate in the financial and operating policy decisions
of the investee but is not control or joint control over those
policies. The Group\u2019s investment in its associate is
accounted for using the equity method.
Under the equity method, the investment in an associate is
initially recognised at cost. The carrying amount of the
investment is adjusted to recognise changes in the Group\u2019s
share of net assets of the associate since the acquisition
date. The statement of profit or loss reflects the Group\u2019s
share of profit of the associate. Where there is objective
evidence that the investment in associate is impaired, the
amount of the impairment is recognised within \u2018Share of
profit of associate\u2019 in the statement of profit or loss.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-268": { "value": "1.6.1 Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity where the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-298": { "value": "1.6.2 Associate An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The Group\u2019s investment in its associate is accounted for using the equity method. Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group\u2019s share of net assets of the associate since the acquisition date. The statement of profit or loss reflects the Group\u2019s share of profit of the associate. Where there is objective evidence that the investment in associate is impaired, the amount of the impairment is recognised within \u2018Share of profit of associate\u2019 in the statement of profit or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-269": { "value": "1.6.2 Associate An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The Group\u2019s investment in its associate is accounted for using the equity method. Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group\u2019s share of net assets of the associate since the acquisition date. The statement of profit or loss reflects the Group\u2019s share of profit of the associate. Where there is objective evidence that the investment in associate is impaired, the amount of the impairment is recognised within \u2018Share of profit of associate\u2019 in the statement of profit or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-216": { "value": "
1.7 Segment reporting
Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker who views the Group\u2019s operations on
a combined level, given they sell similar products and
services, and substantially purchase from the same
suppliers and under common customer frameworks.
The Group has therefore determined that it has only
one reportable segment under IFRS 8, which is that of
\u2018IT solutions provider\u2019.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-217": { "value": "
1.8 Finance income and costs
Finance income comprises interest income on funds
invested. Interest income is recognised as it accrues in
profit or loss, using the effective interest method.
Finance costs comprises interest expense on borrowings
and the unwinding of the discount on lease liabilities, that
are recognised in profit or loss as it accrues using the
effective interest method.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-299": { "value": "1.8 Finance income and costs Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Finance costs comprises interest expense on borrowings and the unwinding of the discount on lease liabilities, that are recognised in profit or loss as it accrues using the effective interest method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-270": { "value": "1.8 Finance income and costs Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Finance costs comprises interest expense on borrowings and the unwinding of the discount on lease liabilities, that are recognised in profit or loss as it accrues using the effective interest method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-218": { "value": "
1.9 Foreign currency translation
(i) Functional and presentation currency
Items included in the consolidated financial statements
of each of the Group\u2019s entities are measured using the
currency of the primary economic environment in which
the entity operates (\u2018the functional currency\u2019).
(ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates, are generally recognised in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. All foreign exchange gains and losses are presented in the statement of profit or loss on a net basis, within \u2018other gains/(losses)\u2019. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-271": { "value": "(i) Functional and presentation currency Items included in the consolidated financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-219": { "value": "1.10 Revenue recognition Revenue recognition principles across all revenue streams The Group recognises revenue on completion of its performance obligations at the fixed transaction prices specified in the underlying contracts or orders. There are no variable price elements arising from discounts, targets, loyalty points or returns. Where the contract or order includes more than one performance obligation, the transaction price is allocated to each obligation based on their stand-alone selling prices. These are separately listed as individual items within the contract or order. In the case of sales of third-party products and services, the Group\u2019s performance obligations are satisfied by fulfilling its contractual requirements with both the customer and the supplier (which may be direct with the product vendor), ensuring that orders are processed within any contractual timescales stipulated. In the case of sales of the Group\u2019s own in-house products and internal services, this includes the Group fulfilling its contractual responsibilities with the customer. That primary areas of judgement for revenue recognition as principal versus agent are set out above under our key accounting judgements policy and described further below for each revenue category. Software The Group acts as an advisor, analysing customer requirements and designing an appropriate mix of software products under different licensing programs. This may include a combination of cloud and on-premise products, typically used to enhance users\u2019 productivity, strengthen IT security or assist in collaboration. The way in which the Group satisfies its performance obligations depends on the licensing programs selected. Direct software sales \u2013 the Group\u2019s performance obligation is to facilitate software sales between vendors and customers, but the Group is not party to those sales contracts. Supply and activation of the software licences, invoicing and payment all take place directly between the vendor and the customer. The transaction price for the customer is set by the vendor with no involvement from the Group. Therefore, the Group does not control the licences prior to their delivery to the customer and hence acts as agent. The Group is compensated by the vendor with a fee based on fixed rates set by the vendor applied to the customer transaction price and determined according to the quantity and type of products sold. Revenue is recognised as the fee received from the vendor on a point in time basis when the vendor\u2019s invoicing to the customer takes place. Indirect software sales \u2013 the Group\u2019s performance obligation is to fulfil customers\u2019 requirements through the procurement of appropriate on-premise software products, or cloud-based software, from relevant vendors. Operating as a reseller, the Group invoices, and receives payment from, the customer itself. Whilst the transaction price is set by the Group at the amount specified in its contract with the customer, the software licensing agreement is between the vendor and the customer. The vendor is responsible for issuing the licences and activation keys, for the software\u2019s functionality, and for fulfilling the promise to provide the licences to the customer. Therefore, the Group acts as agent and revenue is recognised as the amount retained after paying the software vendor. As a reseller, the Group recognises indirect software sales revenue on a point-in- time basis once it has satisfied its performance obligations. This takes two main forms as follows: In the case of cloud-based software sales, the Group arranges for third-party vendors to provide customers with access to software in the cloud. As the sales value varies according to monthly usage, revenue is recognised once the amount is confirmed by the vendor and the Group has analysed the data and advised the customer. This is because the responsibilities of the Group to undertake such activities mean that these performance obligations are satisfied at each point usage occurs and the Group has a right to receive payment. In the case of licence sales (non cloud-based software) arising from fixed-price subscriptions where the customer makes an up-front payment, the Group recognises revenue when the contract execution or order is fulfilled by the Group because its performance obligation is fully satisfied at that point. Typically, these take the form of annual instalments where the Group is required to undertake various contract review activities at each anniversary date. Hardware \u2013 resale of hardware products The Group\u2019s activities under this revenue stream comprise the sale of hardware items such as servers, laptops and devices. For hardware sales, the Group acts as principal, as it assumes primary responsibility for fulfilling the promise to provide the goods and for their acceptability, is exposed to inventory risk during the delivery period and has discretion in establishing the selling price. Revenue is recognised at the gross amount receivable from the customer for the hardware provided and on a point-in-time basis when delivered to the customer. Services internal \u2013 provision of services to customers using the Group\u2019s own internal resources The Group\u2019s activities under this revenue stream comprise the provision of consulting services using its own internal resources. The services provided include, but are not limited to, helpdesk support, cloud migration, implementation of security solutions, infrastructure, and software asset management services. The services may be one-off projects where completion is determined on delivery of contractually agreed tasks, or they may constitute an ongoing set of deliverables over a contract term which may be multi-year. When selling internally provided services, the Group acts as principal as there are no other parties involved in the process. Revenue is recognised at the gross amount receivable from the customer for the services provided. The Group recognises revenue from internally provided consulting services on an over-time basis. This is because the customer benefits from the Group\u2019s activities as the Group performs them. For service projects extending over more than one month the Group applies an inputs basis by reference to the hours expended to the measurement date, and the day rates specified in the contract. For managed services and support contracts the revenue is recognised evenly over the contract term. Services external \u2013 provision of services to customers using third-party contractors The Group\u2019s activities under this revenue stream comprise the sale of a variety of IT services which are provided by third-party contractors. These may be similar to the internally provided consulting services, where the Group does not have the internal capacity at the time required by the customer or may be services around different IT technologies and solutions where the Group does not have the relevant skills in-house. Whilst the transaction price is set by the Group at the amount specified in its contract with the customer, when selling externally provided services, the Group acts as agent because responsibility for delivering the service relies on the performance of the third-party contractor. If the customer is not satisfied with their performance, the third party will assume responsibility for making good the service and obtaining customer sign-off. The Group will not pay the third party until customer sign-off has been received. Revenue is recognised at the amount retained after paying the service provider for the services delivered to the customer on a point-in-time basis. The Group does not control the services prior to their delivery and its performance obligations are satisfied at the point the service has been delivered by the third party and confirmed with the customer. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-221": { "value": "1.11 Contract costs, assets and liabilities Contract costs Incremental costs of obtaining a contract The Group recognises the incremental costs of obtaining a contract when those costs are incurred. For revenue recognised on a point-in-time basis, this is consistent with the transfer of the goods or services to which those costs relate. For revenue recognised on an over-time basis, the Group applies the practical expedient available in IFRS 15 and recognises the costs as an expense when incurred because the amortisation period of the asset that would otherwise be recognised is less than one year. Costs to fulfil a contract The Group recognises the costs of fulfilling a contract when those costs are incurred. This is because the nature of those costs does not generate or enhance the Group\u2019s resources in a way that enables it to satisfy its performance obligations in the future and those costs do not otherwise qualify for recognition as an asset. Contract assets The Group recognises a contract asset for accrued revenue. Accrued revenue is revenue recognised from performance obligations satisfied in the period that has not yet been invoiced to the customer. Contract assets also include costs to fulfil services contracts (deferred costs) when the Group is invoiced by suppliers before the related performance obligations of the contract are satisfied by the third party. Deferred costs are measured at the purchase price of the associated services received. Deferred costs are released from the consolidated statement of financial position in line with the recognition of revenue on the specific transaction. Contract liabilities The Group recognises a contract liability for deferred revenue when the customer is invoiced before the related performance obligations of the contract are satisfied. A contract liability is also recognised for payments received in advance from customers. Contract liabilities are recognised as revenue when the Group performs its obligations under the contract to which they relate. ", "dimensions": { "concept": "bytestechnology:DescriptionOfAccountingPolicyForContractCostsAssetsAndLiabilities", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-220": { "value": "1.12 Rebates Rebates from suppliers are accounted for in the period in which they are earned and are based on commercial agreements with suppliers. Rebates earned are mainly determined by the type and quantity of products within each sale but may also be volume-purchase related. They are generally short term in nature, with rebates earned but not yet received typically relating to the preceding month\u2019s or quarter\u2019s trading. Rebate income is recognised in cost of sales in the consolidated statement of profit or loss and rebates earned but not yet received are included within trade and other receivables in the consolidated statement of financial position. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-222": { "value": "1.13 Income tax The income tax expense or credit for the period is the tax payable on the current period\u2019s taxable income, based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax charge is calculated based on the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, based on amounts expected to be paid to the tax authorities. Deferred income tax is provided for in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled. Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously . Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-272": { "value": "Deferred income tax is provided for in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled. Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-223": { "value": "1.14 L eas es Lessee The Group leases a property and various motor vehicles. Lease agreements are typically made for fixed periods but may have extension options included. Lease terms are negotiated on an individual basis and contain different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset\u2019s useful life and the lease term on a straight-line basis. The Group is depreciating the right-of- use assets over the lease term on a straight-line basis. Assets and liabilities arising from a lease are initially measured at the net present value of the minimum lease payments. The net present value of the minimum lease payments is calculated as follows: \u2022 \u2022 Fixed payments, less any lease incentives receivable \u2022 \u2022 Variable lease payments that are based on an index or a rate \u2022 \u2022 Amounts expected to be payable by the lessee under residual value guarantees \u2022 \u2022 The exercise price of a purchase option if the lessee is reasonably certain to exercise that option \u2022 \u2022 Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease; where this rate cannot be determined, the Group\u2019s incremental borrowing rate is used. Right-of-use assets are measured at cost comprising the following: \u2022 \u2022 The net present value of the minimum lease payments \u2022 \u2022 Any lease payments made at, or before, the commencement date less any lease incentives received \u2022 \u2022 Any initial direct costs. Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment and small items of office furniture. Depreciation Depreciation is recognised in profit or loss for each category of assets on a straight-line basis over the lease term. The estimated useful lives for the current and comparative periods are as follows: \u2022 \u2022 Buildings, 8 years \u2022 \u2022 Motor vehicles, 2 to 3 years. The depreciation methods, useful lives and residual values are reassessed annually and adjusted if appropriate. Gains and losses arising on the disposal of leased assets are included as capital items in profit or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-273": { "value": "Depreciation Depreciation is recognised in profit or loss for each category of assets on a straight-line basis over the lease term. The estimated useful lives for the current and comparative periods are as follows: \u2022 \u2022 Buildings, 8 years \u2022 \u2022 Motor vehicles, 2 to 3 years. The depreciation methods, useful lives and residual values are reassessed annually and adjusted if appropriate. Gains and losses arising on the disposal of leased assets are included as capital items in profit or loss. Depreciation Depreciation is recognised in profit or loss for each category of assets on a straight-line basis over their expected useful lives up to their respective estimated residual values. Land is not depreciated. The estimated useful lives for the current and comparative periods are as follows: \u2022 \u2022 Buildings, 20 to 50 years \u2022 \u2022 Leasehold improvements (included in land and buildings), shorter of lease period or useful life of asset \u2022 \u2022 Plant and machinery, 3 to 20 years \u2022 \u2022 Motor vehicles, 4 to 8 years \u2022 \u2022 Furniture and equipment, 5 to 20 years \u2022 \u2022 IT equipment and software, 2 to 8 years. The depreciation methods, useful lives and residual values are reassessed annually and adjusted if appropriate. Gains and losses arising on the disposal of property, plant and equipment are included as capital items in profit or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-274": { "value": "1.15 Impairment of non-financial assets Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount might not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. Impairment The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on credit risk characteristics and the days past due. The expected credit loss (ECL) rates are based on the payment profiles of sales over a 12-month period before 29 February 2024, 28 February 2023 and 1 March 2022 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are reviewed and adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a period of greater than 120 days past due. Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-224": { "value": "1.15 Impairment of non-financial assets Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount might not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-225": { "value": "1.16 Cash and cash equivalents 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. For purposes of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits as defined above. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-226": { "value": "1.17 Trade receivables Trade receivables are amounts due from customers for merchandise sold or services rendered in the ordinary course of business. Trade receivables are recognised initially at the amount of consideration that is unconditional, i.e. fair value and subsequently measured at amortised cost using the effective interest method, less loss allowance. Prepayments and other receivables are stated at their nominal values. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-227": { "value": "1.18 Inventories Inventories are measured at the lower of cost and net realisable value considering market conditions and technological changes. Cost is determined on the first-in first-out and weighted average cost methods. Work and contracts in progress and finished goods include direct costs and an appropriate portion of attributable overhead expenditure based on normal production capacity. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-228": { "value": "1.19 Financial instruments Financial instruments comprise investments in equity, loans receivable, trade and other receivables (excluding prepayments), investments, cash and cash equivalents, restricted cash, non-current loans, current loans, bank overdrafts, derivatives and trade and other payables. Recognition Financial assets and liabilities are recognised in the Group\u2019s statement of financial position when the Group becomes a party to the contractual provisions of the instruments. Financial assets are recognised on the date the Group commits to purchase the instruments (trade date accounting). Financial assets are classified as current if expected to be realised or settled within 12 months from the reporting date; if not, they are classified as non-current. Financial liabilities are classified as non-current if the Group has an unconditional right to defer payment for more than 12 months from the reporting date. Classification The Group classifies financial assets on initial recognition as measured at amortised cost, fair value through other comprehensive income (FVOCI), or fair value through profit or loss (FVTPL) based on the Group\u2019s business model for managing the financial asset and the cash flow characteristics of the financial asset. Financial assets are classified as follows: \u2022 \u2022 Financial assets to be measured subsequently at fair value (either through other comprehensive income (OCI) or through profit or loss) \u2022 \u2022 Financial assets to be measured at amortised cost. Financial assets are not reclassified unless the Group changes its business model. In rare circumstances where the Group does change its business model, reclassifications are done prospectively from the date that the Group changes its business model. Financial liabilities are classified and measured at amortised cost except for those derivative liabilities and contingent considerations that are measured at FVTPL. Measurement on initial recognition All financial assets and financial liabilities are initially measured at fair value, including transaction costs, except for those classified as FVTPL which are initially measured at fair value excluding transaction costs. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognised immediately in profit or loss. Subsequent measurement: financial assets Subsequent to initial recognition, financial assets are measured as described below: \u2022 \u2022 FVTPL \u2013 these financial assets are subsequently measured at fair value and changes therein (including any interest or dividend income) are recognised in profit or loss \u2022 \u2022 Amortised cost \u2013 these financial assets are subsequently measured at amortised cost using the effective interest method, less impairment losses. Interest income, foreign exchange gains and losses and impairments are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss \u2022 \u2022 Equity instruments at FVOCI \u2013 these financial assets are subsequently measured at fair value. Dividends are recognised in profit or loss when the right to receive payment is established. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are not reclassified to profit or loss. Subsequent measurement: financial liabilities All financial liabilities, excluding derivative liabilities and contingent consideration, are subsequently measured at amortised cost using the effective interest method. Derivative liabilities are subsequently measured at fair value with changes therein recognised in profit or loss. Derecognition Financial assets are derecognised when the rights to receive cash flows from the assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognised when the obligations specified in the contracts are discharged, cancelled or expire. On derecognition of a financial asset or liability, any difference between the carrying amount extinguished and the consideration paid is recognised in profit or loss. Offsetting financial instruments Offsetting of financial assets and liabilities is applied when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The net amount is reported in the statement of financial position. Impairment The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on credit risk characteristics and the days past due. The expected credit loss (ECL) rates are based on the payment profiles of sales over a 12-month period before 29 February 2024, 28 February 2023 and 1 March 2022 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are reviewed and adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a period of greater than 120 days past due. Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. Derivatives Derivatives are initially recognised at fair value on the date that a derivative contract is entered into as either a financial asset or financial liability if they are considered material. Derivatives are subsequently remeasured to their fair value at the end of each reporting period, with the change in fair value being recognised in profit or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-275": { "value": "Derecognition Financial assets are derecognised when the rights to receive cash flows from the assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognised when the obligations specified in the contracts are discharged, cancelled or expire. On derecognition of a financial asset or liability, any difference between the carrying amount extinguished and the consideration paid is recognised in profit or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-276": { "value": "Offsetting financial instruments Offsetting of financial assets and liabilities is applied when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The net amount is reported in the statement of financial position. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-301": { "value": "Impairment The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on credit risk characteristics and the days past due. The expected credit loss (ECL) rates are based on the payment profiles of sales over a 12-month period before 29 February 2024, 28 February 2023 and 1 March 2022 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are reviewed and adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a period of greater than 120 days past due. Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-300": { "value": "Derivatives Derivatives are initially recognised at fair value on the date that a derivative contract is entered into as either a financial asset or financial liability if they are considered material. Derivatives are subsequently remeasured to their fair value at the end of each reporting period, with the change in fair value being recognised in profit or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-277": { "value": "Derivatives Derivatives are initially recognised at fair value on the date that a derivative contract is entered into as either a financial asset or financial liability if they are considered material. Derivatives are subsequently remeasured to their fair value at the end of each reporting period, with the change in fair value being recognised in profit or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-229": { "value": "1.20 Property, plant and equipment Owned assets Property, plant and equipment is measured at cost less accumulated depreciation and impairment losses. When components of an item of property, plant and equipment have different useful lives, those components are accounted for as separate items of property, plant and equipment. Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. Subsequent costs The Group recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when the cost is incurred, if it is probable that future economic benefits embodied within the item will flow to the Group and the cost of such item can be measured reliably. The carrying amount of the replaced item of property, plant and equipment is derecognised. All other costs are recognised in profit or loss as an expense when incurred. Depreciation Depreciation is recognised in profit or loss for each category of assets on a straight-line basis over their expected useful lives up to their respective estimated residual values. Land is not depreciated. The estimated useful lives for the current and comparative periods are as follows: \u2022 \u2022 Buildings, 20 to 50 years \u2022 \u2022 Leasehold improvements (included in land and buildings), shorter of lease period or useful life of asset \u2022 \u2022 Plant and machinery, 3 to 20 years \u2022 \u2022 Motor vehicles, 4 to 8 years \u2022 \u2022 Furniture and equipment, 5 to 20 years \u2022 \u2022 IT equipment and software, 2 to 8 years. The depreciation methods, useful lives and residual values are reassessed annually and adjusted if appropriate. Gains and losses arising on the disposal of property, plant and equipment are included as capital items in profit or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-230": { "value": "1.21 Intangible assets Goodwill Goodwill is measured as described in note 1.15. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash generating units for the purpose of impairment testing. The allocation is made to those cash generating units or groups of cash generating units that are expected to benefit from the business combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes. Brands and customer relationships Brands and customer relationships acquired in a business combination are recognised at fair value at the acquisition date. They have a finite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. The useful lives for the brands and customer relationships are as follows: \u2022 \u2022 Customer relationships, 10 years \u2022 \u2022 Brands, 5 years. Software Costs associated with maintaining software programs are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognised as intangible assets where the following criteria are met: \u2022 \u2022 It is technically feasible to complete the software so that it will be available for use \u2022 \u2022 Management intends to complete the software and use or sell it \u2022 \u2022 There is an ability to use or sell the software \u2022 \u2022 It can be demonstrated how the software will generate probable future economic benefits \u2022 \u2022 Adequate technical, financial and other resources to complete the development and to use or sell the software are available \u2022 \u2022 The expenditure attributable to the software during its development can be reliably measured. The useful lives for software is 2 to 8 years. Research and development Research expenditure and development expenditure that do not meet the criteria above are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-278": { "value": "Goodwill Goodwill is measured as described in note 1.15. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash generating units for the purpose of impairment testing. The allocation is made to those cash generating units or groups of cash generating units that are expected to benefit from the business combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-279": { "value": "Brands and customer relationships Brands and customer relationships acquired in a business combination are recognised at fair value at the acquisition date. They have a finite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. The useful lives for the brands and customer relationships are as follows: \u2022 \u2022 Customer relationships, 10 years \u2022 \u2022 Brands, 5 years. Software Costs associated with maintaining software programs are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognised as intangible assets where the following criteria are met: \u2022 \u2022 It is technically feasible to complete the software so that it will be available for use \u2022 \u2022 Management intends to complete the software and use or sell it \u2022 \u2022 There is an ability to use or sell the software \u2022 \u2022 It can be demonstrated how the software will generate probable future economic benefits \u2022 \u2022 Adequate technical, financial and other resources to complete the development and to use or sell the software are available \u2022 \u2022 The expenditure attributable to the software during its development can be reliably measured. The useful lives for software is 2 to 8 years. Research and development Research expenditure and development expenditure that do not meet the criteria above are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-302": { "value": "Research and development Research expenditure and development expenditure that do not meet the criteria above are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-231": { "value": "1.22 Trade and other payables Trade payables, sundry creditors and accrued expenses are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. They are accounted for in accordance with the accounting policy for financial liabilities as included above. Amounts received from customers in advance, prior to confirming the goods or services required, are recorded as other payables. Upon delivery of the goods and services, these amounts are recognised in revenue. Other payables are stated at their nominal values. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-232": { "value": "1.23 Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective-interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent that there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-233": { "value": "1.24 Provisions Provisions are recognised when the Group has a present legal or constructive obligation because of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation, and where a reliable estimate can be made of the amount of the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-234": { "value": "1.25 Employee benefits Short-term obligations Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave, that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees\u2019 services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet. Post-employment obligations The Group operates various defined contribution plans for its employees. Once the contributions have been paid, the Group has no further payment obligations. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. Termination benefits Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the Group recognises costs for a restructuring that is within the scope of IAS 37 and involves the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value. Share-based payments Equity settled share-based payment incentive scheme Share-based compensation benefits are provided to particular employees of the Group through the Bytes Technology Group plc share option plans. Information relating to all schemes is provided in note 27. Employee options The fair values of options granted under the Bytes Technology Group plc share option plans are recognised as an employee benefit expense, with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted. The share-based payment reserve comprises the fair value of share awards granted which are not yet exercised. The amount will be reversed to retained earnings as and when the related awards vest and are exercised by employees. The total expense is recognised over the vesting period, which is the period over which all the specified vesting conditions are to be satisfied. At the end of each period, the Group revises its estimates of the number of options issued that are expected to vest based on the service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-280": { "value": "Termination benefits Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the Group recognises costs for a restructuring that is within the scope of IAS 37 and involves the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTerminationBenefits", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-281": { "value": "Share-based payments Equity settled share-based payment incentive scheme Share-based compensation benefits are provided to particular employees of the Group through the Bytes Technology Group plc share option plans. Information relating to all schemes is provided in note 27. Employee options The fair values of options granted under the Bytes Technology Group plc share option plans are recognised as an employee benefit expense, with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted. The share-based payment reserve comprises the fair value of share awards granted which are not yet exercised. The amount will be reversed to retained earnings as and when the related awards vest and are exercised by employees. The total expense is recognised over the vesting period, which is the period over which all the specified vesting conditions are to be satisfied. At the end of each period, the Group revises its estimates of the number of options issued that are expected to vest based on the service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-235": { "value": "1.26 Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-236": { "value": "1.27 Dividends Dividends paid on ordinary shares are classified as equity and are recognised as distributions in equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-237": { "value": "1.28 Earnings per share (i) Basic earnings per share Basic earnings per share is calculated by dividing: \u2022 \u2022 The profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary shares \u2022 \u2022 By the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares. (ii) Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to consider: \u2022 \u2022 The after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares \u2022 \u2022 The weighted average number of additional ordinary shares that would have been outstanding, assuming the conversion of all dilutive potential ordinary shares. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-238": { "value": "1.29 Rounding of amounts All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand, unless otherwise stated.", "dimensions": { "concept": "bytestechnology:DescriptionOfAccountingPolicyForRoundingOfAmounts", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-239": { "value": "
2 Segmental information
2(a) Description of segment
The information reported to the Group\u2019s Chief Executive Officer, who is considered to be the chief operating decision maker
for the purposes of resource allocation and assessment of performance, is based wholly on the overall activities of the
Group. The Group has therefore determined that it has only one reportable segment under IFRS 8, which is that of \u2018IT
solutions provider\u2019. The Group\u2019s revenue, results, assets and liabilities for this one reportable segment can be determined by
reference to the consolidated statement of profit or loss and the consolidated statement of financial position. An analysis of
revenues by product lines and geographical regions, which form one reportable segment, is set out in note 3.
2(b) Adjusted operating profit
Adjusted operating profit is an alternative performance measure which excludes the effects of intangible assets amortisation
and share-based payment charges.
Adjusted operating profit reconciles to operating profit as follows:
Note
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Adjusted operating profit
63,300
56,377
Share-based payment charges
27
(5,708)
(4,18
8)
Amortisation of acquired intangible assets
4
(880)
(1,306)
Operating profit
56,712
50,883
", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-240": { "value": "
3 Revenue from contracts with customers
3(a) Disaggregation of revenue from contracts with customers
The Group derives revenue from the transfer of goods and services in the following major product lines and
geographical regions:
Revenue by product
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Software
130,365
114,108
Hardware
41,389
38,355
Services internal
31,517
28,454
Services external
3,750
3,504
Total revenue from contracts with customers
207,0 21
184,421
Software
The Group\u2019s software revenue comprises the sale of various types of software licences (including both cloud-based and
non-cloud-based licences), subscriptions and software assurance products.
Hardware
The Group\u2019s hardware revenue comprises the sale of items such as servers, laptops and other devices.
Services internal
The Group\u2019s internal services revenue comprises internally provided consulting services through its own internal resources.
Services external
The Group\u2019s external services revenue comprises the sale of externally provided training and consulting services through
third-party contractors.
Revenue by geographical regions
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
United Kingdom
199,912
17 7, 8 8 2
Europe
4,326
4,358
Rest of world
2,783
2,181
207,0 21
184,421
3(b) Gross invoiced income by type
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Software
1,721,993
1,3
4 6,110
Hardware
41,389
38,355
Services internal
31,517
28,454
Services external
28,10
3
26,395
1,823,002
1,439,314
Gross invoiced income
1,823,002
1,439,314
Adjustment to gross invoiced income for income recognised as agent
(1,615,981)
(1,254,893)
Revenue
207,0 21
184,421
Gross invoiced income reflects gross income billed to customers adjusted for deferred and accrued revenue items
amounting to \u00a38.5 million (2023: \u00a35.5 million). The Group reports gross invoiced income as an alternative financial KPI
as management believes this measure allows further understanding of business performance and position particularly
in respect of working capital and cash flow.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-282": { "value": "3 Revenue from contracts with customers 3(a) Disaggregation of revenue from contracts with customers The Group derives revenue from the transfer of goods and services in the following major product lines and geographical regions: Revenue by product
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Software
130,365
114,108
Hardware
41,389
38,355
Services internal
31,517
28,454
Services external
3,750
3,504
Total revenue from contracts with customers
207,0 21
184,421
Software The Group\u2019s software revenue comprises the sale of various types of software licences (including both cloud-based and non-cloud-based licences), subscriptions and software assurance products. Hardware The Group\u2019s hardware revenue comprises the sale of items such as servers, laptops and other devices. Services internal The Group\u2019s internal services revenue comprises internally provided consulting services through its own internal resources. Services external The Group\u2019s external services revenue comprises the sale of externally provided training and consulting services through third-party contractors. Revenue by geographical regions
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
United Kingdom
199,912
17 7, 8 8 2
Europe
4,326
4,358
Rest of world
2,783
2,181
207,0 21
184,421
3(b) Gross invoiced income by type
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Software
1,721,993
1,3
4 6,110
Hardware
41,389
38,355
Services internal
31,517
28,454
Services external
28,10
3
26,395
1,823,002
1,439,314
Gross invoiced income
1,823,002
1,439,314
Adjustment to gross invoiced income for income recognised as agent
(1,615,981)
(1,254,893)
Revenue
207,0 21
184,421
Gross invoiced income reflects gross income billed to customers adjusted for deferred and accrued revenue items amounting to \u00a38.5 million (2023: \u00a35.5 million). The Group reports gross invoiced income as an alternative financial KPI as management believes this measure allows further understanding of business performance and position particularly in respect of working capital and cash flow.", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-303": { "value": "3(a) Disaggregation of revenue from contracts with customers The Group derives revenue from the transfer of goods and services in the following major product lines and geographical regions: Revenue by product
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Software
130,365
114,108
Hardware
41,389
38,355
Services internal
31,517
28,454
Services external
3,750
3,504
Total revenue from contracts with customers
207,0 21
184,421
Software The Group\u2019s software revenue comprises the sale of various types of software licences (including both cloud-based and non-cloud-based licences), subscriptions and software assurance products. Hardware The Group\u2019s hardware revenue comprises the sale of items such as servers, laptops and other devices. Services internal The Group\u2019s internal services revenue comprises internally provided consulting services through its own internal resources. Services external The Group\u2019s external services revenue comprises the sale of externally provided training and consulting services through third-party contractors. Revenue by geographical regions
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
United Kingdom
199,912
17 7, 8 8 2
Europe
4,326
4,358
Rest of world
2,783
2,181
207,0 21
184,421
", "dimensions": { "concept": "ifrs-full:DisclosureOfDisaggregationOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-317": { "value": "
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
United Kingdom
199,912
17 7, 8 8 2
Europe
4,326
4,358
Rest of world
2,783
2,181
207,0 21
184,421
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeographicalAreasExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-241": { "value": "
4 Material profit or loss items
The Group has identified several items included within administrative expenses which are material due to the significance of
their nature and/or amount. These are listed separately here to provide a better understanding of the financial performance
of the Group:
Note
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Depreciation of property, plant and equipment
9
1,236
1,029
Depreciation of right-of-use assets
10
263
145
Loss on disposal of property, plant and equipment
\u2013
3
Amortisation of acquired intangible assets
11
880
1,306
System support and maintenance
3,872
2,991
Share-based payment expenses
27
5,708
4,188
Expense relating to short-term leases
10
250
25
Foreign exchange losses/(gains)
137
(32)
", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-318": { "value": "4 Material profit or loss items The Group has identified several items included within administrative expenses which are material due to the significance of their nature and/or amount. These are listed separately here to provide a better understanding of the financial performance of the Group: Note
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Depreciation of property, plant and equipment
9
1,236
1,029
Depreciation of right-of-use assets
10
263
145
Loss on disposal of property, plant and equipment
\u2013
3
Amortisation of acquired intangible assets
11
880
1,306
System support and maintenance
3,872
2,991
Share-based payment expenses
27
5,708
4,188
Expense relating to short-term leases
10
250
25
Foreign exchange losses/(gains)
137
(32)
9 Property, plant and equipment
Freehold land Computer Furniture, fittings Computer Motor
and buildings equipment and equipment software vehicles Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Cost
At 1 March 2022
8,921
3,875
1,305
74 6
101
14,948
Additions
484
590
8
271
10
1,363
Disposals
\u2013
(126)
\u2013
\u2013
(7)
(133)
At 28 February 2023
9,405
4,339
1,313
1,017
104
16,178
Additions
373
692
11
249
9
1,334
Disposals
\u2013
(25)
\u2013
\u2013
(27)
(52)
At 29 February 2024
9,778
5,006
1,324
1,266
86
17,460
Depreciation
At 1 March 2022
2 ,14 3
3,083
989
626
58
6,899
On disposals
\u2013
(122)
\u2013
\u2013
(8)
(130)
Charge for the year
373
508
54
72
22
1,029
At 28 February 2023
2,516
3,469
1,043
698
72
7,7
9 8
On disposals
\u2013
(25)
\u2013
\u2013
(27)
(52)
Charge for the year
421
584
51
163
17
1,236
At 29 February 2024
2,937
4,028
1,094
861
62
8,982
Net book value
At 28 February 2023
6,889
870
270
319
32
8,380
At 29 February 2024
6,841
978
230
405
24
8,478
10 Leases
(i) Amounts recognised in the balance sheet
Right-of-use assets
Buildings Motor vehicles Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Cost
At 1 March 2022 and 28 February 2023
1,377
245
1,622
Additions
\u2013
891
891
Disposals
\u2013
(245)
(245)
At 29 February 2024
1,377
891
2,268
Depreciation
At 1 March 2022
449
245
694
Charge for the year
145
\u2013
145
At 28 February 2023
594
245
839
Disposals
\u2013
(245)
(245)
Charge for the period
144
119
263
At 29 February 2024
738
119
857
Net book value
At 1 March 2022
928
\u2013
928
At 28 February 2023
783
\u2013
783
At 29 February 2024
639
772
1,411
Lease liabilities
As at As at As at
29 February 28 February 1 March
2024 2023 2022
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Current
423
75
185
Non-current
1,314
917
992
1,737
992
1,17
7
There were additions of \u00a30.9 million to the right-of-use assets in the financial year ended 29 February 2024 (financial year ended 28 February 2023: \u00a3Nil). (ii) Amounts recognised in the statement of profit or loss The statement of profit or loss shows the following amounts relating to leases:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Depreciation charge of right-of-use assets
263
145
Interest expense (included in finance cost)
63
48
Expense relating to short-term leases (included in administrative expenses)
250
25
(iii) Changes in liabilities arising from financing activities
As at As at
1 March 29 February
2023 Additions Cash flows Interest 2024
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Lease liabilities
992
891
(209)
63
1,737
Total liabilities from financing activities
992
891
(209)
63
1,737
As at As at
1 March 28 February
2022 Additions Cash flows Interest 2023
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Lease liabilities
1,17
7
\u2013
(233)
48
992
Total liabilities from financing activities
1,17
7
\u2013
(233)
48
992
11 Intangible assets
Customer
Goodwill relationships Brand Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Cost
At 1 March 2022, 28 February 2023 and
29 February 2024
37,4 93
8,798
3,653
49,944
Amortisation
At 1 March 2022
\u2013
3,887
3,225
7,112
Charge for the year
\u2013
878
428
1,306
At 28 February 2023
\u2013
4,765
3,653
8,418
Charge for the year
\u2013
880
\u2013
880
At 29 February 2024
\u2013
5,645
3,653
9,298
Net book value
At 28 February 2023
37, 4 93
4,033
\u2013
41,526
At 29 February 2024
37,4 93
3,153
\u2013
40,646
Determination of recoverable amount
The carrying value of indefinite useful life intangible assets and goodwill are tested annually for impairment. For each CGU
and for all periods presented, the Group has assessed that the value in use represents the recoverable amount. The future
expected cash flows used in the value-in-use models are based on management forecasts, over a five-year period, and
thereafter a reasonable rate of growth is applied based on current market conditions. The recoverable amount of Bytes
Software Services and Phoenix Software is \u00a3737.3 million and \u00a3306.8 million respectively. For the purpose of impairment
assessments of goodwill, the goodwill balance is allocated to the operating units which represent the lowest level within the
Group at which the goodwill is monitored for internal management purposes.
A summary of the goodwill per CGU, as well as assumptions applied for impairment assessment purposes, is presented below:
29 February 2024
Long-term Goodwill
growth rate Discount rate carrying amount
% % \u00a3\u2019000
Bytes Software Services
2
9.15
14,775
Phoenix Software
2
9.15
22,718
37,4 93
28 February 2023
Long-term Goodwill
growth rate Discount rate carrying amount
% % \u00a3\u2019000
Bytes Software Services
2
9.10
14,775
Phoenix Software
2
9.10
22,718
37,4 9 3
Growth rates
The Group used what it considers to be a conservative growth rate of 2% which was applied beyond the approved budget
periods. The growth rate was consistent with publicly available information relating to long-term average growth rates for the
market in which the respective CGU operated.
Discount rates
Discount rates used reflect both time value of money and other specific risks relating to the relevant CGU. Pre-tax discount
rates have been applied.
Sensitivities
The impacts of variations in the calculation of value-in-use of assumed growth rate and pre-tax discount rates applied to the
estimated future cash flows of the CGUs have been estimated as follows:
29 February 2024
Bytes Software Phoenix
Services Software
\u00a3\u2019000 \u00a3\u2019000
Headroom
688,344
273,935
1% increase in the pre-tax discount rate applied to the estimated future cash flows
(97,592)
(38,628)
1% decrease in the pre-tax discount rate applied to the estimated future cash flows
129,792
51,351
0.5% increase in the terminal growth rate
46,379
18,323
0.5% decrease in the terminal growth rate
(40,316)
(15,928)
28 February 2023
Bytes Software Phoenix
Services Software
\u00a3\u2019000 \u00a3\u2019000
Headroom
675,427
229,245
1% increase in the pre-tax discount rate applied to the estimated future cash flows
(94,815)
(32,956)
1% decrease in the pre-tax discount rate applied to the estimated future cash flows
126,339
43,885
0.5% increase in the terminal growth rate
4 5 ,17 9
15,660
0.5% decrease in the terminal growth rate
(39,234)
(13,599)
None of the above sensitivities, taken either in isolation or aggregated, indicates a potential impairment. The directors
consider that there is no reasonable possible change in the assumptions used in the sensitivities that would result in an
impairment of goodwill.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-304": { "value": "4 Material profit or loss items The Group has identified several items included within administrative expenses which are material due to the significance of their nature and/or amount. These are listed separately here to provide a better understanding of the financial performance of the Group: Note
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Depreciation of property, plant and equipment
9
1,236
1,029
Depreciation of right-of-use assets
10
263
145
Loss on disposal of property, plant and equipment
\u2013
3
Amortisation of acquired intangible assets
11
880
1,306
System support and maintenance
3,872
2,991
Share-based payment expenses
27
5,708
4,188
Expense relating to short-term leases
10
250
25
Foreign exchange losses/(gains)
137
(32)
6 Auditors\u2019 remuneration During the year, the Group obtained the following services from the company\u2019s auditors and its associates:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Fees payable to the company\u2019s auditors and its associates for the audit of the parent
company and consolidated financial statements
268
281
Fees payable to the company\u2019s auditors and its associates for other services:
Audit of the financial statements of the company\u2019s subsidiaries
398
372
Other fees
420
14
Non-audit services
101
95
1,187
762
1 1 Non-audit services in the current and prior year relate to the auditors\u2019 review of our interim report issued in October 2023 (28 February 2023: October 2022).", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-283": { "value": "4 Material profit or loss items The Group has identified several items included within administrative expenses which are material due to the significance of their nature and/or amount. These are listed separately here to provide a better understanding of the financial performance of the Group: Note
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Depreciation of property, plant and equipment
9
1,236
1,029
Depreciation of right-of-use assets
10
263
145
Loss on disposal of property, plant and equipment
\u2013
3
Amortisation of acquired intangible assets
11
880
1,306
System support and maintenance
3,872
2,991
Share-based payment expenses
27
5,708
4,188
Expense relating to short-term leases
10
250
25
Foreign exchange losses/(gains)
137
(32)
6 Auditors\u2019 remuneration During the year, the Group obtained the following services from the company\u2019s auditors and its associates:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Fees payable to the company\u2019s auditors and its associates for the audit of the parent
company and consolidated financial statements
268
281
Fees payable to the company\u2019s auditors and its associates for other services:
Audit of the financial statements of the company\u2019s subsidiaries
398
372
Other fees
420
14
Non-audit services
101
95
1,187
762
1 1 Non-audit services in the current and prior year relate to the auditors\u2019 review of our interim report issued in October 2023 (28 February 2023: October 2022).", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-242": { "value": "
5 Employees
Employee benefit expense: Note
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Employee remuneration (including directors\u2019 remuneration
1
)
49,791
40,725
Commissions and bonuses
21,623
22,299
Social security costs
9,479
8 ,158
Pension costs
1,794
1,413
Share-based payments expense
27
5,708
4,18
8
88,395
76,783
Classified as follows:
Cost of sales
17,211
13,527
Administrative expenses
71,184
63,256
88,395
76,783
1 Directors\u2019 remuneration is included in the directors\u2019 remuneration report on pages 102 to 127.
The average monthly number of employees during the year was:
Year ended Year ended
29 February 28 February
2024 2023
Number Number
Sales \u2013 account management
335
285
Sales \u2013 support and specialists
228
199
Service delivery
263
204
Administration
202
173
1,028
861
The employee benefit expenses in relation to the service delivery employees are included within cost of sales.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-243": { "value": "
6 Auditors\u2019 remuneration
During the year, the Group obtained the following services from the company\u2019s auditors and its associates:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Fees payable to the company\u2019s auditors and its associates for the audit of the parent
company and consolidated financial statements
268
281
Fees payable to the company\u2019s auditors and its associates for other services:
Audit of the financial statements of the company\u2019s subsidiaries
398
372
Other fees
420
14
Non-audit services
101
95
1,187
762
1
1 Non-audit services in the current and prior year relate to the auditors\u2019 review of our interim report issued in October 2023 (28 February 2023: October 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-319": { "value": "
7 Finance income and costs
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Finance income
Bank interest received
5,111
\u2013
Finance income
5,111
\u2013
Finance costs
Interest expense on financial liabilities measured at amortised cost
(330)
(443)
Interest expense on lease liability
(63)
(48)
Finance costs
(393)
(491)
1
1 I nterest received on cash deposited on money market .
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-328": { "value": "7 Finance income and costs
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Finance income
Bank interest received
5,111
\u2013
Finance income
5,111
\u2013
Finance costs
Interest expense on financial liabilities measured at amortised cost
(330)
(443)
Interest expense on lease liability
(63)
(48)
Finance costs
(393)
(491)
1 1 I nterest received on cash deposited on money market .", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-323": { "value": "7 Finance income and costs
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Finance income
Bank interest received
5,111
\u2013
Finance income
5,111
\u2013
Finance costs
Interest expense on financial liabilities measured at amortised cost
(330)
(443)
Interest expense on lease liability
(63)
(48)
Finance costs
(393)
(491)
1 1 I nterest received on cash deposited on money market .", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-305": { "value": "7 Finance income and costs
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Finance income
Bank interest received
5,111
\u2013
Finance income
5,111
\u2013
Finance costs
Interest expense on financial liabilities measured at amortised cost
(330)
(443)
Interest expense on lease liability
(63)
(48)
Finance costs
(393)
(491)
1 1 I nterest received on cash deposited on money market ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-284": { "value": "7 Finance income and costs
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Finance income
Bank interest received
5,111
\u2013
Finance income
5,111
\u2013
Finance costs
Interest expense on financial liabilities measured at amortised cost
(330)
(443)
Interest expense on lease liability
(63)
(48)
Finance costs
(393)
(491)
1 1 I nterest received on cash deposited on money market ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-244": { "value": "7 Finance income and costs
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Finance income
Bank interest received
5,111
\u2013
Finance income
5,111
\u2013
Finance costs
Interest expense on financial liabilities measured at amortised cost
(330)
(443)
Interest expense on lease liability
(63)
(48)
Finance costs
(393)
(491)
1 1 I nterest received on cash deposited on money market .", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-245": { "value": "
8 Income tax expense
The major components of the Group\u2019s income tax expense for all periods are:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Current income tax charge in the year
15,892
10,483
Adjustment in respect of current income tax of previous years
(85)
66
Total current income tax charge
15,807
10,549
Current year
(1,109)
(402)
Adjustments in respect of prior year
70
(75)
Effect of changes in tax rates
(23)
(101)
Deferred tax credit
(1,062)
(578)
Total tax charge
14,745
9,971
Reconciliation of total tax charge
The tax assessed for the year differs from the standard rate of corporation tax in the UK applied to profit before tax:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Profit before income tax
61,596
50,392
Income tax charge at the standard rate of corporation tax in the UK of 24.49% (2023: 19%)
15,085
9,574
Effects of:
Non-deductible expenses
(261)
507
Adjustment to previous periods
(15)
(9)
Effect of changes in tax rate
(23)
(101)
Effect of share of profit of associate
(41)
\u2013
Income tax charge reported in profit or loss
14,745
9,971
1
1 Prorated rate for change in the tax rate from 19% to 25% on 1 April 2023.
Amounts recognised directly in equity
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Aggregate current and deferred tax arising in the reporting period and not
recognised in net profit or loss or other comprehensive income but directly
credited/(charged) to equity:
Deferred tax: share-based payments
407
(24)
Current tax: share-based payments
491
\u2013
898
(24)
Deferred tax asset/(liabilities)
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
The balance comprises temporary differences attributable to:
Intangible assets
(788)
(1,008)
Property, plant and equipment
(1,059)
(884)
Employee benefits
1
3
Provisions
73
65
Share-based payments
2,607
1,18
9
834
(635)
Deferred tax asset/(liabilities)
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
At 1 March
(635)
(1,18
9)
Credited to profit or loss
1,062
578
Credit/(charge) to equity
407
(24)
Carrying amount at end of year
834
(635)
The deferred tax asset and deferred tax liabilities carrying amounts at the end of the year are set off as they arise in the same
jurisdiction and as such there is a legally enforceable right to offset.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-306": { "value": "8 Income tax expense The major components of the Group\u2019s income tax expense for all periods are:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Current income tax charge in the year
15,892
10,483
Adjustment in respect of current income tax of previous years
(85)
66
Total current income tax charge
15,807
10,549
Current year
(1,109)
(402)
Adjustments in respect of prior year
70
(75)
Effect of changes in tax rates
(23)
(101)
Deferred tax credit
(1,062)
(578)
Total tax charge
14,745
9,971
Reconciliation of total tax charge The tax assessed for the year differs from the standard rate of corporation tax in the UK applied to profit before tax:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Profit before income tax
61,596
50,392
Income tax charge at the standard rate of corporation tax in the UK of 24.49% (2023: 19%)
15,085
9,574
Effects of:
Non-deductible expenses
(261)
507
Adjustment to previous periods
(15)
(9)
Effect of changes in tax rate
(23)
(101)
Effect of share of profit of associate
(41)
\u2013
Income tax charge reported in profit or loss
14,745
9,971
1 1 Prorated rate for change in the tax rate from 19% to 25% on 1 April 2023. Amounts recognised directly in equity
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Aggregate current and deferred tax arising in the reporting period and not
recognised in net profit or loss or other comprehensive income but directly
credited/(charged) to equity:
Deferred tax: share-based payments
407
(24)
Current tax: share-based payments
491
\u2013
898
(24)
Deferred tax asset/(liabilities)
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
The balance comprises temporary differences attributable to:
Intangible assets
(788)
(1,008)
Property, plant and equipment
(1,059)
(884)
Employee benefits
1
3
Provisions
73
65
Share-based payments
2,607
1,18
9
834
(635)
Deferred tax asset/(liabilities)
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
At 1 March
(635)
(1,18
9)
Credited to profit or loss
1,062
578
Credit/(charge) to equity
407
(24)
Carrying amount at end of year
834
(635)
The deferred tax asset and deferred tax liabilities carrying amounts at the end of the year are set off as they arise in the same jurisdiction and as such there is a legally enforceable right to offset.", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-285": { "value": "8 Income tax expense The major components of the Group\u2019s income tax expense for all periods are:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Current income tax charge in the year
15,892
10,483
Adjustment in respect of current income tax of previous years
(85)
66
Total current income tax charge
15,807
10,549
Current year
(1,109)
(402)
Adjustments in respect of prior year
70
(75)
Effect of changes in tax rates
(23)
(101)
Deferred tax credit
(1,062)
(578)
Total tax charge
14,745
9,971
Reconciliation of total tax charge The tax assessed for the year differs from the standard rate of corporation tax in the UK applied to profit before tax:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Profit before income tax
61,596
50,392
Income tax charge at the standard rate of corporation tax in the UK of 24.49% (2023: 19%)
15,085
9,574
Effects of:
Non-deductible expenses
(261)
507
Adjustment to previous periods
(15)
(9)
Effect of changes in tax rate
(23)
(101)
Effect of share of profit of associate
(41)
\u2013
Income tax charge reported in profit or loss
14,745
9,971
1 1 Prorated rate for change in the tax rate from 19% to 25% on 1 April 2023. Amounts recognised directly in equity
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Aggregate current and deferred tax arising in the reporting period and not
recognised in net profit or loss or other comprehensive income but directly
credited/(charged) to equity:
Deferred tax: share-based payments
407
(24)
Current tax: share-based payments
491
\u2013
898
(24)
Deferred tax asset/(liabilities)
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
The balance comprises temporary differences attributable to:
Intangible assets
(788)
(1,008)
Property, plant and equipment
(1,059)
(884)
Employee benefits
1
3
Provisions
73
65
Share-based payments
2,607
1,18
9
834
(635)
Deferred tax asset/(liabilities)
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
At 1 March
(635)
(1,18
9)
Credited to profit or loss
1,062
578
Credit/(charge) to equity
407
(24)
Carrying amount at end of year
834
(635)
The deferred tax asset and deferred tax liabilities carrying amounts at the end of the year are set off as they arise in the same jurisdiction and as such there is a legally enforceable right to offset.", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-246": { "value": "9 Property, plant and equipment
Freehold land Computer Furniture, fittings Computer Motor
and buildings equipment and equipment software vehicles Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Cost
At 1 March 2022
8,921
3,875
1,305
74 6
101
14,948
Additions
484
590
8
271
10
1,363
Disposals
\u2013
(126)
\u2013
\u2013
(7)
(133)
At 28 February 2023
9,405
4,339
1,313
1,017
104
16,178
Additions
373
692
11
249
9
1,334
Disposals
\u2013
(25)
\u2013
\u2013
(27)
(52)
At 29 February 2024
9,778
5,006
1,324
1,266
86
17,460
Depreciation
At 1 March 2022
2 ,14 3
3,083
989
626
58
6,899
On disposals
\u2013
(122)
\u2013
\u2013
(8)
(130)
Charge for the year
373
508
54
72
22
1,029
At 28 February 2023
2,516
3,469
1,043
698
72
7,7
9 8
On disposals
\u2013
(25)
\u2013
\u2013
(27)
(52)
Charge for the year
421
584
51
163
17
1,236
At 29 February 2024
2,937
4,028
1,094
861
62
8,982
Net book value
At 28 February 2023
6,889
870
270
319
32
8,380
At 29 February 2024
6,841
978
230
405
24
8,478
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-247": { "value": "10 Leases (i) Amounts recognised in the balance sheet Right-of-use assets
Buildings Motor vehicles Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Cost
At 1 March 2022 and 28 February 2023
1,377
245
1,622
Additions
\u2013
891
891
Disposals
\u2013
(245)
(245)
At 29 February 2024
1,377
891
2,268
Depreciation
At 1 March 2022
449
245
694
Charge for the year
145
\u2013
145
At 28 February 2023
594
245
839
Disposals
\u2013
(245)
(245)
Charge for the period
144
119
263
At 29 February 2024
738
119
857
Net book value
At 1 March 2022
928
\u2013
928
At 28 February 2023
783
\u2013
783
At 29 February 2024
639
772
1,411
Lease liabilities
As at As at As at
29 February 28 February 1 March
2024 2023 2022
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Current
423
75
185
Non-current
1,314
917
992
1,737
992
1,17
7
There were additions of \u00a30.9 million to the right-of-use assets in the financial year ended 29 February 2024 (financial year ended 28 February 2023: \u00a3Nil). (ii) Amounts recognised in the statement of profit or loss The statement of profit or loss shows the following amounts relating to leases:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Depreciation charge of right-of-use assets
263
145
Interest expense (included in finance cost)
63
48
Expense relating to short-term leases (included in administrative expenses)
250
25
(iii) Changes in liabilities arising from financing activities
As at As at
1 March 29 February
2023 Additions Cash flows Interest 2024
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Lease liabilities
992
891
(209)
63
1,737
Total liabilities from financing activities
992
891
(209)
63
1,737
As at As at
1 March 28 February
2022 Additions Cash flows Interest 2023
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Lease liabilities
1,17
7
\u2013
(233)
48
992
Total liabilities from financing activities
1,17
7
\u2013
(233)
48
992
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-286": { "value": "Right-of-use assets
Buildings Motor vehicles Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Cost
At 1 March 2022 and 28 February 2023
1,377
245
1,622
Additions
\u2013
891
891
Disposals
\u2013
(245)
(245)
At 29 February 2024
1,377
891
2,268
Depreciation
At 1 March 2022
449
245
694
Charge for the year
145
\u2013
145
At 28 February 2023
594
245
839
Disposals
\u2013
(245)
(245)
Charge for the period
144
119
263
At 29 February 2024
738
119
857
Net book value
At 1 March 2022
928
\u2013
928
At 28 February 2023
783
\u2013
783
At 29 February 2024
639
772
1,411
", "dimensions": { "concept": "ifrs-full:DisclosureOfQuantitativeInformationAboutRightofuseAssetsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-248": { "value": "
11 Intangible assets
Customer
Goodwill relationships Brand Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Cost
At 1 March 2022, 28 February 2023 and
29 February 2024
37,4 93
8,798
3,653
49,944
Amortisation
At 1 March 2022
\u2013
3,887
3,225
7,112
Charge for the year
\u2013
878
428
1,306
At 28 February 2023
\u2013
4,765
3,653
8,418
Charge for the year
\u2013
880
\u2013
880
At 29 February 2024
\u2013
5,645
3,653
9,298
Net book value
At 28 February 2023
37, 4 93
4,033
\u2013
41,526
At 29 February 2024
37,4 93
3,153
\u2013
40,646
Determination of recoverable amount The carrying value of indefinite useful life intangible assets and goodwill are tested annually for impairment. For each CGU and for all periods presented, the Group has assessed that the value in use represents the recoverable amount. The future expected cash flows used in the value-in-use models are based on management forecasts, over a five-year period, and thereafter a reasonable rate of growth is applied based on current market conditions. The recoverable amount of Bytes Software Services and Phoenix Software is \u00a3737.3 million and \u00a3306.8 million respectively. For the purpose of impairment assessments of goodwill, the goodwill balance is allocated to the operating units which represent the lowest level within the Group at which the goodwill is monitored for internal management purposes. A summary of the goodwill per CGU, as well as assumptions applied for impairment assessment purposes, is presented below: 29 February 2024
Long-term Goodwill
growth rate Discount rate carrying amount
% % \u00a3\u2019000
Bytes Software Services
2
9.15
14,775
Phoenix Software
2
9.15
22,718
37,4 93
28 February 2023
Long-term Goodwill
growth rate Discount rate carrying amount
% % \u00a3\u2019000
Bytes Software Services
2
9.10
14,775
Phoenix Software
2
9.10
22,718
37,4 9 3
Growth rates The Group used what it considers to be a conservative growth rate of 2% which was applied beyond the approved budget periods. The growth rate was consistent with publicly available information relating to long-term average growth rates for the market in which the respective CGU operated. Discount rates Discount rates used reflect both time value of money and other specific risks relating to the relevant CGU. Pre-tax discount rates have been applied. Sensitivities The impacts of variations in the calculation of value-in-use of assumed growth rate and pre-tax discount rates applied to the estimated future cash flows of the CGUs have been estimated as follows: 29 February 2024
Bytes Software Phoenix
Services Software
\u00a3\u2019000 \u00a3\u2019000
Headroom
688,344
273,935
1% increase in the pre-tax discount rate applied to the estimated future cash flows
(97,592)
(38,628)
1% decrease in the pre-tax discount rate applied to the estimated future cash flows
129,792
51,351
0.5% increase in the terminal growth rate
46,379
18,323
0.5% decrease in the terminal growth rate
(40,316)
(15,928)
28 February 2023
Bytes Software Phoenix
Services Software
\u00a3\u2019000 \u00a3\u2019000
Headroom
675,427
229,245
1% increase in the pre-tax discount rate applied to the estimated future cash flows
(94,815)
(32,956)
1% decrease in the pre-tax discount rate applied to the estimated future cash flows
126,339
43,885
0.5% increase in the terminal growth rate
4 5 ,17 9
15,660
0.5% decrease in the terminal growth rate
(39,234)
(13,599)
None of the above sensitivities, taken either in isolation or aggregated, indicates a potential impairment. The directors consider that there is no reasonable possible change in the assumptions used in the sensitivities that would result in an impairment of goodwill.", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-307": { "value": "11 Intangible assets
Customer
Goodwill relationships Brand Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Cost
At 1 March 2022, 28 February 2023 and
29 February 2024
37,4 93
8,798
3,653
49,944
Amortisation
At 1 March 2022
\u2013
3,887
3,225
7,112
Charge for the year
\u2013
878
428
1,306
At 28 February 2023
\u2013
4,765
3,653
8,418
Charge for the year
\u2013
880
\u2013
880
At 29 February 2024
\u2013
5,645
3,653
9,298
Net book value
At 28 February 2023
37, 4 93
4,033
\u2013
41,526
At 29 February 2024
37,4 93
3,153
\u2013
40,646
Determination of recoverable amount The carrying value of indefinite useful life intangible assets and goodwill are tested annually for impairment. For each CGU and for all periods presented, the Group has assessed that the value in use represents the recoverable amount. The future expected cash flows used in the value-in-use models are based on management forecasts, over a five-year period, and thereafter a reasonable rate of growth is applied based on current market conditions. The recoverable amount of Bytes Software Services and Phoenix Software is \u00a3737.3 million and \u00a3306.8 million respectively. For the purpose of impairment assessments of goodwill, the goodwill balance is allocated to the operating units which represent the lowest level within the Group at which the goodwill is monitored for internal management purposes. A summary of the goodwill per CGU, as well as assumptions applied for impairment assessment purposes, is presented below: 29 February 2024
Long-term Goodwill
growth rate Discount rate carrying amount
% % \u00a3\u2019000
Bytes Software Services
2
9.15
14,775
Phoenix Software
2
9.15
22,718
37,4 93
28 February 2023
Long-term Goodwill
growth rate Discount rate carrying amount
% % \u00a3\u2019000
Bytes Software Services
2
9.10
14,775
Phoenix Software
2
9.10
22,718
37,4 9 3
Growth rates The Group used what it considers to be a conservative growth rate of 2% which was applied beyond the approved budget periods. The growth rate was consistent with publicly available information relating to long-term average growth rates for the market in which the respective CGU operated. Discount rates Discount rates used reflect both time value of money and other specific risks relating to the relevant CGU. Pre-tax discount rates have been applied. Sensitivities The impacts of variations in the calculation of value-in-use of assumed growth rate and pre-tax discount rates applied to the estimated future cash flows of the CGUs have been estimated as follows: 29 February 2024
Bytes Software Phoenix
Services Software
\u00a3\u2019000 \u00a3\u2019000
Headroom
688,344
273,935
1% increase in the pre-tax discount rate applied to the estimated future cash flows
(97,592)
(38,628)
1% decrease in the pre-tax discount rate applied to the estimated future cash flows
129,792
51,351
0.5% increase in the terminal growth rate
46,379
18,323
0.5% decrease in the terminal growth rate
(40,316)
(15,928)
28 February 2023
Bytes Software Phoenix
Services Software
\u00a3\u2019000 \u00a3\u2019000
Headroom
675,427
229,245
1% increase in the pre-tax discount rate applied to the estimated future cash flows
(94,815)
(32,956)
1% decrease in the pre-tax discount rate applied to the estimated future cash flows
126,339
43,885
0.5% increase in the terminal growth rate
4 5 ,17 9
15,660
0.5% decrease in the terminal growth rate
(39,234)
(13,599)
None of the above sensitivities, taken either in isolation or aggregated, indicates a potential impairment. The directors consider that there is no reasonable possible change in the assumptions used in the sensitivities that would result in an impairment of goodwill.", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-287": { "value": "11 Intangible assets
Customer
Goodwill relationships Brand Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Cost
At 1 March 2022, 28 February 2023 and
29 February 2024
37,4 93
8,798
3,653
49,944
Amortisation
At 1 March 2022
\u2013
3,887
3,225
7,112
Charge for the year
\u2013
878
428
1,306
At 28 February 2023
\u2013
4,765
3,653
8,418
Charge for the year
\u2013
880
\u2013
880
At 29 February 2024
\u2013
5,645
3,653
9,298
Net book value
At 28 February 2023
37, 4 93
4,033
\u2013
41,526
At 29 February 2024
37,4 93
3,153
\u2013
40,646
Determination of recoverable amount The carrying value of indefinite useful life intangible assets and goodwill are tested annually for impairment. For each CGU and for all periods presented, the Group has assessed that the value in use represents the recoverable amount. The future expected cash flows used in the value-in-use models are based on management forecasts, over a five-year period, and thereafter a reasonable rate of growth is applied based on current market conditions. The recoverable amount of Bytes Software Services and Phoenix Software is \u00a3737.3 million and \u00a3306.8 million respectively. For the purpose of impairment assessments of goodwill, the goodwill balance is allocated to the operating units which represent the lowest level within the Group at which the goodwill is monitored for internal management purposes. A summary of the goodwill per CGU, as well as assumptions applied for impairment assessment purposes, is presented below: 29 February 2024
Long-term Goodwill
growth rate Discount rate carrying amount
% % \u00a3\u2019000
Bytes Software Services
2
9.15
14,775
Phoenix Software
2
9.15
22,718
37,4 93
28 February 2023
Long-term Goodwill
growth rate Discount rate carrying amount
% % \u00a3\u2019000
Bytes Software Services
2
9.10
14,775
Phoenix Software
2
9.10
22,718
37,4 9 3
Growth rates The Group used what it considers to be a conservative growth rate of 2% which was applied beyond the approved budget periods. The growth rate was consistent with publicly available information relating to long-term average growth rates for the market in which the respective CGU operated. Discount rates Discount rates used reflect both time value of money and other specific risks relating to the relevant CGU. Pre-tax discount rates have been applied. Sensitivities The impacts of variations in the calculation of value-in-use of assumed growth rate and pre-tax discount rates applied to the estimated future cash flows of the CGUs have been estimated as follows: 29 February 2024
Bytes Software Phoenix
Services Software
\u00a3\u2019000 \u00a3\u2019000
Headroom
688,344
273,935
1% increase in the pre-tax discount rate applied to the estimated future cash flows
(97,592)
(38,628)
1% decrease in the pre-tax discount rate applied to the estimated future cash flows
129,792
51,351
0.5% increase in the terminal growth rate
46,379
18,323
0.5% decrease in the terminal growth rate
(40,316)
(15,928)
28 February 2023
Bytes Software Phoenix
Services Software
\u00a3\u2019000 \u00a3\u2019000
Headroom
675,427
229,245
1% increase in the pre-tax discount rate applied to the estimated future cash flows
(94,815)
(32,956)
1% decrease in the pre-tax discount rate applied to the estimated future cash flows
126,339
43,885
0.5% increase in the terminal growth rate
4 5 ,17 9
15,660
0.5% decrease in the terminal growth rate
(39,234)
(13,599)
None of the above sensitivities, taken either in isolation or aggregated, indicates a potential impairment. The directors consider that there is no reasonable possible change in the assumptions used in the sensitivities that would result in an impairment of goodwill.", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-249": { "value": "
12 Investment in an associate
With effect from 18 April 2023 the Group acquired 25.1% interest in Cloud Bridge Technologies Limited for \u00a33.0 million,
settled in cash. The Group\u2019s interest in Cloud Bridge Technologies Limited is accounted for using the equity method.
As at
29 February
2024
\u00a3\u2019000
Current assets
8,302
Non-current assets
123
Current liabilities
(6,078)
Non-current liabilities
(11)
Equity
2,336
Group\u2019s share in equity \u2013 25.1%
586
Goodwill
2,607
Group\u2019s carrying amount of the investment
3,193
Acquisition to
29 February
2024
\u00a3\u2019000
Revenue
13,857
Cost of sales
(11,789)
Administrative expenses
(1,171)
Finance costs
(6)
Profit before tax
885
Income tax expense
(222)
Profit for the period
663
Group\u2019s share of profit for the period
166
The associate requires the Group\u2019s consent to distribute its profits. The Group does not foresee giving such consent
at the reporting date.
The associate had no contingent liabilities or capital commitments as at 29 February 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-308": { "value": "12 Investment in an associate With effect from 18 April 2023 the Group acquired 25.1% interest in Cloud Bridge Technologies Limited for \u00a33.0 million, settled in cash. The Group\u2019s interest in Cloud Bridge Technologies Limited is accounted for using the equity method.
As at
29 February
2024
\u00a3\u2019000
Current assets
8,302
Non-current assets
123
Current liabilities
(6,078)
Non-current liabilities
(11)
Equity
2,336
Group\u2019s share in equity \u2013 25.1%
586
Goodwill
2,607
Group\u2019s carrying amount of the investment
3,193
Acquisition to
29 February
2024
\u00a3\u2019000
Revenue
13,857
Cost of sales
(11,789)
Administrative expenses
(1,171)
Finance costs
(6)
Profit before tax
885
Income tax expense
(222)
Profit for the period
663
Group\u2019s share of profit for the period
166
The associate requires the Group\u2019s consent to distribute its profits. The Group does not foresee giving such consent at the reporting date. The associate had no contingent liabilities or capital commitments as at 29 February 2024. 29 Subsidiaries The Group\u2019s subsidiaries included in the consolidated financial statements are set out below. The country of incorporation is also their principal place of business.
Country of Ownership
Name of entity incorporation
interest
Principal activities
Bytes Technology Holdco Limited
UK
100%
Holding company
Bytes Technology Limited
UK
100%
Holding company
Bytes Software Services Limited
UK
100%
Providing cloud-based licensing and infrastructure and security
sales within both the corporate and public sectors
Phoenix Software limited
UK
100%
Providing cloud-based licensing and infrastructure and security
sales within both the corporate and public sectors
Blenheim Group Limited
UK
100%
Dormant for all periods
License Dashboard Limited
UK
100%
Dormant for all periods
Bytes Security Partnerships Limited
UK
100%
Dormant for all periods
Bytes Technology Group Holdings Limited
2
UK
100%
Dormant for all periods
Bytes Technology Training Limited
UK
100%
Dormant for all periods
Elastabytes Limited
UK
50%
Deregistered. Dormant in prior periods
1 2 2 2 2 1 Bytes Technology Holdco Limited is held directly by the company. All other subsidiary undertakings are held indirectly by the company. 2 Taken advantage of the audit exemption set out within section 479A of the Companies Act 2006 for the year ended 29 February 2024. The registered address of all of the Group subsidiaries included above is Bytes House, Randalls Way, Leatherhead, Surrey, KT22 7TW.", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-288": { "value": "12 Investment in an associate With effect from 18 April 2023 the Group acquired 25.1% interest in Cloud Bridge Technologies Limited for \u00a33.0 million, settled in cash. The Group\u2019s interest in Cloud Bridge Technologies Limited is accounted for using the equity method.
As at
29 February
2024
\u00a3\u2019000
Current assets
8,302
Non-current assets
123
Current liabilities
(6,078)
Non-current liabilities
(11)
Equity
2,336
Group\u2019s share in equity \u2013 25.1%
586
Goodwill
2,607
Group\u2019s carrying amount of the investment
3,193
Acquisition to
29 February
2024
\u00a3\u2019000
Revenue
13,857
Cost of sales
(11,789)
Administrative expenses
(1,171)
Finance costs
(6)
Profit before tax
885
Income tax expense
(222)
Profit for the period
663
Group\u2019s share of profit for the period
166
The associate requires the Group\u2019s consent to distribute its profits. The Group does not foresee giving such consent at the reporting date. The associate had no contingent liabilities or capital commitments as at 29 February 2024. 29 Subsidiaries The Group\u2019s subsidiaries included in the consolidated financial statements are set out below. The country of incorporation is also their principal place of business.
Country of Ownership
Name of entity incorporation
interest
Principal activities
Bytes Technology Holdco Limited
UK
100%
Holding company
Bytes Technology Limited
UK
100%
Holding company
Bytes Software Services Limited
UK
100%
Providing cloud-based licensing and infrastructure and security
sales within both the corporate and public sectors
Phoenix Software limited
UK
100%
Providing cloud-based licensing and infrastructure and security
sales within both the corporate and public sectors
Blenheim Group Limited
UK
100%
Dormant for all periods
License Dashboard Limited
UK
100%
Dormant for all periods
Bytes Security Partnerships Limited
UK
100%
Dormant for all periods
Bytes Technology Group Holdings Limited
2
UK
100%
Dormant for all periods
Bytes Technology Training Limited
UK
100%
Dormant for all periods
Elastabytes Limited
UK
50%
Deregistered. Dormant in prior periods
1 2 2 2 2 1 Bytes Technology Holdco Limited is held directly by the company. All other subsidiary undertakings are held indirectly by the company. 2 Taken advantage of the audit exemption set out within section 479A of the Companies Act 2006 for the year ended 29 February 2024. The registered address of all of the Group subsidiaries included above is Bytes House, Randalls Way, Leatherhead, Surrey, KT22 7TW.", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-250": { "value": "13 Contract assets As at As at 29 February 28 February 2024 2023 \u00a3\u2019000 \u00a3\u2019000 Contract assets 14,445 11,0 81 Contract assets is further broken down as: As at As at 29 February 28 February 2024 2023 \u00a3\u2019000 \u00a3\u2019000 Short-term contract assets 11,756 10,684 Long-term contract assets 2,689 397 14,445 11,0 81 Contract assets include \u00a32.4 million (2023: \u00a33.8 million) of deferred costs relating to internal services contracts, and the recognition of accrued revenue of \u00a312.0 million (2023: \u00a37.3 million) for certain large software orders where performance obligations were satisfied in the period but not yet invoiced to the customer at the period end.", "dimensions": { "concept": "bytestechnology:DisclosureOfContractAssets", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-251": { "value": "14 Contract liabilities As at As at 29 February 28 February 2024 2023 \u00a3\u2019000 \u00a3\u2019000 Contract liabilities 21,485 25,890 Contract liabilities is further broken down as: As at As at 29 February 28 February 2024 2023 \u00a3\u2019000 \u00a3\u2019000 Short-term contract liabilities 19,348 23,914 Long-term contract liabilities 2,137 1,976 21,485 25,890 During the year, the Group recognised \u00a323.9 million (2023: \u00a314.5 million) of revenue that was included in the contract liability balance at the beginning of the period. This liability arises where revenue has been deferred when the customer is invoiced before the related performance obligations of the contract are satisfied, and the deferral of certain large payments received in advance from customers.", "dimensions": { "concept": "bytestechnology:DisclosureOfContractLiabilities", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-252": { "value": "
15 Inventories
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Inventories
60
58
60
58
Inventories include asset management subscription licences purchased in advance for a specific customer that as yet
haven\u2019t been consumed.
Inventories recognised as an expense in cost of sales during the year amounted to \u00a3nil (28 February 2023: \u00a338,000).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-253": { "value": "
16 Financial assets and financial liabilities
This note provides information about the Group\u2019s financial instruments, including:
\u2022 \u2022 An overview of all financial instruments held by the Group
\u2022 \u2022 Specific information about each type of financial instrument
\u2022 \u2022 Accounting policies
\u2022 \u2022 Information about determining the fair value of the instruments, including judgements and estimation
uncertainty involved.
The Group holds the following financial instruments:
Financial assets Note
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Financial assets at amortised cost:
Trade receivables
17
212,432
178,386
Other receivables
17
7,415
5,896
219,847
184,282
Financial liabilities Note
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Financial liabilities at amortised cost:
Trade and other payables \u2013 current, excluding payroll tax and
other statutory tax liabilities
19
259,661
217,
25 3
Lease liabilities
10
1,737
992
261,398
218,245
The Group\u2019s exposure to various risks associated with the financial instruments is discussed in note 23. The maximum exposure
to credit risk at the end of the reporting period is the carrying amount of each class of financial assets mentioned above.
2 3 Financial risk management This note explains the Group\u2019s exposure to financial risks and how these risks could affect the Group\u2019s future financial performance. Current year consolidated profit or loss and statement of financial position information has been included where relevant to add further context. Management monitors the liquidity and cash flow risk of the Group carefully. Cash flow is monitored by management on a regular basis and any working capital requirement is funded by cash resources or access to the revolving credit facility. The main financial risks arising from the Group\u2019s activities are credit, liquidity and currency risks. The Group\u2019s policy in respect of credit risk is to require appropriate credit checks on potential customers before sales are made. The Group\u2019s approach to credit risk is disclosed in note 17. The Group\u2019s policy in respect of liquidity risk is to maintain readily accessible bank deposit accounts to ensure that the company has sufficient funds for its operations. The cash deposits are held in a mixture of short-term deposits and current accounts which earn interest at a floating rate. The Group\u2019s policy in respect of currency risk, which primarily exists as a result of foreign currency purchases, is to either sell in the currency of purchase, maintain sufficient cash reserves in the appropriate foreign currencies which can be used to meet foreign currency liabilities, or take out forward currency contracts to cover the exposure. 23(a) Derivatives Derivatives are only used for economic hedging purposes and not speculative investments. The Group has taken out forward currency contracts during the periods presented but has not recognised either a forward currency asset or liability at each period end as the fair value of the foreign currency forwards is considered to be immaterial to the consolidated financial statements due to the low volume and short-term nature of the contracts. Similarly, the amounts recognised in profit or loss in relation to derivatives were considered immaterial to disclose separately.
23(b) Foreign exchange risk
The Group\u2019s exposure to foreign currency risk at the end of the reporting period, was as follows:
As at 29 February 2024
As at 28 February 2023
USD EUR NOK USD EUR NOK
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Trade receivables
10,247
2,661
\u2013
13,529
1,900
\u2013
Cash and cash
equivalents
176
1,647
\u2013
250
214
\u2013
Trade payables
(16,640)
(4,253)
(580)
(15,286)
(1,9 81)
(221)
(6,217)
55
(580)
(1,507)
133
(221)
The following table demonstrates the profit before tax sensitivity to a possible change in the currency exchange rates with
GBP, all other variables held constant.
As at 29 February 2024
As at 28 February 2023
GBP:USD GBP:EUR GBP:NOK GBP:USD GBP:EUR GBP:NOK
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
5% increase in rate
296
(3)
28
72
(6)
11
5% decrease in rate
(327)
3
(31)
(79)
7
(12)
The aggregate net foreign exchange gains/losses recognised in profit or loss were:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Total net foreign exchange losses/(gains) in profit or loss
137
(32)
23(c) Liquidity risk
(1) Cash management
Prudent liquidity risk management implies maintaining sufficient cash to meet obligations when due. The Group generates
positive cash flows from operating activities and these fund short-term working capital requirements. The Group aims to
maintain significant cash reserves and none of its cash reserves is subject to restrictions. Access to cash is not restricted and
all cash balances could be drawn on immediately if required. Management monitors the levels of cash deposits carefully and
is comfortable that for normal operating requirements, no further external borrowings are currently required.
At 29 February 2024, the Group had cash and cash equivalents of \u00a388.8 million, see note 18. Management monitors rolling
forecasts of the Group\u2019s liquidity position (which comprises its cash and cash equivalents) on the basis of expected cash flows
generated from the Group\u2019s operations. These forecasts are generally carried out at a local level in the operating companies
of the Group in accordance with practice and limits set by the Group and take into account certain down-case scenarios.
(2) Revolving Credit Facility
On 17 May 2023 the Group entered into a new three-year committed Revolving Credit Facility (RCF) for \u00a330 million including
an optional one-year extension to 17 May 2027, and a non-committed \u00a320 million accordion to increase the availability of
funding should it be required for future activity. The new facility replaced the previous RCF which was entered into in
December 2020 and was set to expire in December 2023 but was cancelled, without penalty, on 17 May 2023, on
commencement of the new RCF. The new facility has incurred an arrangement fee of \u00a30.1 million, being 0.4% of the new
funds available. The Group has so far not drawn down any amount on either the previous or new facility and to the extent that
there is no evidence that it is probable that some or all of the facility will be drawn down, the fees are capitalised as a
prepayment and amortised over the initial three-year period of the facility. The facility also incurs a commitment fee and
utilisation fee, both of which are payable quarterly in arrears. Under the terms of both the previous and new facilities, the
Group is required to comply with the following financial covenants:
\u2022 \u2022 Interest cover: EBITDA (earnings before interest, tax, depreciation and amortisation) to net finance charges for the past
12 months shall be greater than 4.0 times
\u2022 \u2022 Leverage: net debt to EBITDA for the past 12 months must not exceed 2.5 times.
The Group has complied with these covenants throughout the reporting period. As at 29 February 2024, the Group had net
finance income and has therefore complied with the interest cover covenant. The EBITDA to net finance charges in the prior
year was approximately 109 times. The Group has been in a net cash position as at 29 February 2024 and 28 February 2023
and has therefore complied with the Net debt to EBITDA covenant.
(3) Contractual maturity of financial liabilities
The following table details the Group\u2019s remaining contractual maturity for its financial liabilities based on undiscounted
contractual payments:
Total
contractual Carrying
Within 1 year 1 to 2 years 2 to 5 years Over 5 years cash flows amount
29 February 2024
Note
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Trade and other payables
19
259,660
\u2013
\u2013
\u2013
259,660
259,660
Lease liabilities
10
495
495
869
\u2013
1,859
1,737
260,155
495
869
\u2013
261,519
261,397
Tot al
contractual Carrying
Within 1 year 1 to 2 years 2 to 5 years Over 5 years cash flows amount
28 February 2023
Note
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Trade and other payables
19
217, 25 3
\u2013
\u2013
\u2013
217, 2 5 3
217,
25 3
Lease liabilities
10
116
463
545
\u2013
1,124
992
217,369
463
545
\u2013
218,377
218,245
24 Capital management
24(a) Risk management
For the purpose of the Group\u2019s capital management, capital includes issued capital, ordinary shares, share premium and all
other equity reserves attributable to the equity holders of the parent. The primary objective of the Group\u2019s capital
management is to maximise shareholder value.
The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of shareholders. To maintain or adjust the capital structure, the Group may adjust the dividend payment to
shareholders, return capital to shareholders or issue new shares. To ensure an appropriate return for shareholders\u2019 capital
invested in the Group, management thoroughly evaluates all material revenue streams, relationships with key vendors and
potential acquisitions and approves them by the Board, where applicable. The Group\u2019s dividend policy is based on the
profitability of the business and underlying growth in earnings of the Group, as well as its capital requirements and cash
flows. The Group\u2019s dividend policy is to distribute 40% of the Group\u2019s post-tax pre-exceptional earnings to shareholders in
respect of each financial year. Subject to any cash requirements for ongoing investment, the Board will consider returning
excess cash to shareholders over time.
24(b) Dividends
2024
2023
Pence per share
\u00a3\u2019000
Pence per share
\u00a3\u2019000
Interim dividend paid
2 .7 0
6,466
2.40
5,748
Special dividend paid
7.50
17,9 61
6.20
14,848
Final dividend paid
5 .1 0
12,214
4.20
10,058
Total dividends attributable
to ordinary shareholders
15.30
36,641
12.80
30,654
Dividends per share is calculated by dividing the dividend paid by the number of ordinary shares in issue. Dividends are paid
out of available distributable reserves of the company.
The Board has proposed a final ordinary dividend of 6.0 pence and a special dividend of 8.7 pence per share for the
year ended 29 February 2024 to be paid to shareholders on the register as at 19 July 2024. The aggregate of the proposed
dividends expected to be paid on 2 August 2024 is \u00a335.3 million. The proposed dividends per ordinary shares are subject
to approval at the Annual General Meeting and are not recognised as a liability in the consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-309": { "value": "16 Financial assets and financial liabilities This note provides information about the Group\u2019s financial instruments, including: \u2022 \u2022 An overview of all financial instruments held by the Group \u2022 \u2022 Specific information about each type of financial instrument \u2022 \u2022 Accounting policies \u2022 \u2022 Information about determining the fair value of the instruments, including judgements and estimation uncertainty involved. The Group holds the following financial instruments: Financial assets Note
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Financial assets at amortised cost:
Trade receivables
17
212,432
178,386
Other receivables
17
7,415
5,896
219,847
184,282
Financial liabilities Note
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Financial liabilities at amortised cost:
Trade and other payables \u2013 current, excluding payroll tax and
other statutory tax liabilities
19
259,661
217,
25 3
Lease liabilities
10
1,737
992
261,398
218,245
The Group\u2019s exposure to various risks associated with the financial instruments is discussed in note 23. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets mentioned above. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-289": { "value": "16 Financial assets and financial liabilities This note provides information about the Group\u2019s financial instruments, including: \u2022 \u2022 An overview of all financial instruments held by the Group \u2022 \u2022 Specific information about each type of financial instrument \u2022 \u2022 Accounting policies \u2022 \u2022 Information about determining the fair value of the instruments, including judgements and estimation uncertainty involved. The Group holds the following financial instruments: Financial assets Note
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Financial assets at amortised cost:
Trade receivables
17
212,432
178,386
Other receivables
17
7,415
5,896
219,847
184,282
Financial liabilities Note
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Financial liabilities at amortised cost:
Trade and other payables \u2013 current, excluding payroll tax and
other statutory tax liabilities
19
259,661
217,
25 3
Lease liabilities
10
1,737
992
261,398
218,245
The Group\u2019s exposure to various risks associated with the financial instruments is discussed in note 23. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets mentioned above. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-290": { "value": "
17 Trade and other receivables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Financial assets
Gross trade receivables
214,922
179,928
Less: impairment allowance
(2,490)
(1,542)
Net trade receivables
212,432
178,386
Other receivables
7,415
5,896
219,847
184,282
Non-financial assets
Prepayments
1,968
1,638
1,968
1,638
Trade and other receivables
221,815
185,920
(i) Classification of trade receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business.
They are generally due for settlement within 30 days and are therefore all classified as current. Trade receivables are
recognised initially at the amount of consideration that is unconditional, unless they contain significant financing
components, in which case they are recognised at fair value. The Group holds the trade receivables with the objective of
collecting the contractual cash flows, and so it measures them subsequently at amortised cost using the effective interest
method. Details about the Group\u2019s impairment policies are provided in note 1.19.
(ii) Fair values of trade receivables
Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.
(iii) Credit risk
Ageing and impairment analysis (excluding finance lease assets)
29 February 2024
Past due Past due Past due Past due
Current 0 to 30 days 31 to 60 days 61 to 120 days 121 to 365 days Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Expected loss rate
0.07%
0.41%
4.16%
7.62%
80.02%
Gross carrying amount
\u2013 trade receivables
180,289
23,688
4,994
3,744
2,207
214,922
Loss allowance
134
97
208
285
1,766
2,490
28 February 2023
Past due Past due Past due Past due
Current 0 to 30 days 31 to 60 days 61 to 120 days 121 to 365 days Tot al
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Expected loss rate
0.09%
0.55%
6.39%
16.34%
92.68%
Gross carrying amount
\u2013 trade receivables
145,832
25,343
6,760
1,310
683
179,928
Loss allowance
124
139
432
214
633
1,542
The closing loss allowances for trade receivables reconcile to the opening loss allowances as follows:
Trade receivables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Opening loss allowance at 1 March
1,542
750
Increase in loss allowance recognised in profit or loss during the period
1,227
937
Receivables written off during the year as uncollectable
(279)
(145)
Closing loss allowance
2,490
1,542
Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable
expectation of recovery include, among others, the failure of a debtor to engage in a repayment plan with the Group, and a
failure to make contractual payments for a period of greater than 120 days past due.
Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent
recoveries of amounts previously written off are credited against the same line item.
(iv) Other receivables
Other receivables include accrued rebate income.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-324": { "value": "17 Trade and other receivables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Financial assets
Gross trade receivables
214,922
179,928
Less: impairment allowance
(2,490)
(1,542)
Net trade receivables
212,432
178,386
Other receivables
7,415
5,896
219,847
184,282
Non-financial assets
Prepayments
1,968
1,638
1,968
1,638
Trade and other receivables
221,815
185,920
(i) Classification of trade receivables Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 30 days and are therefore all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional, unless they contain significant financing components, in which case they are recognised at fair value. The Group holds the trade receivables with the objective of collecting the contractual cash flows, and so it measures them subsequently at amortised cost using the effective interest method. Details about the Group\u2019s impairment policies are provided in note 1.19. (ii) Fair values of trade receivables Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value. (iii) Credit risk Ageing and impairment analysis (excluding finance lease assets) 29 February 2024
Past due Past due Past due Past due
Current 0 to 30 days 31 to 60 days 61 to 120 days 121 to 365 days Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Expected loss rate
0.07%
0.41%
4.16%
7.62%
80.02%
Gross carrying amount
\u2013 trade receivables
180,289
23,688
4,994
3,744
2,207
214,922
Loss allowance
134
97
208
285
1,766
2,490
28 February 2023
Past due Past due Past due Past due
Current 0 to 30 days 31 to 60 days 61 to 120 days 121 to 365 days Tot al
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Expected loss rate
0.09%
0.55%
6.39%
16.34%
92.68%
Gross carrying amount
\u2013 trade receivables
145,832
25,343
6,760
1,310
683
179,928
Loss allowance
124
139
432
214
633
1,542
The closing loss allowances for trade receivables reconcile to the opening loss allowances as follows: Trade receivables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Opening loss allowance at 1 March
1,542
750
Increase in loss allowance recognised in profit or loss during the period
1,227
937
Receivables written off during the year as uncollectable
(279)
(145)
Closing loss allowance
2,490
1,542
Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a period of greater than 120 days past due. Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. (iv) Other receivables Other receivables include accrued rebate income.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-320": { "value": "17 Trade and other receivables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Financial assets
Gross trade receivables
214,922
179,928
Less: impairment allowance
(2,490)
(1,542)
Net trade receivables
212,432
178,386
Other receivables
7,415
5,896
219,847
184,282
Non-financial assets
Prepayments
1,968
1,638
1,968
1,638
Trade and other receivables
221,815
185,920
(i) Classification of trade receivables Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 30 days and are therefore all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional, unless they contain significant financing components, in which case they are recognised at fair value. The Group holds the trade receivables with the objective of collecting the contractual cash flows, and so it measures them subsequently at amortised cost using the effective interest method. Details about the Group\u2019s impairment policies are provided in note 1.19. (ii) Fair values of trade receivables Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value. (iii) Credit risk Ageing and impairment analysis (excluding finance lease assets) 29 February 2024
Past due Past due Past due Past due
Current 0 to 30 days 31 to 60 days 61 to 120 days 121 to 365 days Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Expected loss rate
0.07%
0.41%
4.16%
7.62%
80.02%
Gross carrying amount
\u2013 trade receivables
180,289
23,688
4,994
3,744
2,207
214,922
Loss allowance
134
97
208
285
1,766
2,490
28 February 2023
Past due Past due Past due Past due
Current 0 to 30 days 31 to 60 days 61 to 120 days 121 to 365 days Tot al
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Expected loss rate
0.09%
0.55%
6.39%
16.34%
92.68%
Gross carrying amount
\u2013 trade receivables
145,832
25,343
6,760
1,310
683
179,928
Loss allowance
124
139
432
214
633
1,542
The closing loss allowances for trade receivables reconcile to the opening loss allowances as follows: Trade receivables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Opening loss allowance at 1 March
1,542
750
Increase in loss allowance recognised in profit or loss during the period
1,227
937
Receivables written off during the year as uncollectable
(279)
(145)
Closing loss allowance
2,490
1,542
Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a period of greater than 120 days past due. Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. (iv) Other receivables Other receivables include accrued rebate income.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-310": { "value": "17 Trade and other receivables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Financial assets
Gross trade receivables
214,922
179,928
Less: impairment allowance
(2,490)
(1,542)
Net trade receivables
212,432
178,386
Other receivables
7,415
5,896
219,847
184,282
Non-financial assets
Prepayments
1,968
1,638
1,968
1,638
Trade and other receivables
221,815
185,920
(i) Classification of trade receivables Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 30 days and are therefore all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional, unless they contain significant financing components, in which case they are recognised at fair value. The Group holds the trade receivables with the objective of collecting the contractual cash flows, and so it measures them subsequently at amortised cost using the effective interest method. Details about the Group\u2019s impairment policies are provided in note 1.19. (ii) Fair values of trade receivables Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value. (iii) Credit risk Ageing and impairment analysis (excluding finance lease assets) 29 February 2024
Past due Past due Past due Past due
Current 0 to 30 days 31 to 60 days 61 to 120 days 121 to 365 days Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Expected loss rate
0.07%
0.41%
4.16%
7.62%
80.02%
Gross carrying amount
\u2013 trade receivables
180,289
23,688
4,994
3,744
2,207
214,922
Loss allowance
134
97
208
285
1,766
2,490
28 February 2023
Past due Past due Past due Past due
Current 0 to 30 days 31 to 60 days 61 to 120 days 121 to 365 days Tot al
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Expected loss rate
0.09%
0.55%
6.39%
16.34%
92.68%
Gross carrying amount
\u2013 trade receivables
145,832
25,343
6,760
1,310
683
179,928
Loss allowance
124
139
432
214
633
1,542
The closing loss allowances for trade receivables reconcile to the opening loss allowances as follows: Trade receivables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Opening loss allowance at 1 March
1,542
750
Increase in loss allowance recognised in profit or loss during the period
1,227
937
Receivables written off during the year as uncollectable
(279)
(145)
Closing loss allowance
2,490
1,542
Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a period of greater than 120 days past due. Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. (iv) Other receivables Other receivables include accrued rebate income.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-254": { "value": "17 Trade and other receivables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Financial assets
Gross trade receivables
214,922
179,928
Less: impairment allowance
(2,490)
(1,542)
Net trade receivables
212,432
178,386
Other receivables
7,415
5,896
219,847
184,282
Non-financial assets
Prepayments
1,968
1,638
1,968
1,638
Trade and other receivables
221,815
185,920
(i) Classification of trade receivables Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 30 days and are therefore all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional, unless they contain significant financing components, in which case they are recognised at fair value. The Group holds the trade receivables with the objective of collecting the contractual cash flows, and so it measures them subsequently at amortised cost using the effective interest method. Details about the Group\u2019s impairment policies are provided in note 1.19. (ii) Fair values of trade receivables Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value. (iii) Credit risk Ageing and impairment analysis (excluding finance lease assets) 29 February 2024
Past due Past due Past due Past due
Current 0 to 30 days 31 to 60 days 61 to 120 days 121 to 365 days Total
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Expected loss rate
0.07%
0.41%
4.16%
7.62%
80.02%
Gross carrying amount
\u2013 trade receivables
180,289
23,688
4,994
3,744
2,207
214,922
Loss allowance
134
97
208
285
1,766
2,490
28 February 2023
Past due Past due Past due Past due
Current 0 to 30 days 31 to 60 days 61 to 120 days 121 to 365 days Tot al
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Expected loss rate
0.09%
0.55%
6.39%
16.34%
92.68%
Gross carrying amount
\u2013 trade receivables
145,832
25,343
6,760
1,310
683
179,928
Loss allowance
124
139
432
214
633
1,542
The closing loss allowances for trade receivables reconcile to the opening loss allowances as follows: Trade receivables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Opening loss allowance at 1 March
1,542
750
Increase in loss allowance recognised in profit or loss during the period
1,227
937
Receivables written off during the year as uncollectable
(279)
(145)
Closing loss allowance
2,490
1,542
Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a period of greater than 120 days past due. Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. (iv) Other receivables Other receivables include accrued rebate income", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-256": { "value": "
18 Cash and cash equivalents
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Cash at bank and in hand
88,836
73,019
88,836
73,019
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-292": { "value": "18 Cash and cash equivalents
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Cash at bank and in hand
88,836
73,019
88,836
73,019
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndBankBalancesAtCentralBanksExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-291": { "value": "
19 Trade and other payables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Trade and other payables
168,777
138,307
Accrued expenses
90,884
78,946
Payroll tax and other statutory liabilities
18,256
14,464
27 7,917
231,717
Trade payables are unsecured and are usually paid within 45 days of recognition. Accrued expenses includes accruals for
purchase invoices not received and other accrued costs such as bonuses and commissions payable at year end, and costs
in relation to the investigation around undisclosed share dealings as set out on pages 69 and 70.
The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-255": { "value": "19 Trade and other payables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Trade and other payables
168,777
138,307
Accrued expenses
90,884
78,946
Payroll tax and other statutory liabilities
18,256
14,464
27 7,917
231,717
Trade payables are unsecured and are usually paid within 45 days of recognition. Accrued expenses includes accruals for purchase invoices not received and other accrued costs such as bonuses and commissions payable at year end, and costs in relation to the investigation around undisclosed share dealings as set out on pages 69 and 70. The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature.", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-311": { "value": "19 Trade and other payables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Trade and other payables
168,777
138,307
Accrued expenses
90,884
78,946
Payroll tax and other statutory liabilities
18,256
14,464
27 7,917
231,717
Trade payables are unsecured and are usually paid within 45 days of recognition. Accrued expenses includes accruals for purchase invoices not received and other accrued costs such as bonuses and commissions payable at year end, and costs in relation to the investigation around undisclosed share dealings as set out on pages 69 and 70. The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-321": { "value": "19 Trade and other payables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Trade and other payables
168,777
138,307
Accrued expenses
90,884
78,946
Payroll tax and other statutory liabilities
18,256
14,464
27 7,917
231,717
Trade payables are unsecured and are usually paid within 45 days of recognition. Accrued expenses includes accruals for purchase invoices not received and other accrued costs such as bonuses and commissions payable at year end, and costs in relation to the investigation around undisclosed share dealings as set out on pages 69 and 70. The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-325": { "value": "19 Trade and other payables
As at As at
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Trade and other payables
168,777
138,307
Accrued expenses
90,884
78,946
Payroll tax and other statutory liabilities
18,256
14,464
27 7,917
231,717
Trade payables are unsecured and are usually paid within 45 days of recognition. Accrued expenses includes accruals for purchase invoices not received and other accrued costs such as bonuses and commissions payable at year end, and costs in relation to the investigation around undisclosed share dealings as set out on pages 69 and 70. The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-293": { "value": "
20 Share capital and share premium
Allotted, called up and fully paid
Number of Nominal value Share premium Total
shares \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
At 1 March 2022 and 28 February 2023
1
239,482,333
2,395
633,636
636,031
Shares issued during the year
874,565
9
14
23
At 29 February 2024
240,356,898
2,404
633,650
636,054
2, 3
1 Shares issued during the prior year
During the prior year no new ordinary shares were issued by the company.
2 Ordinary shares
Ordinary shares have a nominal value of \u00a30.01. All ordinary shares in issue rank pari passu and carry the same voting rights and entitlement to receive dividends and other
distributions declared or paid by the Group. The company does not have a limited amount of authorised share capital.
3 Share options
Information related to the company\u2019s share option schemes, including options issued during the financial year and options outstanding at the end of the reporting period
is set out in note 27.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-257": { "value": "20 Share capital and share premium Allotted, called up and fully paid
Number of Nominal value Share premium Total
shares \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
At 1 March 2022 and 28 February 2023
1
239,482,333
2,395
633,636
636,031
Shares issued during the year
874,565
9
14
23
At 29 February 2024
240,356,898
2,404
633,650
636,054
2, 3 1 Shares issued during the prior year During the prior year no new ordinary shares were issued by the company. 2 Ordinary shares Ordinary shares have a nominal value of \u00a30.01. All ordinary shares in issue rank pari passu and carry the same voting rights and entitlement to receive dividends and other distributions declared or paid by the Group. The company does not have a limited amount of authorised share capital. 3 Share options Information related to the company\u2019s share option schemes, including options issued during the financial year and options outstanding at the end of the reporting period is set out in note 27. 21 Merger reserve
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Balance at 1 March 2022, 28 February 2023 and 29 February 2024
(644,375)
(644,375)
(644,375)
(644,375)
The merger reserve of \u00a3644.4 million arose in December 2019, on the date that the Group demerged from its previous parent company. This is an accounting reserve in equity representing the difference between the total nominal value of the issued share capital acquired in Bytes Technology Limited of \u00a31.10 and the total consideration given of \u00a3644.4 million.", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-294": { "value": "
21 Merger reserve
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Balance at 1 March 2022, 28 February 2023 and 29 February 2024
(644,375)
(644,375)
(644,375)
(644,375)
The merger reserve of \u00a3644.4 million arose in December 2019, on the date that the Group demerged from its previous parent
company. This is an accounting reserve in equity representing the difference between the total nominal value of the issued
share capital acquired in Bytes Technology Limited of \u00a31.10 and the total consideration given of \u00a3644.4 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-258": { "value": "
22 Cash generated from operations
Note
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Profit before taxation
61,596
50,392
Adjustments for:
Depreciation and amortisation
4
2,379
2,480
Loss on disposal of property, plant and equipment
4
\u2013
3
Non-cash employee benefits expense \u2013 share-based payments
4
5,708
4 ,188
Share of profit of associate
(166)
\u2013
Finance income
7
(5,111)
\u2013
Finance costs
7
393
491
Increase in contract assets
(3,364)
(4,365)
Increase in trade and other receivables
(35,895)
(28,310)
(Increase)/decrease in inventories
(2)
38
Increase in trade and other payables
46,200
14,105
(Decrease)/increase in contract liabilities
(4,405)
9,867
Cash generated from operations
67,333
48,889
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-295": { "value": "3 Financial risk management This note explains the Group\u2019s exposure to financial risks and how these risks could affect the Group\u2019s future financial performance. Current year consolidated profit or loss and statement of financial position information has been included where relevant to add further context. Management monitors the liquidity and cash flow risk of the Group carefully. Cash flow is monitored by management on a regular basis and any working capital requirement is funded by cash resources or access to the revolving credit facility. The main financial risks arising from the Group\u2019s activities are credit, liquidity and currency risks. The Group\u2019s policy in respect of credit risk is to require appropriate credit checks on potential customers before sales are made. The Group\u2019s approach to credit risk is disclosed in note 17. The Group\u2019s policy in respect of liquidity risk is to maintain readily accessible bank deposit accounts to ensure that the company has sufficient funds for its operations. The cash deposits are held in a mixture of short-term deposits and current accounts which earn interest at a floating rate. The Group\u2019s policy in respect of currency risk, which primarily exists as a result of foreign currency purchases, is to either sell in the currency of purchase, maintain sufficient cash reserves in the appropriate foreign currencies which can be used to meet foreign currency liabilities, or take out forward currency contracts to cover the exposure. 23(a) Derivatives Derivatives are only used for economic hedging purposes and not speculative investments. The Group has taken out forward currency contracts during the periods presented but has not recognised either a forward currency asset or liability at each period end as the fair value of the foreign currency forwards is considered to be immaterial to the consolidated financial statements due to the low volume and short-term nature of the contracts. Similarly, the amounts recognised in profit or loss in relation to derivatives were considered immaterial to disclose separately. 23(b) Foreign exchange risk The Group\u2019s exposure to foreign currency risk at the end of the reporting period, was as follows:
As at 29 February 2024
As at 28 February 2023
USD EUR NOK USD EUR NOK
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Trade receivables
10,247
2,661
\u2013
13,529
1,900
\u2013
Cash and cash
equivalents
176
1,647
\u2013
250
214
\u2013
Trade payables
(16,640)
(4,253)
(580)
(15,286)
(1,9 81)
(221)
(6,217)
55
(580)
(1,507)
133
(221)
The following table demonstrates the profit before tax sensitivity to a possible change in the currency exchange rates with GBP, all other variables held constant.
As at 29 February 2024
As at 28 February 2023
GBP:USD GBP:EUR GBP:NOK GBP:USD GBP:EUR GBP:NOK
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
5% increase in rate
296
(3)
28
72
(6)
11
5% decrease in rate
(327)
3
(31)
(79)
7
(12)
The aggregate net foreign exchange gains/losses recognised in profit or loss were:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Total net foreign exchange losses/(gains) in profit or loss
137
(32)
23(c) Liquidity risk (1) Cash management Prudent liquidity risk management implies maintaining sufficient cash to meet obligations when due. The Group generates positive cash flows from operating activities and these fund short-term working capital requirements. The Group aims to maintain significant cash reserves and none of its cash reserves is subject to restrictions. Access to cash is not restricted and all cash balances could be drawn on immediately if required. Management monitors the levels of cash deposits carefully and is comfortable that for normal operating requirements, no further external borrowings are currently required. At 29 February 2024, the Group had cash and cash equivalents of \u00a388.8 million, see note 18. Management monitors rolling forecasts of the Group\u2019s liquidity position (which comprises its cash and cash equivalents) on the basis of expected cash flows generated from the Group\u2019s operations. These forecasts are generally carried out at a local level in the operating companies of the Group in accordance with practice and limits set by the Group and take into account certain down-case scenarios. (2) Revolving Credit Facility On 17 May 2023 the Group entered into a new three-year committed Revolving Credit Facility (RCF) for \u00a330 million including an optional one-year extension to 17 May 2027, and a non-committed \u00a320 million accordion to increase the availability of funding should it be required for future activity. The new facility replaced the previous RCF which was entered into in December 2020 and was set to expire in December 2023 but was cancelled, without penalty, on 17 May 2023, on commencement of the new RCF. The new facility has incurred an arrangement fee of \u00a30.1 million, being 0.4% of the new funds available. The Group has so far not drawn down any amount on either the previous or new facility and to the extent that there is no evidence that it is probable that some or all of the facility will be drawn down, the fees are capitalised as a prepayment and amortised over the initial three-year period of the facility. The facility also incurs a commitment fee and utilisation fee, both of which are payable quarterly in arrears. Under the terms of both the previous and new facilities, the Group is required to comply with the following financial covenants: \u2022 \u2022 Interest cover: EBITDA (earnings before interest, tax, depreciation and amortisation) to net finance charges for the past 12 months shall be greater than 4.0 times \u2022 \u2022 Leverage: net debt to EBITDA for the past 12 months must not exceed 2.5 times. The Group has complied with these covenants throughout the reporting period. As at 29 February 2024, the Group had net finance income and has therefore complied with the interest cover covenant. The EBITDA to net finance charges in the prior year was approximately 109 times. The Group has been in a net cash position as at 29 February 2024 and 28 February 2023 and has therefore complied with the Net debt to EBITDA covenant. (3) Contractual maturity of financial liabilities The following table details the Group\u2019s remaining contractual maturity for its financial liabilities based on undiscounted contractual payments:
Total
contractual Carrying
Within 1 year 1 to 2 years 2 to 5 years Over 5 years cash flows amount
29 February 2024
Note
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Trade and other payables
19
259,660
\u2013
\u2013
\u2013
259,660
259,660
Lease liabilities
10
495
495
869
\u2013
1,859
1,737
260,155
495
869
\u2013
261,519
261,397
Tot al
contractual Carrying
Within 1 year 1 to 2 years 2 to 5 years Over 5 years cash flows amount
28 February 2023
Note
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Trade and other payables
19
217, 25 3
\u2013
\u2013
\u2013
217, 2 5 3
217,
25 3
Lease liabilities
10
116
463
545
\u2013
1,124
992
217,369
463
545
\u2013
218,377
218,245
24 Capital management 24(a) Risk management For the purpose of the Group\u2019s capital management, capital includes issued capital, ordinary shares, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Group\u2019s capital management is to maximise shareholder value. The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of shareholders. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. To ensure an appropriate return for shareholders\u2019 capital invested in the Group, management thoroughly evaluates all material revenue streams, relationships with key vendors and potential acquisitions and approves them by the Board, where applicable. The Group\u2019s dividend policy is based on the profitability of the business and underlying growth in earnings of the Group, as well as its capital requirements and cash flows. The Group\u2019s dividend policy is to distribute 40% of the Group\u2019s post-tax pre-exceptional earnings to shareholders in respect of each financial year. Subject to any cash requirements for ongoing investment, the Board will consider returning excess cash to shareholders over time. 24(b) Dividends
2024
2023
Pence per share
\u00a3\u2019000
Pence per share
\u00a3\u2019000
Interim dividend paid
2 .7 0
6,466
2.40
5,748
Special dividend paid
7.50
17,9 61
6.20
14,848
Final dividend paid
5 .1 0
12,214
4.20
10,058
Total dividends attributable
to ordinary shareholders
15.30
36,641
12.80
30,654
Dividends per share is calculated by dividing the dividend paid by the number of ordinary shares in issue. Dividends are paid out of available distributable reserves of the company. The Board has proposed a final ordinary dividend of 6.0 pence and a special dividend of 8.7 pence per share for the year ended 29 February 2024 to be paid to shareholders on the register as at 19 July 2024. The aggregate of the proposed dividends expected to be paid on 2 August 2024 is \u00a335.3 million. The proposed dividends per ordinary shares are subject to approval at the Annual General Meeting and are not recognised as a liability in the consolidated financial statements.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-312": { "value": "
23(a) Derivatives
Derivatives are only used for economic hedging purposes and not speculative investments.
The Group has taken out forward currency contracts during the periods presented but has not recognised either a forward
currency asset or liability at each period end as the fair value of the foreign currency forwards is considered to be immaterial
to the consolidated financial statements due to the low volume and short-term nature of the contracts. Similarly, the amounts
recognised in profit or loss in relation to derivatives were considered immaterial to disclose separately.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-313": { "value": "23(b) Foreign exchange risk The Group\u2019s exposure to foreign currency risk at the end of the reporting period, was as follows:
As at 29 February 2024
As at 28 February 2023
USD EUR NOK USD EUR NOK
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Trade receivables
10,247
2,661
\u2013
13,529
1,900
\u2013
Cash and cash
equivalents
176
1,647
\u2013
250
214
\u2013
Trade payables
(16,640)
(4,253)
(580)
(15,286)
(1,9 81)
(221)
(6,217)
55
(580)
(1,507)
133
(221)
The following table demonstrates the profit before tax sensitivity to a possible change in the currency exchange rates with GBP, all other variables held constant.
As at 29 February 2024
As at 28 February 2023
GBP:USD GBP:EUR GBP:NOK GBP:USD GBP:EUR GBP:NOK
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
5% increase in rate
296
(3)
28
72
(6)
11
5% decrease in rate
(327)
3
(31)
(79)
7
(12)
The aggregate net foreign exchange gains/losses recognised in profit or loss were:
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Total net foreign exchange losses/(gains) in profit or loss
137
(32)
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-314": { "value": "23(c) Liquidity risk (1) Cash management Prudent liquidity risk management implies maintaining sufficient cash to meet obligations when due. The Group generates positive cash flows from operating activities and these fund short-term working capital requirements. The Group aims to maintain significant cash reserves and none of its cash reserves is subject to restrictions. Access to cash is not restricted and all cash balances could be drawn on immediately if required. Management monitors the levels of cash deposits carefully and is comfortable that for normal operating requirements, no further external borrowings are currently required. At 29 February 2024, the Group had cash and cash equivalents of \u00a388.8 million, see note 18. Management monitors rolling forecasts of the Group\u2019s liquidity position (which comprises its cash and cash equivalents) on the basis of expected cash flows generated from the Group\u2019s operations. These forecasts are generally carried out at a local level in the operating companies of the Group in accordance with practice and limits set by the Group and take into account certain down-case scenarios. (2) Revolving Credit Facility On 17 May 2023 the Group entered into a new three-year committed Revolving Credit Facility (RCF) for \u00a330 million including an optional one-year extension to 17 May 2027, and a non-committed \u00a320 million accordion to increase the availability of funding should it be required for future activity. The new facility replaced the previous RCF which was entered into in December 2020 and was set to expire in December 2023 but was cancelled, without penalty, on 17 May 2023, on commencement of the new RCF. The new facility has incurred an arrangement fee of \u00a30.1 million, being 0.4% of the new funds available. The Group has so far not drawn down any amount on either the previous or new facility and to the extent that there is no evidence that it is probable that some or all of the facility will be drawn down, the fees are capitalised as a prepayment and amortised over the initial three-year period of the facility. The facility also incurs a commitment fee and utilisation fee, both of which are payable quarterly in arrears. Under the terms of both the previous and new facilities, the Group is required to comply with the following financial covenants: \u2022 \u2022 Interest cover: EBITDA (earnings before interest, tax, depreciation and amortisation) to net finance charges for the past 12 months shall be greater than 4.0 times \u2022 \u2022 Leverage: net debt to EBITDA for the past 12 months must not exceed 2.5 times. The Group has complied with these covenants throughout the reporting period. As at 29 February 2024, the Group had net finance income and has therefore complied with the interest cover covenant. The EBITDA to net finance charges in the prior year was approximately 109 times. The Group has been in a net cash position as at 29 February 2024 and 28 February 2023 and has therefore complied with the Net debt to EBITDA covenant. (3) Contractual maturity of financial liabilities The following table details the Group\u2019s remaining contractual maturity for its financial liabilities based on undiscounted contractual payments:
Total
contractual Carrying
Within 1 year 1 to 2 years 2 to 5 years Over 5 years cash flows amount
29 February 2024
Note
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Trade and other payables
19
259,660
\u2013
\u2013
\u2013
259,660
259,660
Lease liabilities
10
495
495
869
\u2013
1,859
1,737
260,155
495
869
\u2013
261,519
261,397
Tot al
contractual Carrying
Within 1 year 1 to 2 years 2 to 5 years Over 5 years cash flows amount
28 February 2023
Note
\u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000 \u00a3\u2019000
Trade and other payables
19
217, 25 3
\u2013
\u2013
\u2013
217, 2 5 3
217,
25 3
Lease liabilities
10
116
463
545
\u2013
1,124
992
217,369
463
545
\u2013
218,377
218,245
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-315": { "value": "24 Capital management 24(a) Risk management For the purpose of the Group\u2019s capital management, capital includes issued capital, ordinary shares, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Group\u2019s capital management is to maximise shareholder value. The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of shareholders. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. To ensure an appropriate return for shareholders\u2019 capital invested in the Group, management thoroughly evaluates all material revenue streams, relationships with key vendors and potential acquisitions and approves them by the Board, where applicable. The Group\u2019s dividend policy is based on the profitability of the business and underlying growth in earnings of the Group, as well as its capital requirements and cash flows. The Group\u2019s dividend policy is to distribute 40% of the Group\u2019s post-tax pre-exceptional earnings to shareholders in respect of each financial year. Subject to any cash requirements for ongoing investment, the Board will consider returning excess cash to shareholders over time. 24(b) Dividends
2024
2023
Pence per share
\u00a3\u2019000
Pence per share
\u00a3\u2019000
Interim dividend paid
2 .7 0
6,466
2.40
5,748
Special dividend paid
7.50
17,9 61
6.20
14,848
Final dividend paid
5 .1 0
12,214
4.20
10,058
Total dividends attributable
to ordinary shareholders
15.30
36,641
12.80
30,654
Dividends per share is calculated by dividing the dividend paid by the number of ordinary shares in issue. Dividends are paid out of available distributable reserves of the company. The Board has proposed a final ordinary dividend of 6.0 pence and a special dividend of 8.7 pence per share for the year ended 29 February 2024 to be paid to shareholders on the register as at 19 July 2024. The aggregate of the proposed dividends expected to be paid on 2 August 2024 is \u00a335.3 million. The proposed dividends per ordinary shares are subject to approval at the Annual General Meeting and are not recognised as a liability in the consolidated financial statements.", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-322": { "value": "24(b) Dividends
2024
2023
Pence per share
\u00a3\u2019000
Pence per share
\u00a3\u2019000
Interim dividend paid
2 .7 0
6,466
2.40
5,748
Special dividend paid
7.50
17,9 61
6.20
14,848
Final dividend paid
5 .1 0
12,214
4.20
10,058
Total dividends attributable
to ordinary shareholders
15.30
36,641
12.80
30,654
Dividends per share is calculated by dividing the dividend paid by the number of ordinary shares in issue. Dividends are paid out of available distributable reserves of the company. The Board has proposed a final ordinary dividend of 6.0 pence and a special dividend of 8.7 pence per share for the year ended 29 February 2024 to be paid to shareholders on the register as at 19 July 2024. The aggregate of the proposed dividends expected to be paid on 2 August 2024 is \u00a335.3 million. The proposed dividends per ordinary shares are subject to approval at the Annual General Meeting and are not recognised as a liability in the consolidated financial statements.", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-327": { "value": "0.027", "decimals": 4, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00", "unit": "iso4217:GBP/xbrli:shares" } }, "fact-326": { "value": "0.051", "decimals": 4, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00", "unit": "iso4217:GBP/xbrli:shares" } }, "fact-296": { "value": "25 Capital commitments At 29 February 2024, the Group had \u00a3Nil capital commitments (28 February 2023: \u00a3Nil) ", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-259": { "value": "25 Capital commitments At 29 February 2024, the Group had \u00a3Nil capital commitments (28 February 2023: \u00a3Nil) .", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-260": { "value": "
26 Related-party transactions
In the ordinary course of business, the Group carries out transactions with related parties, as defined by IAS 24 Related Party
Disclosures. Apart from those disclosed elsewhere in the consolidated financial statements, material transactions for the
year are set out below:
26(a) Transactions with key management personnel
Key management personnel are defined as the directors (both executive and non-executive) of Bytes Technology Group plc,
Bytes Software Services Limited and Phoenix Software Limited. Details of the compensation paid to the directors of Bytes
Technology Group plc as well as their shareholdings in the Group are disclosed in the remuneration report.
Compensation of key management personnel of the Group
The remuneration of key management personnel, which consists of persons who have been deemed to be discharging
managerial responsibilities, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Short-term employee benefits
3,653
4,15
8
Post-employment pension benefits
97
92
Total compensation paid to key management
3,750
4,250
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key
management personnel including executive directors.
Key management personnel received a total of 170,360 share option awards (2023: 565,782) at a weighted average exercise
price of \u00a30.04 (2023: \u00a31.33).
Share-based payment charges include \u00a31,257,326 (2023: \u00a31,006,423) in respect of key management personnel, refer to
note 27 for details on the Group\u2019s share-based payment incentive schemes.
26(b) Subsidiaries and associates
Interests in subsidiaries are set out in note 29 and the investment in associate is set out in note 12.
26(c) Outstanding balances arising from sales/purchases of services
Group companies made purchases from the associate of \u00a33.1 million during the year with a trade payable balance of
\u00a30.5 million at year end.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-297": { "value": "26 Related-party transactions In the ordinary course of business, the Group carries out transactions with related parties, as defined by IAS 24 Related Party Disclosures. Apart from those disclosed elsewhere in the consolidated financial statements, material transactions for the year are set out below: 26(a) Transactions with key management personnel Key management personnel are defined as the directors (both executive and non-executive) of Bytes Technology Group plc, Bytes Software Services Limited and Phoenix Software Limited. Details of the compensation paid to the directors of Bytes Technology Group plc as well as their shareholdings in the Group are disclosed in the remuneration report. Compensation of key management personnel of the Group The remuneration of key management personnel, which consists of persons who have been deemed to be discharging managerial responsibilities, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Short-term employee benefits
3,653
4,15
8
Post-employment pension benefits
97
92
Total compensation paid to key management
3,750
4,250
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key management personnel including executive directors. Key management personnel received a total of 170,360 share option awards (2023: 565,782) at a weighted average exercise price of \u00a30.04 (2023: \u00a31.33). Share-based payment charges include \u00a31,257,326 (2023: \u00a31,006,423) in respect of key management personnel, refer to note 27 for details on the Group\u2019s share-based payment incentive schemes. 26(b) Subsidiaries and associates Interests in subsidiaries are set out in note 29 and the investment in associate is set out in note 12. 26(c) Outstanding balances arising from sales/purchases of services Group companies made purchases from the associate of \u00a33.1 million during the year with a trade payable balance of \u00a30.5 million at year end.", "dimensions": { "concept": "ifrs-full:DisclosureOfTransactionsBetweenRelatedPartiesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-316": { "value": "26(a) Transactions with key management personnel Key management personnel are defined as the directors (both executive and non-executive) of Bytes Technology Group plc, Bytes Software Services Limited and Phoenix Software Limited. Details of the compensation paid to the directors of Bytes Technology Group plc as well as their shareholdings in the Group are disclosed in the remuneration report. Compensation of key management personnel of the Group The remuneration of key management personnel, which consists of persons who have been deemed to be discharging managerial responsibilities, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Short-term employee benefits
3,653
4,15
8
Post-employment pension benefits
97
92
Total compensation paid to key management
3,750
4,250
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key management personnel including executive directors. Key management personnel received a total of 170,360 share option awards (2023: 565,782) at a weighted average exercise price of \u00a30.04 (2023: \u00a31.33). Share-based payment charges include \u00a31,257,326 (2023: \u00a31,006,423) in respect of key management personnel, refer to note 27 for details on the Group\u2019s share-based payment incentive schemes. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-261": { "value": "
27 Share-based payments
The Group accounts for its share option awards as equity-settled share-based payments. The fair value of the awards granted is
recognised as an expense over the vesting period. The amount recognised in the share-based payment reserve will be reversed to
retained earnings as and when the related awards vest and are exercised by employees. As noted in the prior year Annual Report
one-third of the annual bonus for the financial year ended 29 February 2024 awarded to each of the Company\u2019s executive directors is
deferred in shares for two years. This deferral has resulted in the granting of the awards under the Deferred Bonus Plan during the year.
Performance Incentive Share Plan
Options granted under the Performance Incentive Share Plan (PISP) are for shares in Bytes Technology Group plc. The exercise price
of the options is a nominal amount of \u00a30.01. Performance conditions attached to the awards granted in the current year are employee
specific, in addition to which, options will only vest if certain employment conditions are met. The fair value of the share options is
estimated at the grant date using a Monte Carlo option pricing model for the element with market conditions and Black-Scholes
option-pricing model for non-market conditions. The normal vesting date shall be no earlier than the third anniversary of the grant
date and not later than the day before the tenth anniversary of the grant date. There is no cash settlement of the options available
under the scheme. During the year the Group granted 1,195,700 (2023: 552,480) options. For the year ended 29 February 2024,
298,561 (2023: 30,589) options were forfeited, 819,416 options were exercised (2023: nil) and no options expired.
Company Share Option Plan
Options granted under the Company Share Option Plan (CSOP) are for shares in Bytes Technology Group plc. The exercise price of
the options granted in the current year was determined by the average of the last three dealing days prior to the date of grant. There
are no performance conditions attached to the awards, but options will only vest if certain employment conditions are met. The fair
value at grant date is estimated at the grant date using a Black-Scholes option-pricing model. The normal vesting date shall be no
earlier than the third anniversary of the grant date and not later than the day before the tenth anniversary of the grant date. There is
no cash settlement of the options available under the scheme. During the year the Group granted no (2023: 2,904,100) options.
For the year ended 29 February 2024, 176,600 (2023: 127,400) options were forfeited, and no options were exercised or expired.
Save as You Earn Scheme
Share options were granted to eligible employees under the Save As You Earn Scheme (SAYE) during the year. Under the SAYE
scheme, employees enter a three-year savings contract in which they save a fixed amount each month in return for their SAYE
options. At the end of the three-year period, employees can either exercise their options in exchange for shares in Bytes Technology
Group plc or have their savings returned to them in full. The exercise price of the options represents a 20% discount to the exercise
price of the CSOP awards. The fair value at grant date is estimated using a Black-Scholes option-pricing model. There is no cash
settlement of the options. During the year the Group granted 337,890 (2023: 722,863) options. For the year ended 29 February
2024, 213,832 (2023: 523,974) options were forfeited, 3,625 (2023: nil) options were exercised and no options expired.
Deferred Bonus Plan
Options granted under the Deferred Bonus Plan (DBP) are for shares in Bytes Technology Group plc. The exercise price of
the options is a nominal amount of \u00a30.01. There are no performance conditions attached to the awards, but options will only
vest if certain employment conditions are met. The fair value at grant date is estimated at the grant date using a Black-
Scholes option-pricing model. The normal vesting date shall be no earlier than the second anniversary of the grant date.
During the year the Group granted 45,365 (2023: 35,842) options. For the year ended 29 February 2024, 50,526 (2023: nil)
options were forfeited and no options were exercised or expired.
Share-based payment employee expenses
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Equity settled share-based payment expenses
5,708
4,18
8
There were no cancellations or modifications to the awards in 2024 or 2023.
Movements during the year
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options
during the year:
29 February 29 February 28 February 28 February
2024 2024 2023 2023
Number WAEP Number WAEP
Outstanding at 1 March
8,760,684
\u00a33.59
5 , 2 2 7,3 62
\u00a33.43
Granted during the year
1,666,660
\u00a30.80
4,215,285
\u00a33.84
Forfeited during the year
(739,519)
\u00a32.28
(681,963)
\u00a33.98
Exercised during the year
(874,565)
\u00a30.03
\u2013
\u2013
Outstanding at 29 February
8,813,260
\u00a33.52
8,760,684
\u00a33.59
Exercisable at 29 February
609,272
\u00a30.01
\u2013
\u2013
1
1 The weighted average share price at date of exercise was \u00a35.85.
The weighted average expected remaining contractual life for the share options outstanding at 29 February 2024 was 2.2
years (2023: 2.9 years).
The weighted average fair value of options granted during the year was \u00a34.21 (2023: \u00a31.63).
The range of exercise prices for options outstanding at the end of the year was \u00a30.01 to \u00a35.00 (2023: \u00a30.01 to \u00a35.00).
The tables below list the inputs to the models used for the awards granted under the below plans for the years ended
29 February 2024 and 28 February 2023:
Assumptions
29 February 29 February 29 February
2024 2024 2024
PISP SAYE DBP
Weighted average fair value at measurement date
\u00a34.86
\u00a31.79
\u00a35.15
Expected dividend yield
1.53%
1.53%
0.00%
Expected volatility
31%
30%
30%
Risk-free interest rate
4.29%
4.79%
4.44%
Expected life of options
3 years
3 years
2 years
Weighted average share price
\u00a35.16
\u00a35.11
\u00a35.16
Model used
Black-Scholes
Black-Scholes
Black-Scholes
and Monte Carlo
Assumptions
28 February 28 February 28 February 28 February
2023 2023 2023 2023
PISP CSOP SAYE DBP
Weighted average fair value at measurement date
\u00a34.06
\u00a31.20
\u00a31.38
\u00a34.52
Expected dividend yield
1.52%
1.52%
1.54%
0.00%
Expected volatility
37%
34%
37%
35%
Risk-free interest rate
1.59%
1.72%
1.59%
1.53%
Expected life of options
3 years
5 years
3 years
2 years
Weighted average share price
\u00a34.53
\u00a34.53
\u00a34.48
\u00a34.53
Model used
Black-Scholes
Black-Scholes
Black-Scholes
Black-Scholes
and Monte Carlo
The expected life of the options is based on current expectations and is not necessarily indicative of exercise patterns that
may occur. The expected volatility reflects the assumption that the historical volatility of the company and publicly quoted
companies in a similar sector to the company over a period similar to the life of the options is indicative of future trends, which
may not necessarily be the actual outcome.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-262": { "value": "
28 Earnings per share
The Group calculates earnings per share (EPS) on several different bases in accordance with IFRS and prevailing South
Africa requirements.
Year ended Year ended
29 February 28 February
2024 2023
pence pence
Basic earnings per share
19.55
16.88
Diluted earnings per share
18.85
16.28
Headline earnings per share
19.55
16.88
Diluted headline earnings per share
18.85
16.28
Adjusted earnings per share
21.78
18.83
Diluted adjusted earnings per share
21.01
18.16
28(a) Weighted average number of shares used as the denominator
Year ended Year ended
29 February 28 February
2024 2023
Number Number
Weighted average number of ordinary shares used as the denominator
in calculating basic earnings per share and headline earnings per share
239,693,670
239,482,333
Adjustments for calculation of diluted earnings per share and diluted
headline earnings per share:
\u0583
share options
1
8,813,260
8,760,684
Weighted average number of ordinary shares and potential ordinary shares
used as the denominator in calculating diluted earnings per share and
diluted headline earnings per share
248,506,930
248,243,017
1 Share options
Share options granted to employees under the Save As You Earn Scheme, Company Share Option Plan and Bytes Technology Group plc performance incentive share
plan are considered to be potential ordinary shares. They have been included in the determination of diluted earnings per share on the basis that all employees are
employed at the reporting date, and to the extent that they are dilutive. The options have not been included in the determination of basic earnings per share. Details
relating to the share options are disclosed in note 27.
28(b) Headline earnings per share
The Group is required to calculate headline earnings per share (HEPS) in accordance with the JSE Listing Requirements. The
table below reconciles the profits attributable to ordinary shareholders to headline earnings and summarises the calculation
of basic and diluted HEPS:
Note
Year ended Year ended
29 February 28 February
2024 2023
pence pence
Profit for the period attributable to owners of the company
46,851
40,421
Adjusted for:
Loss on disposal of property, plant and equipment
4
\u2013
3
Tax effect thereon
\u2013
(1)
Headline profits attributable to owners of the company
46,851
40,423
28(c) Adjusted earnings per share
Adjusted earnings per share is a Group key alternative performance measure which is consistent with the way that financial
performance is measured by senior management of the Group. It is calculated by dividing the adjusted operating profit
attributable to ordinary shareholders by the total number of ordinary shares in issue at the end of the year. Adjusted operating
profit is calculated to reflect the underlying long-term performance of the Group by excluding the impact of the following items:
\u2022 \u2022 Share-based payment charges
\u2022 \u2022 Acquired intangible assets amortisation.
The table below reconciles the profit for the financial year to adjusted earnings and summarises the calculation of adjusted EPS:
Note
Year ended Year ended
29 February 28 February
2024 2023
\u00a3\u2019000 \u00a3\u2019000
Profits attributable to owners of the company
46,851
40,421
Adjusted for:
\u0583
Amortisation of acquired intangible assets
4
880
1,306
\u0583
Deferred tax effect on above
(220)
(301)
\u0583
Share-based payment charges
27
5,708
4,188
\u0583
Deferred tax effect on above
(1,011)
(522)
Adjusted profits attributable to owners of the company
52,208
45,092
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-263": { "value": "
29 Subsidiaries
The Group\u2019s subsidiaries included in the consolidated financial statements are set out below. The country of incorporation is
also their principal place of business.
Country of Ownership
Name of entity incorporation
interest
Principal activities
Bytes Technology Holdco Limited
UK
100%
Holding company
Bytes Technology Limited
UK
100%
Holding company
Bytes Software Services Limited
UK
100%
Providing cloud-based licensing and infrastructure and security
sales within both the corporate and public sectors
Phoenix Software limited
UK
100%
Providing cloud-based licensing and infrastructure and security
sales within both the corporate and public sectors
Blenheim Group Limited
UK
100%
Dormant for all periods
License Dashboard Limited
UK
100%
Dormant for all periods
Bytes Security Partnerships Limited
UK
100%
Dormant for all periods
Bytes Technology Group Holdings Limited
2
UK
100%
Dormant for all periods
Bytes Technology Training Limited
UK
100%
Dormant for all periods
Elastabytes Limited
UK
50%
Deregistered. Dormant in prior periods
1
2
2
2
2
1 Bytes Technology Holdco Limited is held directly by the company. All other subsidiary undertakings are held indirectly by the company.
2 Taken advantage of the audit exemption set out within section 479A of the Companies Act 2006 for the year ended 29 February 2024.
The registered address of all of the Group subsidiaries included above is Bytes House, Randalls Way, Leatherhead,
Surrey, KT22 7TW.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800LA4DZLFBAC9O33", "period": "2023-03-01T00:00:00/2024-03-01T00:00:00" } }, "fact-264": { "value": "
30 Events after the reporting period
On 9 May 2024 a settlement agreement was reached between the company and Neil Murphy, it\u2019s former CEO, following his
resignation on 21 February 2024 in accordance with the terms of his service contract and the directors\u2019 remuneration policy.
Full details can be found on page 122 of the directors\u2019 remuneration report.
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