Company Registration No. 07238536 (England and Wales)
PERFICIENT UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PERFICIENT UK LIMITED
COMPANY INFORMATION
Directors
P Martin
R Coetzee
S Adomite
Secretary
Taylor Wessing Secretaries Limited
Company number
07238536
Registered office
5 New Street Square
London
EC4A 3TW
Auditor
Shaw Gibbs (Audit) Limited
264 Banbury Road
Oxford
Oxfordshire
OX2 7DY
Business address
Sandford Gate
East Point Business Park
Oxford
OX4 6LB
PERFICIENT UK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20
PERFICIENT UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
The
c
ompany is part of the global
Perficient Inc
group
, and principally acts as an intermediate holding company for subsidiaries that provide delivery services.
In 2021, Perficient Inc continued to implement a strategy focused on:
-
expanding our relationships with existing and new clients;
-
strengthening our multishore delivery capabilities with the strategic acquisition in October of nearshore software development firm Izmul S.A. (“Overactive”), based in Uruguay and with additional locations in Argentina, Colombia, and Chile, and the September acquisition of Talos LLC, Talos Digital LLC, Talos Digital SAS and TCOMM SAS (collectively, “Talos”), a commerce solution provider based in Colombia;
-
delivering solutions via our offshore and nearshore capabilities in our legacy business in Latin America, India, China, and Eastern Europe; and
-
leveraging our existing (and pursuing new) strategic alliances by targeting leading business advisory companies and technology providers.
Our multishore, fully integrated global delivery approach continues to be a key driver of growth and a compelling differentiator in the market. This was evidenced in 2021 by our acquisition of Overactive that considerably bolstered the
group'
s nearshore delivery capacity, enhanced our digital capabilities, and further expanded our footprint in Latin America.
In October, we announced the acquisition of Overactive, a software development firm based in Montevideo, Uruguay, with additional delivery locations in Argentina, Colombia, and Chile. The largest acquisition in the company’s history brought approximately 700 skilled software development professionals to the firm and nearly doubled the capacity and capabilities of our Latin American resources. In September, our wholly owned subsidiary Productora de Software S.A.S. acquired Talos, an SAP Commerce-specialized solution provider based in Colombia, South America. Like Overactive, the acquisition bolstered our nearshore delivery capacity, while also enhancing our commerce capabilities.
Principal risks and uncertainties
As th
e company principally acts as a
holding company
,
the principal risk is
the
financial results of the subsidiaries. The results are used to
ascertain
if there are any indicators of impairment in the value of the investments held by
Perficient UK
Limited.
Key performance indicators
The
c
ompany does not use key performance indicators.
Perficient
UK Limited’s
key
role is that of a holding
company for other trading entities
in the group, as well as to act as a UK base for the global Perficient Inc group.
Promoting the success of the company
The company, as an intermediate holding company, has
minimal
employees
and suppliers, and primarily serves Perficient Inc as its core
customer and as such the
d
irectors primarily consider the interests of the
shareholder and parent company
,
Perficient Inc
, with regard to performing their
duty on matters set out under Section 172. All key board decisions approved during the year were in line with the
strategic goals of both the company and the parent company.
P Martin
Director
28 December 2022
PERFICIENT UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of the provision of sales and technical support services in relation to the clinical trials industry for its parent company and third parties, as well as to act as an intermediate holding company for its group.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P Martin
R Coetzee
S Adomite
Future developments
The parent
company
of
Perficient
UK Limited has a dedicated plan of growth through acquisition. Future
acquisitions may result in growth in
Perficient
UK Limited.
Auditor
In accordance with the company's articles, a resolution proposing that Shaw Gibbs (Audit) Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PERFICIENT UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
P Martin
Director
28 December 2022
PERFICIENT UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERFICIENT UK LIMITED
- 4 -
Opinion
We have audited the financial statements of Perficient UK Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PERFICIENT UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERFICIENT UK LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors
either
intend
to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
-
At the planning stage of the audit, we gained an understanding of the laws and regulations which apply to the company and how the directors seek to comply with those laws and regulations. This helped us to plan appropriate risk assessments.
-
During the audit, we focused on relevant risk areas and reviewed the compliance with the laws and regulations by making relevant enquiries from the directors and undertaking corroboration, for example by reviewing directors’ minutes and other documentation.
-
We assessed the risk of material misstatement in the financial statements including as a result of fraud and undertook the following procedures but were not limited to:
-
Reviewing the controls set in place by the directors;
-
Making enquiries of the directors as to whether they consider fraud or other irregularity may have taken place, or where such opportunity might exist;
-
Challenging the directors' assumptions with regard to accounting estimates; and
-
Identifying and testing journal entries, particularly those which appear to be unusual by size or nature.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
PERFICIENT UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERFICIENT UK LIMITED
- 6 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Samantha Daniels (Senior Statutory Auditor)
For and on behalf of Shaw Gibbs (Audit) Limited
29 December 2022
Chartered Certified Accountants
Statutory Auditor
264 Banbury Road
Oxford
Oxfordshire
OX2 7DY
PERFICIENT UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
2021
2020
Notes
£
£
Turnover
3
1,212,735
1,309,788
Administrative expenses
(1,078,838)
(1,211,217)
Operating profit
4
133,897
98,571
Interest receivable and similar income
7
1,524,598
36,936
Interest payable and similar expenses
8
(57,935)
(36)
Profit before taxation
1,600,560
135,471
Tax on profit
9
(112,713)
(223,822)
Profit/(loss) for the financial year
1,487,847
(88,351)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PERFICIENT UK LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 8 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
10
4,662
9,178
Investments
11
158,068,877
67,250,679
158,073,539
67,259,857
Current assets
Debtors
13
10,884,548
19,019,360
Cash at bank and in hand
398,082
222,926
11,282,630
19,242,286
Creditors: amounts falling due within one year
14
(11,013,537)
(15,940,794)
Net current assets
269,093
3,301,492
Total assets less current liabilities
158,342,632
70,561,349
Creditors: amounts falling due after more than one year
15
(5,150,108)
Provisions for liabilities
Deferred tax liability
16
886
1,744
(886)
(1,744)
Net assets
153,191,638
70,559,605
Capital and reserves
Called up share capital
18
1,000
1,000
Equity reserve
19
151,278,755
70,134,569
Profit and loss reserves
1,911,883
424,036
Total equity
153,191,638
70,559,605
The financial statements were approved by the board of directors and authorised for issue on 28 December 2022 and are signed on its behalf by:
P Martin
Director
Company Registration No. 07238536
PERFICIENT UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
Share capital
Equity reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2020
1,000
512,387
513,387
Year ended 31 December 2020:
Loss and total comprehensive income for the year
-
-
(88,351)
(88,351)
Capital contribution made by the parent company
-
70,134,569
-
70,134,569
Balance at 31 December 2020
1,000
70,134,569
424,036
70,559,605
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
1,487,847
1,487,847
Capital contribution made by the parent company
-
81,144,186
-
81,144,186
Balance at 31 December 2021
1,000
151,278,755
1,911,883
153,191,638
PERFICIENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
1
Accounting policies
Company information
Perficient UK Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
5 New Street Square, London, EC4A 3TW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The company has taken advantage of the exemption under section 40
1
of the
Companies Act 2006 not to prepare
and deliver
consolidated accounts. The
financial statements
present information about the company as an individual entity and not about its group
.
The company is a wholly owned subsidiary of Perficient, Inc. which is a publicly traded company in the United States
with the registered office
of
555 Maryville University Drive, Suite 600, Saint Louis, Missouri 63141. T
he financial statements of the company
and its subsidiary undertakings
are consolidated in the financial statements of
Perficient, Inc. which can be obtained on the SEC.gov website using the company ticker symbol PRFT.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
PERFICIENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 11 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computer equipment
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
Loans to group undertakings are initially recognised at transaction price and subsequently remeasured using the effective interest method.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
PERFICIENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
PERFICIENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
PERFICIENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Impairment of investments
Management carry out a review of indicators of impairment in relation of investments in subsidiaries on an
annual basis.
In performing this review, management are required to make judgements as to whether the information
considered (for example
,
recent results of the
subsidiary
) represents an indicator of impairment. Should
indicators of impairment be noted, management then perform a detailed review of the value of the
investments held in order to assess whether an impairment is required
.
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Management consultancy activities
1,212,735
1,309,788
2021
2020
£
£
Turnover analysed by geographical market
United States of America
1,212,735
1,309,788
2021
2020
£
£
Other significant revenue
Interest income
156,177
36,936
Dividends received
1,368,421
-
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(80,273)
996
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
10,000
Depreciation of owned tangible fixed assets
4,516
4,108
PERFICIENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
7
9
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
932,771
954,748
Social security costs
130,564
136,418
Pension costs
37,774
38,511
1,101,109
1,129,677
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
98,460
69,725
Company pension contributions to defined contribution schemes
3,332
3,031
101,792
72,756
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Other interest income
156,177
36,936
Income from fixed asset investments
Income from shares in group undertakings
1,368,421
Total income
1,524,598
36,936
8
Interest payable and similar expenses
2021
2020
£
£
Interest payable to group undertakings
57,935
Other interest
36
57,935
36
PERFICIENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 16 -
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
45,150
56,983
Foreign current tax on profits for the current period
68,421
167,309
Total current tax
113,571
224,292
Deferred tax
Origination and reversal of timing differences
(858)
(470)
Total tax charge
112,713
223,822
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
1,600,560
135,471
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
304,106
25,739
Tax effect of expenses that are not deductible in determining taxable profit
206
30,774
Dividend income
(260,000)
Deferred tax
(858)
(470)
Foreign tax
68,421
167,309
Depreciation add back net of capital allowances
838
470
Taxation charge for the year
112,713
223,822
PERFICIENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
10
Tangible fixed assets
Computer equipment
£
Cost
At 1 January 2021 and 31 December 2021
16,724
Depreciation and impairment
At 1 January 2021
7,546
Depreciation charged in the year
4,516
At 31 December 2021
12,062
Carrying amount
At 31 December 2021
4,662
At 31 December 2020
9,178
11
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
12
158,068,877
67,250,679
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2021
67,250,679
Additions
90,818,198
At 31 December 2021
158,068,877
Carrying amount
At 31 December 2021
158,068,877
At 31 December 2020
67,250,679
12
Subsidiaries
Details of the company's subsidiaries at 31 December 2021 are as follows:
PERFICIENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
12
Subsidiaries
(Continued)
- 18 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Izmul S.A.
Uruguay
Technical Support
Ordinary
99.90
-
Productora de Software S.A.S.
Colombia
Technical Support
Ordinary
100.00
-
Perficient d.o.o. Novi Sad
Serbia
Technical Support
Ordinary
100.00
-
Talos Digital S.A.S.
Colombia
Technical Support
Ordinary
0
100.00
TCOMM S.A.S.
Colombia
Technical Support
Ordinary
0
100.00
Overactive SPA
Chile
Technical Support
Ordinary
0
99.99
Soft OA S.R.L.
Uruguay
Technical Support
Ordinary
0
0.01
Lundol Trade S.A.
Uruguay
Technical Support
Ordinary
0
0.01
Overactive Inc.
Puerto Rico
Technical Support
Ordinary
0
0.01
One Button World LLC
Delaware
Technical Support
Ordinary
0
0.01
Overactive S.A.S.
Colombia
Technical Support
Ordinary
0
0.01
First Plus Soft S.A.U.
Argentina
Technical Support
Ordinary
0
0.01
13
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
81,235
119,480
Amounts owed by group undertakings
10,798,640
15,672,183
Other debtors
2,547
3,995
Prepayments and accrued income
2,126
1,766
10,884,548
15,797,424
2021
2020
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
3,221,936
Total debtors
10,884,548
19,019,360
PERFICIENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
14
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
3,264
6,745
Amounts owed to group undertakings
299,364
Corporation tax
59,151
61,118
Other taxation and social security
27,986
27,883
Other creditors
10,554,526
15,783,608
Accruals and deferred income
69,246
61,440
11,013,537
15,940,794
15
Creditors: amounts falling due after more than one year
2021
2020
£
£
Amounts owed to group undertakings
5,150,108
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
886
1,744
2021
Movements in the year:
£
Liability at 1 January 2021
1,744
Credit to profit or loss
(858)
Liability at 31 December 2021
886
17
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
37,774
38,511
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
PERFICIENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
17
Retirement benefit schemes
(Continued)
- 20 -
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
At the year end, amounts payable to the pension schemes totalled £5,723 (2020: £4,496).
18
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,000
1,000
1,000
1,000
19
Equity reserve
The company received a loan of £81,144,186 (2020: £70,134,569) from the parent company during the year to fund its investments. This loan was converted into capital contribution during the year.
20
Related party transactions
Transactions with related parties
As a wholly owned subsidiary
of Perficient Inc
, the company has taken advantage of
the exemption in FRS 102 Section 33.1A and has not disclosed transactions with entities which form part of
the group
detailed in note 21
and
which are directly or indirectly
owned by
the parent company.
21
Ultimate controlling party
The company is a wholly owned subsidiary of Perficient, Inc. which is a publicly traded company in the United States
with the registered office
of
555 Maryville University Drive, Suite 600, Saint Louis, Missouri 63141. Perficient, Inc. is the parent undertaking of the largest and smallest group within which the company belongs and for which group financial statements are prepared.
T
he financial statements of the company
and its subsidiary undertakings
are consolidated in the financial statements of
Perficient, Inc. which can be obtained on the SEC.gov website using the company ticker symbol PRFT.
2021-12-31
2021-01-01
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