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Appsflyer UK Ltd
Registered number: 10246990
Annual Report
For the year ended 31 December 2022
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APPSFLYER UK LTD
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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APPSFLYER UK LTD
CONTENTS
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Independent Auditor's Report
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Consolidated Statement of Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Notes to the Financial Statements
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APPSFLYER UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The purpose of this strategic report is to outline the key initiatives and goals for Appsflyer UK to drive growth and enhance performance in the current market landscape. This report is designed to provide a comprehensive overview of the business review, key performance indicators and principal risks and uncertainties
AppsFlyer is providing mobile attribution and marketing analytics platform that allows mobile application marketers to easily measure and optimize the performance of all their marketing channels from a single real-time dashboard.
Appsflyer operates in a dynamic market, with continuous technological advancements and changing consumer behaviour. The mobile app market has seen robust growth, and we aim to leverage this trend to strengthen our position as a leading mobile attribution and marketing analytics platform.
Key performance indicators
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The directors use turnover and adjusted EBITDA as KPIs in monitoring progress and management of the company.
Principal risks and uncertainties
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The company's operations expose it to a variety of risks in the ordinary course of business.
Economic risk
Conditions in the UK economy may adversely affect the company's results. The company has diversified its revenue streams by focusing on recurring annual service contracts and maintaining a diverse international customer base generating to help reduce the impact of adverse economic changes.
Liquidity risk
The company funds its day to day operations from operating cash flow. Risk is managed through the use of detailed cash flow forecasts and the application of strict cash management policies to ensure that the company maintains sufficient funds for operations.
Competitor risk
There are a relatively small number of competitors with global delivery capability. The company continues to focus on client relationships and value creation which remain crucial to ensuring the proper delivery of projects and services, and continues to diversify its client base across different vertical end user markets.
Technological Disruption
Rapid advancements in technology pose a risk to the company's competitive position. Failure to adopt or adapt to emerging technologies may impact the market share and hinder the company's ability to innovate, leading to potential disruption of existing business models.
Regulatory Compliance
Changes in UK data protection and privacy regulations may impact AppsFlyer's data collection and usage practices. Non-compliance could lead to legal and reputational issues. Risk is managed through regularly reviewing and updating data handling practices to ensure compliance with UK regulations.
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APPSFLYER UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Future developments and outlook
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By identifying these risks and implementing mitigation strategies, the company management is confident that the company is well placed to take advantage of opportunities as they arise and to continue its profitable growth path.
This report was approved by the board and signed on its behalf by:
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APPSFLYER UK LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The director presents his report and the audited consolidated financial statements for the year ended 31 December 2022.
For the year ended 31 December 2021, single entity financial statements for Appsflyer UK were prepared, whereas for the year ended 31 December 2022, consolidated financial statements are prepared with comparatives. Therefore, the prior period consolidated comparatives are unaudited.
The Group's principal activity continues to be the provision of pre-sale and post-sale technical support to its parent undertaking.
The director who served during the year and to the date of this report was:
The profit for the year, after taxation, amounted to £173,619 (2021: profit of £200,383).
The director does not recommend the payment of a dividend for the year (2021: £nil).
The financial statements have been prepared on a going concern basis. The director, having considered the financial position of the Group and company for a period of at least 12 months from the date of signing these financial statements, believes that the business will continue to be able to pay its debts as they fall due and has received confirmation from the management of the parent entity that further support will be forthcoming if necessary to meet any obligations.
Economic impact of global events
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UK businesses are currently facing many uncertainties such as the consequences of Brexit, Covid-19, environmental sustainability and geopolitical events such as the Russian invasion of Ukraine. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working.
The director has carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and has concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The director has taken account of these potential impacts in their going concern assessment.
The Group and the company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.
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APPSFLYER UK LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Director's responsibilities statement
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The director is responsible for preparing the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Group's financial statements 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; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Qualifying third party indemnity provisions
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The director benefits from a third party qualifying indemnity provision in the form permitted by Section 234 of the Companies Act 2006 in respect of certain third party actions against directors. No claim or notice of claim in respect of these indemnities has been received in the period. The qualifying indemnity provision was in force throughout the financial period and up to the date of approval of the Director's Report.
Provision of information to auditors
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The director at the time when this Director's Report is approved has confirmed that:
∙so far as he is aware, there is no relevant audit information of which the company and the Group's auditor is unaware, and
∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the Group's auditor is aware of that information.
Post balance sheet events
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There have been no significant events affecting the Group and the company since the year end.
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APPSFLYER UK LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
The auditor, Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf by:
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APPSFLYER UK LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF APPSFLYER UK LTD
Opinion
We have audited the financial statements of Appsflyer UK Ltd (the ‘parent company’) and its subsidiary (the 'Group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 parent company’s affairs as at 31 December 2022 and of the Group's 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.
Basis for opinion
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 parent 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.
Other matters
Without qualifying our opinion, we draw attention to the accounting policies on pages 17 to 23 of the financial statements and the fact that the comparative information for the consolidated results accounts were unaudited as the parent company was entitled to exemption from preparing consolidated accounts in the prior year. The comparative information for the company is audited
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 parent company and Group'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.
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APPSFLYER UK LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF APPSFLYER UK LTD
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is 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 the audit:
∙the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the parent company and Group and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report.
We have nothing to report in respect of the following matters in relation to which 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 director's remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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APPSFLYER UK LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF APPSFLYER UK LTD
Responsibilities of Director
As explained more fully in the Director's Responsibilities Statement set out on page 4, the director is 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 director determines 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 director is responsible for assessing the parent 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 director intends either to liquidate the group or the parent company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the parent company and the Group and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
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APPSFLYER UK LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF APPSFLYER UK LTD
In addition, we evaluated the director's and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut-off assertion) and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the director and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of the audit 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 parent 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 parent company and the parent company's members as a body for our audit work, for this report, or for the opinions we have formed.
Jonathan Marchant (Senior statutory auditor)
for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
90 Victoria Street
Bristol
BS1 6DP
28 September 2023
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APPSFLYER UK LTD
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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Other comprehensive income
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Total comprehensive income for the year
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The Consolidated Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
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The notes on pages 16 to 35 form part of these financial statements.
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APPSFLYER UK LTD
REGISTERED NUMBER: 10246990
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
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Debtors: amounts falling due within one year
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Cash and cash equivalents
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 35 form part of these financial statements.
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APPSFLYER UK LTD
REGISTERED NUMBER: 10246990
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
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Debtors: amounts falling due within one year
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Cash and cash equivalents
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The company has elected to take exemption under Section 408 of the Companies Act not to present a Statement of Comprehensive Income. The profit for the year of Appsflyer UK Ltd was £203,915 (2021: profit of £191,689).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 35 form part of these financial statements.
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APPSFLYER UK LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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Share based compensation reserve
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At 1 January 2021 (unaudited)
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Comprehensive income for the year
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Total comprehensive income for the year
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Total transactions with owners
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At 1 January 2022 (unaudited)
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Comprehensive income for the year
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Total comprehensive income for the year
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Foreign exchange movement
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Total transactions with owners
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At 31 December 2022 (audited)
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The notes on pages 16 to 35 form part of these financial statements.
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APPSFLYER UK LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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Share based compensation reserve
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Comprehensive income for the year
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Total comprehensive income for the year
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Total transactions with owners
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Comprehensive income for the year
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Total comprehensive income for the year
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Total transactions with owners
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The notes on pages 16 to 35 form part of these financial statements.
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APPSFLYER UK LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
Cash flows from operating activities
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Profit for the financial year
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Depreciation of tangible fixed assets
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Foreign exchange movements
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Transfer of tangible fixed assets
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Net cash used in investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
AppsFlyer UK Limited (the 'company') is a private company limited by shares, incorporated in England and Wales. The company's registered number is 10246990. The address of its registered office is 5th Floor Merck House, Seldown Lane, Poole, United Kingdom, BH15 1TW.
The Group's principal activity continues to be the provision of pre-sale and post-sale technical support to its parent undertaking.
For the year ended 31 December 2021, single entity financial statements for Appsflyer UK were prepared, whereas for the year ended 31 December 2022, consolidated financial statements are prepared with comparatives. Therefore, the prior period consolidated comparatives are unaudited.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The company is a qualifying entity for the purposes of FRS 102 and has elected to take the exemption under FRS 102, para 1.12 (b) not to present the company Statement of Cash Flows.
The financial statements have been presented in Pounds Sterling as this is the currency of the primary economic environment in which the company operates, and are rounded to the nearest pound.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Consolidated Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis. The director, having considered the financial position of the Group and company for a period of at least 12 months from the date of signing these financial statements, believes that the business will continue to be able to pay its debts as they fall due and has received confirmation from the management of the parent entity that further support will be forthcoming if necessary to meet any obligations.
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Foreign currency translation
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Functional and presentation currency
The Group's functional and presentation currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of Comprehensive Income.
All other foreign exchange gains and losses are presented in the Consolidated Statement of Comprehensive Income within 'administrative expenses'.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of turnover can be measured reliably;
∙it is probable that the Group will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Leased assets: the Group as lessee
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Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Consolidated Statement of Comprehensive Income so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
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Interest receivable and similar income
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Interest income is recognised in the Consolidated Statement of Comprehensive Income using the effective interest method.
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Interest payable and similar expenses
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Interest payable and similar expenses are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
- 18 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
Bonus plan
The Group operates an annual bonus plan for employees and the expense is recognised in the Statement of Comprehensive Income when the Group has a legal or constructive obligation to make payment under the plan as a result of past events and a reliable estimation of the obligation can be made.
Share based compensations
Where the Group participates in a share based payment arrangement established by a group company it takes advantage of the alternative treatment allowed under Section 26 of FRS 102. The Group recognises the share-based payment expense based on an allocation of its share of the Group's total expense, calculated in proportion to the number of participating employees. The corresponding credit is recognised in retained earnings as a component of equity.
The Group also considered an allocation based on the relative remuneration cost of the relevant employees and considered that this gave rise to no significant differences in the allocated costs.
- 19 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Consolidated Statement of Comprehensive Income during the period in which they are incurred.
- 20 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Long-term leasehold property
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over the duration of the lease
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Comprehensive Income.
Depreciation is included in ‘administrative expenses’ in the Consolidated Statement of Comprehensive Income.
Investments in subsidiaries are measured at cost less accumulated impairment.
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Debtors: amounts falling due within one year
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Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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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.
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Creditors: amounts falling due within one year
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Short-term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
- 21 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
The Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.
Financial assets
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is identified, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and its recoverable amount, which is an estimate of the amount that the company would receive for the asset if it were to be sold at the reporting date.
Financial liabilities
Basic financial liabilities, including trade and other payables are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the debt instrument is measured at the present value of the future receipts discontinued at a rate of interest.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transactions price and subsequently measured at amortised costs.
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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.
- 22 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Judgements in applying accounting policies and key sources of estimation uncertainty
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In applying the accounting policies, the director is required to make judgements, estimates and assumptions affecting the carrying values 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, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions.
An estimate or judgement may be considered critical if it involves matters that are highly uncertain or where different estimation methods could reasonably have been used, or if changes in the estimate that would have a material impact on the Group's results are likely to occur from period to period. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are addressed below.
3.1 Critical judgements in applying the Group and company’s accounting policies
The director does not consider there to be any critical judgements made in the process of applying the Group and company’s accounting policies.
3.2 Key sources of estimation uncertainty
The director does not consider there to be any key sources of estimation uncertainty.
The whole of the turnover is attributable to the provision of pre-sale and post-sale technical support to its parent undertaking.
Analysis of turnover by country of destination:
- 23 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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The operating profit is stated after (crediting)/charging:
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Other operating lease rentals
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Depreciation of tangible fixed assets
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Gain on sale of tangible fixed assets
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Fee payable for consolidated Group financial statements
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Fees payable to the Groups' auditor in respect of:
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Other services relating to tax compliance
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- 24 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Cost of defined contribution scheme
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The average monthly number of employees, including the director, during the year was as follows:
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The Director did not recieve any remuneration for his services to the company during the year (2021: £nil).
The Director is considered to be the only key management personnel.
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Interest receivable and similar income
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Other interest receivable
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- 25 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Interest payable and similar expenses
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Adjustments in respect of previous periods
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- 26 -
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|
APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
11.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2021: higher than) the standard rate of corporation tax in the UK of19% (2021:19%). The differences are explained below:
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Profit before tax on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021: 19%)
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Expenses not deductible for tax purposes
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Income not taxable for tax purposes
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Other permanent differences
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Adjustments to tax charge in respect of prior periods
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Adjustments to tax charge in respect of prior periods - deferred tax
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Remeasurement of deferred tax for changes
in tax rates
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Movement in deferred tax not recognised
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Effect of overseas tax rates
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Total tax charge for the year
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Factors that may affect future tax charges
|
The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.
- 27 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Long-term leasehold property
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At 1 January 2022 (unaudited)
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At 31 December 2022 (audited)
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At 1 January 2022 (unaudited)
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At 31 December 2022 (audited)
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At 31 December 2022 (audited)
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At 31 December 2021 (unaudited)
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- 28 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
12.Tangible fixed assets (continued)
- 29 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
|
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Investments in subsidiary companies
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The following was a subsidiary undertaking of the company:
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Appsflyer Do Brasil Marketing Analitico Ltda. *
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City of Sao Paulo, State of Sao Paulo, at Bigadeiro Faria Lima Avenue, 3729, 4th and 5th floor, Itaim Bibi, Zip Code: 04538-133
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* entity was set up on 20 July 2020. There were no assets acquired on this date.
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- 30 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
|
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Debtors: amounts falling due within one year
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Amounts owed by group undertakings
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Prepayments and accrued income
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Deferred taxation (note 17)
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Trade debtors are stated after a provision for bad debts of £627,132 (2021: £119,196).
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
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Cash and cash equivalents
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Creditors: amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
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- 31 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Charged to the Consolidated Statement of Comprehensive Income
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Charged to the Consolidated Statement of Comprehensive Income
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The company had no deferred tax provision for the year ended 31 December 2022.
The deferred tax asset is made up as follows:
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Fixed asset timing differences
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Short term timing differences
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- 32 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Allotted, called up and fully paid
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1 (2021: 1) Ordinary share of £1
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The ordinary share entitles the holder to one voting right but no right to fixed income.
|
Foreign exchange reserve
This reserve represents translation differences arising from the translation of financial statements of Group’s foreign entity into Sterling.
Share options reserve
This reserve represents the accumulated fair value of share options granted by the Group.
Profit and loss account
This reserve represents the cumulative profits and losses of the Group and company.
- 33 -
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|
APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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The Company operates an equity-settled employee share option plan, under which options have been granted to individuals at an exercise price equal to an agreed price of the Company's shares on the date of the grant.
Options grant the holder the option to subscribe to shares in the Company, upon the occurrence of specified corporate activity which includes, but is not limited to a share sale or reorganisation.
During the year, new options were granted and exercised as detailed below:
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Weighted average exercise price
2022
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Weighted average exercise price
2021
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Outstanding at the beginning of the year
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Forfeited during the year
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Exercised during the year
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Outstanding at the end of the year
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Option pricing model used
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Weighted average share price
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Weighted average contractual life (years)
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The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £100,470 (Unaudited 2021: £71,438). Contributions totalling £20,671 (Unaudited 2021: £nil) were payable to the fund at the reporting date and are included in other creditors.
- 34 -
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APPSFLYER UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
|
|
Commitments under operating leases
|
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At 31 December 2022 the Group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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Appsflyer UK Ltd has taken advantage of the requirements of Section 33 Related Party Disclosures paragraph 33.7, to not disclose transactions with other 100% owned companies.
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Post balance sheet events
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There have been no significant events affecting the Group and the company since the year end.
The company is a wholly owned subsidiary of AppsFlyer Ltd, a limited company registered in Israel. Its registered office address is 6th Floor, 14 Maskit St, Herzliya, Israel.
- 35 -
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