Company Registration No. 01772349 (England and Wales)
SS&C SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
SS&C SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 28
SS&C SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
P Pedonti
M Hobson
(Appointed 29 June 2020)
Company number
01772349
Registered office
1 St Martin's Le Grand
LONDON
EC1A 4AS
Auditor
Azets Audit Services
Anglo House
Bell Lane Office Village
Bell Lane
Amersham
Buckinghamshire
HP6 6FA
SS&C SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the strategic report for the year ended 31 December 2019.
Directors' statement of compliance with duty to promote success of the Company
Long-term strategy
The Directors regularly assess the products and services the Company provides to ensure they are aligned to client needs. The Directors review and consider new business opportunities as part of their long-term planning with a view to growing the business and sustaining profitability in the longer term. As part of these strategic business plans, the Directors will give consideration to the level of investment in core technology platforms, further automations, and additional opportunities to collaborate with other SS&C group operations around the world, with the objective to improve the client service offering and to manage its cost base. The Directors also actively engage with the client base, developing strong relationships which enable the Company to meet client needs on a long-term basis.
Business relationships
T
he
D
irectors implement policies to foster the Company's business relationships with suppliers, clients, and others.
The Company provides business critical services to its clients in the alternative assets industry. It is therefore vitally important that the risks that the Company faces are effectively identified and managed, in order to provide an appropriate level of resilience for its clients. The principal risks and uncertainties faced by the Company and the risk management procedures adopted by the
D
irectors are set out on
within
the Directors' Report.
Impact on the community
The
D
irectors are mindful of the impact their decisions have on the community and the environment. They take a long-term and all-inclusive approach to managing the environmental risks and opportunities facing the business. Polices are embedded in the Company's code of conduct that seek to minimise the impacts of the business on the environment.. On an annual basis management review the Company's environmental performance and ensure the policy remains relevant and appropriate.
Reputation and standards of business conduct
The
D
irectors are committed to maintaining and enhancing the Company's reputation, and ensuring that its officers and employees consistently act in compliance with regulatory rules and in accordance with the high standards of business conduct expected of firms operating within the alternative assets industry. The Company maintains a robust Risk Governance Framework. The directors regularly review the Company's ethics and whistleblowing policies and provides training to all employees on an annual basis covering ethics and standards of business conduct, making use of on-line training tools, and classroom based training.
Fair review of the business
The company acts as a provider of software, computer consultancy, software development and related services.
On 30 November 2019, the SS&C Technologies group acquired the Algorithmics business from IBM. The Algortihmics business was purchased by various companies within the group. SS&C Solutions Ltd acquired intangible assets at a cost of £
30,869,000
in 2019 and 49 employees joined in January 2020.
The key business risks and uncertainties affecting the company are considered to relate to the fact that the company operates within a highly competitive market place. The directors of the group have reviewed the group’s exposure to credit risk, liquidity risk and cash flow risk and these are discussed in the Directors’ report.
The profit before taxation was
£27,540,000 (2018: £16,035,000)
and net assets at the end of the year were
£33,334,000 (2018: £10,116,000)
following the dividend paid of
£NIL (2018: £12,019,000)
during the year.
SS&C SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Principal risks and uncertainties
The company's software is well regarded in the financial community and by the company's customers but demand is sensitive to the economic cycle and the fortunes of the financial services sector.
The company is otherwise financially stable and does not have external borrowings.
The company's directors review various financial and operational information but do not currently review a formalised set of KPIs. The financial reports that are currently reviewed include profitability summaries, utilisation rates, balance sheets and cash flow statements. The focus of the senior management who receive financial reports is more on the wider group, including the company's subsidiaries and parent undertakings, than the results of individual companies.
The company is part of SS&C Technologies Holdings, Inc. which is managed on a group-wide basis. Principal risks, uncertainties and KPIs used by the group are disclosed in the SS&C Technologies Holdings, Inc. consolidated financial statements, which does not form part of this annual report.
P Pedonti
Director
17 December 2020
SS&C SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company continued to be that of the provision of software, computer consultancy, software development, information technology and related services.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
N Boulanger
(Resigned 17 July 2020)
P Pedonti
M Hobson
(Appointed 29 June 2020)
Results and dividends
The profit before taxation was £27,540,000 (2018: £16,035,000).
The profit for the financial year transferred to reserves was £23,218,000 (2018: £12,563,000).
A dividend of £NIL (2018: £12,019,000) was declared and paid during the year.
Qualifying third party indemnity provisions
SS&C Technologies Holdings, Inc. maintains liability insurance for the directors of SS&C Solutions Limited. For the purposes of the Companies Act 2006, SS&C Technologies Holdings, Inc. provides indemnity insurance for the directors and company secretary of SS&C Solutions Limited for qualifying third party provisions.
Financial risk management
The company's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk, interest rate cash flow risk, market risk and foreign exchange risk. The company monitors and manages these risks to avoid adverse effects on the financial performance of the company.
Price risk
The company’s software development and services activities are exposed to the price of the skilled labour that is necessary to operate. This is not a risk that can easily be managed. The directors will revisit the appropriateness of this policy should the company’s operations change in size or nature, the policy being to ensure a reasonable margin is charged on cost in line with commercially acceptable norms. The directors regularly review financial reports and management information to review price risk and any indication of a decrease in the margin is investigated and appropriate action is taken as is deemed commercially acceptable.
Liquidity risk
The company actively monitors its liquidity and has banking facilities in place to ensure the company has sufficient available funds for operations and planned expansions. The company is cash generative and has no external borrowings. Financial reports and management information regarding current and future liquidity requirements are regularly reviewed and appropriate action is taken to ensure that sufficient available funds for operations and planned expansions exist.
Interest rate cash flow risk
The only material external interest bearing assets are cash balances. Some intercompany balances are interest bearing also. The company does not have fixed interest arrangements but the size of external positions is not sufficient to significantly expose the company to changes in interest rates. The directors will revisit the appropriateness of this policy should the company’s operations change in size or nature.
SS&C SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
Foreign exchange risk
The company's external turnover is mostly in sterling. The company has some intercompany turnover and costs that are denominated in the relevant subsidiaries' operating currency. The risk is not considered to be great enough to require active management. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.
Credit risk
The company has policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure from any individual counterparty is subject to a contractually agreed amount. The contract determines collectability and provides a legal framework should disputes arise over amounts billed. Financial reports and management information regarding credit risk are regularly reviewed and appropriate action is taken to mitigate this risk as is deemed commercially acceptable.
Market risk
The company mainly does business with the financial services and banking sectors and is therefore exposed to market conditions in this sector. This is not a risk that can be managed but over time the continuing research and development activity of the company will enable it to have a more diversified product offering and client base.
Research and development
The company continues to develop and enhance its product range to meet the changing business requirements of its client base and the technical and operating environment of the computer software market. Wherever possible, the company seeks to involve its clients as partners in the development process. Such developments, together with further investment in its existing product range, reinforce the company’s commitment to be the world’s leading software supplier to the asset management industry. Direct costs invested in research and development activities in
the period were £3,243,000 (2018: £3,589,000).
Employees
The company is committed to employment policies, which follow best practice, based on equal opportunities for all employees. As an equal opportunities employer the company does not and will not discriminate on the basis of race, religion or similar belief, colour, nationality, national or ethnic origin, sex, marital or family status, sexual orientation, sex change status, age, disability or against employees working on a fixed term or part time basis.
The company welcomes applications from disabled people and offers them appropriate training and career development. If members of staff become disabled, the company continues employment wherever possible and arranges retraining.
The company encourages employee involvement in performance through a restricted stock scheme for senior employees, performance related bonus schemes and individual performance and development plans to assess objectives. The company is committed to achieving employee awareness of economic and financial factors affecting the company by having employee newsletters, corporate briefings, bonus targets and providing employees with information on matters of concern to them on a regular basis. In addition, externally run staff surveys are carried out annually to establish the views of our employees so that they can be taken into account when making decisions that are likely to affect their interests.
Future developments
The company will continue to evaluate new business opportunities and invest in its technology platform.
Auditor
Azets Audit Services were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
SS&C SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 5 -
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.
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 Pedonti
Director
17 December 2020
SS&C SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SS&C SOLUTIONS LIMITED
- 6 -
Opinion
We have audited the financial statements of SS&C Solutions Limited (the 'company') for the year ended 31 December 2019 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company's affairs as at 31 December 2019 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
SS&C SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SS&C SOLUTIONS LIMITED
- 7 -
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 directors' 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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
Other matters which we are required to address
The financial statements of the company for the year ended 31 December 2018 were audited by another auditor who expressed an unmodified opinion on those statements on 30 September 2019.
SS&C SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SS&C SOLUTIONS LIMITED
- 8 -
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.
David Cary LLB FCA (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
17 December 2020
Chartered Accountants
Statutory Auditor
Anglo House
Bell Lane Office Village
Bell Lane
Amersham
Buckinghamshire
HP6 6FA
SS&C SOLUTIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
2019
2018
Notes
£000
£000
Turnover
3
59,890
51,994
Cost of sales
(14,839)
(14,103)
Gross profit
45,051
37,891
Administrative expenses
(16,496)
(18,360)
Other operating income
1,590
1,398
Operating profit
4
30,145
20,929
Interest payable and similar expenses
7
(2,605)
(4,895)
Profit before taxation
27,540
16,034
Tax on profit
8
(4,322)
(3,471)
Profit for the financial year
23,218
12,563
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SS&C SOLUTIONS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 10 -
2019
2018
Notes
£000
£000
£000
£000
Fixed assets
Goodwill
10
15,952
-
Other intangible assets
10
15,800
715
Total intangible assets
31,752
715
Tangible assets
11
611
757
Investments
12
40,755
40,755
73,118
42,227
Current assets
Debtors
14
32,638
21,455
Cash at bank and in hand
897
2,181
33,535
23,636
Creditors: amounts falling due within one year
15
(73,319)
(55,747)
Net current liabilities
(39,784)
(32,111)
Total assets less current liabilities
33,334
10,116
Capital and reserves
Called up share capital
19
830
830
Capital redemption reserve
30
30
Other reserves
2,559
2,559
Profit and loss reserves
29,915
6,697
Total equity
33,334
10,116
The financial statements were approved by the board of directors and authorised for issue on 17 December 2020 and are signed on its behalf by:
P Pedonti
Director
Company Registration No. 01772349
SS&C SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 11 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
£000
Balance at 1 January 2018
830
30
2,559
6,153
9,572
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
-
-
12,563
12,563
Dividends
9
-
-
-
(12,019)
(12,019)
Balance at 31 December 2018
830
30
2,559
6,697
10,116
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
-
-
23,218
23,218
Balance at 31 December 2019
830
30
2,559
29,915
33,334
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 12 -
1
Accounting policies
Company information
SS&C Solutions Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
1 St Martin's Le Grand, LONDON, EC1A 4AS.
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 £000.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
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 26 ‘Share based Payment’
:
Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
SS&C Technologies Holdings Inc.
These consolidated financial statements are
publicly
available from its registered office
.
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.
The company has been provided with a letter of financial support from its parent stating that they will provide funding to allow it to pay its liabilities as they fall due for a period of no less than 12 months from the date of approval of financial statements.
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover
Turnover comprises revenue recognised by the company in respect of the provision of software, computer consultancy, software development and related services supplied during the year, exclusive of Value Added Tax and trade discounts.
Licences
Perpetual licence turnover arising from agreements involving insignificant development work not essential to the core functionality of the system delivered is recognised when the software is delivered, provided collectability is probable. Where development work is significant and is essential to the functionality of the software being delivered, licence and development turnover arising there from is recognised using the percentage of completion method of accounting.
Services
If development and consulting services are provided on a time and materials basis the turnover arising therefrom is recognised as the services are provided. If such services are provided under a fixed price contract then turnover is recognised on a percentage of completion basis. Certain products are provided under Application Service Provider (ASP) contracts and turnover is recognised as the service is provided.
Accrued income relates to consultancy services provided to the company's clients. Once contractual milestones have been reached and income can be recognised, income is accrued until it is billed to the client.
Maintenance
T
urnover arising from software maintenance agreements is recognised rateably over the relevant period of the maintenance contract.
Deferred income on contracts
Deferred income represents maintenance fees billed in advance for periods of up to 12 months, licence fees billed which do not fulfil the revenue recognition criteria, other fees invoiced in advance for which services will be rendered within the next 12 months, and the amount by which progress payments and any provisions for foreseeable losses on contracts exceeds revenue recognised.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 14 -
1.5
Intangible fixed assets other than goodwill
The intangible assets held are intellectual property rights in the company's software and purchased computer software. Intangible assets are stated at the cost of acquisition less accumulated amortisation. Amortisation is calculated on a straight line basis on the original cost of the asset over the estimated useful life of 10 years for intellectual property rights and 3 years for purchased software and is charged to administrative expenses in the profit and loss account.
Where factors, such as technological advancement or changes in market prices, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances. The assets are reviewed for impairment if the above factors indicate that the carrying amounts may be impaired.
Research expenditures associated with internally generated software are expensed as incurred. Costs incurred on software development are capitalised as intangible assets when it is determined that the software is technologically feasible, the resources are available to complete development, development costs can be measured reliably and the asset will provide economic benefit. The expenditures capitalised represent employee compensation costs. Other development expenditures are recognised as an expense as incurred. Internally generated software costs previously regarded as an expense are not recognised as an asset in a subsequent period.
Internally generated software development costs are recorded at cost and are amortised over their estimated useful life of
3
years on a straight line basis.
Amortisation 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:
Software
3 - 10 years
Completed Technology
7 years
Customer Relationships
12 years
Tradenames
9 years
1.6
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.
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:
Leasehold land and buildings
Remaining lease term
Fixtures and fittings
3-7 years
Computers
3 years
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
.
1.7
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.
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 15 -
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.8
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
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.
1.10
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.
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 16 -
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 17 -
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.11
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.
1.12
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.
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 18 -
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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Share-based payments
The ultimate parent company operates a share based compensation plan. Share options are granted to selected members of the board of directors, management and key employees.
The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted, excluding the impact of any non-market vesting conditions (for example, profitability and sales growth targets).
1.16
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.17
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.
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 19 -
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Useful economic life of intangible assets
The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets
Impairment of investments
The company makes an estimate of the recoverable value of its investments and will impair the carrying value when necessary. When assessing impairment of investments, management considers factors including the current profitability, strength of balance sheet, historical experience and local economic conditions.
3
Turnover and other revenue
2019
2018
£000
£000
Turnover analysed by class of business
Licence
8,553
2,375
Maintenance
45,333
40,467
Others
6,004
9,152
59,890
51,994
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
3
Turnover and other revenue
(Continued)
- 20 -
2019
2018
£000
£000
Turnover analysed by geographical market
United Kingdom
13,275
12,446
Rest of Europe
6,354
6,919
North America
16,862
13,932
Rest of World
23,399
18,697
59,890
51,994
4
Operating profit
2019
2018
Operating profit for the year is stated after charging/(crediting):
£000
£000
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(290)
(946)
Depreciation of owned tangible fixed assets
319
361
Amortisation of intangible assets
228
89
Share-based payments
996
963
Operating lease charges
1,192
865
5
Auditor's remuneration
2019
2018
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the company
59
112
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Analysts and programmers
109
106
Administration and sales
46
45
Total
155
151
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
6
Employees
(Continued)
- 21 -
Their aggregate remuneration comprised:
2019
2018
£000
£000
Wages and salaries
13,397
11,941
Social security costs
2,264
1,943
Pension costs
802
685
16,463
14,569
7
Interest payable and similar expenses
2019
2018
£000
£000
Interest payable to group undertakings
2,605
4,895
8
Taxation
2019
2018
£000
£000
Current tax
UK corporation tax on profits for the current period
4,162
3,127
Adjustments in respect of prior periods
(173)
287
Total UK current tax
3,989
3,414
Foreign current tax on profits for the current period
27
26
Total current tax
4,016
3,440
Deferred tax
Origination and reversal of timing differences
265
52
Adjustment in respect of prior periods
41
(21)
Total deferred tax
306
31
Total tax charge
4,322
3,471
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
8
Taxation
(Continued)
- 22 -
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:
2019
2018
£000
£000
Profit before taxation
27,540
16,034
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
5,233
3,046
Tax effect of expenses that are not deductible in determining taxable profit
7
5
Adjustments in respect of prior years
(132)
266
Effect of change in corporation tax rate
(31)
(6)
Effect of overseas tax rates
3
21
Impairment provision
-
666
Non-taxable dividend income
(302)
(266)
Net deduction on share based payments
(456)
(261)
Taxation charge for the year
4,322
3,471
Legislation has been enacted to reduce the main UK corporation tax rate from 20% to 19% effective from 1 April 2017. A further reduction to 17% has also been enacted and will be effective from 1 April 2020. The deferred tax balances have been re measured at these rates as appropriate.
It was further announced as part of Finance Act 2020, which was enacted on 22 July 2020, that the UK corporation tax rate will remain at 19% for periods beginning 1 April 2020 and 1 April 2021. The change in the tax rate has not been reflected in the deferred tax balances as the impact is immaterial to these financial statements.
9
Dividends
2019
2018
£000
£000
Interim paid
-
12,019
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 23 -
10
Intangible fixed assets
Goodwill
Software
Completed Technology
Customer Relationships
Tradenames
Total
£000
£000
£000
£000
£000
£000
Cost
At 1 January 2019
-
1,322
-
-
-
1,322
Additions - internally developed
-
396
-
-
-
396
Additions - separately acquired
15,952
-
12,126
1,554
1,237
30,869
At 31 December 2019
15,952
1,718
12,126
1,554
1,237
32,587
Amortisation and impairment
At 1 January 2019
-
607
-
-
-
607
Amortisation charged for the year
-
228
-
-
-
228
At 31 December 2019
-
835
-
-
-
835
Carrying amount
At 31 December 2019
15,952
883
12,126
1,554
1,237
31,752
At 31 December 2018
-
715
-
-
-
715
11
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£000
£000
£000
£000
Cost
At 1 January 2019
592
1,024
2,513
4,129
Additions
3
56
114
173
At 31 December 2019
595
1,080
2,627
4,302
Depreciation and impairment
At 1 January 2019
486
674
2,212
3,372
Depreciation charged in the year
39
89
191
319
At 31 December 2019
525
763
2,403
3,691
Carrying amount
At 31 December 2019
70
317
224
611
At 31 December 2018
106
350
301
757
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 24 -
12
Fixed asset investments
2019
2018
Notes
£000
£000
Investments in subsidiaries
13
40,755
40,755
Movements in fixed asset investments
Shares in group undertakings
£000
Cost or valuation
At 1 January 2019 & 31 December 2019
40,755
Carrying amount
At 31 December 2019
40,755
At 31 December 2018
40,755
13
Subsidiaries
Details of the company's subsidiaries at 31 December 2019 are as follows:
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
13
Subsidiaries
(Continued)
- 25 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
SS&C Solutions Hong Kong Limited
Hong Kong
Ordinary
100.00
-
SS&C Solutions NZ Limited
New Zealand
Ordinary
100.00
-
SS&C Solutions Pty Limited
Australia
Ordinary
100.00
-
SS&C Technologies Shanghai Limited
China
Ordinary
100.00
-
SS&C Solutions Singapore Pte Limited
Singapore
Ordinary
100.00
-
SS&C Technologies South Africa (Pty) Limited
South Africa
Ordinary
100.00
-
PT DST Global Solutions Indonesia
Indonesia
Ordinary
99.99
-
SS&C Solutions Technologies Pte Limited
Singapore
Ordinary
100.00
-
DST Global Solutions LLC
United States
Ordinary
100.00
-
SS&C Technologies Hong Kong Limited
Hong Kong
Ordinary
100.00
-
SS&C Technologies Sdn Bhd
Malaysia
Ordinary
100.00
-
SS&C Technologies Australia Pty Limited
Australia
Ordinary
100.00
-
Advent Software Asia (Singapore) Pte Limited
Singapore
Ordinary
100.00
-
Advent Software (Asia) Limited
Hong Kong
Ordinary
100.00
-
Advent Software (Beijing) Co. Limited
China
Ordinary
0
100.00
SS&C Fund Services (Asia) Limited
Hong Kong
Ordinary
0
100.00
Global Solutions (Thailand)
Thailand
Ordinary
0
100.00
SS&C Fund Services (Asia) Pte Limited
Singapore
Ordinary
0
100.00
Conifer Asset Solutions Pte Limited
Singapore
Ordinary
0
100.00
The directors believe the carrying value of the investments is supported by the value of their underlying net assets
.
Investments in subsidiaries are included at cost less provision for any permanent diminution in value. The carrying value of the investments is reviewed periodically by the directors and carrying values are impaired if circumstances since the acquisition or formation of a subsidiary justify an impairment of the value. The directors perform an impairment review of all assets each year. When it is apparent that the carrying value of the investment exceeds the estimated net present value of future cash flows less non- operating assets, an impairment provision is charged against the result for the year.
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 26 -
14
Debtors
2019
2018
Amounts falling due within one year:
£000
£000
Trade debtors
4,351
3,245
Corporation tax recoverable
174
-
Amounts owed by group undertakings
26,634
16,402
Other debtors
152
44
Prepayments and accrued income
736
867
32,047
20,558
Deferred tax asset (note 16)
591
897
32,638
21,455
15
Creditors: amounts falling due within one year
2019
2018
£000
£000
Trade creditors
237
269
Amounts owed to group undertakings
64,579
49,218
Corporation tax
-
150
Other taxation and social security
1,229
387
Accruals and deferred income
7,274
5,723
73,319
55,747
Deferred income on contracts is
£4,454,000 (2018:
£2,680,000). Included within amounts due to group undertakings
is
a 7.25% fixed rate unsecured demand note due to Financial Models Corporation Limited of
£5,567,000 (2018:
£35,796,000). Other intercompany creditors are non-interest bearing, unsecured and repayable on demand.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2019
2018
Balances:
£000
£000
Accelerated capital allowances
421
481
Share based payments
282
310
Intangibles
(193)
-
Other short term timing differences
81
106
591
897
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
16
Deferred taxation
(Continued)
- 27 -
2019
Movements in the year:
£000
Asset at 1 January 2019
(897)
Charge to profit or loss
306
Asset at 31 December 2019
(591)
17
Retirement benefit schemes
2019
2018
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
802
685
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.
18
Share-based payment transactions
Liabilities and expenses
Share based payments under the various plans offered by the ultimate parent company SS&C Technologies Holdings, Inc. may be granted to officers and other key individuals who perform services for the company. These awards may be in the form of Stock Options and Restricted Stock Units (“RSU”) and other similar awards.
Each stock option has an exercise price equal to the market price of the ultimate parent company’s common stock on the grant date and a contractual term of ten years from the date of the grant. Substantially all stock options vest at 25% on the first anniversary of the date of the grant and 1/36 per month thereafter until fully vested.
The expected volatility is based on weighted historical and implied volatilities of the ultimate parent company’s common stock price. The expected life of the options is based on historical data.
The fair value of all the share-based compensation is charged to the company by the ultimate parent company and therefore no capital contribution arises to the company. The share-based compensation expense during
the year
was
£996,000 (2018: £9
63,000).
19
Share capital
2019
2018
£000
£000
Ordinary share capital
Issued and fully paid
3,320,108 (2018: 3,220,108) Ordinary shares of 25p each
830
830
SS&C SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 28 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£000
£000
Within one year
527
916
Between two and five years
498
2,395
In over five years
-
83
1,025
3,394
21
Events after the reporting date
Since the start of January 2020, the outbreak of Covid-19, which is a rapidly evolving situation, has adversely impacted global commercial activities.
The Directors do not believe there is any financial impact to the financial statements as at 31 December 2019 as a result of this subsequent event. The company reaffirms that its operational performance continues as expected and the pandemic has, to date, had no material impact on the company’s cashflows. The rapid development and fluidity of this situation precludes any prediction as does its ultimate impact, however the company believes that its liquidity position, its business model and its focus on risk mitigation combined with operational cash and support from its ultimate parent, if required, offer a significant degree of protection.
Following the Algorithmics acquisition, 49 employees joined the company on 1 January 2020.
There are no other subsequent events which would require adjustments or disclosure to the financial statements.
22
Ultimate controlling party
The immediate parent undertaking of the company is Financial Models Corporation Limited, which is registered in the United Kingdom and holds 100% of the share capital of the company.
The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is SS&C Technologies Holdings, Inc., a company incorporated in the United States of America. Copies of the consolidated financial statements of SS&C Technologies Holdings, Inc. can be obtained from 80 Lamberton Road, Windsor, Connecticut 06095, USA.
2019-12-31
2019-01-01
false
CCH Software
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01772349
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01772349
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2019-12-31
01772349
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01772349
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2017-12-31
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2017-12-31
01772349
2017-12-31
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2019-01-01
2019-12-31
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
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2019-12-31
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2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2018-01-01
2018-12-31
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2019-01-01
2019-12-31
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2018-01-01
2018-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2018-01-01
2018-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2018-01-01
2018-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2018-01-01
2018-12-31
01772349
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2018-12-31
01772349
2018-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2018-12-31
01772349
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2018-12-31
01772349
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2018-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-12-31
01772349
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2018-12-31
01772349
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2019-12-31
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2019-12-31
01772349
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2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-12-31
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2019-12-31
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2019-12-31
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2019-12-31
01772349
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2019-12-31
01772349
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2019-12-31
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2019-12-31
01772349
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2019-01-01
2019-12-31
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2019-12-31
01772349
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2019-12-31
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2019-12-31
01772349
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2019-12-31
01772349
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2019-01-01
2019-12-31
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2019-01-01
2019-12-31
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2019-01-01
2019-12-31
01772349
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2019-12-31
01772349
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2019-12-31
01772349
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2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-12-31
01772349
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01772349
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2019-12-31
01772349
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2018-12-31
01772349
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2018-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
01772349
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2019-01-01
2019-12-31
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