Zalaris UK Limited

Business Review The company has set out in this report a fair review of the business and the position of the company at the end of the financial year ended 31 December 2024 and a description of the principal risks and uncertainties facing the company (known as a 'business review'). The company provides outsourcing and consulting services related to sales, system, implementations and operations of human resources processes and functionality. The company is 100% owned by Zalaris ASA and is part of a group with operations across Europe. The group activity in 2024 has seen a greater focus on HCM SAP cloud solutions across our international operations as the market moves from on premise to cloud-based solutions. The board believes our geographic footprint is a significant benefit to customers implementing cross border HCM solutions. Principle risks and uncertainties The key company level risks identified by the directors are referred to as commercial risk, competition risk and financial management risk. Commercial risk The nature of commercial risk reflects the normal risks associated with a company operating in a competitive market. These risks include: Economic, political and market conditions which could affect the company's sales growth and profitability. Failure to achieve the company's financial forecasts due to the inability to secure new contracts and re-negotiate existing contracts. Full appreciation of the how the COVID-19 global pandemic has ultimately hit specific industry segments currently engaging with, or potentially engaging with, Zalaris products and services. Maintaining adequate human resources that are suitably trained to meet our customer's demands. Ensuring that the company's systems and infrastructure are sufficiently resilient to cope with future demands. Competition risk The market for the supply of design and implementation of human capital management solutions and services in the UK is highly competitive. There is strong competition in supplying the product and services requirements of our customers, and there are low barriers to entry. As a result of competitive pressures, changes to the company's pricing models may result in price reductions which would adversely affect sales and profitability. Competition puts pressure on product prices and increases the cost of of service delivery. Managing this risk requires continuous focus on process efficacy and reducing costs. Financial management risk. Credit risk The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit which is reassessed based on the on-going market conditions and at least once annually by the board.