What this says
As at Fri 9 Oct 2026Final board pack from the CFO, dated 19 Jan 2026. It reports contracted ARR of £1.9m, 47 customers and headcount of 39 at 31 Dec 2025, built from executed order forms and invoices. It sets no service terms or prices.
What it is: an internal board pack prepared by Bridget Kearsley, Chief Financial Officer, for the board of BG-Demo, covering the quarter ending 31 Dec 2025. It asks the board to note the closing position and confirm how ARR and customers are counted.
Claims: "Contracted annual recurring revenue is the sum of the annual subscription value on live executed order forms." Credit notes are treated as one-offs, and customers are counted only where there is a live contract.
Not settled: the pack says it does not show movement against earlier quarters, pipeline, cash collected or cost lines, and asks the board not to infer them. Hiring plans are left to Nell Ashcombe.
Currency: it is a point-in-time position at 31 Dec 2025 and is not a view of today's ARR or customer count.
Body
BG-Demo - Board Pack - quarter to 31 Dec 2025
Status: Final Prepared by: Bridget Kearsley, Chief Financial Officer Date: 19 Jan 2026 Period covered: the quarter ending 31 Dec 2025 Audience: the board of BG-Demo
1. Headline numbers
For the avoidance of doubt, every figure in this pack is taken from our finance records and the executed order forms at the quarter end, 31 Dec 2025. Where the CRM and the accounting system differ, the order form and the invoices have been used.
| Measure | Position at 31 Dec 2025 |
|---|---|
| Annual recurring revenue (contracted) | £1.9m |
| Customers | 47 |
| Headcount | 39 |
Contracted annual recurring revenue is the sum of the annual subscription value on live executed order forms. It excludes one-off implementation fees and excludes credit notes, which are treated as one-offs and not as a change in ARR.
2. Annual recurring revenue
Contracted ARR closed the quarter at £1.9m.
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- The figure is built from executed order forms, not from the CRM amount field.
- Implementation fees are shown separately and are not part of this number.
- No discount has been applied to the figure beyond what each order form states for its first term.
Commentary. The base is spread across the three subscription tiers: Starter, Growth and Enterprise. The board should read the figure as contracted, which is not the same as invoiced in the period. Invoicing runs annually in advance for most customers, with quarterly billing where a customer has asked for it, so cash and ARR will not move in step.
A customer signed under the earlier price book keeps that price until its first renewal after the changeover, and then moves to the current list. First-term discounts end at renewal. Both effects are in the renewal forecast and not in the ARR figure above, which reflects what is contracted today.
3. Customers
We ended the quarter with 47 customers.
- Each customer is counted once per organisation. Where two CRM records share a domain, they are treated as one company and the ARR is counted once.
- A customer is counted only where there is a live contract. A CRM record marked as a customer with no live contract and no invoices since its last term ended is treated as churned and is excluded.
Commentary. The customer count is the number the board should hold the CRM to. Our records show that the lifecycle stage in the CRM has, in the past, run ahead of the contract position, and the finance and customer success teams are continuing to reconcile the two each month.
4. People
Headcount at the quarter end was 39.
- The figure is taken from HR records and counts people employed by BG-Demo at 31 Dec 2025.
- Anyone who has left is not shown as an account owner, call host or email signer. Where an account has lost its owner, the account is reported as having no active owner, with the person who knows it best from activity named in the customer success notes.
Commentary. Headcount is the second input, with ARR, to any view of how the business is scaling. This pack does not set out hiring plans, which will be covered separately by Nell Ashcombe.
5. What the numbers say, and what they do not
Three points for the board to hold in mind.
- ARR is contracted, not guaranteed. Every subscription must be renewed. The customer success team owns the renewal notice and the renewal conversation, and the account executive owns commercial terms.
- Value must be demonstrable. Customers who pay on time and still question value need a value case built from questions asked, records indexed and connectors live. That work sits with customer success and is tracked outside this pack.
- This pack does not show movement against earlier quarters, pipeline, cash collected or cost lines. Those are reported in the finance appendix and the forecast, and I would be grateful if the board would not infer them from the three headline numbers.
6. Risks to watch
| Area | Risk | Owner |
|---|---|---|
| Renewals | A price change at renewal prompts a customer to question value | Customer success |
| Data quality | CRM amounts diverge from order forms and invoices | Finance |
| Key people | A customer champion leaves and usage falls away | Customer success |
| Collections | An invoice goes unanswered past its due date | Finance |
For each item, the owner brings a short note to the next board meeting.
7. Asks of the board
- Note the closing position: contracted ARR of £1.9m, 47 customers and headcount of 39 at 31 Dec 2025.
- Confirm that contracted ARR, as defined in section 1, remains the measure used in board reporting.
- Agree that the customer count continues to be reported on live contracts only.
No discount or fee waiver is proposed in this pack. Any such request would go to Nell Ashcombe before it reached the board.
8. Next steps
- Finance to reconcile CRM amounts against executed order forms and invoices before the next pack.
- Customer success to bring the renewal forecast, with the effect of the price book and the end of first-term discounts shown separately.
- Finance to circulate the appendix with cash and cost lines alongside this pack.
Best, Bridget