Company Registration No. 08982933 (England and Wales)
Crisis24 Limited
Annual report and financial statements
for the year ended 31 January 2023
Crisis24 Limited
Company information
Directors
Pierre-Hubert Seguin
Patrick Prince
Gregoire Pinton
Craig Sweet
Secretary
Pierre-Hubert Seguin
Company number
08982933
Registered office
Two London Bridge
London
SE1 9RA
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Crisis24 Limited
Contents
Page
Directors' report
1 - 2
Independent auditor's report
3 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 28
Crisis24 Limited
Directors' report
For the year ended 31 January 2023
Page 1
The directors present their annual report and financial statements for the year ended 31 January 2023.
Principal activities
The principal activity of the company continued to be that of the provision of organisational resilience and travel risk management services.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Pierre-Hubert Seguin
Patrick Prince
Gregoire Pinton
Craig Sweet
Auditor
Saffery LLP have expressed their willingness to continue in office.
Crisis24 Limited
Directors' report (continued)
For the year ended 31 January 2023
Page 2
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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
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, International Accounting Standard 1 requires that directors:
properly select and apply accounting policies;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
make an assessment of the company's ability to continue as a going concern.
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
Each director in office at the date of approval of this annual report confirms that:
so far as the directors are aware, there is no relevant audit information of which the company's auditor is unaware, and
the directors have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
On behalf of the board
Gregoire Pinton
Director
17 October 2023
Crisis24 Limited
Independent auditor's report
To the members of Crisis24 Limited
Page 3
Opinion
We have audited the financial statements of Crisis24 Limited (the 'company') for the year ended 31 January 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 January 2023 and of its profit for the year then ended;
have been properly prepared in accordance with UK adopted international accounting standards; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
We draw attention to note 1.2 of the financial statements, which describes the parent company and fellow subsidiary company support provided to the company. Our opinion is not modified in respect of this matter.
Crisis24 Limited
Independent auditor's report (continued)
To the members of Crisis24 Limited
Page 4
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.
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
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 identified material misstatements in the directors' 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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
Crisis24 Limited
Independent auditor's report (continued)
To the members of Crisis24 Limited
Page 5
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
Crisis24 Limited
Independent auditor's report (continued)
To the members of Crisis24 Limited
Page 6
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Michael Di Leto (Senior Statutory Auditor)
For and on behalf of Saffery LLP
2 November 2023
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Crisis24 Limited
Statement of comprehensive income
For the year ended 31 January 2023
Page 7
2023
2022
Notes
£
£
Revenue
4
6,206,810
5,557,850
Cost of sales
(562,591)
(612,385)
Gross profit
5,644,219
4,945,465
Administrative expenses
(4,349,259)
(4,246,007)
Operating profit
5
1,294,960
699,458
Finance costs
8
(254)
(12,719)
Profit before taxation
1,294,706
686,739
Income tax income
9
101,227
Profit and total comprehensive income for the year
1,395,933
686,739
Crisis24 Limited
Statement of financial position
As at 31 January 2023
Page 8
2023
2022
Notes
£
£
Non-current assets
Goodwill
10
1,079,780
1,079,780
Intangible assets
10
431,300
190,306
Property, plant and equipment
11
194,496
182,619
Investments
12
1
1
Deferred tax asset
234,000
234,000
1,939,577
1,686,706
Current assets
Trade and other receivables
14
8,736,780
7,929,987
Cash and cash equivalents
1,126,324
784,066
9,863,104
8,714,053
Current liabilities
Trade and other payables
15
16,059,535
16,008,594
Lease liabilities
47,736
44,736
16,107,271
16,053,330
Net current liabilities
(6,244,167)
(7,339,277)
Non-current liabilities
Lease liabilities
80,853
128,805
Net liabilities
(4,385,443)
(5,781,376)
Equity
Called up share capital
17
1
1
Share premium account
18
1,250
1,250
Retained earnings
(4,386,694)
(5,782,627)
Total equity
(4,385,443)
(5,781,376)
The financial statements were approved by the board of directors and authorised for issue on 17 October 2023 and are signed on its behalf by:
Gregoire Pinton
Director
Company registration number 08982933
Crisis24 Limited
Statement of changes in equity
For the year ended 31 January 2023
Page 9
Share capital
Share premium account
Retained earnings
Total
£
£
£
£
Balance at 1 February 2021
1
1,250
(6,469,366)
(6,468,115)
Year ended 31 January 2022:
Profit and total comprehensive income for the year
-
-
686,739
686,739
Balance at 31 January 2022
1
1,250
(5,782,627)
(5,781,376)
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
1,395,933
1,395,933
Balance at 31 January 2023
1
1,250
(4,386,694)
(4,385,443)
Crisis24 Limited
Statement of cash flows
For the year ended 31 January 2023
Page 10
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
566,948
466,250
Interest paid
(254)
(12,719)
Income taxes refunded
101,227
49,036
Net cash inflow from operating activities
667,921
502,567
Investing activities
Purchase of intangible assets
(197,861)
(245,929)
Purchase of property, plant and equipment
(82,850)
(26,039)
Proceeds from disposal of subsidiaries
1
Net cash used in investing activities
(280,711)
(271,967)
Financing activities
Payment of lease liabilities
(44,952)
(42,125)
Net cash used in financing activities
(44,952)
(42,125)
Net increase in cash and cash equivalents
342,258
188,475
Cash and cash equivalents at beginning of year
784,066
595,591
Cash and cash equivalents at end of year
1,126,324
784,066
Crisis24 Limited
Notes to the financial statements
For the year ended 31 January 2023
Page 11
1
Accounting policies
Company information
Crisis24 Limited is a private company limited by shares incorporated in England and Wales. The registered office is Two London Bridge, London, SE1 9RA.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Crisis24 Limited is a wholly owned subsidiary of Garda World Security Corporation, a company registered in Canada. The results of Crisis24 Limited are included in the consolidated financial statements of Garda World Security Corporation which have been delivered to the Registrar of Companies and are attached to the accounts filed by the company's UK parent company, Gardaworld Consulting (UK) Limited, company number: 09629915.
1.2
Going concern
The financial statements have been prepared assuming that the company will continue as a going concern notwithstanding the net liability position of £4,385,443, as at 31 January 2023. The company is expected to continue its trend of profitability for the foreseeable future. In addition it has received confirmation of continued support from its immediate parent undertaking, Gardaworld Consulting (UK) Limited and a fellow subsidiary undertaking for a period of at least 12 months from the date of approval of these financial statements. The directors have no reason to believe that a material uncertainty exists, that may cause doubt over the ability of the company to continue as a going concern.true
1.3
Revenue
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies (continued)
Page 12
The company recognises revenue from the following major sources:
Global risk manager
Indemnified
Ad hoc
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
Global risk manager
Recognised across the length of the contract, released monthly as performance obligations for delivery of service are satisfied.
Indemnified
Recognised across the length of the contract, released monthly as performance obligations for delivery of service are satisfied.
Ad hoc
Recognised on date of event or project.
1.4
Goodwill
Goodwill arising on the acquisition of trade and assets represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities 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.
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.
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies (continued)
Page 13
1.5
Intangible assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.
1.6
Property, plant and equipment
Property, plant and equipment 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:
Right of use asset
Over lease term
Leasehold improvements
5 years straight line
Fixtures and fittings
5 years straight line
Office equipment
5 years straight line
Computers
3 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
1.7
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies (continued)
Page 14
1.8
Impairment of tangible and intangible assets
At each reporting 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.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
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.
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 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 assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies (continued)
Page 15
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Financial assets at fair value through other comprehensive income
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies (continued)
Page 16
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI 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 of the investment have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.11
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Financial liabilities at fair value through profit or loss
Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:
it has been incurred principally for the purpose of repurchasing it in the near term, or
on initial recognition it is part of a portfolio of identified financial instruments that the manages together and has a recent actual pattern of short-term profit taking, or
it is a derivative that is not designated and effective hedging instrument.
Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies (continued)
Page 17
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
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 income statement 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.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, except when it relates to items charged or credited directly to 'other comprehensive income', in which case the deferred tax is also dealt with in 'other comprehensive income'. 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.
1.14
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 inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
A termination benefit liability is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies (continued)
Page 18
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense when employees have rendered the service entitling them to the contributions.
1.16
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies (continued)
Page 19
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.
2
Adoption of new and revised standards and changes in accounting policies
In the current year, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period or a prior period or may have an effect on future periods:
Disclosure of Accounting Policies (Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements)
1 January 2023
Definition of Accounting Estimates (Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors)
1 January 2023
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12 Income Taxes)
1 January 2023
Standards which are in issue but not yet effective
At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
Classification of Liabilities as Current or Non-Current, Non-current Liabilities with Covenants: amendments to IAS 1
1 January 2024
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
1 January 2024
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
Page 20
3
Critical accounting 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements
Key estimates - impairment of intangibles
Management reviews the year end goodwill figure and assess whether an impairment is required on the year end balance by assessing how much future cash flows are expected to arise.
Key estimates - receivables
The receivables at the reporting date have been reviewed to determine whether there is any objective evidence that any of the receivables are impaired. An impairment provision is included for any receivable where the entire balance is not considered collectible. An impairment provision is based on the best information at the reporting date.
4
Revenue
2023
2022
£
£
Revenue analysed by class of business
Consultancy services
6,206,810
5,557,850
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
22,880
52,331
Fees payable to the company's auditor for the audit of the company's financial statements
19,250
17,500
Depreciation of property, plant and equipment
70,973
57,052
Amortisation of intangible assets (included within administrative expenses)
550,119
57,429
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
Page 21
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
53
50
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,192,657
2,636,333
Social security costs
331,518
255,495
Pension costs
86,727
77,102
2,610,902
2,968,930
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
129,070
116,000
8
Finance costs
2023
2022
£
£
Interest on lease liabilities
254
12,719
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
Page 22
9
Income tax expense
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(101,227)
The charge for the year can be reconciled to the profit per the income statement as follows:
2023
2022
£
£
Profit before taxation
1,294,706
686,739
Expected tax charge based on a corporation tax rate of 19.00% (2022: 19.00%)
245,994
130,480
Effect of expenses not deductible in determining taxable profit
29,840
Utilisation of tax losses not previously recognised
(245,994)
(160,320)
Connected company tax credit in respect of previous period
(101,227)
Taxation credit for the year
(101,227)
-
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
Page 23
10
Intangible assets
Goodwill
Software
Total
£
£
£
Cost
At 1 February 2021
1,079,780
254,179
1,333,959
Additions
-
245,929
245,929
At 31 January 2022
1,079,780
500,108
1,579,888
Transfers from other group undeertakings
593,252
593,252
Additions
197,861
197,861
At 31 January 2023
1,079,780
1,291,221
2,371,001
Amortisation and impairment
At 1 February 2021
252,373
252,373
Charge for the year
57,429
57,429
At 31 January 2022
309,802
309,802
Charge for the year
550,119
550,119
At 31 January 2023
859,921
859,921
Carrying amount
At 31 January 2023
1,079,780
431,300
1,511,080
At 31 January 2022
1,079,780
190,306
1,270,086
At 31 January 2021
1,079,780
1,806
1,081,586
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
Page 24
11
Property, plant and equipment
Right of use asset
Leasehold improveme-nts
Office equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost
At 1 February 2021
289,529
9,977
79,521
49,295
428,322
Additions
26,039
26,039
At 31 January 2022
289,529
9,977
79,521
75,334
454,361
Additions
27,729
55,121
82,850
At 31 January 2023
289,529
27,729
9,977
79,521
130,455
537,211
Accumulated depreciation and impairment
At 1 February 2021
83,156
9,977
79,291
42,266
214,690
Charge for the year
50,677
230
6,145
57,052
At 31 January 2022
133,833
9,977
79,521
48,411
271,742
Charge for the year
43,444
3,676
23,853
70,973
At 31 January 2023
177,277
3,676
9,977
79,521
72,264
342,715
Carrying amount
At 31 January 2023
112,252
24,053
-
-
58,191
194,496
At 31 January 2022
155,696
-
-
-
26,923
182,619
At 31 January 2021
206,373
-
-
230
7,029
213,632
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
Page 25
12
Investments
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Investments in subsidiaries
1
1
Movements in non-current investments
Shares in group undertakings
£
Cost or valuation
At 1 February 2022 & 31 January 2023
1
Carrying amount
At 31 January 2023
1
At 31 January 2022
1
13
Subsidiaries
Details of the company's subsidiaries at 31 January 2023 are as follows:
Country of
Ownership
Name on undertaking
incorporation
interest (%)
Drum Cussac Technology Limited
England and Wales
100
The registered office is Two London Bridge, London, SE1 9RA.
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
Page 26
14
Trade and other receivables
2023
2022
£
£
Trade receivables
1,230,307
1,132,859
Provision for bad and doubtful debts
(40,778)
(51,445)
1,189,529
1,081,414
Amounts owed by fellow group undertakings
6,877,718
6,532,283
Other receivables
32,846
120,124
Prepayments
636,687
196,166
8,736,780
7,929,987
15
Trade and other payables
2023
2022
£
£
Trade payables
105,105
290,727
Amounts owed to fellow group undertakings
13,018,695
12,984,645
Accruals
2,793,012
2,618,042
Social security and other taxation
139,936
100,478
Other payables
2,787
14,702
16,059,535
16,008,594
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
86,727
77,102
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.
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
Page 27
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 0.0001p each
1,000,000
1,000,000
1
1
Ordinary B shares of 0.0001p each
250,112
250,112
-
-
1,250,112
1,250,112
1
1
18
Share premium account
2023
2022
£
£
At the beginning and end of the year
1,250
1,250
19
Capital risk management
The company is not subject to any externally imposed capital requirements.
20
Controlling party
The parent of the smallest company for which consolidated financial statements are drawn up of which Crisis24 Limited is a member is Garda World Security Corporation, a company registered in Canada. The registered office of Garda World Security Corporation is 1390 Barre Street, Montreal, Quebec, Canada, H3C 1N4.
Crisis24 Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
Page 28
21
Cash generated from operations
2023
2022
£
£
Profit for the year before income tax
1,294,706
686,739
Adjustments for:
Finance costs
254
12,719
Amortisation and impairment of intangible assets
550,119
57,429
Depreciation and impairment of property, plant and equipment
70,973
57,052
Movements in working capital:
Increase in trade and other receivables
(806,793)
(6,688,123)
(Decrease)/increase in trade and other payables
(542,311)
6,340,434
Cash generated from operations
566,948
466,250
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