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REGISTERED NUMBER: 11266456 (England and Wales)















Red Flag Alert Technology
Group Limited

Financial Statements

for the Year Ended 31 March 2023






Red Flag Alert Technology
Group Limited (Registered number: 11266456)






Contents of the Financial Statements
for the year ended 31 March 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Red Flag Alert Technology
Group Limited

Company Information
for the year ended 31 March 2023







DIRECTORS: RW Traynor
MS Halstead
RA West
Ms FL Hatch
JM Lord





REGISTERED OFFICE: 28 Eaton Avenue
Matrix Office Park
Buckshaw Village
Chorley
Lancashire
PR7 7NA





REGISTERED NUMBER: 11266456 (England and Wales)





AUDITORS: Sedulo Audit Limited
605 Albert House
256 - 260 Old Street
London
EC1V 9DD

Red Flag Alert Technology
Group Limited (Registered number: 11266456)

Balance Sheet
31 March 2023

2023 2022
(Unaudited)
Notes £ £ £ £
FIXED ASSETS
Intangible assets 4 348,411 -
Tangible assets 5 92,158 23,467
Investments 6 1 -
440,570 23,467

CURRENT ASSETS
Debtors 7 853,789 873,535
Cash at bank 3,125,709 40,971
3,979,498 914,506
CREDITORS
Amounts falling due within one year 8 2,671,963 1,861,671
NET CURRENT ASSETS/(LIABILITIES) 1,307,535 (947,165 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,748,105

(923,698

)

CREDITORS
Amounts falling due after more than one
year

9

1,866,848

-
NET LIABILITIES (118,743 ) (923,698 )

CAPITAL AND RESERVES
Called up share capital 11 1,575,144 100
Share premium 1,050,024 -
Retained earnings (2,743,911 ) (923,798 )
SHAREHOLDERS' FUNDS (118,743 ) (923,698 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 1 March 2024 and were signed on its behalf by:





RA West - Director


Red Flag Alert Technology
Group Limited (Registered number: 11266456)

Notes to the Financial Statements
for the year ended 31 March 2023

1. STATUTORY INFORMATION

Red Flag Alert Technology Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The amounts in the financial statements have been rounded to the nearest £1.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The financial statements have been prepared on the going concern basis despite the excess of liabilities over assets. This basis has been adopted on the basis of the directors reviewing the company's future cashflow requirements and performing sensitivity analysis to establish that this basis is appropriate. The directors have considered a period of at least twelve months forwards from the date of signing the financial statements when considering the company's cash requirements.

Preparation of consolidated financial statements
The financial statements contain information about Red Flag Alert Technology Group Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets
Intangible assets arose on the acquisition of a business on 31 March 2023. Amortisation will commence on 1 April 2023.

The intangible assets consist of the following classes of asset:

Class of assetEstimated useful economic life

Client list5 years
Historic client base2 years
Intellectual property5 years
Brand awareness10 years


Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 20% on cost
Computer equipment - 33% on cost

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Red Flag Alert Technology
Group Limited (Registered number: 11266456)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors, prepayments and bank and cash balances and bank and cash equivalents, are initially measured at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the asset is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities, which include creditors, accruals, overdrafts and such equivalents, together with bank or similar loans and group and related party borrowings, are initially recognised at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the liability is measured at the present value of the future obligations discounted at a market rate of interest.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 37 (2022 - 22 ) .

Red Flag Alert Technology
Group Limited (Registered number: 11266456)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

4. INTANGIBLE FIXED ASSETS
Other
intangible
assets
£
COST
Additions 348,411
At 31 March 2023 348,411
NET BOOK VALUE
At 31 March 2023 348,411

5. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£ £ £
COST
At 1 April 2022 - 24,154 24,154
Additions 69,582 28,581 98,163
Disposals - (1,499 ) (1,499 )
At 31 March 2023 69,582 51,236 120,818
DEPRECIATION
At 1 April 2022 - 687 687
Charge for year 9,299 18,674 27,973
At 31 March 2023 9,299 19,361 28,660
NET BOOK VALUE
At 31 March 2023 60,283 31,875 92,158
At 31 March 2022 - 23,467 23,467

6. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
COST
Additions 1
At 31 March 2023 1
NET BOOK VALUE
At 31 March 2023 1

The fixed asset investment represents the entire issued share capital of Red Flag Alert Technology (Ireland) Limited which is registered in Ireland and is presently dormant.

Red Flag Alert Technology
Group Limited (Registered number: 11266456)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

7. DEBTORS
2023 2022
(Unaudited)
£ £
Amounts falling due within one year:
Trade debtors 405,564 269,131
Other debtors 29,760 239,549
Taxation recoverable 302,629 -
Prepayments and accrued income 115,836 117,694
853,789 626,374

Amounts falling due after more than one year:
Amounts owed by group undertakings - 247,161

Aggregate amounts 853,789 873,535

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
(Unaudited)
£ £
Trade creditors 732,541 397,882
Social security and other taxes 68,679 29,723
VAT 8,729 47,111
Other creditors 466,712 10,933
Amounts owed to related
party undertakings 700,538 577,040
Directors' current accounts 201,746 419,900
Accruals and deferred income 493,018 379,082
2,671,963 1,861,671

Management have updated disclosure of liabilities to make it clearer to the the readers of the accounts.

The directors loans are interest free, unsecured and have no fixed repayment terms.

Included within other creditors, both within and over one year, are shareholders unsecured loan notes which are repayable by 1 April 2028 and carry interest at 6% pa on £1,445,154 and 9% on £875,000. Certain of the shareholders are also directors of the company and the amount of £1,445,154 is due to certain directors.

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
(Unaudited)
£ £
Amounts owed to group undertakings 1 -
Other creditors 1,866,847 -
1,866,848 -

Red Flag Alert Technology
Group Limited (Registered number: 11266456)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

10. LEASING AGREEMENTS
The company had operating lease commitments of £228,116 (2022: £nil) at the year end.

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Class No Nominal 2023 2022
value
£ £    £   
A Ordinary shares 43,680 0.001 44 80
B Ordinary shares 19.980 0.001 20 20
C Ordinary shares 80,000 0.001 80 -
PP Ordinary shares 1,575,000 1.00 1,575,000 -
F Ordinary shares 20 0.02 -
1,718,680 1,575,144 100


During the year the company reclassified the Ordinary A shares from £1 shares to £0.001 Ordinary C shares.

The company reclassified Ordinary B shares from £1 shares to £0.001 Ordinary B and £0.02 F Ordinary shares.

During the year the company issued 1,575,000 Ordinary PP shares and 43,680 Ordinary A shares for a total of £2,625,067 which includes a premium totalling £1,050,024.

12. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Diccon Thornely (Senior Statutory Auditor)
for and on behalf of Sedulo Audit Limited

Red Flag Alert Technology
Group Limited (Registered number: 11266456)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

13. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year the company purchased the assets of Reg Flag A!ert LLP of which Mr RW Traynor, a director of the company, is a member for £348,411. There was a balance owing to Red Flag A!ert LLP at the year end of £93,148 (2022: £nil).

At the year end there were balances totalling £201,746 (2022: £419,900) owing to the directors on their loan accounts. No interest was paid to the directors during this or the prior year on these amounts.

Included within amounts owed to related party undertakings is an amount of £607,390 (2022: £577,040) owing to Reparo Finance Limited. A director of the company, Mr RW Traynor, is also a director of this company. The £607,390 included interest of £75,844. Interest charged at 1.4% per month and the full amount was paid in full post year end.

There is an amount owing of £93,148 owing to Red Flag A!ert LLP, which is included in amounts owed to related parties. A director of the company, Mr R W Traynor is also a member of this LLP.

Included within other creditors are shareholders unsecured loan notes which are repayable by 1 April 2028 and carry interest at 6% pa on £1,445,154 and 9% on £875,000. Certain of the shareholders are also directors of the company and the amount of £1,445,154 is due to certain directors.

14. POST BALANCE SHEET EVENTS

Subsequent to the year end the company has secured new borrowings of £1m which has been used to repay loans from various existing lenders including £607,390 owing to a related party and £234,797 owed to the directors,so that both these loans have since been cleared.

15. ULTIMATE CONTROLLING PARTY

In the opinion of the directors the company is controlled by Mr RW Traynor, a director of the company, by virtue of his shareholding.