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REGISTERED NUMBER: 05439023 (England and Wales)













STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

SAGGEZZA LIMITED

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


SAGGEZZA LIMITED

COMPANY INFORMATION
for the Year Ended 31 December 2023







DIRECTORS: S Chakravarthi
V Venkatesh





REGISTERED OFFICE: 10 John Street
London
WC1N 2EB





REGISTERED NUMBER: 05439023 (England and Wales)





AUDITORS: Oury Clark Chartered Accountants
Statutory Auditors
Herschel House
58 Herschel Street
Slough
Berkshire
SL1 1PG

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

STRATEGIC REPORT
for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Company's Business
Saggezza is a Digital Technology Services and Platform Solutions Company that provides solutions in the areas of Digital Experience, Digital Engineering and Data Solutions.

Business Performance:

The company monitors its performance using key performance indicators:

a) Revenue

Saggezza had revenue of £10,277,460 for the year 2023 compared to £14,188,686 in 2022 with revenue decline of 28%. The fall is mainly on account of negative macro economic conditions which have had an impact on the ability to generate sales.

b) Gross Profit Margin

The gross margin of the business for 2023 is 21% compared to 31% in 2022. This is mainly attributed to the cost of delivery. The fall in margin is attributable to the inability to reduce sales staff in proportion to the decline in sales.

c) EBITDA margin

The EBITDA margin has reduced from 17% in 2022 to -5% in 2023. This is due to the macro econmic factors discussed above in association with less variable administrative costs such as wages which had remained largely static.

The key performance indicators are monitored through monthly management accounts and these are reviewed in comparison to prior periods and budgets. Any adverse trends are identified at an early stage and investigated.

Overall operating loss is £557,511 in 2023 compared to an operating profit of £2,373,436 in 2022. This is majorly on account of there being no corresponding reduction in SG & A expenses in line with the decline in sales revenue.

The company moved to a new office within Sunderland, UK in September 2023.

Principal risks and uncertainties
Currently, the global economic climate is unpredictable. A volatile economic environment will have an impact on the company's revenue, profits and cashflows. However, the company is closely watching the developments, both opportunities and risks including the competition, technology trends and the market needs. The company has been keenly focusing on market developments to tap potential opportunities and to expand its footprint in other EU countries.

ON BEHALF OF THE BOARD:





V Venkatesh - Director


18 July 2024

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

REPORT OF THE DIRECTORS
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

S Chakravarthi
V Venkatesh

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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;
-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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Oury Clark Chartered Accountants, are deemed to be re-appointed under Section 487 (2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





V Venkatesh - Director


18 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SAGGEZZA LIMITED

Opinion
We have audited the financial statements of Saggezza Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 Financial Reporting Standard 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 2023 and of its loss 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.

Basis for opinion
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 Auditors' 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 in excess of twelve months and a day from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are descried in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be misstated. If we identify such inconsistencies or apparent 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 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SAGGEZZA LIMITED


Matters on which we are required to report by exception
In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any matters in the Strategic Report or the Report of the Directors that are inconsistent with our overall view of the financial statements.

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 Statement of Directors' Responsibilities set out on page three, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SAGGEZZA LIMITED


Auditors' 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 a Report of the Auditors 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 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing potential irregularities, including fraud
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- Considering the nature of the industry, sector, control environment and current business activities, including possible performance targets and subsequent remuneration.
- Enquiring of management concerning policies and procedures relating to complying with laws and regulations and whether there were any instances of non-compliance.
- Enquiring of management concerning policies and procedures relating to mitigating, detecting and responding to fraud risk and whether there has been any actual or possible instances of fraud.

Discussing with the engagement team and internal specialists where necessary, regarding how and where fraud may occur in the financial statements along with the possible indicators of fraud. We identified the following areas most likely to be susceptible for fraud:
1. Revenue recognition;
2. Management override.

Discussing with the engagement team and internal specialists where necessary, the legal and regulatory framework in which the company operates and in particular those which would have an impact on the financial statements. The key laws and regulations considered were the Companies Act 2006, UK tax legislation and UK employment law.

Audit response to the risks identified
As noted above, we identified revenue recognition and management override as matters that would most likely be susceptible to fraud. Our procedures to respond to these risks included the following:

1. Performing a sales test of detail to ensure revenue is recognised correctly;
2. Reviewing the nominal ledger and journals posted during the year to ensure there is no evidence of management override.

Further, we also identified compliance with the Companies Act 2006 and UK tax legislation as being key areas where there may be non-compliance. Our procedures to respond to these risks included the following:

1. Review the financial statement disclosures with completion of a disclosure checklist and testing to supporting documentation to assess compliance with the Companies Act 2006;
2. Review the corporation tax return to ensure it complies with UK tax legislation and completion of our detailed corporation tax checklist;
3. A safeguard review of the financial statements by someone independent of the audit team;
4. A safeguard review of the corporation tax computation by someone independent of the audit team and CTA qualified;
5. We have checked a sample of compliance with right to work checks and reviewed legal fees for indications of material issues arising out of non-compliance with employment law.

The above matters and identified laws and regulations and potential fraud risks were communicated to all engagement team members and internal specialists where necessary, in order to enable the team to have the ability to identify such risks. The whole team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SAGGEZZA LIMITED

There are inherent limitations in the audit procedures described above and 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our 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 a Report of the Auditors 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.




Amy Enslin (Senior Statutory Auditor)
for and on behalf of Oury Clark Chartered Accountants
Statutory Auditors
Herschel House
58 Herschel Street
Slough
Berkshire
SL1 1PG

24 July 2024

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

INCOME STATEMENT
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 3 10,277,460 14,188,686

Cost of sales 8,193,075 9,780,234
GROSS PROFIT 2,084,385 4,408,452

Administrative expenses 2,641,896 2,380,007
(557,511 ) 2,028,445

Other operating income - 344,991
OPERATING (LOSS)/PROFIT 5 (557,511 ) 2,373,436


Interest payable and similar expenses 6 1,102 -
(LOSS)/PROFIT BEFORE TAXATION (558,613 ) 2,373,436

Tax on (loss)/profit 7 (121,880 ) 440,921
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(436,733

)

1,932,515

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

OTHER COMPREHENSIVE INCOME
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (436,733 ) 1,932,515


OTHER COMPREHENSIVE INCOME
Profit & loss account 21,570 1,051
Other reserves (11,828 ) 9,674
Income tax relating to components of other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

9,742

10,725
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(426,991

)

1,943,240

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

BALANCE SHEET
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 445,561 96,911

CURRENT ASSETS
Debtors 9 5,377,290 6,395,197
Cash at bank 658,124 1,330,817
6,035,414 7,726,014
CREDITORS
Amounts falling due within one year 10 3,004,767 3,919,727
NET CURRENT ASSETS 3,030,647 3,806,287
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,476,208

3,903,198

PROVISIONS FOR LIABILITIES 12 16,090 16,090
NET ASSETS 3,460,118 3,887,108

CAPITAL AND RESERVES
Called up share capital 13 1,000 1,000
Capital contribution reserve 14 4,273 16,100
Retained earnings 14 3,454,845 3,870,008
SHAREHOLDERS' FUNDS 3,460,118 3,887,108

The financial statements were approved by the Board of Directors and authorised for issue on 18 July 2024 and were signed on its behalf by:





V Venkatesh - Director


SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 December 2023

Called up Capital
share Retained contribution Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 1,000 1,936,442 6,426 1,943,868

Changes in equity
Total comprehensive income - 1,933,566 9,674 1,943,240
Balance at 31 December 2022 1,000 3,870,008 16,100 3,887,108

Changes in equity
Total comprehensive income - (415,163 ) (11,827 ) (426,990 )
Balance at 31 December 2023 1,000 3,454,845 4,273 3,460,118

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

CASH FLOW STATEMENT
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,382,506 1,431,765
Finance costs paid (1,102 ) -
Tax paid (644,911 ) (440,900 )
Net cash from operating activities 1,736,493 990,865

Cash flows from investing activities
Purchase of tangible fixed assets (394,617 ) (48,480 )
Share-option charge (11,827 ) 9,674
Retained earnings movement 21,570 -
Net cash from investing activities (384,874 ) (38,806 )

Cash flows from financing activities
Intra-group funding movements (2,024,312 ) (124,726 )
Share issue - 1,000
Net cash from financing activities (2,024,312 ) (123,726 )

(Decrease)/increase in cash and cash equivalents (672,693 ) 828,333
Cash and cash equivalents at beginning of
year

2

1,330,817

502,484

Cash and cash equivalents at end of year 2 658,124 1,330,817

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

NOTES TO THE CASH FLOW STATEMENT
for the Year Ended 31 December 2023

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
£    £   
(Loss)/profit before taxation (558,613 ) 2,373,436
Depreciation charges 45,967 37,652
Finance costs 1,102 -
(511,544 ) 2,411,088
Decrease/(increase) in trade and other debtors 2,715,369 (1,446,094 )
Increase in trade and other creditors 178,681 466,771
Cash generated from operations 2,382,506 1,431,765

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 658,124 1,330,817
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,330,817 502,484


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 1,330,817 (672,693 ) 658,124
1,330,817 (672,693 ) 658,124
Total 1,330,817 (672,693 ) 658,124

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

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

The company's trading address is: The Beam, Plater Way, Sunderland, UK, SR1 3AD.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has obtained a letter of support from its shareholder, InfoStretch Corporation USA. The director of InfoStretch Corporation USA has provided a commitment to provide any financial support which may be necessary in order that the company can meet its liabilities, as they fall due, for at least twelve months and one day from the signing of the audit report. As a result of this commitment the director has continued to adopt the going concern basis in preparing these financial statements.

Related party exemption
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.

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

Turnover is recognised when the outcome of a transaction can be estimated reliably by reference to the stage of completion of the project at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are met:
(a) The amount of the transaction can be measured reliably;
(b) It is probable that the economic benefits associated with the transaction will flow to the entity;
(c) The stage of completion of the project at the end of the reporting period can be measured reliably; and
(d) The costs incurred for the transaction and the costs to complete the transaction can be measured reliably based on the following:

- Statement of Work (SOW) is signed by both the parties stating the period and work to be done
within that period and the billing and payment terms of the respective project;
- The invoices raised are based on either Time & Material basis or Fixed Bid.

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

Financial instruments
Basic Financial Instruments as covered by Section 11 of FRS102 are measured at amortised cost. The company does not have any Other Financial Instruments as covered by Section 12 of FRS102.

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.


SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Share based payments
The company accounts for share options granted, modified or settled using the fair value method calculated using the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group received the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.

For options granted to directors and employees, the compensation cost is measured at fair value at the date of grant and is recognised in the profit or loss with a corresponding increase in equity over the vesting period, The amount recognised in the profit or loss is the cumulative amount calculated at each reporting date less amounts already recognised in previous period.

The share based payment expense is recognised on a reasonable allocation of the group expense.

Cash flow
The cash flow statement is prepared on the indirect basis.

Government grants
Government grants are recognised on a receivable basis. Grant income is recognised when there is:
-entitlement to the grant
-virtual certainty that it will be received
-sufficient measurability of the amount.

Grant income is included within other income in the profit and loss account.

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

3. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.23 31.12.22
£    £   
Consulting services 6,981,163 14,066,488
Intercompany 3,288,024 122,198
Grant revenue 8,273 -
10,277,460 14,188,686

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
£    £   
United Kingdom 8,987,775 14,066,488
Europe 1,172,064 -
United States of America 117,621 122,198
10,277,460 14,188,686

4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 8,403,978 9,496,419
Social security costs 926,948 1,147,864
Other pension costs 192,197 211,142
9,523,123 10,855,425

The average number of employees during the year was as follows:
31.12.23 31.12.22

Sales 9 3
Cost of sales 110 151
Administration 6 9
125 163

31.12.23 31.12.22
£    £   
Directors' remuneration - -

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

5. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

31.12.23 31.12.22
£    £   
Other operating leases 101,658 56,120
Depreciation - owned assets 45,967 37,622
Auditors' remuneration 64,667 28,040
Foreign exchange differences (231 ) (55 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Interest on late payments 1,102 -

7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax - 440,921
Corporation tax overpayment (121,880 ) -

Tax on (loss)/profit (121,880 ) 440,921

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
(Loss)/profit before tax (558,613 ) 2,373,436
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

(139,653

)

450,953

Effects of:
Expenses not deductible for tax purposes 5,328 (8,442 )
Capital allowances in excess of depreciation (24,864 ) (4,821 )
Utilisation of tax losses 160,368 -
Entertainment - 391
Unpaid pension movement (1,547 ) 802
Share based payment charge 2,436 2,038
Tax repayment income (121,880 ) -
Government grant income (2,068 ) -
Total tax (credit)/charge (121,880 ) 440,921

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

7. TAXATION - continued

Tax effects relating to effects of other comprehensive income

31.12.23
Gross Tax Net
£    £    £   
Profit & loss account 21,570 - 21,570
Other reserves (11,828 ) - (11,828 )
9,742 - 9,742

31.12.22
Gross Tax Net
£    £    £   
Profit & loss account 1,051 - 1,051
Other reserves 9,674 - 9,674
10,725 - 10,725

8. TANGIBLE FIXED ASSETS
Improvements
to Computer
property equipment Totals
£    £    £   
COST
At 1 January 2023 - 199,903 199,903
Additions 380,603 14,014 394,617
At 31 December 2023 380,603 213,917 594,520
DEPRECIATION
At 1 January 2023 - 102,992 102,992
Charge for year 13,779 32,188 45,967
At 31 December 2023 13,779 135,180 148,959
NET BOOK VALUE
At 31 December 2023 366,824 78,737 445,561
At 31 December 2022 - 96,911 96,911

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 1,097,887 3,995,147
Amounts owed by group undertakings 3,913,749 2,340,127
Other debtors 182,068 -
Tax 123,840 -
Prepayments and accrued income 59,746 59,923
5,377,290 6,395,197

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade creditors 2,418 23,877
Amounts owed to group undertakings 1,095,978 1,546,668
Tax - 642,951
Social security and other taxes 179,734 306,562
VAT 231,928 396,098
Other creditors 17,416 38,199
Accruals and deferred income 1,477,293 965,372
3,004,767 3,919,727

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
£    £   
Within one year 74,917 1,629
Between one and five years 411,504 -
In more than five years 344,657 -
831,078 1,629

The total lease payments made for the period ended 31 December 2023 were £101,658 (2022:£56,120).

12. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 16,090 16,090

Deferred Government
tax grant
£    £   
Balance at 1 January 2023 16,090 -
Provided during year - 247,521
Utilised during year - (8,273 )
Balance at 31 December 2023 16,090 239,248

The government grant of £247,521 was received from Sunderland Council to subsidise the renovation of the new office acquired during the period to 31 December 2023.

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
1,000 Ordinary £1 1,000 1,000

Ordinary shares carry full and equal rights to participate in voting in all circumstances, in dividends, and in capital distributions, whether on a winding up or otherwise. Ordinary shares are not redeemable.

SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

14. RESERVES
Capital
Retained contribution
earnings reserve Totals
£    £    £   

At 1 January 2023 3,870,008 16,100 3,886,108
Deficit for the year (436,733 ) (436,733 )
Capital contribution reserve 21,570 (11,827 ) 9,743
At 31 December 2023 3,454,845 4,273 3,459,118

15. ULTIMATE PARENT COMPANY

The immediate parent company is Saggezza US LLC, a company incorporated in the United States of America.

The ultimate parent company is InfoStretch Corporation (USA), a company incorporated in the United States of America, with its registered office at 3200 Patrick Henry Drive, Suite 250, Santa Clara, California, USA, 95054. InfoStretch Corporation (USA) prepares consolidated financial statements. The consolidated financial statements are not publicly available.

16. SHARE-BASED PAYMENT TRANSACTIONS

The company has a share option plan which is open to all employees of the company at the discretion of the Board. Options are exercisable at a price no less than the market price (as contemplated under the plan) of the Company's shares on the date of the grant.

Should the options remain unexercised they lapse after 10 years from the date of the grant. The options also lapse following the employee leaving the group and various other conditions set out in the plan rules. The company has claimed exemption from disclosing the details around the options in place in full on the basis the disclosures are included in the ultimate parent company's financial statements.

The charge recognized in the profit and loss account is allocated on the basis of the share-based payments charge for each individual employee of the UK entity to whom share options have been granted.

31.12.2331.12.22
£ £
Equity-settled schemes9,7439,674

17. ULTIMATE CONTROLLING PARTY

There is no ultimate controlling party.