REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
SAGGEZZA LIMITED |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Statutory Auditors |
Herschel House |
58 Herschel Street |
Slough |
Berkshire |
SL1 1PG |
SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023) |
INCOME STATEMENT |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(557,511 | ) | 2,028,445 |
Other operating income |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Interest payable and similar expenses | 6 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
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 | ( |
) |
OTHER COMPREHENSIVE INCOME |
Profit & loss account |
Other reserves | ( |
) |
Income tax relating to components of other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
SAGGEZZA LIMITED (REGISTERED NUMBER: 05439023) |
BALANCE SHEET |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 12 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Capital contribution reserve | 14 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - | (415,163 | ) | ( |
) | (426,990 | ) |
Balance at 31 December 2023 |
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 |
Finance costs paid | (1,102 | ) | - |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Share-option charge | ( |
) |
Retained earnings movement |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Intra-group funding movements | (2,024,312 | ) | (124,726 | ) |
Share issue |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
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 | ( |
) |
Depreciation charges |
Finance costs | 1,102 | - |
(511,544 | ) | 2,411,088 |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
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 | ( |
) | 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 |
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 |
Computer equipment | - |
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 |
£ | £ |
An analysis of turnover by geographical market is given below: |
31.12.23 | 31.12.22 |
£ | £ |
United Kingdom |
Europe |
United States of America |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
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 |
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 |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences | ( |
) | ( |
) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Interest on late payments |
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 |
Corporation tax overpayment | (121,880 | ) | - |
Tax on (loss)/profit | ( |
) |
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 | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses |
Entertainment |
Unpaid pension movement | ( |
) |
Share based payment charge |
Tax repayment income | ( |
) |
Government grant income | ( |
) |
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 |
Other reserves | ( |
) | - | (11,828 | ) |
9,742 | - | 9,742 |
31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Profit & loss account | - | 1,051 |
Other reserves | - | 9,674 |
10,725 | - | 10,725 |
8. | TANGIBLE FIXED ASSETS |
Improvements |
to | Computer |
property | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Tax |
Prepayments and accrued income |
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 |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 231,928 | 396,098 |
Other creditors |
Accruals and deferred income |
11. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
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 |
Provided during year |
Utilised during year | ( |
) |
Balance at 31 December 2023 |
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: | £ | £ |
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. |
31.12.23 | 31.12.22 |
£ | £ |
Equity-settled schemes | 9,743 | 9,674 |
17. | ULTIMATE CONTROLLING PARTY |
There is no ultimate controlling party. |