Company registration number 10634013 (England and Wales)
SYSDIG LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
SYSDIG LTD
COMPANY INFORMATION
Directors
Mrs. K Walker
Mr. L Degioanni
Company number
10634013
Registered office
6th Floor
One London Wall
London
EC2Y 5EB
Auditor
DSA Prospect Audit Limited
First Floor
1 Des Roches Square
Witan Way
Witney
OX28 4BE
SYSDIG LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
SYSDIG LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -
The directors present the strategic report for the year ended 31 January 2024.
Review of the business
Sysdig, Inc., a company domiciled in the United States, operates as a cloud-native intelligence firm specializing in providing comprehensive cloud security and monitoring solutions for enterprises. The company's offerings span the full spectrum from prevention to detection, leveraging runtime insights to secure innovation within cloud environments. Sysdig’s enterprise solutions are designed to stop cloud attacks in real-time, utilizing open-source Falco technology combined with a proprietary AI architecture to detect changes in risk instantly.
The company conducts its operations through 11 wholly owned subsidiaries and 8 branches spread across North America, EMEA, and APAC. Sysdig Ltd., a wholly owned subsidiary of Sysdig Inc., functions as the EMEA/APAC hub, supporting countries including the UK, Ireland, the Netherlands, Denmark, and Australia
Principal risks and uncertainties
Sysdig operates in the highly competitive cybersecurity market, which is estimated to have a total addressable market of approximately $100 billion. Key competitors to the group include, but are not limited to, Palo Alto Networks and CrowdStrike.
Despite the competitive landscape, the company has experienced an increase in demand for its cloud-native cybersecurity solutions, largely due to the market shift towards artificial intelligence and the increased focus on geopolitical risks.
Key performance indicators
2024
2023
Change
£'000
£'000
+/-
Turnover
14,103
14,195
(0.65)%
Operating profit
672
661
-
Profit for the financial year
499
551
(9.32)%
Total equity
1,748
1,195
46.30%
Current assets as % of current liabilities
130%
207%
(76.89)%
Return on assets %
7%
25%
(17.91)%
Average number of employees in the year
65
64
1.56%
Development and performance
Sysdig plans to continue expanding its market presence in the cloud-native security sector, leveraging its advanced AI-based solutions to cater to the growing demand. The company is well-positioned to capitalize on the shift towards cloud computing and artificial intelligence, which are expected to drive future growth.
The company’s strategy involves strengthening its core product offerings and enhancing customer support and R&D capabilities through its international subsidiaries. Sysdig operates a "Cost + a Reasonable Margin" transfer pricing model, ensuring that its subsidiaries remain profitable while centralizing financial risk at the parent company level.
Mrs. K Walker
Director
3 September 2024
SYSDIG LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the Company is to primarily provide go-to-market and customer support services to Sysdig Inc., its parent company domiciled in the United States of America. In exchange for these services, Sysdig Inc., funds all operating activities of Sysdig LTD under a “cost + a reasonable margin” intercompany agreement.
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:
Mrs. K Walker
Mr. L Degioanni
Post reporting date events
There are no events after the year end that the directors believe need to be reported.
Auditor
DSA Prospect Audit Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mrs. K Walker
Director
3 September 2024
SYSDIG LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
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 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.
SYSDIG LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SYSDIG LTD
- 4 -
Opinion
We have audited the financial statements of Sysdig Ltd (the 'company') for the year ended 31 January 2024 which comprise the statement of comprehensive income, the balance sheet, 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 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 January 2024 and of its profit 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.
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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
SYSDIG LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SYSDIG LTD (CONTINUED)
- 5 -
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 strategic report or 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 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 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013) and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
SYSDIG LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SYSDIG LTD (CONTINUED)
- 6 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.
Mr Gary John McHale FCCA
Senior Statutory Auditor
For and on behalf of DSA Prospect Audit Limited
4 September 2024
Chartered Certified Accountants
Statutory Auditor
First Floor
1 Des Roches Square
Witan Way
Witney
OX28 4BE
SYSDIG LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
14,102,948
14,194,973
Administrative expenses
(13,431,379)
(13,534,072)
Operating profit
4
671,569
660,901
Interest receivable and similar income
6
22
Interest payable and similar expenses
7
(1,674)
Profit before taxation
669,895
660,923
Tax on profit
8
(170,573)
(110,254)
Profit for the financial year
499,322
550,669
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SYSDIG LTD
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
105,475
99,426
Current assets
Debtors
10
6,632,442
1,422,065
Cash at bank and in hand
515,599
699,356
7,148,041
2,121,421
Creditors: amounts falling due within one year
11
(5,505,798)
(1,026,220)
Net current assets
1,642,243
1,095,201
Net assets
1,747,718
1,194,627
Capital and reserves
Called up share capital
14
1
1
Other reserves
130,279
76,510
Profit and loss reserves
1,617,438
1,118,116
Total equity
1,747,718
1,194,627
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 3 September 2024 and are signed on its behalf by:
Mrs. K Walker
Director
Company registration number 10634013 (England and Wales)
SYSDIG LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
Share capital
Share based payment reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 February 2022
1
-
567,447
567,448
Year ended 31 January 2023:
Profit and total comprehensive income
-
-
550,669
550,669
Transfers
-
76,510
76,510
Balance at 31 January 2023
1
76,510
1,118,116
1,194,627
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
499,322
499,322
Transfers
-
53,769
53,769
Balance at 31 January 2024
1
130,279
1,617,438
1,747,718
SYSDIG LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
19
91,440
(552,029)
Interest paid
(1,674)
Income taxes paid
(209,246)
(47,029)
Net cash outflow from operating activities
(119,480)
(599,058)
Investing activities
Purchase of tangible fixed assets
(64,277)
(71,679)
Proceeds from disposal of tangible fixed assets
1,127
Interest received
22
Net cash used in investing activities
(64,277)
(70,530)
Net decrease in cash and cash equivalents
(183,757)
(669,588)
Cash and cash equivalents at beginning of year
699,356
1,368,944
Cash and cash equivalents at end of year
515,599
699,356
SYSDIG LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
1
Accounting policies
Company information
Sysdig Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, One London Wall, London, EC2Y 5EB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
Turnover in respect of services provided to the parent company is calculated as attributable costs plus a mark up in accordance with a transfer pricing agreement between Sysdig Ltd and Sysdig Inc, the parent company.
1.4
Tangible fixed assets
Tangible fixed assets 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:
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 credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
SYSDIG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 12 -
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and 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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
SYSDIG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
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 profit and loss account 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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 profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.
1.10
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 stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
SYSDIG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Share-based payments
The company participates in a share-based payment arrangement where its parent company, Sysdig Inc, grants share options to its employees. The company has elected to recognise and measure its share-based payment expense on the basis of a reasonable allocation of the expense recognised by Sysdig Inc. As the company has no obligation towards the employee, the share-based payment arrangement is an equity-settled
scheme.
The directors consider the number of unvested options granted to the company’s employees compared to the total unvested options granted under the group plan to be a reasonable basis for allocating the expense. The
corresponding adjustment is made to equity.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
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
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
-
22
SYSDIG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(151,792)
1,847
Fees payable to the company's auditor for the audit of the company's financial statements
20,057
20,000
Depreciation of owned tangible fixed assets
57,861
49,652
Loss on disposal of tangible fixed assets
367
268
Share-based payments
53,769
76,510
Operating lease charges
118,720
79,899
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
65
64
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
10,549,282
10,702,304
Social security costs
840,597
884,335
Pension costs
131,750
100,111
11,521,629
11,686,750
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
22
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
1,674
SYSDIG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
171,885
141,290
Adjustments in respect of prior periods
(11,109)
Other taxes
(17,067)
Total current tax
160,776
124,223
Deferred tax
Origination and reversal of timing differences
9,797
(10,617)
Changes in tax rates
(3,352)
Total deferred tax
9,797
(13,969)
Total tax charge
170,573
110,254
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
669,895
660,923
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
167,474
125,575
Tax effect of expenses that are not deductible in determining taxable profit
12,953
17,422
Tax effect of income not taxable in determining taxable profit
(4,467)
Effect of change in corporation tax rate
(6,937)
Depreciation on assets not qualifying for tax allowances
(1,604)
(11,209)
Other non-reversing timing differences
9,797
Effect of overseas tax rates
(17,067)
Under/(over) provided in prior years
(11,110)
Taxation charge for the year
170,573
110,254
SYSDIG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
9
Tangible fixed assets
Computers
£
Cost
At 1 February 2023
203,786
Additions
64,277
Disposals
(6,314)
At 31 January 2024
261,749
Depreciation and impairment
At 1 February 2023
104,360
Depreciation charged in the year
57,861
Eliminated in respect of disposals
(5,947)
At 31 January 2024
156,274
Carrying amount
At 31 January 2024
105,475
At 31 January 2023
99,426
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
6,427,015
1,225,011
Other debtors
61,984
66,599
Prepayments and accrued income
143,443
120,658
6,632,442
1,412,268
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 12)
9,797
Total debtors
6,632,442
1,422,065
SYSDIG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
94,778
52,195
Amounts owed to group undertakings
3,969,496
Corporation tax
92,820
141,290
Other taxation and social security
232,707
213,628
Accruals and deferred income
1,115,997
619,107
5,505,798
1,026,220
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
-
9,797
2024
Movements in the year:
£
Asset at 1 February 2023
(9,797)
Charge to profit or loss
9,797
Liability at 31 January 2024
-
13
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
131,750
100,111
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.
14
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
100
100
1
1
SYSDIG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
14
Share capital
(Continued)
- 19 -
Ordinary shares are entitled to full voting rights, equal rights to dividends, to participate in a distribution on winding up of the company and do not confer any rights of redemption.
15
Financial commitments, guarantees and contingent liabilities
The director's do not believe there are any financial commitments, guarantees or contingent liabilities that need to be disclosed.
16
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
156,600
17
Events after the reporting date
There are no events after the year end that the directors believe need to be reported.
18
Ultimate controlling party
As at the year end the ultimate holding company of Sysdig Ltd was Sysdig Inc and its registered office is 3500 South DuPoint Highway, City of Dover, Delaware 19901, USA.
The company's financial statements are consolidated into the ultimate holding company's financial statements as at 31 January 2024 and are available from the parent's registered office.
Largest group
Sysdig Inc
Smallest group
Sysdig Inc
SYSDIG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
19
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
499,322
550,669
Adjustments for:
Taxation charged
170,573
110,254
Finance costs
1,674
Investment income
(22)
Loss on disposal of tangible fixed assets
367
268
Depreciation and impairment of tangible fixed assets
57,861
49,652
Equity settled share based payment expense
53,769
76,510
Movements in working capital:
Increase in debtors
(5,220,174)
(1,346,965)
Increase in creditors
4,528,048
7,605
Cash generated from/(absorbed by) operations
91,440
(552,029)
20
Analysis of changes in net funds
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
699,356
(183,757)
515,599
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