REGISTERED NUMBER: SC261069 (Scotland) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
SIGN LANGUAGE INTERACTIONS LIMITED |
REGISTERED NUMBER: SC261069 (Scotland) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
SIGN LANGUAGE INTERACTIONS LIMITED |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
SIGN LANGUAGE INTERACTIONS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
3 Castle Court |
Carnegie Campus |
Dunfermline |
KY11 8PB |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
PRINCIPAL ACTIVITIES |
The group develops and markets products and services dedicated to removing barriers that deaf, deafened and hard of hearing people face in their everyday lives. |
REVIEW OF BUSINESS |
During the year, the group has expanded and invested in key areas to support future business growth. Profitability has been strongly increased this year in comparison because last year involved substantial investment in hiring strategic and operational personnel and significant expenditure on the engineering development of new technology and platform launches. All of last years and this years investments and activities sets a solid business foundation for future years. |
The directors are confident that the group's broad client base and range of products and services provide a strong platform for future growth. |
KEY FINANCIAL PERFORMANCE INDICATORS |
Turnover increased by 75% to £16,749,272 .The growth in revenue is as a result of expansion into European, Asian and wider geographical markets. |
The gross profit percentage decreased from last year at 60% to 58%. |
Operating profit was £3,973,078 compared to £1,562,392. The increase is largely attributed to the above mentioned investment in personnel and engineering development costs in the prior year. |
Other highlights in the year include: |
An increase in net assets from £3,226,196 to £6,292,675 |
Capital investment of £263,916 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group operates in an innovative and competitive global market. The group manages the risks associated with that market with a commitment to: |
Innovation and product improvement |
Expanding its product and service range |
Retaining existing customers and acquiring new ones |
Management of margins and costs |
Maintaining a skilled and efficient workforce |
GOING CONCERN |
The directors continue to adopt the going concern basis in preparing the financial statements. |
The group has a strong net current asset and net asset position and expected to continue trading profitably, generating substantial cash inflows. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements. |
ON BEHALF OF THE BOARD: |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group 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. |
FINANCIAL INSTRUMENTS |
The company's activities expose it to a number of financial risks - primarily risks of changes in foreign currency exchange rates and credit risk. |
Foreign currency exchange rate risk |
The company purchases goods and services from key suppliers in (principally) US dollars and also Euros. At any point in time, the company is exposed to movements in exchange rates on the net foreign denominated asset or liability position at that time. |
Credit risk |
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtor balances are monitored closely on an ongoing basis and provision is made for any doubtful debts where necessary. |
The company's bank deposits are held by banks with high credit ratings assigned by international credit rating agencies. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The auditors, Thomson Cooper, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SIGN LANGUAGE INTERACTIONS LIMITED |
Opinion |
We have audited the financial statements of Sign Language Interactions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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. |
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 group 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 group's and the parent 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and 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 materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group 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 Group 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 |
SIGN LANGUAGE INTERACTIONS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SIGN LANGUAGE INTERACTIONS 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 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: |
We identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error and then performed audit procedures responsive to those risks. |
From our general and sector experience and through discussion with the directors, we identified areas of laws and regulations that could reasonably be expected to have a material impact on the financial statements. |
We discussed the company's policies and procedures regarding the compliance with laws and regulations with the directors and considered the internal controls established to mitigate risks of fraud or non-compliance with laws or regulations. |
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. |
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related Companies legislation) and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. |
We also performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. |
We addressed the risk of fraud through management override of controls, reviewing the appropriateness of journal entries and other adjustments, assessed accounting estimates for potential bias and reviewed any significant unusual transactions. |
We reviewed available regulatory and legal correspondence, available board minutes and enquired of the directors regarding any pending litigation or known instances of irregularities, including fraud. |
Owing to the inherent limitations of an audit: there is an unavoidable risk that we may not detected all material misstatements in the financial statements, even though we have properly planned and performed our audit and we cannot be expected to detect non-compliance with all laws and regulations. |
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 Auditor |
3 Castle Court |
Carnegie Campus |
Dunfermline |
KY11 8PB |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 16,749,272 | 9,565,181 |
Cost of sales | 7,022,683 | 3,821,883 |
GROSS PROFIT | 9,726,589 | 5,743,298 |
Administrative expenses | 5,753,511 | 4,442,744 |
3,973,078 | 1,300,554 |
Other operating income | - | 261,838 |
OPERATING PROFIT | 5 | 3,973,078 | 1,562,392 |
Interest receivable and similar income | 6 | 2,004 | 230 |
3,975,082 | 1,562,622 |
Interest payable and similar expenses | 7 | 130 | - |
PROFIT BEFORE TAXATION | 3,974,952 | 1,562,622 |
Tax on profit | 8 | 908,473 | 318,055 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 3,066,479 | 1,244,567 |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,066,479 | 1,244,567 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,066,479 |
1,244,567 |
Total comprehensive income attributable to: |
Owners of the parent | 3,066,479 | 1,244,567 |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 682,994 | 797,630 |
Tangible assets | 11 | 256,638 | 104,429 |
Investments | 12 | - | - |
939,632 | 902,059 |
CURRENT ASSETS |
Debtors | 13 | 7,564,326 | 3,932,150 |
Cash at bank and in hand | 3,248,265 | 5,152,477 |
10,812,591 | 9,084,627 |
CREDITORS |
Amounts falling due within one year | 14 | 5,435,206 | 6,736,148 |
NET CURRENT ASSETS | 5,377,385 | 2,348,479 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,317,017 |
3,250,538 |
PROVISIONS FOR LIABILITIES | 17 | 24,342 | 24,342 |
NET ASSETS | 6,292,675 | 3,226,196 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 2 | 2 |
Retained earnings | 19 | 6,292,673 | 3,226,194 |
SHAREHOLDERS' FUNDS | 6,292,675 | 3,226,196 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 August 2024 and were signed on its behalf by: |
M W King - Director |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,887,329 | 794,742 |
The financial statements were approved by the Board of Directors and authorised for issue on |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 2 | 1,981,627 | 1,981,629 |
Changes in equity |
Total comprehensive income | - | 1,244,567 | 1,244,567 |
Balance at 31 December 2022 | 2 | 3,226,194 | 3,226,196 |
Changes in equity |
Total comprehensive income | - | 3,066,479 | 3,066,479 |
Balance at 31 December 2023 | 2 | 6,292,673 | 6,292,675 |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,013,503 | (730,835 | ) |
Interest paid | (130 | ) | - |
Tax paid | (920,797 | ) | (4,290 | ) |
Net cash from operating activities | 92,576 | (735,125 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (263,916 | ) | (72,815 | ) |
Interest received | 2,004 | 230 |
Net cash from investing activities | (261,912 | ) | (72,585 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (100,000 | ) |
Decrease in inter-group creditor | (1,734,876 | ) | 1,142,913 |
Net cash from financing activities | (1,734,876 | ) | 1,042,913 |
(Decrease)/increase in cash and cash equivalents | (1,904,212 | ) | 235,203 |
Cash and cash equivalents at beginning of year |
2 |
5,152,477 |
4,917,274 |
Cash and cash equivalents at end of year |
2 |
3,248,265 |
5,152,477 |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 3,974,952 | 1,562,622 |
Depreciation charges | 226,344 | 211,138 |
Finance costs | 130 | - |
Finance income | (2,004 | ) | (230 | ) |
4,199,422 | 1,773,530 |
Increase in trade and other debtors | (3,508,482 | ) | (2,954,133 | ) |
Increase in trade and other creditors | 322,563 | 449,768 |
Cash generated from operations | 1,013,503 | (730,835 | ) |
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 | 3,248,265 | 5,152,477 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 5,152,477 | 4,917,274 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,152,477 | (1,904,212 | ) | 3,248,265 |
5,152,477 | (1,904,212 | ) | 3,248,265 |
Total | 5,152,477 | (1,904,212 | ) | 3,248,265 |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Sign Language Interactions Limited is a |
The presentation currency of the financial statements is the pound sterling, rounded to the nearest pound. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the parent company, Sign Language Interactions Limited and its 100% subsidiaries Interpreter Now Ltd and Significan't (UK) Limited. No members of the group have been excluded from consolidation. All inter-group balances, transactions, income and expenses are eliminated on consolidation. The consolidated accounts are prepared using uniform accounting policies. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. The results of acquired subsidiaries are included in the consolidated statement of comprehensive income from the date that control is obtained. |
The cost of a business combination is measured at the aggregate of the fair value (at the date of exchange) of assets given, liabilities incurred or assumed and equity instruments issued by the group in exchange for control of the acquiree, plus costs attributable to the business combination. |
Any excess of the cost of the business over the group's share of the net fair value of the identifiable assets and liabilities is recognised as goodwill. |
Related party exemption |
The group 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover and other income |
Turnover is measured at the fair value of the consideration received or receivable net of vat and trade discounts .The policies adopted for the recognition of turnover are as follows: |
Rendering of services |
Turnover from translation services is recognised when the work has been completed.When the outcome cannot be measured reliably, turnover is recognised only to the extent of the the expenses recognised that are recoverable. |
Interest receivable |
Interest income is recognised in the period when interest is received. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Fixtures and fittings | - |
Computer equipment | - |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. |
Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Goodwill |
Goodwill, which has arisen on consolidation is being amortised on a straight-line basis over 10 years. In arriving at a 10-year amortisation period, the directors have considered, the nature of the business, customer retention rates, the stability of the business and related cash flows. |
Investments in subsidiaries |
Investment in subsidiaries are measured at cost less impairment. |
The directors do not believe there has been any impairment since the date of acquisition. |
Software development costs |
Expenditure on software and development costs are written off in the year in which they are incurred. |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of Comprehensive Income in administrative expenses. |
Cash on the balance sheet comprises cash in hand and cash at bank |
Judgements in applying accounting policies and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported as assets, liabilities, revenues and expenses for the year. The key sources of estimation uncertainty are as follows: |
Depreciation and amortisation of tangible and intangible fixed assets: |
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The expected lives of assets and their residual values are assessed regularly and may vary depending on a number of factors including technological innovation, product life cycles, future market conditions and maintenance programmes. |
Intangible assets, including goodwill, are amortised over their expected useful lives. These estimates are based on a variety of factors such as expected product life cycles, customer retention rates, and levels of cash generation. |
Impairment of assets: |
Tangible fixed assets, intangible fixed assets, fixed asset investments, stock and debtors are all reviewed for evidence of impairment. |
In connection with fixed assets (tangible, intangible and investments) factors taken into consideration include the economic viability, the expected future financial performance of the asset and, where appropriate, the viability and expected future performance of related cash generating units. |
Trade debtors are reviewed for evidence of impairment. Factors considered include ageing, past recovery rates, customer creditworthiness, and the stage and expected outcome of any recovery proceedings |
Going Concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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. The directors have considered a period of 12 months from the date of approval of the financial statements. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Rendering of services | 16,749,272 | 9,565,181 |
16,749,272 | 9,565,181 |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 12,315,927 | 8,968,831 |
Europe | 2,524,912 | 596,350 |
Asia | 760,516 | - |
Australia | 1,147,917 | - |
16,749,272 | 9,565,181 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 3,603,676 | 3,172,690 |
Social security costs | 386,358 | 371,938 |
Other pension costs | 101,565 | 90,512 |
4,091,599 | 3,635,140 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 1 | 2 |
Management | 14 | 22 |
Administration | 34 | 27 |
Interpreters | 48 | 37 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 146,792 | 300,453 |
Directors' pension contributions | 4,393 | 8,961 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 2 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 1,487 | 1,566 |
Other operating leases | 110,201 | 95,807 |
Depreciation - owned assets | 111,707 | 96,503 |
Goodwill amortisation | 114,636 | 114,636 |
Auditors' remuneration | 13,402 | 13,562 |
Foreign exchange differences | 590,181 | (21,807 | ) |
Impairment of debtors | 28,563 | 36,151 |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest | 257 | 230 |
Corporation tax interest | 1,747 | - |
2,004 | 230 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
HMRC interest | 130 | - |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 908,473 | 318,055 |
Tax on profit | 908,473 | 318,055 |
UK corporation tax has been charged at 23.50 % (2022 - 19 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 3,974,952 | 1,562,622 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.526 % (2022 - 19 %) |
935,147 |
296,898 |
Effects of: |
Expenses not deductible for tax purposes | 456 | 14,422 |
Capital allowances in excess of depreciation | (11,517 | ) | - |
Depreciation in excess of capital allowances | - | 6,735 |
Adjustments to tax charge in respect of previous periods | (15,613 | ) | - |
Total tax charge | 908,473 | 318,055 |
Rate of UK corporation tax |
The main UK Corporation tax rate changed from 19% to 25% on 1 April 2023. That results in an average tax rate for the company's financial year of 23.5% |
Factors that may affect future tax charges |
The increase in the UK Corporation tax will impact the company's future tax charge accordingly. The value of the deferred tax liability at the balance sheet date has been calculated using the applicable rate when the liability is expected to be realised. |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 1,159,694 |
AMORTISATION |
At 1 January 2023 | 362,064 |
Amortisation for year | 114,636 |
At 31 December 2023 | 476,700 |
NET BOOK VALUE |
At 31 December 2023 | 682,994 |
At 31 December 2022 | 797,630 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 694 | 241,536 | 106,122 | 348,352 |
Additions | - | 253,091 | 10,825 | 263,916 |
At 31 December 2023 | 694 | 494,627 | 116,947 | 612,268 |
DEPRECIATION |
At 1 January 2023 | 694 | 181,261 | 61,968 | 243,923 |
Charge for year | - | 92,088 | 19,619 | 111,707 |
At 31 December 2023 | 694 | 273,349 | 81,587 | 355,630 |
NET BOOK VALUE |
At 31 December 2023 | - | 221,278 | 35,360 | 256,638 |
At 31 December 2022 | - | 60,275 | 44,154 | 104,429 |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
and | Computer |
fittings | 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 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Interpreter Now Ltd |
Registered office: England |
Nature of business: Non trading |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Significan't (UK) Limited |
Registered office: England |
Nature of business: Interpreting services |
% |
Class of shares: | holding |
Ordinary | 100.00 |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 7,399,979 | 3,841,556 |
Amounts owed by group undertakings | - | - |
Other debtors | 8,436 | 6,922 |
Tax | 123,694 | - |
Prepayments | 32,217 | 83,672 |
7,564,326 | 3,932,150 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 723,568 | 498,044 |
Amounts owed to group undertakings | 3,300,433 | 5,035,308 |
Tax | 429,425 | 318,055 |
Social security and other taxes | 5,566 | - |
Value added tax | 542,433 | 382,661 | 192,242 | 213,427 |
Other creditors | 330,184 | 243,194 |
Accrued expenses | 103,597 | 258,886 |
5,435,206 | 6,736,148 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 52,390 | 52,390 |
Between one and five years | 21,064 | 73,070 |
73,454 | 125,460 |
Company |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | FINANCIAL INSTRUMENTS |
The carrying amount of the group's financial instruments are as follows: |
2023 | 2022 |
£ | £ |
Financial assets measured at amortised cost |
Cash at bank and in hand | 3,248,265 | 5,152,477 |
Trade and other debtors | 7,564,326 | 3,932,150 |
Financial liabilities measured at amortised cost |
Trade creditors | 723,568 | 498,044 |
Other creditors & accruals | 3,734,214 | 5,537,388 |
The net gains and losses attributable to the company's |
financial instruments are as follows: |
Financial assets measured at amortised cost | 28,563 | 36,151 |
17. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 24,342 | 24,342 | 3,917 | 3,917 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 24,342 |
Balance at 31 December 2023 | 24,342 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Balance at 31 December 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary Shares | £1 | 2 | 2 |
SIGN LANGUAGE INTERACTIONS LIMITED (REGISTERED NUMBER: SC261069) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 3,226,194 |
Profit for the year | 3,066,479 |
At 31 December 2023 | 6,292,673 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
20. | ULTIMATE PARENT COMPANY |
Ariel Alternatives LLC (incorporated in United States of America) is regarded by the directors as being the company's ultimate parent company. |