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REGISTERED NUMBER: 05208041 (England and Wales)













Strategic Report,

Report of the Directors and

Audited Financial Statements

for the Year Ended 29 June 2023

for

Satcom Global Limited

Satcom Global Limited (Registered number: 05208041)






Contents of the Financial Statements
for the Year Ended 29 June 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 9

Report of the Independent Auditors 10

Profit and Loss Account 13

Balance Sheet 14

Statement of Changes in Equity 15

Notes to the Financial Statements 16


Satcom Global Limited

Company Information
for the Year Ended 29 June 2023







DIRECTORS: Mr R A Howes
Mr I A Robinson
Mr C Leydon





SECRETARY: Mr R A Howes





REGISTERED OFFICE: And Group Ltd
Tanners Bank
North Shields
Tyne and Wear
NE30 1JH





REGISTERED NUMBER: 05208041 (England and Wales)





AUDITORS: CLA Evelyn Partners Limited
17 Queens Lane
Newcastle
NE1 1RN

Satcom Global Limited (Registered number: 05208041)

Strategic Report
for the Year Ended 29 June 2023

The directors present their strategic report for the year ended 29 June 2023.

Directors' Duties
The directors of the company, as those of all companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:
'A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:
- the likely consequences of any decisions in the long term;
- the interests of the company's employees;
- the need to foster the company's business relationships with suppliers, customers and others;
- the impact of the company's operations on the community and environment;
- the desirability of the company maintaining a reputation for high standards of business conduct; and
- the need to act fairly as between shareholders of the company.'

As part of their induction, a director is briefed on their duties and they can access professional advice on these, either from the Company secretary or, if they judge it necessary, from an independent adviser.

Risk Management
We provide business-critical services to our clients, often in highly regulated environments. As we grow, our business and our risk environment also become more complex. It is therefore vital that we effectively identify, evaluate, manage and mitigate the risks we face, and that we continue to evolve our approach to risk management. For details of our principal risks and uncertainties, and how we manage our risk environment, please see the principal risks and uncertainties section of this report.

Our People
The company is committed to being a responsible business. Our behaviour is aligned with the expectations of our people, clients, investors, communities and society as a whole. People are at the heart of our specialist services. For our business to succeed we need to manage our people's performance and develop and bring through talent while ensuring we operate as effectively as possible. We must also ensure we share common values that inform and guide our behaviour so we can achieve our goals in the right way.

Business Relationships
Our strategy priorities organic growth, driven by cross-selling and up-selling services to existing clients and bringing new clients into the Group. To do this, we need to develop and maintain strong client relationships. We value all of our suppliers and have multi-year contracts with our key suppliers.

Community and Environment
The company's approach is to use our position of strength to create positive change for the people and communities with which we interact. We want to leverage our expertise and enable colleagues to support communities around us.

Shareholders
The Board is committed to openly engaging with our shareholders, as we recognise the importance of a continuing effective dialogue. It is important to us that shareholders understand our strategy and objectives, so these must be explained clearly, feedback heard and any issues or questions raised properly and considered.


Satcom Global Limited (Registered number: 05208041)

Strategic Report
for the Year Ended 29 June 2023

REVIEW OF BUSINESS
Satcom Global Limited (SGL) is part of Broadband Satellite Services Limited group of companies. It is one of four major operating entities, the others being AND Group Limited (AND), Satcom Global Inc (USA) and Satcom Global Aura Limited.

As part of this group SGL operates a global network that supports mission critical communications over satellite to a global customer base. SGL does not own its own satellites but provides the services under a series of wholesale and lease capacity agreements with several global satellite network operators.

Companies operating within the satellite services industry can be categorised as satellite operators, satellite service distributors and end users. Satellite network operators own and operate large or small fleets of satellites capable of providing global or regional network coverage. A significant cost is involved in the construction, launch and operation of each satellite. Satellite operators tend to prefer the sale of wholesale capacity on a lease basis, allowing focus on a small number of customers to provide recurring revenue streams. The operation of terrestrial infrastructure which services the end user, installation, maintenance and technical support would typically be provided to the end user by these wholesale lease customers.

The mobile satellite service industry is segmented into land, marine and aeronautical services. Within these vertical segments are provided voice, low speed data and broadband services. End users including commercial shipping, airlines, government, defence forces, aid agencies, oil companies and NGOs, may use different services across different segments.

SGL offers a full range of services to the maritime industry, with secure access and global coverage. Increasingly services to the sector are being driven by the operational demands of vessel performance, or requirements of crew for welfare and recreational use.

Land customers range from oil or mining customers (in the harshest environments on earth), journalists with live broadcasting requirements and humanitarian agencies working in crisis zones. SGL has long standing partnership agreements with government departments around the world providing secure and reliable voice and data services to meet security, safety, health and educational needs.

SGL's customers range from dealers and large end users down to individual subscribers. They cover government, military, maritime, offshore, oil and gas exploration and humanitarian needs. These customers are supported by a network of global SGL offices which supports the following channels:

- Government - direct and indirect supply to government agencies;
- Enterprise - direct supply to large customers / corporate, service provider partners for smaller users and
handset customers;
- Business to business - indirect channel partners including service providers, dealers, and agents;
- Commercial maritime - ship owners, ship managers, offshore operators.

SGL is deemed to be the supplier of choice in satellite communications for a diverse range of blue-chip customers around the globe.

SGL is a major distributor of L-band services for the three largest mobile satellite service network operators and as such provides a critical link in the satellite industry value chain. Distribution partners such as SGL supply and support end user customers with specific services created by the L-band satellite network operators. SGL also resells equipment to end user customers, paying a wholesale rate to the L-band satellite network for the airtime used by its customers. Its ground infrastructure provides connectivity which allows the end users to access their own corporate network or wider internet, providing controls on usage flow, content access and cost.

The development of digital platforms, bandwidth-hungry business applications and welfare demands has however, driven growth beyond the capabilities of the traditional L-band services. Accordingly,SGL operates a global Ku-band platform under the 'Aura' brand umbrella. Ku-band offers higher speeds and more affordable bandwidth options for customers in maritime and land environments. The demand for the Aura network is growing as customers find their needs cannot be satisfied by the limited speeds and bandwidth capabilities of the traditional L-band technologies. The Aura network provides customers with the higher bandwidth solutions required by modern vessels at sea. Aura provides users with access to a comprehensive global system of satellites, combining wide beam satellites for coverage and narrower higher throughput beams for better efficiency and increased bandwidth capacity. Our Ku-band network continues to grow strongly with significant maritime customers continuing to be added together with a significant order book to carry forward, with contracts signed and a forward going pipeline of vessel installations to be completed.

We have seen strong growth with both existing and new customers choosing the Aura platform as their communication solution of choice. This demand is being led by a growing demand for faster speeds and greater data transmission capability as the maritime industry adapts to digitisation of their operations. The move to digitisation in the shipping industry, increasing commitment to 'Internet of Things' enabled solutions and broadening range of shipboard applications are driving the requirement for increased satellite bandwidth. Vessel performance monitoring, fuel optimisation, engine performance monitoring, and emissions monitoring are all key to the success of the modern ship operator. Digital navigation solutions such as Electronic Chart Display and Information Systems (ECDIS) require the movement of regular updates consuming significant amounts of data.


Satcom Global Limited (Registered number: 05208041)

Strategic Report
for the Year Ended 29 June 2023

We expect the demand for satellite connectivity to continue to grow, especially in mobility-based applications in both our maritime and land businesses. In the business environment a rapidly growing range of applications are emerging to enable 'Internet of Things' solutions and are driving demand for lower bandwidth connectivity services. At the higher end demand is being driven by an increasing number of data-rich applications and the requirement to continually increase the number of connected devices. We are continuing to see significant growth opportunities especially for mobility solutions where satellite connectivity is often more effective than traditional terrestrial network coverage. In the crew environment, demand continues on a steeply upward curve with crew members requiring internet and social media access as a base service level.

The wide base and strength of our product and service offering, together with our approach to supporting customers is demonstrated by the strong demand for our services. With our customers contracting for three-to-five-year periods and a growing customer base, it provides a strong base for future development plans. Our strategic initiatives have been focused on meeting the new demands of customers as they 'go digital'.


Satcom Global Limited (Registered number: 05208041)

Strategic Report
for the Year Ended 29 June 2023

PRINCIPAL RISKS AND UNCERTAINTIES
SGL takes a structured and proactive approach to risk management. SGL's activities expose it to risks and uncertainties that may adversely affect business, operations, liquidity, financial position or future performance, not all of which are wholly within its control. The Board is responsible for ensuring that business risks are identified quickly and that appropriate risk mitigation steps are taken in a proactive and timely manner within the overall strategic objectives and activities of the company. The principal risks and uncertainties identified by the management are outlined below. This is not intended to be an exhaustive analysis

1. Competition
SGL operates in a highly competitive sector and faces competition today from alternative communications technologies in our target horizontal and vertical market sectors. In the normal operation of business, there is strong competition from other service providers and satellite network operators. There is a risk that new technologies introduced by competitors may reduce demand for services or replace the technologies provided. Service providers providing VSAT services will continue to target L-band users. It is believed that the L-band product offerings distributed will remain competitive in the specific markets targeted and that the development of the Aura Ku-band network places puts SGL in a favourable position with other VSAT providers. SGL is also building a number of new platforms aimed at enabling small-sat and 4G/5G/LTE services within our network offering.

2. Key suppliers
Whilst SGL procures services from several satellite network operators, it is reliant on the continuance of supply agreements to sell the services to end-users. The loss of any one of the agreements may impact on competitiveness in the market as many customers have a preference of a specified network operator for the provision of our services. L-band networks are often subject to congestion in high-traffic areas and are sold on a 'best effort' basis with no service level agreement commitments.

3. Satellite service continuity
All the services provided are provisioned by third party-owned satellites which are subject to significant operational risks at launch or whilst in orbit. The loss of access to any of the satellites could adversely affect the revenues, profitability and liquidity of SGL. Losses of connectivity, however, would not be limited to SGL but would impact equally on all major competitors.

4. Cyber security
SGL's networks may be vulnerable to security risks. They are designed to be robust and provide for secure transmission of confidential information. They may however in the future be vulnerable to unauthorised access, computer viruses and other security risks. SGL has implemented industry-standard security measures and are continually increasing investment in counter cyber-threat tools and staff. Current evidence is that counter measures have been effective to date, as there has been no impact from previous cyber-attack events. The nature and diversity of cyber-threats is constantly changing, both in sophistication and number. There is a possibility that these measures may prove inadequate in the case of future attacks and could result in system failures and delays that could have a material adverse effect on business and financial results.

5. Capacity oversupply
Planned launches of Ku and Ka-band satellites may introduce an over-supply position to the markets, forcing prices to fall. The satellite operators are aware of this, and some launches continue to be delayed or cancelled as global bandwidth costs continue to decline. Technological innovation and the need for remote users to be part of the corporate network continues to drive data volumes. Crew demand on board ships drives both data volumes and the requirement for a 'bring your own device' capability onboard (BYOD). These additional volume demands will assist in offsetting the impact of any price decreases.

6. Macro-economic risks
Macro-economic risks changes can impact on SGL's business. This risk is offset by the long-term nature of the customer contracts held by SGL, which provide recurring monthly revenues. revenues.

7. Regulation
SGL is subject to regulation with respect to the resale of satellite services. In the majority of cases, the satellite network operator is responsible for obtaining the licensing required to broadcast across a defined spectrum. SGL is responsible for ensuring it holds all required licences for the resale of satellite services in the countries in which it operates. There is a risk that in order to hold such licenses, there could be exposure to additional costs or limitations to the ability to provide services.

8. Management & Employees
SGL needs to recruit and retain personnel capable of achieving the technological competence required. The business is dependent to a significant degree on being able to recruit and retain the number and calibre of management or employees necessary to maintain and develop the business.

9. Financing & Foreign Exchange Risk
SGL has a significant amount of debt. Whilst the directors are satisfied that the liquidity position is sufficient to meet SGL's needs for future financial periods, the future cost of the debt represents a future risk.

The company's functional and reporting currency is the US dollar. While most of our revenues are contracted in US Dollars, a proportion of our operating expenses and capital expenditure is denominated in currencies other than the US Dollar. SGL does not currently hedge foreign exchange exposure in the short-term and there is a risk that in the longer-term that operations could be affected by US Dollar exchange rates.

Satcom Global Limited (Registered number: 05208041)

Strategic Report
for the Year Ended 29 June 2023


SGL's activities expose it to a variety of financial risks, including effects of credit and liquidity and cash flow. Risk management policies have been adopted which seek to mitigate these risks in a cost-effective manner. Financial assets that expose the company to financial risk consist primarily of trade debtors and cash. Financial liabilities that expose the company to financial risk consist principally of trade creditors and loan agreements. SGL can deploy hedging policies in the case of any short-term market volatility which may impact on the overall business performance. As the company contracts most of its revenues in US dollars and its key suppliers are paid in US dollars it enjoys a natural hedge in respect of any significant level of exposure.

10. Credit Risk
Credit risk is the loss of the value of financial assets due to counter-parties failing to meet all or part of their obligations. SGL therefore performs ongoing credit evaluation of each of its major customers' financial position.

11. Liquidity Risk
Liquidity risk is the risk that SGL does not have sufficient liquid assets to meet its obligations as they fall due. Liquidity is maintained at a prudent level and the company ensures that there is an adequate liquidity buffer to cover contingencies. The company maintains sufficient cash and open committed credit lines from its bankers to meet its current requirements. The directors assess the liquidity risk on a regular basis and ensures that sufficient cash is available to meet the company's needs.

12. Geo-political risks
The business operates in a wide range of geographic areas. This exposes SGL to geo-political and
strategic risks such as disruption due to war, civil unrest, security issues and government intervention. These risks currently exist in Ukraine and Israel as well as elsewhere in the Middle East, Russia and certain parts of Latin America, Africa and Asia. None of this however constitutes a large part of our ongoing business. Not all the events are negative to the mobile satellite services business as the events themselves can cause increased demand for satellite services.

SGL operates in markets where the services we supply are mission critical, rather than optional for our customers. We are always conscious to provide the required support to our customers, most of whom are contracted on 3-5 year-terms, thus providing some security of income. We have also secured the supply of equipment that is essential to our services - from multiple vendors. The COVID pandemic created demand amongst government agencies and within remote communities, with limited impact on our core maritime business. Demand for new installations of our Aura services remain strong.

13. BREXIT
The UK left the European Union (EU) on 31 January 2020. The UK government and EU continue to negotiate terms of the new relationship but to date there has been limited impact to the business. The directors keep a watching brief on the ongoing negotiations and await further guidance from the UK government as appropriate. Whilst any uncertainty remains and might present challenges for the business, the directors are confident these can be overcome with appropriate planning and consultation, such as not to have any significant impact on the SGL's future business activities.

The Directors have reviewed the potential impact of BREXIT to date, the main outcomes being:

- Profitability has not been significantly affected, but in the event of future changes, the Group has trading
entities in alternative countries which can be used to facilitate impacted transactions. All customer contracts
give SGL the ability to invoice any goods or services supplied under the contract from any Group entity.
- As around 80% of the turnover and purchases are in US Dollars, and SGL's financial facilities are contracted in
USD, thus there is a natural FX coverage.
- Less than 30% of the SGL's current turnover relates to sales to entities in the EU.

In conclusion, given the nature of the company's operations, management do not currently envisage any logistical impacts of Brexit in its relationships with customers and revenues.


Satcom Global Limited (Registered number: 05208041)

Strategic Report
for the Year Ended 29 June 2023

DEVELOPMENT AND PERFORMANCE
There is an ongoing and significant change within the maritime communications sector as shipping companies worldwide recognise that the greater capacity available from VSAT broadband networks are a strategic investment in improving business productivity and crew welfare. VSAT networks provide global broadband coverage for voice and data communications at a substantially more cost-effective rate than the pay-per-use L-band services. They are central to the shipping industry, which needs to digitise many of their operations and processes. As a result, a consensus has emerged within shipping companies that there is a compelling need to shift to true broadband. Only VSAT broadband networks can deliver the high data speeds required by increasing communications needs, supporting a range of critical onboard applications.

VSAT communications enable vessels at sea to share business and operational data in a way which cannot be supported by existing L-band offerings. Communications with suppliers, port authorities, Enterprise Resource Planning (ERP) systems, video surveillance, real time operational data exchange and unlimited crew access to the internet can all be facilitated.

The commercial shipping market continues to see migration from narrowband to broadband connectivity, which is the main driver of revenue growth in this sub-segment. Commercial shipping is a core part of our maritime business where we supply a combination of VSAT, L-band, and land-based 4G/LTE networks to deliver communications across oceans and along the most difficult coastal locations in the world.

SGL operates its own Ku-band VSAT service (Aura) which provides maritime and enterprise customers with a managed connectivity service which brings broadband connectivity to vessels at sea and mobile land customers. The Aura managed mobility service enables any maritime vessel to roam seamlessly anywhere in the world, providing powerful global two-way internet connectivity for internet access, voice, monitoring and tracking capabilities so vessels, passengers and crew are always connected.

The investment in Aura provides a significant opportunity to grow both revenues and margins across our customer base. With the ability to build network architecture and add capacity when required, the solution is both scalable and future-proof. Customers have access to increased throughput with unlimited data volume consumption, customised coverage options and throughput packages. Taking ownership of the network means more flexible service terms and packages can be provided compared to those of competitors with the ability to increase bit rate in high-demand areas.

SGL continually invests in improving customer services and value and optimising internal costs. This allows the group to deliver a commonality of service levels and customer experience, centralising operational tasks in our back office shared service centres. The billing, support, and provisioning platforms at the heart of our network are based around proprietary technologies which enable us to provide a truly differentiated commercial offering to our customers.

As the demand for 'Internet of Things' type connectivity develops, SGL has invested in several platforms to facilitate customer access to these services across a managed services platform. This development will future proof the services we offer both in terms of customer requirements, and the ability to provision services from new satellite network operators.

We are maintaining a healthy order book for our VSAT Aura platform which increases in size, as a major contributor to our financial results and organic revenue growth. Our continued development of this platform will allow us to achieve further significant cost synergies through the further integration of our various networks and platforms. We continue to see growth in data connectivity across all the market verticals we serve and the multiple verticals in which we operate across diversified markets all have substantial growth opportunities.

The Aura network is backed by a 24/7/365 Networks Operating Centre (NOC) providing real time customer support, advanced monitoring, and reporting services to our customers. Customers are able to access full visibility of service level indicators directly from the network.

VSAT is now driving growth in the maritime sector. Contracts are typically of a 3-5 year-duration, with recurring revenues and high customer retention levels. The growing technological demands of VSAT operations has increased the need for scale, with managed services and value-added service platforms requiring increased operational support.

SGL is well positioned to offer a comprehensive portfolio of maritime communications and value-added services and having local scale and presence in all of the key maritime markets.

Demand for the Aura VSAT platform has continued to grow with a significant number of contracts with large vessel fleet operators having been signed since the financial year end. There is a strong installation pipeline which enables those contracts to stretch throughout the next financial year.


Satcom Global Limited (Registered number: 05208041)

Strategic Report
for the Year Ended 29 June 2023

KEY PERFORMANCE INDICATORS
The management team considers several key financial and operational performance indicators to assess the performance of the business against our key strategic priorities. These include:

- Sales: As a broad measure, our sales achievement measures the success of our business model and our ability
to develop our customer base.
- Sales and installation pipeline: Opportunities and vessels contracted with equipment yet to be installed.
- Network connections: The number of current subscribers to each of the connectivity services we offer.
- Average Revenue Per Unit (ARPU): The average monthly revenue generated by each of the connections on our
network.
- Capital Expenditure: Measures our investment in growth and development of our network and infrastructure
along with equipment supplied to operational vessels as part of service bundles.
- EBITDA: Measures the total group profitability before finance costs, taxation, depreciation, and amortisation.
- Network Availability: Measures our network uptime against our customer service level agreement of 99.9%
- Employee Turnover: measures the number of voluntary leavers during the year as a percentage of the average
number of employees in the year.

ON BEHALF OF THE BOARD:





Mr I A Robinson - Director


7 November 2024

Satcom Global Limited (Registered number: 05208041)

Report of the Directors
for the Year Ended 29 June 2023

The directors present their report with the financial statements of the company for the year ended 29 June 2023.

PRINCIPAL ACTIVITY
The principal activity of the company was that of distributing satellite communication equipment and provision of airtime.

DIVIDENDS
No dividends will be distributed for the year ended 29 June 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 30 June 2022 to the date of this report.

Mr R A Howes
Mr I A Robinson
Mr C Leydon

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, CLA Evelyn Partners Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





Mr I A Robinson - Director


7 November 2024

Report of the Independent Auditors to the Members of
Satcom Global Limited

Qualified opinion
We have audited the financial statements of Satcom Global Limited (the 'company') for the year ended 29 June 2023 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and 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, except for the effects of the matters described in the Basis for Qualified Opinion paragraph, the financial statements:
-give a true and fair view of the state of the company's affairs as at 29 June 2023 and of its loss for the period
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 qualified opinion
Intangible assets include a billing system at a revalued amount of $18m, the carrying value is based upon the directors' valuation as further explained in note 3 to the financial statements. Under the revaluation model, an intangible asset can be carried at a revalued amount provided that the fair value can be determined by reference to an active market. We believe that the billing system is unique and there is no active market for such assets. Therefore the billing system should be carried at its cost less accumulated amortisation and impairment losses. Accordingly, intangible assets should be reduced by $14m, retained profit brought forward should be reduced by $13.5m and profit for the period should be reduced by $0.5m.

Intangible fixed assets include development cost additions of $0.9m relating to apportioned staff costs relating to software development activities. Whilst specific activities are detailed for certain staff in a time recording system, this does not apply to all staff and therefore, due to the nature of the records, we have been unable to sufficiently verify the accuracy of proportions used for all staff members on research or development activities. Consequently we were unable to determine whether any adjustment to this amount was necessary.

Included in debtors are amounts receivable under finance leases of $2.7m which represent the net investment in the lease including the unguaranteed residual value accruing to the company. We have been unable to obtain sufficient appropriate evidence to verify the unguaranteed residual value and consequently we were unable to determine whether any adjustment to this amount was necessary.

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 qualified opinion.

Material uncertainty relating to going concern
We draw attention to Note 3 in the financial statements, which indicates that the group's $22m debt facility was due for expiry on 30 June 2024, and has been extended to 27 December 2024. We understand that whilst discussions are ongoing in respect of renewing these facilities, at the date of approving the financial statements there are no formal arrangements in place beyond 27 December 2024.

As stated in Note 3 these events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Notwithstanding the above, 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.

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

Report of the Independent Auditors to the Members of
Satcom Global Limited


Other information
The directors are responsible for the other information. The other information comprises the information in the 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the amounts receivable under finance leases as at 29 June 2023. We have concluded that where the other information refers to these or related balances, it may be materially misstated for the same reason.

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.

Matters on which we are required to report by exception
Except for the possible effects of the matters described in the basis for qualified opinion section of our report, 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.

Arising solely from the matters described in the basis for qualified opinion section of our report:
- we have not received all the information and explanations we require for our audit; and
- we were unable to determine whether adequate accounting records have been kept.

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:
- 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.


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page nine, 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
Satcom Global 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:

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.

We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation.

We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:
- making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;
- obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
- assessing the risk of management override including identifying and testing journal entries;
- challenging the assumptions and judgements made by management in its significant accounting estimates.

Our audit did not identify any key audit matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

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.




Donna Bulmer BA (Hons) ACA (Senior Statutory Auditor)
for and on behalf of CLA Evelyn Partners Limited
17 Queens Lane
Newcastle
NE1 1RN

7 November 2024

Satcom Global Limited (Registered number: 05208041)

Profit and Loss Account
for the Year Ended 29 June 2023

Period
1.7.21
Year Ended to
29.6.23 29.6.22
Notes $    $   

TURNOVER 5 35,229,195 34,050,643

Cost of sales 27,778,329 24,451,990
GROSS PROFIT 7,450,866 9,598,653

Administrative expenses 5,549,915 9,949,743
1,900,951 (351,090 )

Other operating income - 2,255,227
OPERATING PROFIT 7 1,900,951 1,904,137


Interest payable and similar expenses 9 1,950,248 1,659,382
(LOSS)/PROFIT BEFORE TAXATION (49,297 ) 244,755

Tax on (loss)/profit 10 (71,492 ) (276,704 )
PROFIT FOR THE FINANCIAL YEAR 22,195 521,459

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

22,195

521,459

Satcom Global Limited (Registered number: 05208041)

Balance Sheet
29 June 2023

2023 2022
Notes $    $    $    $   
FIXED ASSETS
Intangible assets 11 21,975,559 22,413,115
Tangible assets 12 575,394 341,997
22,550,953 22,755,112

CURRENT ASSETS
Stocks 13 1,381,589 1,209,512
Debtors 14 55,629,669 44,770,444
Cash at bank 415,884 216,568
57,427,142 46,196,524
CREDITORS
Amounts falling due within one year 15 65,212,917 54,137,161
NET CURRENT LIABILITIES (7,785,775 ) (7,940,637 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

14,765,178

14,814,475

PROVISIONS FOR LIABILITIES 18 2,183,285 2,254,777
NET ASSETS 12,581,893 12,559,698

CAPITAL AND RESERVES
Called up share capital 19 100 100
Fair value reserve 20 9,150,000 9,150,000
Profit and loss account 20 3,431,793 3,409,598
SHAREHOLDERS' FUNDS 12,581,893 12,559,698

The financial statements were approved by the Board of Directors and authorised for issue on 7 November 2024 and were signed on its behalf by:





Mr I A Robinson - Director


Satcom Global Limited (Registered number: 05208041)

Statement of Changes in Equity
for the Year Ended 29 June 2023

Called up Profit Fair
share and loss value Total
capital account reserve equity
$    $    $    $   
Balance at 1 July 2021 100 2,888,139 9,150,000 12,038,239

Changes in equity
Total comprehensive income - 521,459 - 521,459
Balance at 29 June 2022 100 3,409,598 9,150,000 12,559,698

Changes in equity
Total comprehensive income - 22,195 - 22,195
Balance at 29 June 2023 100 3,431,793 9,150,000 12,581,893

Satcom Global Limited (Registered number: 05208041)

Notes to the Financial Statements
for the Year Ended 29 June 2023

1. STATUTORY INFORMATION

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

The presentation currency of the financial statements is the US Dollar ($).


Monetary amounts in these financial statements are rounded to the nearest $.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention modified to include the revaluation of certain financial instruments at fair value.

Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the group will continue in operational existence for 12 months from the approval of the financial statements. However, the Directors are aware of certain material uncertainties which may cause double on the Groups ability to continue as a going concern.

The directors have prepared a cash flow forecast for the period to June 2026 which is used as the base case for determining the Group's ability to continue as a going concern. These forecasts indicate that the Group will have sufficient funds available to continue in operational existence for the period under review. However, the key assumption adopted by the directors in these forecasts is that the existing loan facility with Santander is renewed.

The Group's debt facility with Santander was refinanced on 8th December 2022 to a $22m facility. The original agreement was for this to be in place until 30 June 2024. An extension has been granted by Santander to extend the termination date to 27 December 2024.

The Directors are aware that by delaying the signing of the accounts in November 2024 the group has breached one of their bank covenants, in additional the leverage covenant was breached in June 2024. Santander have acknowledged this breach and agreed to provide the group with the additional time to file the accounts, agreeing the extension of the facility to December 2024 in the process.

Discussions with Santander on a new finance facility are ongoing and are expected to be concluded before the current facility expires in December 2024. However, at the date of the approval of the financial statements the Group has yet to receive any indicators that a refinanced facility is forthcoming. The directors are satisfied that the group will be able to secure the required financial support to support its future trading requirements before the current facilities expire.

The potential inability of the Group to refinance its borrowing facilities and the potential repayment of such facilities therefore represents a material uncertainty with respect to the Group's ability to continue as a going concern.

In forming their opinion on the going concern status of the Group the Directors have also considered the impact of ongoing global events and the impact these will have on the wider economy, and markets in which the Group operates. The risks facing the Group continue to be monitored by the Board, including its business model, cash flow forecast, solvency, liquidity and banking covenants.

Based on the above, the directors believe it is appropriate to prepare the financial statements on a going concern basis. However, the uncertainties around the potential repayment of the Groups debt facilities gives rise to a material uncertainty related to events and conditions that cast significant doubt on the Group's ability to continue as a going concern and, therefore, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation currently used being inappropriate.

Satcom Global Limited (Registered number: 05208041)

Notes to the Financial Statements - continued
for the Year Ended 29 June 2023

3. ACCOUNTING POLICIES - continued

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares;
- Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

The financial statements of the company are consolidated in the financial statements of Broadband Satellite Services Limited. These consolidated financial statements are available from its registered office, Tanners Bank, North Shields, Tyne and Wear, NE30 1JH.

Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is recognised to that the extent that there is a right to consideration.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.

The billing system has been included at the directors' valuation and it has not been amortised in the financial statements as it is subject to annual revaluations.

Amortisation 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:

Billing systemnot amortised
Development costs25% reducing balance

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 25% Straight line

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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.

Impairment of assets
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Satcom Global Limited (Registered number: 05208041)

Notes to the Financial Statements - continued
for the Year Ended 29 June 2023

3. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Satcom Global Limited (Registered number: 05208041)

Notes to the Financial Statements - continued
for the Year Ended 29 June 2023

3. ACCOUNTING POLICIES - continued

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.

Impairment of financial assets:
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets:
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Other financial liabilities:
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities:
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

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.




Satcom Global Limited (Registered number: 05208041)

Notes to the Financial Statements - continued
for the Year Ended 29 June 2023

3. ACCOUNTING POLICIES - continued
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.

Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period.

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments.

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 and other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Current and deferred tax assets and liabilities are not discounted.

Research and development
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Foreign currencies
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.

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.

Satcom Global Limited (Registered number: 05208041)

Notes to the Financial Statements - continued
for the Year Ended 29 June 2023

4. 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.

Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Residual Value of Finance Leases Recoverable
The Directors have changed the accounting estimate which underpins the calculation of the finance lease accounting for VSAT antenna equipment.

In the previous period, the residual value of the debtor was calculated on a 22.5% reducing balance basis; in the current year this estimate has been revised to 15% reducing balance.

As this is a change in accounting estimate the effect has been accounted for in the current period (prospectively); the effect of this change is an increase in reported profit of $55,000.

Billing system
Valuation of the billing system is calculated on a Net Present Value based on a 10-year Discounted Cash Flow model which accounts for estimated future income streams. A conservative view is taken on growth. This demonstrates that valuation of the Billing Value at $18mn is well within the valuation demonstrated by the Discounted Cash Flow model.

5. 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:

Period
1.7.21
Year Ended to
29.6.23 29.6.22
$    $   
Airtime 35,229,195 34,050,643
35,229,195 34,050,643

An analysis of turnover by geographical market is given below:

Period
1.7.21
Year Ended to
29.6.23 29.6.22
$    $   
United States of America 7,715,828 6,956,501
Asia 11,113,047 10,334,571
Europe and middle east 10,332,039 9,553,703
Oceania 6,068,281 7,205,868
35,229,195 34,050,643

6. EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 29 June 2023 nor for the period ended 29 June 2022.

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

Satcom Global Limited (Registered number: 05208041)

Notes to the Financial Statements - continued
for the Year Ended 29 June 2023

6. EMPLOYEES AND DIRECTORS - continued

Period
1.7.21
Year Ended to
29.6.23 29.6.22
$    $   
Directors' remuneration - -

7. OPERATING PROFIT

The operating profit is stated after charging:

Period
1.7.21
Year Ended to
29.6.23 29.6.22
$    $   
Depreciation - owned assets 157,603 164,062
Development costs amortisation 1,325,187 1,067,935
Foreign exchange differences 388,235 405,378

8. AUDITORS' REMUNERATION
Period
1.7.21
Year Ended to
29.6.23 29.6.22
$    $   
Fees payable to the company's auditors for the audit of the company's
financial statements

19,436

30,800

9. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.7.21
Year Ended to
29.6.23 29.6.22
$    $   
Bank loan interest 1,658,476 891,609
Invoice finance interest 15,278 213,889
Non bank interest on loans 276,494 553,884
1,950,248 1,659,382

10. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
Period
1.7.21
Year Ended to
29.6.23 29.6.22
$    $   
Deferred tax:
Origination and reversal of
timing differences (71,492 ) (276,704 )
Tax on (loss)/profit (71,492 ) (276,704 )

Satcom Global Limited (Registered number: 05208041)

Notes to the Financial Statements - continued
for the Year Ended 29 June 2023

10. TAXATION - continued

Reconciliation of total tax credit 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:

Period
1.7.21
Year Ended to
29.6.23 29.6.22
$    $   
(Loss)/profit before tax (49,297 ) 244,755
(Loss)/profit multiplied by the standard rate of corporation tax in the UK
of 20.480% (2022 - 19%)

(10,096

)

46,503

Effects of:
Expenses not deductible for tax purposes 19,006 42,986
Adjustments to tax charge in respect of previous periods (104,188 ) (897,941 )
Effect of change in corporation tax rate 5,912 149,098
Group relief 17,874 367,634
credit
respect of prior periods
Depreciation on ineligible assets - 15,016

Total tax credit (71,492 ) (276,704 )

11. INTANGIBLE FIXED ASSETS
Billing Development
system costs Totals
$    $    $   
COST
At 30 June 2022 18,000,000 12,451,525 30,451,525
Additions - 887,631 887,631
At 29 June 2023 18,000,000 13,339,156 31,339,156
AMORTISATION
At 30 June 2022 - 8,038,410 8,038,410
Amortisation for year - 1,325,187 1,325,187
At 29 June 2023 - 9,363,597 9,363,597
NET BOOK VALUE
At 29 June 2023 18,000,000 3,975,559 21,975,559
At 29 June 2022 18,000,000 4,413,115 22,413,115

12. TANGIBLE FIXED ASSETS
Plant and
machinery
$   
COST
At 30 June 2022 1,966,327
Additions 391,000
At 29 June 2023 2,357,327
DEPRECIATION
At 30 June 2022 1,624,330
Charge for year 157,603
At 29 June 2023 1,781,933
NET BOOK VALUE
At 29 June 2023 575,394
At 29 June 2022 341,997

Satcom Global Limited (Registered number: 05208041)

Notes to the Financial Statements - continued
for the Year Ended 29 June 2023

13. STOCKS
2023 2022
$    $   
Work-in-progress 306,642 164,575
Finished goods and goods for
resale 1,074,947 1,044,937
1,381,589 1,209,512

14. DEBTORS
2023 2022
$    $   
Amounts falling due within one year:
Trade debtors 5,371,908 4,239,414
Amounts owed by group undertakings 43,886,371 36,489,347
Amounts receivable in respect of finance
leases

768,885

434,579
Other debtors 386,676 312,079
Prepayments and accrued income 3,256,834 2,213,840
53,670,674 43,689,259

Amounts falling due after more than one year:
Amounts receivable in respect of finance
leases

1,958,995

1,081,185

Aggregate amounts 55,629,669 44,770,444

Finance lease receivables
20232022
$   $   
Gross amounts receivable under finance leases:
Within one year917,007600,739
In two to five years1,123,2561,413,504
2,040,2632,014,243
Unearned finance income687,617(498,479)
Present value of minimum lease payments receivable2,727,8801,515,764

The present value is receivable as follows:
Within one year768,855434,579
In two to five years1,958,9951,081,185
2,727,8801,515,764

Analysis of finance leases
The company enters into financial leasing arrangements for satellite communications equipment. The average term of finance leases entered into is three years.

Unguaranteed residual values of assets leased under finance leases at the reporting end date are estimated at $1,019,167 (2022 - $737,630).

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
$    $   
Bank loans and overdrafts (see note 16) 22,999,999 17,000,000
Payments on account 28,413 28,408
Trade creditors 10,033,105 8,281,677
Amounts owed to group undertakings 29,305,234 27,634,188
Tax 155,963 -
Social security and other taxes 75,069 -
Other creditors 912 -
Accruals and deferred income 2,614,222 1,192,888
65,212,917 54,137,161

Satcom Global Limited (Registered number: 05208041)

Notes to the Financial Statements - continued
for the Year Ended 29 June 2023

16. LOANS

An analysis of the maturity of loans is given below:

2023 2022
$    $   
Amounts falling due within one year or on demand:
Bank loans 22,999,999 17,000,000

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
$    $   
Bank loans 22,999,999 17,000,000

The bank loans are secured by fixed charges over the assets of the company.

18. PROVISIONS FOR LIABILITIES
2023 2022
$    $   
Deferred tax 2,183,285 2,254,777

Deferred
tax
$   
Balance at 30 June 2022 2,254,777
Credit to Profit and Loss Account during year (71,492 )
Balance at 29 June 2023 2,183,285

The deferred tax liability is made up of the following components:
20232022
$   $   

Fixed asset timing differences2,325,4822,558,540
Short term timing differences - trading(142,197)(303,763)
2,183,2852,254,777


19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: $    $   
100 Ordinary £1 100 100

All shares carry equal rights to voting, dividend distribution and on winding up.

20. RESERVES
Profit Fair
and loss value
account reserve Totals
$    $    $   

At 30 June 2022 3,409,598 9,150,000 12,559,598
Profit for the year 22,195 22,195
At 29 June 2023 3,431,793 9,150,000 12,581,793

Profit and loss account - includes all current and prior period retained profits and losses.

Fair value reserve - includes all current and prior period fair value movements.

Satcom Global Limited (Registered number: 05208041)

Notes to the Financial Statements - continued
for the Year Ended 29 June 2023

21. CONTINGENT LIABILITIES

The company is potentially subject to an additional tax charge relating to previous R&D relief claims submitted. The directors are confident that their tax position is supportable but this is currently under review by HMRC. Due to the tax complexities of the circumstances, it is not possible to provide a reasonable estimate of the liability and therefore no amount with respect to this has been recognised in the financial statements.

22. RELATED PARTY DISCLOSURES

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

23. ULTIMATE CONTROLLING PARTY

Broadband Satellite Services Limited is regarded by the directors as being the company's ultimate parent company.

A copy of the consolidated financial statements can be obtained via the Companies House website.

The ultimate controlling party is Mr B Howes and Mr I Robinson through their shareholding in Broadband Satellite Services Limited.