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REGISTERED NUMBER: 04592560 (England and Wales)















GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

FOR

SIGMA CONNECTED HOLDINGS LTD

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 8

Consolidated Statement of Profit or Loss 11

Consolidated Statement of Profit or Loss and Other
Comprehensive Income

12

Consolidated Statement of Financial Position 13

Company Statement of Financial Position 14

Consolidated Statement of Changes in Equity 15

Company Statement of Changes in Equity 16

Consolidated Statement of Cash Flows 17

Company Statement of Cash Flows 18

Notes to the Statements of Cash Flows 19

Notes to the Consolidated Financial Statements 20


SIGMA CONNECTED HOLDINGS LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 30 APRIL 2024







DIRECTORS: F H Kluever
M J Harfield
G E Gilburd
C Erasmus


REGISTERED OFFICE: Mclaren Building
46 Priory Queensway
Birmingham
West Midlands
B4 7LR


REGISTERED NUMBER: 04592560 (England and Wales)


SENIOR STATUTORY AUDITOR: Glenn Armon-Jones


INDEPENDENT AUDITORS: Barrow LLP
Statutory Auditor
Chartered Accountants
Jackson House
Station Road
Chingford
London
E4 7BU


BANKER: HSBC Bank PLC
60 Queen Victoria Street, London
EC4N 4TR
National Westminster Bank Plc
Chatham Customer Service Centre
ME4 4RT

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their strategic report of the company and the group for the year ended 30 April 2024.

BUSINESS REVIEW AND FUTURE OUTLOOK
Sigma Connected Holdings Ltd is the UK parent company for The Sigma Connected Group of companies ("The Sigma Connected Group") incorporating Sigma Connected Ltd. Sigma Connected Holdings Ltd forms part of the Digicall Group of companies, a South African outsource service provider with operations in the United Kingdom, Australia and South Africa.

In the year, Sigma Connected has maintained focus on its core objectives, ensuring our people are at the heart of everything we do and that we provide excellent service to our clients' customers. People centric, we continue to invest in our talent pool, advocate Impact Sourcing and promote lifelong career development to strengthen the depth of our people infrastructure. Thanks to the continued commitment shown by all our colleagues around the world, we ensured that clients and their customers continued to receive excellent service.

Sigma Connected has continued its growth journey during the period with the business delivering substantial revenue growth from long term, sustainable contracts. The continued growth has come via both the expansion of partnerships with Sigma Connected's existing customers and also through winning new clients, expanding our credit management, customer care and complaints handling service lines. Overall, this progress has driven revenue to in excess of £94.1m, an increase of 23% on prior year.

Diversification remains a key strategic priority and the Group remains committed to building on the existing framework and delivering new markets and sectors. Our third-party credit management service, McLaren Credit Services is focused on delivering an empathetic and compassionate service to customers. We have agreed 2 key partnerships in the year and these will deliver further growth into the next financial year. ReachOut, aimed at engaging and supporting vulnerable customers in debt, is continuing to provide support to those people most affected by the cost-of-living crisis.

Despite the global inflationary challenges experienced this year, Sigma Connected has been able to improve its margins through operational efficiency, cost control and commercial protection. Cash balances are at £4.4m with the in-year revenue growth being funded from free cash. The business does not carry any external debt funding.

Beyond the year-end, the business has continued to concentrate on its core objectives. Focussed on building diversification and business resilience beyond the core USP's of Energy & Credit, with a significant focus on Financial Services, Insurance, Water and Telecommunications. Growth of revenue has continued during the first half of the current financial year and the directors expect to drive further growth in the second half, continuing to build on the strong commercial progress delivered in the year to 30 April 2024.

As a conscientious corporate entity, we consistently recognise our obligation to society and the communities we serve. Our business framework serves as a well structured platform for articulating our position on environmental, social and governance (ESG) matters. This formalisation not only enhances the communication of our commendable initiatives within the business sphere, but also enables us to vigilantly monitor our progress as a responsible enterprise, both in the present and the future.

Regarding our environmental commitment, we have strengthened our reporting mechanisms, and as detailed below, have made a steadfast commitment to achieve carbon neutrality by the year 2030. We have also implemented a comprehensive compliance and risk management framework to identify potential risks and ensure adherence to the Bribery Act 2010, including labour rights issues. The board is fully dedicated to these principles, and we unequivocally denounce any involvement in human rights violations.

The results for the period show a turnover of £94,150,520 (2023: £76,501,778) and a profit before tax of £7,233,675 (2023: £1,318,533).

PRINCIPAL RISKS, UNCERTAINTIES AND SECTION 172 COMPLIANCE
There are a number of risks and uncertainties that could have a material impact on the group's future performance.

Financial risks and their management
As part of its ordinary activities, the group is exposed to a number of financial risks including liquidity risk and credit risk. The group proactively monitors these risks to ensure that they are managed appropriately.

Liquidity risk
Liquidity risk relates to the group's ability to meet the cash flow requirements of its operations. Liquidity is managed through regular review of working capital requirements and close dialogue with funding partners.

Credit risk
Credit risk principally relates to trade receivables from clients. Clients are continuously monitored to ensure that the credit lines offered are appropriate.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024


Commercial relationships
The group's business activity is centred on a core base of close commercial relationships. Any risk to the loss of these contracts is managed through regular reviews and contact with their relationship manager to ensure that the group responds to their needs and delivers the service levels that they expect.

Regulatory compliance
Failing to comply with regulatory requirements could result in the group having to suspend or permanently cease activities. The group has an in house compliance function, led by a regulatory specialist Director of Compliance, to ensure that the business operates in a compliant manner and keeps up to date with the regulatory changes occurring within the industry.

Personnel
Personnel risk focuses on the ability of the group to attract and retain skilled individuals to deliver its growth plans. The group employment policies, remuneration and benefits packages are regularly reviewed to ensure that they remain competitive with other companies. The group also monitors employees to identify high performing individuals and ensure that they are developed and progressed within the group.

IT systems
The ability to increase the scale of the technology infrastructure at pace whilst retaining a secure and compliant environment is paramount to delivering the group's growth strategy. The business manages this risk through continuous improvement methodology and continues to invest in developing the core systems to ensure that they remain current and compliant.

PRINCIPAL FINANCIAL INSTRUMENTS
The principal financial instruments used by the group, from which financial instrument risk arises, are as follows:

- Trade and other receivables
- Trade and other payables

SECTION 172(1) STATEMENT
Stakeholder engagement is central to the formulation and execution of our strategy and is critical in achieving long-term sustainable success. The needs of our different stakeholders as well as the consequences of any decision in the long term, are well considered by the Board. It is not always possible to provide positive outcomes for all stakeholders and the Board sometimes has to make decisions based on balancing the competing priorities of stakeholders. Our stakeholder engagement processes enable our Board to understand what matters to stakeholders and consider carefully all the relevant factors and to select the course of action that best leads to high standards of business conduct and success of The Sigma Connected Group in the long term. The principles underpinning S172 are not only considered at Board level, they are part of our culture. They are embedded in all that we do as a group. The differing interests of stakeholders are considered in the business decisions we make across the group, at all levels, and are reinforced by our Board setting the right tone from the top. All of the Board's significant decisions are subject to a S172 evaluation to identify the likely consequences of any decision in the long term and the impact of the decision on our stakeholders. In performing their duties during 2023/24, the Directors have had regard to the matters set out in S172 of the Companies Act 2006. You can read more on how the Board had regard to each matter, during the year, as follows:

S172 (1) (A) - The likely consequences of any decision in the long term
The directors understand the sector and business in which we operate. The strategy set by the directors is sustainable, profitable growth. The Board and Senior Leadership Team hold regular meetings to discuss the strategy and results of the business.

S172 (1) (B) - The interest of the business's employees
The group operates an equal opportunities employment policy and is opposed to all forms of discrimination. The group selection processes are non-discriminatory and always seek to give full and fair consideration to those with disabilities for all vacancies, taking into account their aptitudes and skills. In the event of employees becoming disabled, every effort is made to ensure their employment with the group continues and appropriate training arranged. So far as possible the group ensures that the training, career development and promotion of any disabled person is identical to that of a colleague who does not suffer from such a disability.

The business operates a People Forum where employee representatives are consulted with on matters affecting them and their colleagues.

The business has an annual survey of employees covering a wide range of subjects and the Senior Leadership Team act upon the results.


SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024


S172 (1) (C) - The need to foster the business relationships with suppliers, customers and others
The directors are aware that this is a key requirement to succeed in our strategy of long term growth.

Customers
We ensure that there is a continued focus on operational delivery to ensure that our customers receive excellent service. We measure and monitor key performance indicators with each customer on a weekly basis. Regular performance reviews with our customers enable us to improve on our performance.

Suppliers
The business is committed to working with our suppliers to meet the business needs. We work closely with the suppliers to ensure our standards are adhered to and they comply with their statutory obligations.

Others
The business expects all of its colleagues to uphold the highest standards when dealing with any party.

S172 (1) (D) - The impact of the business operations on the community and the environment
The group supports a range of organisations through charity partnerships, the Sigma Community Foundation and regular fund-raising activities.

S172 (1) (E) - The desirability of the business for maintaining a reputation for high standards of business conduct
The directors and Senior Leadership Team have a high level of knowledge of the business in which they operate. All employees are required to undergo tailored training in various subjects as part of their onboarding process and then again on an annual basis.

S172 (1) (F) - The need to act fairly between members of the Group
Our people are our most valuable asset, and the directors ensure that the business operates in a fair, transparent, responsible and equitable manner.

GREENHOUSE GAS EMISSIONS AND ENERGY CONSUMPTION
The group is accountable for 1391 tonnes of carbon dioxide equivalent emissions in 2024, in contrast to 1293 tonnes in 2023. The business remains committed to reducing their carbon footprint and to be carbon neutral by 2030. Emissions have been computed by first determining actual emissions for electricity and travel. For home working and commuting, calculations are based on an average of 250 employees, with an assumed 2 (2023:3) days of weekly travel. The methodology to calculate the information has been applied as follows.

GREENHOUSE GAS EMISSIONS AND ENERGY CONSUMPTION


Category
Emissions (KCO2)
2024
Emissions (KCO2)
2023
Offices consumed Heat, Light & Power 59,530 114,500
Home working consumed Heat, Light & Power 4,860 4,850
Business travel 807,000 393,670
Employee commuting 520,000 780,000
Per employee 790 735


SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

KEY PERFORMANCE INDICATORS
During the year, the business continued to operate a hybrid working model, utilising the existing Birmingham property and an extensive 'work from home' solution.

The directors are of the opinion that the main key performance indicators used within the business are debt portfolio analysis, customer satisfaction, contracted hours, recovery percentage and margins, together with the administrative and operational performance at each contract level. We had a strong year as a result of good growth on our key clients and by delivering the 2,744 (2023: 2,490) seats from our offshore and onshore centres.

11 (2023: 12) new client relationships were secured during the year.

ON BEHALF OF THE BOARD:





G E Gilburd - Director


21 October 2024

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their report with the financial statements of the company and the group for the year ended 30 April 2024.

PRINCIPAL ACTIVITIES
The principal activities of the group during the year was that of Business Process Outsourcing "BPO" services as well as being a holding company of Sigma Connected Group Limited. The company was also the holding company of Sigma Connected Limited.

DIVIDENDS
No dividends will be distributed for the year ended 30 April 2024.

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

F H Kluever
M J Harfield
G E Gilburd
C Erasmus

DONATIONS
During the year, the group and its employees made charitable donations of £22,968 (2023: £19,758) and made £Nil (2023: £Nil) donations to political parties.

DIRECTORS' INDEMNITY
As permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The Group also maintained Directors' and Officers' liability insurance during the year in respect of itself and its directors.

STATUTORY INFORMATION
Some of the information required to be disclosed under the Director's report are set out in the Strategic report in accordance with S.414C (11) CA 2006.

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 UK-adopted international accounting standards. 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.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 APRIL 2024


AUDITORS
The auditors, Barrow LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





G E Gilburd - Director


21 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SIGMA CONNECTED HOLDINGS LTD

Opinion
We have audited the financial statements of Sigma Connected Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the Consolidated Statement of Profit or Loss, the Consolidated Statement of Profit or Loss and Other Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the Company Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Company Statement of Cash Flows, 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 International Financial Reporting Standards (IFRSs) as adopted by the UK.
_
In our opinion:
-the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 30 April 2024 and of the group's profit for the year then ended;
-the group financial statements have been properly prepared in accordance with IFRSs as adopted by the UK;
-the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the UK and as applied in accordance with the provisions of the Companies Act 2006; and
-the financial statements 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
SIGMA CONNECTED HOLDINGS LTD


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 six, 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.

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.

Extent to which the audit was capable of detecting irregularities, including fraud
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. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the Members that presented a risk of material misstatement due to fraud.

We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates, and considered the risk of acts by the group which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with Companies Act 2006, the accounting standards, the Financial Conduct Authority's and tax regulations.

We focused on laws and regulations that could give rise to material misstatement in the financial statements. Our tests included, but were not limited to:

- Agreement of the financial statement disclosures to underlying supporting documentation;
- Enquiries of management, the group directors, and those responsible for legal and compliance procedures.; and
- Review of the minutes of board meetings throughout the period.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SIGMA CONNECTED HOLDINGS LTD


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.




Glenn Armon-Jones (Senior Statutory Auditor)
for and on behalf of Barrow LLP
Statutory Auditor
Chartered Accountants
Jackson House
Station Road
Chingford
London
E4 7BU

21 October 2024

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 30 APRIL 2024

30.4.24 30.4.23
Notes £    £   

CONTINUING OPERATIONS
Revenue 94,150,520 76,501,778

Cost of sales (70,935,289 ) (60,127,222 )
GROSS PROFIT 23,215,231 16,374,556

Other operating income 3,415 123,689
Administrative expenses (15,987,277 ) (15,126,545 )
OPERATING PROFIT 7,231,369 1,371,700

Finance costs 5 (106,470 ) (72,747 )

Finance income 5 108,777 19,580
PROFIT BEFORE INCOME TAX 6 7,233,676 1,318,533

Income tax 7 (347,216 ) (1,618 )
PROFIT FOR THE YEAR 6,886,460 1,316,915
Profit attributable to:
Owners of the parent 6,886,460 1,316,915

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

30.4.24 30.4.23
£    £   

PROFIT FOR THE YEAR 6,886,460 1,316,915

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

6,886,460

1,316,915

Total comprehensive income attributable to:
Owners of the parent 6,886,460 1,316,915

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 APRIL 2024

30.4.24 30.4.23
Notes £    £   
ASSETS
NON-CURRENT ASSETS
Owned
Property, plant and equipment 9 668,967 1,086,942
Right-of-use
Property, plant and equipment 9, 18 898,969 669,055
Investments 10 - -
Loans and other financial assets 11 - -
Trade and other receivables 12 - 243,055
1,567,936 1,999,052
CURRENT ASSETS
Trade and other receivables 12 25,287,438 21,459,366
Cash and cash equivalents 13 4,487,352 728,099
29,774,790 22,187,465
TOTAL ASSETS 31,342,726 24,186,517
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 14 7,041 7,041
Share premium 15 5,382,873 5,382,873
Retained earnings 15 15,816,491 8,930,031
TOTAL EQUITY 21,206,405 14,319,945
LIABILITIES
NON-CURRENT LIABILITIES
Financial liabilities - borrowings
Interest bearing loans and borrowings 17 741,383 295,013
CURRENT LIABILITIES
Trade and other payables 16 8,859,185 8,110,600
Financial liabilities - borrowings
Interest bearing loans and borrowings 17 186,919 1,459,341
Tax payable 348,834 1,618
9,394,938 9,571,559
TOTAL LIABILITIES 10,136,321 9,866,572
TOTAL EQUITY AND LIABILITIES 31,342,726 24,186,517


The financial statements were approved by the Board of Directors and authorised for issue on 21 October 2024 and were signed on its behalf by:




G E Gilburd - Director


SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

COMPANY STATEMENT OF FINANCIAL POSITION
30 APRIL 2024

30.4.24 30.4.23
Notes £    £   
ASSETS
NON-CURRENT ASSETS
Owned
Property, plant and equipment 9 - -
Right-of-use
Investments 10 2,775,003 2,775,002
Loans and other financial assets 11 4,875,000 4,875,000
7,650,003 7,650,002
CURRENT ASSETS
Trade and other receivables 12 29,856 43
Cash and cash equivalents 13 331,917 375,230
361,773 375,273
TOTAL ASSETS 8,011,776 8,025,275
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 14 7,041 7,041
Share premium 15 5,382,873 5,382,873
Retained earnings 15 2,598,146 2,598,146
TOTAL EQUITY 7,988,060 7,988,060
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 16 23,716 33,445
Financial liabilities - borrowings
Interest bearing loans and borrowings 17 - 3,770
23,716 37,215
TOTAL LIABILITIES 23,716 37,215
TOTAL EQUITY AND LIABILITIES 8,011,776 8,025,275


The financial statements were approved by the Board of Directors and authorised for issue on 21 October 2024 and were signed on its behalf by:





G E Gilburd - Director


SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 May 2022 7,041 7,613,116 5,382,873 13,003,030

Changes in equity
Total comprehensive income - 1,316,915 - 1,316,915
Balance at 30 April 2023 7,041 8,930,031 5,382,873 14,319,945

Changes in equity
Total comprehensive income - 6,886,460 - 6,886,460
Balance at 30 April 2024 7,041 15,816,491 5,382,873 21,206,405

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 May 2022 7,041 2,699,077 5,382,873 8,088,991

Changes in equity
Total comprehensive loss - (100,931 ) - (100,931 )
Balance at 30 April 2023 7,041 2,598,146 5,382,873 7,988,060

Changes in equity
Balance at 30 April 2024 7,041 2,598,146 5,382,873 7,988,060

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024

30.4.24 30.4.23
£    £   
Cash flows from operating activities
Cash generated from operations 1 5,442,689 (1,692,077 )
Interest paid (38,555 ) (6,331 )
Lease interest paid (67,915 ) (66,416 )
Government grants - 125,936
Tax paid - (158,675 )
Net cash from operating activities 5,336,219 (1,797,563 )

Cash flows from investing activities
Purchase of tangible fixed assets (1,338,569 ) (1,386,778 )
Sale of tangible fixed assets 478,878 -
- 2
Interest received 108,777 19,580
Net cash from investing activities (750,914 ) (1,367,196 )

Cash flows from financing activities
Group loan raised - 1,003,769
Lease liabilities (826,052 ) 254,471
Net cash from financing activities (826,052 ) 1,258,240

Increase/(decrease) in cash and cash equivalents 3,759,253 (1,906,519 )
Cash and cash equivalents at beginning of
year

2

728,099

2,634,618

Cash and cash equivalents at end of year 2 4,487,352 728,099

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024

30.4.24 30.4.23
£    £   
Cash flows from operating activities
Cash generated from operations 1 (46,873 ) 2,573
Interest paid - (5,074 )
Tax paid - (158,675 )
Net cash from operating activities (46,873 ) (161,176 )

Cash flows from investing activities
Purchase of fixed asset investments (1 ) -
Interest received 3,561 2,473
Net cash from investing activities 3,560 2,473

Cash flows from financing activities
New loans in year - (500,000 )
Net cash from financing activities - (500,000 )

Decrease in cash and cash equivalents (43,313 ) (658,703 )
Cash and cash equivalents at beginning of
year

2

375,230

1,033,933

Cash and cash equivalents at end of year 2 331,917 375,230

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024

1. RECONCILIATION OF PROFIT/LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

Group
30.4.24 30.4.23
£    £   
Profit before income tax 7,233,676 1,318,533
Depreciation charges 1,018,018 1,322,405
Loss on disposal of fixed assets 29,734 335,276
Government grants - (125,936 )
Finance costs 106,470 72,747
Finance income (108,777 ) (19,580 )
8,279,121 2,903,445
Increase in trade and other receivables (2,036,361 ) (4,711,554 )
(Decrease)/increase in trade and other payables (800,071 ) 116,032
Cash generated from operations 5,442,689 (1,692,077 )

Company
30.4.24 30.4.23
£    £   
Loss before income tax - (100,931 )
Finance costs - 5,074
Finance income (3,561 ) (2,473 )
(3,561 ) (98,330 )
(Increase)/decrease in trade and other receivables (29,813 ) 630,833
Decrease in trade and other payables (13,499 ) (529,930 )
Cash generated from operations (46,873 ) 2,573

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statements of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Group Company
Year ended 30 April 2024
30.4.24 1.5.23 30.4.24 1.5.23
£    £    £    £   
Cash and cash equivalents 4,487,352 728,099 331,917 375,230
Year ended 30 April 2023
30.4.23 1.5.22 30.4.23 1.5.22
£    £    £    £   
Cash and cash equivalents 728,099 2,634,618 375,230 1,033,933

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024


1. STATUTORY INFORMATION

Sigma Connected Holdings Ltd 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 General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparation
These annual financial statements have been prepared on the going concern basis in accordance with, and in compliance with, UK-adopted International Accounting Standards and the UK Endorsement Board interpretations issued and effective at the time of preparing these annual financial statements and with those parts of the Companies Act 2006 applicable to companies reporting under International Financial Reporting Standards (IFRSs) as adopted by the UK.

These annual financial statements have been prepared under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Some of the items within these financial statements have been reclassified to improve the comparability, reliability and relevance of the financial statements.

The principal accounting policies applied and changes to significant accounting policies are set out and described below where applicable.

Basis of consolidation
Subsidiaries are all entities over which the group has the power to govern the financial and operating policies generally acquiring a shareholding of more than one half of the voting rights. Subsidiaries are consolidated from the date on which control is transferred to the group. They are de-consolidated from the date that control ceases.

The group accounts for business combinations and the acquisition of subsidiaries, using the acquisition method of accounting. The cost of the business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Costs directly attributable to the business combination are expensed as incurred, except the costs to issue debt which are amortised as part of the effective interest.

The acquiree's identifiable assets acquired and contingent liabilities which meet the recognition conditions of IFRS 3 Business combinations are recognised at their fair values at the acquisition date, irrespective of the extent of any non- controlling interest, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 - Non-current assets Held For Sale and Discontinued Operations, which are recognised at fair value less costs to sell.

Goodwill is determined as the consideration paid, plus the fair value of any shareholding held prior to obtaining control, plus non-controlling interest and less the fair value of their identifiable assets and liabilities of the acquiree. In the case of a bargain purchase, the excess of the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, and the difference is recognised directly in the statement of comprehensive income.

Intragroup transactions, balances and unrealised gains on transactions between group companies are eliminated.

Going concern
The group's management accounts, forecasts, and projections, as well as its trading profits, indicate a favourable outlook for the upcoming years. It is anticipated that the group will continue to operate on a going concern basis within the available facilities. Consequently, the directors are of the opinion that the group possesses adequate resources to sustain its operational existence and effectively manage its financial position for at least the next twelve months from the date of the approval of these financial statements. Hence, these financial statements have been prepared on a going concern basis.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Furthermore, the directors have assessed that there are no significant uncertainties that could raise substantial doubts regarding the group's ability to continue as a going concern for a minimum of twelve months from the approval date of the financial statements (referred to as the "going concern period"). The Directors are not aware of any changes in the business structure that would impact the group, nor are there any structural changes required to maintain its status as a going concern. Additionally, there are no intentions to cease the group's operations within the next twelve months from the date of the approval of the financial statements.

Revenue recognition
Revenue is recognised using a five step model as follows:

- Identify the contract with a customer
- Identify the performance obligations
- Determine the transaction price
- Allocate the transaction price to the performance obligations
- Recognise revenue as and when performance obligations are satisfied

The group recognises revenue from the provision of:

- Business process outsourcing services
- Telecommunications services via contact centres

The contract with the customer is agreed upon between the customer and the group before services are rendered. The contract will stipulate the price that can be charged for the services rendered.

Revenue derived from the provision of professional services is recognised once the group has satisfied its performance obligations to the customer.

Most of the group's revenue is derived from fixed price contracts and therefore the amounts of revenue to be earned from each contract is determined by reference to those fixed prices. For fixed term contracts revenue is recognised as services are delivered over the term of the contract, for fixed price contracts revenue is recognised once the defined services have been performed.

For service contracts there is a fixed price for each service rendered. There is therefore no judgement involved in allocating the contract price to the services delivered for each customer. Where a customer orders more than one type of service, the group is able to determine the split of the total contract price between each type of service provided by reference to each service's standalone price.

Cash and cash equivalents
Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position.

Property, plant and equipment
An item of property, plant and equipment is recognised as an asset when it is probable that future economic benefits associated with the item will flow to the group, and the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost. Cost includes all of the expenditure which is directly attributable to the acquisition or construction of the asset, including the capitalisation of borrowing costs on qualifying assets and adjustments in respect of hedge accounting, where appropriate.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Property, plant and equipment is subsequently stated at cost less accumulated depreciation and any accumulated impairment losses.

Short leasehold - Over the term of the lease
Fixtures and fittings - Straight line over 3 years
Computer equipment - Straight line over 3 years

The residual value, useful life and depreciation method of each asset are reviewed at the end of each reporting year. If the expectations differ from previous estimates, the change is accounted for prospectively as a change in accounting estimate.

The depreciation charge for each year is recognised in profit or loss unless it is included in the carrying amount of another asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in profit or loss when the item is derecognised. The gain or loss arising from derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

The group assesses at the each end of the reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the group estimates the recoverable amount of the asset.

If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss.

An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately in profit or loss. Any impairment loss of a revalued asset is treated as a revaluation decrease.

Financial instruments
Initial recognition and measurement

Financial instruments held by the group are classified in accordance with the provisions of IFRS 9 Financial Instruments. Broadly, the classification possibilities which are adopted by the group as applicable, are as follows:

Financial assets which are equity instruments:

- Mandatorily at fair value through profit or loss; or
- Designated as at fair value through other comprehensive income. (This designation is not available to equity instruments which are held for trading or which are contingent consideration in a business combination).

Financial assets which are debt instruments:

Amortised cost - This category applies only when the contractual terms of the instrument give rise, on specified dates, to cash flows that are solely payments of principal and interest on principal, and where the instrument is held under a business model whose objective is met by holding the instrument to collect contractual cash flows. This includes trade receivables, loans to group companies, other financial assets and cash and cash equivalents.

Financial liabilities:
Amortised cost which include borrowings raised, trade payables, loans from group companies and overdraft facilities.

Financial risk management presents the financial instruments held by the group based on their specific classifications.

The specific accounting policies for the classification, recognition and measurement of each type of financial instrument held by the group are presented below:

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Financial Assets held at fair value through profit or loss (FVTPL)

Classification

Financial assets that are held within a different business model other than "hold to collect" or 'hold to collect and sell' are categorised at FVTPL. Further, irrespective of the business model financial assets whose contractual cash flows are not solely payments of principal and interest are accounted for at FVTPL.

The group's investment in unit trusts are classified as held at FVTPL and did not make the irrevocable election to account for the investment in unit trusts at fair value through other comprehensive income.

Recognition and measurement

Financial assets are recognised when the group becomes a party to the contractual provisions of the financial instrument.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial assets and substantially all the risks and rewards are transferred.

Financial assets through profit or loss are initially measured at fair value with transactions costs recognised in profit or loss. The fair value of investments in unit trusts is derived from quoted bid prices in an active market.

Loans receivable at amortised cost

Classification

Loans to / from group companies and other loan receivables are classified as financial assets subsequently measured at amortised cost.

They have been classified in this manner because the contractual terms of these loans give rise, on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding, and the group's business model is to collect the contractual cash flows on these loans.

Recognition and measurement

Loans receivable are recognised when the group becomes a party to the contractual provisions of the loan. The loans are measured, at initial recognition, at fair value plus transaction costs, if any.

They are subsequently measured at amortised cost.

The amortised cost is the amount recognised on the loan initially, minus principal repayments, plus cumulative amortisation (interest) using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance.

Impairment of loans receivable

The group recognises a loss allowance for expected credit losses on all loans receivable measured at amortised cost. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective loans.

The group measures the loss allowance at an amount equal to lifetime expected credit losses (lifetime ECL) when there has been a significant increase in credit risk since initial recognition. If the credit risk on a loan has not increased significantly since initial recognition, then the loss allowance for that loan is measured at 12 month expected credit losses (12 month ECL).

Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a loan. In contrast, 12 month ECL represents the portion of lifetime ECL that is expected to result from default events on a loan that are possible within 12 months after the reporting date.


SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued
In order to assess whether to apply lifetime ECL or 12 month ECL, in other words, whether or not there has been a significant increase in credit risk since initial recognition, the group considers whether there has been a significant increase in the risk of a default occurring since initial recognition rather than at evidence of a loan being credit impaired at the reporting date or of an actual default occurring.

Significant increase in credit risk

In assessing whether the credit risk on a loan has increased significantly since initial recognition, the group compares the risk of a default occurring on the loan as at the reporting date with the risk of a default occurring as at the date of initial recognition.

The credit risk on a loan is always presumed to have increased significantly since initial recognition if the contractual payments are more than 60 days past due, unless the group has reasonable and supportable information that demonstrates otherwise.

By contrast, if a loan is assessed to have a low credit risk at the reporting date, then it is assumed that the credit risk on the loan has not increased significantly since initial recognition.

The group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increases in credit risk before the amount becomes past due.

Measurement and recognition of expected credit losses

The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default.

The assessment of the probability of default and loss given default is based on historical data adjusted by forward looking information as described above. The exposure at default is the gross carrying amount of the loan at the reporting date.

Lifetime ECL is measured on a collective basis in cases where evidence of significant increases in credit risk are not yet available at the individual instrument level. Loans are then grouped in such a manner that they share similar credit risk characteristics, such as nature of the loan, external credit ratings (if available), industry of counterparty etc.

The grouping is regularly reviewed by management to ensure the constituents of each group continue to share similar credit risk characteristics.

If the group has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the group measures the loss allowance at an amount equal to 12 month ECL at the current reporting date, and vice versa.

An impairment gain or loss is recognised for all loans in profit or loss with a corresponding adjustment to their carrying amount through a loss allowance account. The impairment loss is included in other operating expenses in profit or loss as a movement in credit loss allowance.

Trade and other receivables

Classification

Trade and other receivables, excluding, when applicable, VAT and prepayments, are classified as financial assets and subsequently measured at amortised cost.

They have been classified in this manner because their contractual terms give rise, on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding, and the group's business model is to collect the contractual cash flows on trade and other receivables.

Recognition and measurement

Trade and other receivables are recognised when the group becomes a party to the contractual provisions of the receivables. They are measured, at initial recognition, at fair value plus transaction costs, if any.


SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued
They are subsequently measured at amortised cost.

The amortised cost is the amount recognised on the receivable initially, minus principal repayments, plus cumulative amortisation (interest) using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance.

Impairment of trade and other receivables

The group recognises a loss allowance for expected credit losses on trade and other receivables, excluding VAT and prepayments. The amount of expected credit losses is updated at each reporting date.

The group measures the loss allowance for trade and other receivables at an amount equal to the life-time expected credit losses (lifetime ECL), which represents the expected credit losses that will result from all possible default events over the expected lifetime of the receivables.

Measurement and recognition of expected credit losses

Refer to note "Trade receivables" for detailed explanation of the ECL allowance calculation.

The customer base does not show significantly different loss patterns for different customer segments. The loss allowance is calculated on a collective basis for all trade and other receivables in totality.

An impairment gain or loss is recognised in profit or loss with a corresponding adjustment to the carrying amount of trade and other receivables, through use of a loss allowance account. The impairment loss is included in other operating expenses in profit or loss as a movement in credit loss allowance.

Cash and cash equivalents

Classification, recognition and measurement

Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially recorded at their carrying amount which is deemed to be fair value and subsequently carried at amortised cost.

Impairment

For financial assets carried at amortised cost, with the exception of trade receivables, the group distinguishes between financial assets that have not deteriorated significantly in credit quality since initial recognition or that have low risk (stage 1); financial assets that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (stage 2) and financial assets where objective evidence of impairment exists at the reporting date (stage 3).

For financial assets in Stage 1, 12 month ECL are recognised while for financial assets in Stage 2 and Stage 3, lifetime ECL are recognised.

The group only deposits cash with major banks with high quality credit standing and limits exposure to any one counter- party, therefore cash and cash equivalents are considered low risk and the credit risk of the borrowers did not increase significantly during the period.

Financial liabilities at amortised cost

Classification

Financial liabilities at amortised cost comprise borrowings raised (cumulative preference shares), loans from group companies, trade and other payables and overdraft facilities.

The group does not have financial liabilities through profit or loss in accordance with IFRS 9.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Recognition and measurement

Financial liabilities are measured at fair value at initial recognition plus transactions costs directly attributable to the issuance of the financial liability in the case of financial liabilities not subsequently measured at fair value through profit or loss. After initial recognition, financial liabilities are measured at amortised cost using the effective interest rate method.

The difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in accordance with the group's accounting policy on borrowing costs.

Dividends paid and accrued on cumulative preference shares are recognised as finance costs over the term of the preference shares.

Taxation
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantively enacted by the statement of financial position date.

Current tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the taxation authorities, using the taxation rates (and taxation laws) that have been enacted or substantively enacted by the end of the reporting period.

Current and deferred taxes are recognised as income or an expense and included in profit or loss for the period, except to the extent that the tax arises from:

- the fair value, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the group, plus
- any costs directly attributable to the purchase of the subsidiary.

Current tax and deferred tax are charged or credited to other comprehensive income if the tax relates to items that are credited or charged, in the same or a different period, to other comprehensive income.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the statement of financial position date. Timing differences are differences between the group's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

Deferred tax is measured at the average rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. Deferred tax is measured on a non-discounted basis. A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing difference can be deducted.

The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred taxation is measured on a non-discounted basis at the average tax rates that would apply when the timing differences are expected to reverse, based on tax rates and laws that have been enacted by the statement of financial position date.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Research and development
Research and development expenditure is written off as incurred, except that development expenditure incurred on an individual project is capitalised as an intangible asset when the group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development. Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised evenly over the period of expected future benefit. During the period of development the asset is tested for impairment annually.

Leases
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

Operating leases
Leases of assets to the group under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Operating lease rentals are charged against trading profit on a straight-line basis over the term of the relevant lease, unless another systematic basis is more representative of the time pattern of use benefit. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Finance leases
The Group has leases for the call centres, an office, plant and machinery and some IT equipment. With the exception of short term leases and leases of low-value underlying assets, each lease is reflected on the statement of financial position as a right-of-use asset and a lease liability. Variable lease payments which do not depend on an index or a rate (such as lease payments based on a percentage of Group sales) are excluded from the initial measurement of the lease liability and asset. The Group classifies its right-of-use assets in a consistent manner to its property, plant and equipment.

Leases are recognised as right-of-use assets and corresponding liabilities at the date at which the leased assets are available for use by the Group. The right-of-use assets are presented separately in the statement of financial position, except for right-of-use assets that meet the definition of investment property which is presented in the statement of financial position in a separate line item - "investment property". At the commencement date, lease liabilities are measured at an amount equal to the present value of the following lease payments for the underlying right-of-use assets during the lease term:

- fixed payments (including in-substance fixed payments), less any lease incentives receivable;
- variable lease payments that are based on an index or a rate;
- amounts expected to be payable by the Group under residual value guarantees;
- the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
- payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.

The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, or the group's incremental borrowing rate.

Each lease payment is allocated between the liability and finance cost. Lease liabilities are subsequently measured using the effective interest method. The carrying amount of liability is remeasured to reflect any reassessment, lease modification or revised in-substance fixed payments.

The lease term is a non-cancellable period of a lease; periods covered by options to extend and terminate the lease are only included in the lease term if it is reasonably certain that the lease will be extended or not terminated.

Right-of-use assets are measured initially at cost comprising the following:

- the amount of the initial measurement of the lease liability;
- any lease payments made at or before the commencement date less any lease incentives received;
- any initial direct costs; and
- restoration costs.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Subsequently, the right-of-use assets, are measured at cost less accumulated depreciation and any accumulated impairment losses, and adjusted for remeasurement of the lease liability due to reassessment or lease modifications.

The right-of-use assets are depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

Payments associated with all short-term leases and certain leases of all low-value assets are recognised on a straight-line basis as an expense in profit or loss. The group applies the exemption for low-value assets on a lease-by-lease basis i.e. for the leases where the asset is sub-leased, a right-of-use asset is recognised with corresponding lease liability; for all other leases of low-value assets, the lease payments associated with those leases will be recognised as an expense on a straight-line basis over the lease term.

- Short-term leases are leases with a lease term of 12 months or less.
- Low-value assets comprise computers, tablets, mobile phones and small items of office furniture.

Employee benefit costs
The group operates defined contribution schemes. Contributions payable to the group's pension schemes are charged to the profit and loss account in the period to which they relate. The schemes funds are independently administered.

Provisions and contingencies
The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement shall be recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset. The amount recognised for the reimbursement shall not exceed to amount of the provision.

Share capital and equity
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Ordinary shares are classified as equity. Mandatorily redeemable preference shares are classified as liabilities.

If the group reacquires its own equity instruments, the consideration paid, including any directly attributable incremental costs (net of income taxes) on those instruments are deducted from equity until the shares are cancelled or reissued. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the group's own equity instruments. Consideration paid or received shall be recognised directly in equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Ordinary shares are recognised at no par value and classified as 'share capital' in equity.

Investments in subsidiaries
Investments in subsidiaries are carried at cost less any accumulated impairment. This excludes investments which are held for sale and are consequently accounted for in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

The cost of an investment in a subsidiary is 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, plus
- any costs directly attributable to the purchase of the subsidiary.

And adjustment to the cost of a business combination contingent on future events is included in the cost of the combination if the adjustment is probable and can be measured reliably.

Impairment of property, plant and equipment and other tangible assets
The group assesses at the end of each reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the group estimates the recoverable amount of the asset.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is determined.

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss.

An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately in profit or loss. Any impairment loss of a revalued asset is treated as a revaluation decrease.

The group assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for assets other than goodwill may no longer exist or may have decreased. If any such indication exists, the recoverable amounts of those assets are estimated.

The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods.

A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation is recognised immediately in profit or loss. Any reversal of an impairment loss of a revalued asset is treated as a revaluation increase.

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

Purchased loan book
The loan book purchased for £779,000 in the year ended 31 December 2009 was fully written off in the 2013 period.

In the directors' opinion as at 30 April 2024 the purchased loan book had no significant material value on the basis that anticipated future incomes are although expected to be materially different from the costs of collection but given the quantum of transactions and uncertainty attached to the recoverability, it is prudent not to recognise the fully impaired historical loan book balance. The director's opinion remains unchanged and as a consequence, the carrying value is again reported at £nil at 30 April 2024.

Provisions and contingencies
The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement shall be recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset. The amount recognised for the reimbursement shall not exceed to amount of the provision.

Provisions are not recognised for future operating leases.

Contingent assets and contingent liabilities are not recognised.

New standards and interpretations
In the current year, the group has adopted the following standards and interpretations that are effective for the current financial year and that are relevant to its operations. The new or revised standards or interpretations adopted during the year did not have a material impact on the financial position of the company.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Standard Title of Standard or Interpretation Effective date
IFRS 3 References to the Conceptual Framework (Amendments to IFRS 3) 1 January 2022
IAS 16 Proceeds before Intended Use (Amendments to IAS 16) 1 January 2022
IAS 37 Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) 1 January 2022
IFRS 1, IFRS
9,IFRS 16 and
IAS 41

Annual Improvements to IFRS Standards 2018-2020 Cycle (Amendments to IFRS 1,
IFRS 9, IFRS 16, IAS 41)


1 January 2022
IFRS 17 Amendments to IFRS 17 Insurance Contracts 1 January 2023

IFRS 17
Initial Application of IFRS 17 and IFRS 9 – Comparative Information (Amendment to
IFRS 17)

1 January 2023

IFRS 4
Extension of the Temporary Exemption from Applying IFRS 9(Amendments to IFRS
4)

1 January 2023

IAS 12
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
(Amendments to IAS 12)

1 January 2023
IAS 8 Definition of Accounting Estimates (Amendments to IAS 8) 1 January 2023
IAS 1 Disclosure of Accounting Policies (Amendments to IAS 1 and Practice Statement 2) 1 January 2023
IAS 12 International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12) 1 January 2023

IFRS for SMEs
International Tax Reform – Pillar Two Model Rules (Amendments to the IFRS for
SMEs Standard)

1 January 2023

Standards and interpretations not yet effective
The company has chosen not to early adopt the following standards and interpretations, which have been published and are mandatory for the company’s accounting periods beginning on or after 1 January 2024 or later periods:


Standard Title of Standard or Interpretation Effective date
IAS 1 Classification of Liabilities as Current or Non-current (Amendments to IAS 1) 1 January 2024
IFRS 16 Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) 1 January 2024
IAS 7 and IFRS
7

Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)

1 January 2024
IAS 21 Lack of Exchangeability (Amendments to IAS 21) 1 January 2025

Entities that early adopt IFRS 17 must apply IFRS 9 before or on the same date.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of annual financial statements in conformity with IFRS requires management, from time to time, to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. These estimates and associated assumptions are based on experience and various other factors that are believed to be reasonable under the circumstances. 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 estimates are revised and in any future periods affected.

Critical judgements in applying accounting policies
Management did not make critical judgements in the application of accounting policies, apart from those involving estimations, which would significantly affect the financial statements.

Key sources of estimation uncertainty

Financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The group uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the group's past history, existing market conditions as well as forward looking estimates at the end of each reporting period. For details of the key assumptions and inputs used, refer to the individual notes addressing financial assets.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY - continued

Trade receivables
Trade receivables are impaired using the simplified approach in terms of IFRS 9. Expected credit losses (ECL) are determined by applying bad debts written off in the past year to the total credit sales in order to determine the historical loss ratio. This is applied to the receivables balance.

The simplified impairment model has been applied by the group as trade receivables do not contain a significant financing component. The default terms of collection is 60 days. In accordance with the model, lifetime expected credit losses are required to be recognised. As the maturities are 12 months or less, the 12 month and lifetime ECLs will be the same.

The new impairment model allows entities to calculate ECLs on trade receivables and requires that historical provision rates be updated with current and forward looking estimates. This was performed by calculating historical loss rates (actual credit losses as a percentage of credit sales). These rates were calculated for the current year and two prior years. The historical loss rate was then applied to the trade receivables balance at year end in order to calculate the ECL. No forward looking adjustment was deemed necessary as the group does not consider that any significant change in credit conditions will occur.

The calculated ECL was then compared to the current provision for bad debts to establish whether any additional provision was required.

Property, plant, equipment and intangible assets - impairment
The group reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. When such indicators exist, management determine the recoverable amount by performing value in use and fair value calculations. These calculations require the use of estimates and assumptions. When it is not possible to determine the recoverable amount for an individual asset, management assesses the recoverable amount for the cash generating unit to which the asset belongs.

The recoverable amounts of cash-generating units and individual assets have been determined based on the higher of value-in-use calculations and fair values less costs to sell. These calculations require the use of estimates and assumptions. It is reasonably possible that the assumptions may change which may then impact our estimations and may then require a material adjustment to the carrying value of goodwill and tangible assets.

Provisions
Judgement is required in relation to methods and assumptions used when estimating future cash flows required to settle present obligations for which provisions are required.

Taxation
Judgement is required in determining the provision for income taxes due to the complexity of legislation. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

The group recognises the net future tax benefit related to deferred income tax assets to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future. Assessing the recoverability of deferred income tax assets requires the group to make significant estimates related to expectations of future taxable income. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the group to realise the net deferred tax assets recorded at the end of the reporting period could be impaired.

Impairments
Impairment is recognised where management believe that there is an indication of impairment i.e. carrying amounts of an asset exceeds its recoverable amount. Significant assets to the company and group are investments. The investments are regularly reviewed and management considered no impairment occurred during the year.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024


CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY - continued

The group holds investments in the subsidiaries and in accordance with the management judgement and future strategy of the business. The management has conducted their review by calculating the net present value of the future cash flows by incorporating the growth in adjusted EBITDA (calculated as adjusted operating profit before depreciation and amortisation), timing and the amount of future capital expenditure, long-term growth rates and appropriate discount rates to reflect the risks involved. The review concluded that the carrying value of the investments of £5.5m (£2.75m in Sigma Connected Group Limited and £2.75m in Sigma Connected Limited) are not impaired.

Loan book value - management has considered the net future economic benefit of the purchased loan book. The director's opinion remains unchanged and as a consequence, the carrying value is again reported at £nil at 30 April 2024 (as disclosed in the accounting policy note).

Revenue recognition
The Company and group recognises revenue from the provision of services provided through a service contract and as the activity progresses. In making its judgement as to the value of work performed and the estimate of costs to complete the contractual services (including any foreseeable cost overruns), management consider that while there is a degree of judgement in determining these factors, there is sufficient certainty to ensure that the Company and Group meets the requirements of IFRS in relation to revenue recognition.

4. EMPLOYEES AND DIRECTORS
30.4.24 30.4.23
£    £   
Wages and salaries 44,832,307 41,426,989
Social security costs 3,852,163 3,405,108
Other pension costs 1,044,360 977,910
49,728,830 45,810,007

The average number of employees during the year was as follows:
30.4.24 30.4.23

Fee earner 1,537 1,588
Administration 68 57
Direct support 173 165
1,778 1,810

The average number of employees employed by undertakings that are consolidated for the reporting period are detailed above. No employees were employed by the parent company during the period (2023: the same).

30.4.24 30.4.23
£    £   
Directors' remuneration 766,201 601,867
Directors' pension contributions to money purchase schemes 8,553 11,197

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

4. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
30.4.24 30.4.23
£    £   
Emoluments etc 458,701 359,107
Pension contributions to money purchase schemes - 4,000

5. NET FINANCE INCOME
30.4.24 30.4.23
£    £   
Finance income:
Deposit account interest 104,503 16,357
Other interest receivable 3,561 2,109
Directors' loan interest 713 1,114
108,777 19,580
Finance costs:
Bank interest 19,335 -
Interest payable 19,220 6,331
Leasing interest 67,915 66,416
106,470 72,747

Net finance income 2,307 (53,167 )

6. PROFIT BEFORE INCOME TAX

The profit before income tax is stated after charging:
30.4.24 30.4.23
£    £   
Depreciation - owned assets 661,101 861,228
Depreciation - assets on finance leases 356,917 461,177
Loss on disposal of fixed assets 29,734 335,276
Auditors' remuneration 46,000 46,200
Auditors' remuneration for non audit work 8,000 12,000
Foreign exchange differences 8,339 993

7. INCOME TAX

Analysis of tax expense
30.4.24 30.4.23
£    £   
Current tax:
Corporation tax 347,216 1,618
Total tax expense in consolidated statement of profit or loss 347,216 1,618

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

7. INCOME TAX - continued

Factors affecting the tax expense
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30.4.24 30.4.23
£    £   
Profit before income tax 7,233,676 1,318,533
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 -
19.493 %)

1,808,419

257,022

Effects of:
Expenses not deductible for tax purposes 29,744 24,395
of depreciation
Amounts not recognised - (301,843 )
Adjustments to tax charge in respect of previous period (1,618 ) (70 )
Tax rate changes - (2,619 )
Losses (1,489,329 ) 24,733
Tax expense 347,216 1,618

On 17 November 2022 changes to the UK corporation tax rates were announced in the Chancellor's autumn statement. These include increasing the main UK corporation tax rate from 19% to 25%, effective from 1 April 2023 for companies with profits in excess of £250,000. The rate for small profits under £50,000 will remain at 19%. Where group's profits fall between £50,000 and £250,000, it will be able to claim an amount of marginal relief, providing a gradual increase in the corporation tax rate.

UNRECOGNISED DEFERRED TAX ASSET
Deferred tax assets have been recognised in respect of all temporary differences giving rise to deferred tax assets where the directors believe it is probable that these assets will be recovered.

Deferred taxation in respect of the timing differences which are expected to reverse on or after 1 April 2023 is therefore re-measured at 25% on 30 April 2023 (2023: 25%), dependent on the group's expected profits.

Fixed assets
Deferred tax asset has been recognised on the losses to the extent they are required to cover the deferred tax liability arising on the fixed asset timing differences.

Tax losses and temporary differences
The group offsets tax assets and liabilities if and only if it has a legally enforceable right to off-set current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. The group has corporation tax losses that arose before 1 April 2017 in the United Kingdom of £3,803,199 (2023 - £10,412,083) available to carry forward to offset against future taxable profits.

No deferred tax asset has been recognised due to the uncertainty as to the timing and quantum of the recovery of these losses within the group. The total amount of unprovided deferred tax £950,800 (2023: £2,603,021) is as follows:


30.04.24 30.04.23
£    £   
Fixed asset timing differences 81,363 159,195
Timing difference - trading (21,511 ) (19,018 )
Losses 890,948 2,462,844
Total deferred tax asset 950,800 2,603,021

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

8. PROFIT OF PARENT COMPANY

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. The parent company's profit for the financial year was £0 (2023 - £(100,931) loss).


9. PROPERTY, PLANT AND EQUIPMENT

Group
Right-of-use
Property, Fixtures
plant and Short and Computer
equipment leasehold fittings equipment Totals
£    £    £    £    £   
COST
At 1 May 2023 1,084,927 69,274 25,202 1,864,419 3,043,822
Additions 1,057,611 - 29,447 251,511 1,338,569
Disposals (1,084,927 ) - (11,106 ) (306,064 ) (1,402,097 )
At 30 April 2024 1,057,611 69,274 43,543 1,809,866 2,980,294
DEPRECIATION
At 1 May 2023 415,872 69,274 14,237 788,442 1,287,825
Charge for year 356,917 - 8,704 652,397 1,018,018
Eliminated on disposal (614,147 ) - (7,294 ) (272,044 ) (893,485 )
At 30 April 2024 158,642 69,274 15,647 1,168,795 1,412,358
NET BOOK VALUE
At 30 April 2024 898,969 - 27,896 641,071 1,567,936
At 30 April 2023 669,055 - 10,965 1,075,977 1,755,997

The directors have undertaken an impairment review, which takes into account future cash flows. This exercise has confirmed the "value in use" supports the continued recognition of these assets, with sufficient headroom to accommodate any reasonably foreseeable events or changes in circumstances.

10. INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 May 2023 2,775,002
Additions 1
At 30 April 2024 2,775,003
NET BOOK VALUE
At 30 April 2024 2,775,003
At 30 April 2023 2,775,002

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

10. INVESTMENTS - continued

Company

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

Sigma Connected Group Limited
Registered office: Mclaren Building, 46 Priory Queensway, Birmingham, England, B4 7LR
Nature of business: Holding company
%
Class of shares: holding
239,333 Ordinary shares A 100.00
3,596,278 Ordinary shares B 100.00
30.4.24 30.4.23
£    £   
Aggregate capital and reserves 2,762,366 2,762,366

Sigma Red Limited
Registered office: Mclaren Building, 46 Priory Queensway, Birmingham, England, B4 7LR
Nature of business: Dormant
%
Class of shares: holding
1 Ordinary share A 100.00
30.4.24 30.4.23
£    £   
Aggregate capital and reserves (8,913,029 ) (8,913,029 )

Sanclare (UK) Limited
Registered office: Mclaren Building, 46 Priory Queensway, Birmingham, England, B4 7LR
Nature of business: Dormant
%
Class of shares: holding
1 Ordinary share A 100.00
30.4.24 30.4.23
£    £   
Aggregate capital and reserves (19,169 ) (19,169 )

Recodebt Limited
Registered office: Mclaren Building, 46 Priory Queensway, Birmingham, England, B4 7LR
Nature of business: Holding company
%
Class of shares: holding
1,000 Ordinary shares class A 100.00
3 Ordinary shares class B 100.00
30.4.24 30.4.23
£    £   
Aggregate capital and reserves 94,863 94,863

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

10. INVESTMENTS - continued

Company

Sigma Connected Limited
Registered office: Mclaren Building, 46 Priory Queensway, Birmingham, England, B4 7LR
Nature of business: Provision of credit management services
%
Class of shares: holding
2,775,100 Ordinary shares A 100.00
30.4.24 30.4.23
£    £   
Aggregate capital and reserves 15,926,425 9,036,960
Profit for the year 6,899,465 1,513,170

The Sigma Financial Group Limited
Registered office: Mclaren Building, 46 Priory Queensway, Birmingham, England, B4 7LR
Nature of business: Dormant
%
Class of shares: holding
2,635 Ordinary shares A 100.00
30.4.24 30.4.23
£    £   
Aggregate capital and reserves 100 100

Clanchatton Birmingham Limited
Registered office: Mclaren Building, 46 Priory Queensway, Birmingham, England, B4 7LR
Nature of business: Dormant
%
Class of shares: holding
5 Ordinary shares A 100.00
30.4.24 30.4.23
£    £   
Aggregate capital and reserves 5 5

Mclaren Credit Services Limited
Registered office: Mclaren Building, 46 Priory Queensway, Birmingham, England, B4 7LR
Nature of business: Dormant
%
Class of shares: holding
1 Ordinary Share A 100.00
30.4.24 30.4.23
£    £   
Aggregate capital and reserves 1 1

Sigma Connected Proprietary Limited
Registered office: Level 1, 6-10 O’Connell Street, Sydney, NSW 2000, Australia
Nature of business: Provision of credit management services
%
Class of shares: holding
1 Ordinary Share 100.00
30.4.24 30.4.23
£    £   
Aggregate capital and reserves (547,686 ) (544,294 )
(Loss)/profit for the year (3,392 ) 3,268

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

10. INVESTMENTS - continued

Company

Sigma Connected US LLC
Registered office: Sigma Connected, C/O The Corporation Trust Company, 1209 Orange Street, City of Wilmington, County of New Castle, Delaware 19801, United States
Nature of business: Provision of credit management services
%
Class of shares: holding
1 Ordinary Share 100.00
30.4.24
£   
Aggregate capital and reserves 471
Profit for the year 470

11. LOANS AND OTHER FINANCIAL ASSETS

Company
Loans to
group
undertakings
£   
At 1 May 2023
and 30 April 2024 4,875,000

Loans to subsidiary companies
The loans to subsidiary companies are not of a commercial nature and are therefore interest-free, with no fixed repayment terms. These loans are intended to provide the subsidiaries with a source of additional capital. The company can recall these loans when cash is required.

12. TRADE AND OTHER RECEIVABLES

Group Company
30.4.24 30.4.23 30.4.24 30.4.23
£    £    £    £   
Current:
Trade debtors 13,894,017 14,060,606 - -
Amounts owed by group undertakings 1,548,656 - 29,856 -
Amounts recoverable on contract 275,463 226,852 - -
Other debtors 14,382 148,444 - 43
Directors' loan accounts 30,000 30,000 - -
Prepayments and accrued income 9,524,920 6,993,464 - -
25,287,438 21,459,366 29,856 43
Non-current:
Amounts recoverable
on contract - 243,055 - -
- 243,055 - -

Aggregate amounts 25,287,438 21,702,421 29,856 43

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

12. TRADE AND OTHER RECEIVABLES - continued

The group manages credit risk associated with trade receivables by dealing with reputable customers, using credit scoring models, and obtaining collateral or guarantees when necessary. Credit limits are set and continuously monitored. The group follows IFRS 9 for loss allowances on trade receivables, using a provision matrix based on past default experience and economic conditions. Credit loss provision is determined based on past due status, including within credit terms, over 60 days, over 90 days, and over 120 days. There have been no significant changes in credit risk management policies since the prior reporting period. The fair value of trade and other receivables approximates their carrying amounts.

Contract assets are recognised to the extent that performance obligations have been performed by the group and that revenue has been recognised in accordance with IFRS 15 Revenue from contracts with customers, but for which the group's right to consideration is not yet unconditional. When the right to consideration become unconditional, the contract asset is transferred to trade receivables.

13. CASH AND CASH EQUIVALENTS

Group Company
30.4.24 30.4.23 30.4.24 30.4.23
£    £    £    £   
Bank accounts 4,487,352 728,099 331,917 375,230

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.4.24 30.4.23
value: £    £   
7,041 Ordinary £1 7,041 7,041

15. RESERVES

Group
Retained Share
earnings premium Totals
£    £    £   

At 1 May 2023 8,930,031 5,382,873 14,312,904
Profit for the year 6,886,460 6,886,460
At 30 April 2024 15,816,491 5,382,873 21,199,364

Company
Retained Share
earnings premium Totals
£    £    £   

At 1 May 2023 2,598,146 5,382,873 7,981,019
Profit for the year - -
At 30 April 2024 2,598,146 5,382,873 7,981,019


SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

16. TRADE AND OTHER PAYABLES

Group Company
30.4.24 30.4.23 30.4.24 30.4.23
£    £    £    £   
Current:
Trade creditors 544,169 1,704,746 3,163 7,344
Amounts owed to group undertakings 2,613,564 1,043,225 - -
Other taxation and social
security 3,156,367 3,284,525 - -
Other creditors 349,305 393,603 6,703 11,737
Accruals and deferred income 2,195,780 1,684,501 13,850 14,364
8,859,185 8,110,600 23,716 33,445

Amounts owed to group undertakings are all unsecured, repayable on demand and non-interest bearing.

The fair value of trade and other payables approximates their carrying amounts.

17. FINANCIAL LIABILITIES - BORROWINGS

Group Company
30.4.24 30.4.23 30.4.24 30.4.23
£    £    £    £   
Current:
Other loans - 1,003,769 - 3,770
Leases (see note 18) 186,919 455,572 - -
186,919 1,459,341 - 3,770

Non-current:
Leases (see note 18) 741,383 295,013 - -


Terms and debt repayment schedule

Group

1 year or
less 1-2 years Totals
£    £    £   
Leases 186,919 741,383 928,302

Loan from fellow group subsidiary
During the reporting period, the group repaid a loan to its fellow subsidiary, Blue Pie (UK) Ltd. The £Nil (2023: £1,000,000) working capital loan is repayable on demand and bears interest capped at the Consumer Price Index (CPI) plus an additional 10% multiplied by 1.235.

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

18. LEASING

Group
Right-of-use assets

Property, plant and equipment

30.4.24 30.4.23
£    £   
COST
At 1 May 2023 1,084,927 1,963,364
Additions 1,057,611 634,118
Disposals (1,084,927 ) (1,512,555 )
1,057,611 1,084,927

DEPRECIATION
At 1 May 2023 415,872 1,467,250
Charge for year 356,917 461,177
Eliminated on disposal (614,147 ) (1,512,555 )
158,642 415,872

NET BOOK VALUE 898,969 669,055

Group
Lease liabilities

Minimum lease payments fall due as follows:

30.4.24 30.4.23
£    £   
Gross obligations repayable:
Within one year 262,967 492,639
Between one and five years 854,642 303,116

1,117,609 795,755

Finance charges repayable:
Within one year 76,048 37,067
Between one and five years 113,259 8,103
189,307 45,170

Net obligations repayable:
Within one year 186,919 455,572
Between one and five years 741,383 295,013
928,302 750,585

SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

19. PENSION COMMITMENTS

The group operates defined contribution pension schemes in respect of staff and directors. The charges for the year to this scheme were £997,054 (2023: £849,044). The number of directors to whom retirement benefits were accruing was 2 (2023: 2). There was £181,431 (2023: £164,401) outstanding contributions at the end of the year.

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 April 2024 and 30 April 2023:

30.4.24 30.4.23
£    £   
M J Harfield
Balance outstanding at start of year 30,000 30,000
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 30,000 30,000

Included within receivables is an amount of £30,000 owing to the group by the director for which, interest at 2.5% per annum is charged by the group.

21. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the group
Sigma Connected (PTY) Limited
Fellow Subsidiary

During the year the group purchased services in the sum of £26,643,109 (2023: £19,167,388) from Sigma Connected (PTY) Limited.

During the year group provided management services of £1,877,000 (2023: £1,783,500) to Sigma Connected (PTY) Limited.

During the year the group received management services of £160,401 (2023: £82,905) from Sigma Connected (PTY) Limited.

At 30 April 2024 the group had an amount owed to Sigma Connected (PTY) Limited of £2,579,547 (2023: £522,932) relating to recharge of costs.

At 30 April 2024 the group had an amount owed by Sigma Connected (PTY) Limited of £1,547,000 (2023: £2,563,737) relating to recharge of costs.

Digicall Management Services (Pty) Ltd
Fellow Subsidiary

During the year the group received management services of £440,162 (2023: £410,133) from Digicall Management Services (Pty) Ltd.

At 30 April 2024 the group had an amount owed to Digicall Management Services (Pty) Ltd of £36,883 (2023: £430,642) relating to provision of management services.


SIGMA CONNECTED HOLDINGS LTD (REGISTERED NUMBER: 04592560)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

21. RELATED PARTY DISCLOSURES - continued

Blue Pie Services (Pty) Ltd
Fellow Subsidiary

During the year the group received management services of £271,440 (2023: £253,680) from Blue Pie Services (Pty) Ltd.

At 30 April 2024 the group had an amount owed to Blue Pie Services (Pty) Ltd of £Nil (2023: £63,420) relating to provision of management services.

Other related parties

Industrial & Commercial Consultancy Limited
Key Personnel Management

Industrial & Commercial Consultancy Limited is the company secretary. Martyn Harfield, the director of Industrial & Commercial Consultancy Limited, is connected to Michael Harfield, a director of the group. During the period, Industrial & Commercial Consultancy Limited charged £46,000 (2023: £46,000) for the provision of consultancy services. These were paid in full during the period.

Williams Harfield Sports Limited
Key Personnel Management

Williams Harfield Sports Limited, is connected to Michael Harfield, a director of the group. During the period, Williams Harfield Sports Limited charged £33,600 (2023: £33,600) for the provision of consultancy services. These were paid in full during the period.

Key management personnel compensation
Directors and key staff

The total remuneration of directors and other key staff members in 2024 (including salaries and other benefits) was £2,012,420 (2023: £1,244,639).

22. ULTIMATE PARENT AND CONTROLLING PARTY

The largest group in which the results of the UK group are consolidated is headed by Digicall Holdings (Pty) Ltd. The consolidated financial statements of Digicall Holdings (Pty) Ltd are kept at its registered office:

110 Conrad Drive
Craighall Office Park
Craighall Park
Johannesburg
2196
South Africa

23. UNAUDITED SUBSIDIARIES

The following dormant subsidiaries incorporated in the UK have not been audited, availing themselves of the exemption under Section 480 of the Companies Act 2006.

Sigma Red Limited, Sanclare (UK) Limited, The Sigma Financial Group Limited, McLaren Credit Services Limited and Clanchatton Birmingham Limited.

Additionally, the newly incorporated entity, Sigma Connected US LLC, has not been audited and included in these consolidated financial statements by applying the exemption available under IFRS 10.